Federal Circuits, 9th Cir. (August 02, 2005)
Docket number: 04-15044
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U.S. Court of Appeals for the 9th Cir. - DOE V KAMEHAMEHA SCHOOLS (9th Cir. 2006)
Kathleen M. Sullivan, Stanford, CA, and David Schulmeister, Cades Schutte, L.L.P., Honolulu, HI, for the defendants-appellees.
Patrick M.K. Richardson, McCracken, Byers & Haesloop, L.L.P., San Mateo, CA, for the amici curiae.Appeal from the United States District Court, for the District of Hawaii, Alan C. Kay, District Judge, Presiding. D.C. No. CV-03-00316-ACK.Before BEEZER, GRABER, and BYBEE, Circuit Judges.BYBEE, Circuit Judge.Since 1887, the Kamehameha Schools have operated as the charitable legacy of Princess Bernice Pauahi Bishop, the last direct descendant of King Kamehameha I. Private and non-sectarian, the Kamehameha Schools give preference to students who are of native Hawaiian ancestry. As a result of this policy, attendance at the Kamehameha Schools is effectively limited to those descended from the Hawaiian race. The issue considered here is a significant one in our statutory civil rights law: May a private, nonsectarian, commercially operated school, which receives no federal funds, purposefully exclude a student qualified for admission solely because he is not of pure or part aboriginal blood? The parties agree that this is a case of first impression in our circuit.The plaintiff, John Doe, appeals the district court's grant of summary judgment in favor of defendants, the Kamehameha Schools and the Bernice Pauahi Bishop Estate and its individual trustees. He argues that he was denied entry to the Kamehameha Schools because of his race in violation of 42 U.S.C. 1981, which forbids racial discrimination in the making and enforcement of contracts. For the following reasons, we agree with Doe and find that the Schools' admissions policy, which operates in practice as an absolute bar to admission for those of the non-preferred race, constitutes unlawful race discrimination in violation of § 1981. Accordingly, we reverse the district court's decision granting summary judgment to the Kamehameha Schools.* The facts are not in dispute. The Kamehameha Schools comprises a system of private, nonsectarian schools which are dispersed among the Hawaiian Islands. See EEOC v. Kamehameha Schs./Bishop Estate, 990 F.2d 458, 461 (9th Cir.1993).The school system was founded in 1887 under a "charitable testamentary trust established by the last direct descendent of [Hawaii's] King Kamehameha I, Princess Bernice Pauahi Bishop." Burgert v. Lokelani Bernice Pauahi Bishop Trust, 200 F.3d 661, 663 (9th Cir.2000). At the time of her death in 1884, Princess Pauahi Bishop was the largest landowner in Hawai`i, owning approximately one-tenth of the aggregate lands. Her will provided that the bulk of her estate should be placed in a charitable trust "to erect and maintain in the Hawaiian Islands two schools, each for boarding and day scholars, one for boys and one for girls, to be known as, and called the Kamehameha Schools." Will of Bernice Pauahi Bishop, reprinted in WILLS AND DEEDS OF TRUST 17-18 (3d ed.1957) (hereinafter "Pauahi Bishop Will"). See also Kamehameha Schs./Bishop Estate, 990 F.2d at 459.Under the direction of the original trustees, chaired by Pauahi's husband, Charles Reed Bishop, both schools opened shortly after her death; the boys' school in the Fall of 1887 and the girls' in the Fall of 1894. The two schools were consolidated into one coeducational institution during the 1965-66 academic year. Currently, the Kamehameha Schools operate K-12 campuses on three separate islands, Kapalama (O'ahu), Pukalani (Maui), and Kea`au (Island of Hawai`i), enrolling more than 16,000 children annually. While the Schools subsidize much of the educational costs through funds held in trust, annual tuition remains at $1,784 for K-12th grade students, with approximately sixty-five percent of those enrolled receiving some form of financial aid.1Pauahi's will contains several instructions pertaining to the administration of the Kamehameha Schools, none of which establish race as an admissions criteria. She directs that all students attending the Kamehameha Schools should be provided "first and chiefly a good education in the common English branches, and also instruction in morals and in such useful knowledge as may tend to make good and industrious men and women" and, in addition, that "the teachers of said schools shall forever be persons of the Protestant religion." Pauahi Bishop Will at 18-19. See also Kamehameha Schs./Bishop Estate, 990 F.2d at 461 (concluding that the Schools do not fall within any of the three religious exemptions provided in Title VII and, therefore, the failure to consider a non-Protestant teacher on account of her religion was discriminatory). She further instructs that a portion of the trust's annual income should be devoted "to the support and education of orphans, and others in indigent circumstances, giving the preference to Hawaiians of pure or part aboriginal blood." Pauahi Bishop Will at 18. While this racial preference is expressly listed as a criterion for the administration of estate resources charitably directed to orphans and indigents, the Will is notably devoid of any mention of race as a criterion for admission into the Kamehameha Schools. As the Schools' 1885 Prospectus observed: "The noble minded Hawaiian chiefess who endowed the Kamehameha Schools, put no limitations of race or condition on her general bequest. Instruction will be given only in English language, but The Schools will be opened to all nationalities."2Rather than institute race as an admissions prerequisite, Pauahi left to her Trustees the discretion "to regulate the admission of pupils" and "to make all such rules and regulations as they may deem necessary for the government" of the Kamehameha Schools. Pauahi Bishop Will at 18. The original trustees determined, however, that it was Pauahi's intent to prefer students of native Hawaiian ancestry. Specifically, the policy articulated by Charles Bishop was that "boys and girls of pure or part aboriginal blood . . . should have preference; that is[,] they should have the first right." Accordingly, the admissions process at Kamehameha currently proceeds in two phases: first, the applicant must demonstrate that he possesses the minimum qualifications necessary to meet the Schools' rigorous academic standards and, second, he must complete an "Ethnic Ancestry Survey" designed to verify his aboriginal blood. The Schools forthrightly admit that as long as there are qualified students who possess at least some native Hawaiian ancestry, they will be admitted before even the most qualified of those who lack aboriginal blood. It is this "Hawaiians first" admissions policy that motivates the instant controversy.The plaintiff-appellant, John Doe, twice sought admission to the Kamehameha Schools and, having met the academic requirements for admission, was twice determined to be a "competitive applicant." After completing the Ethnic Ancestry Survey, in which he acknowledged that he possessed no aboriginal blood, his application was each time, as expected, denied. Still desiring to attend the Kamehameha Schools, Doe filed suit alleging that the Schools' admissions policy violates 42 U.S.C. 1981, as amended by the Civil Rights Act of 1991, Pub.L. No. 102-166, 105 Stat. 1071. Concluding that the admissions policy constituted a valid race-conscious remedial affirmative action program, the district court entered summary judgment in favor of the Kamehameha Schools and the Bernice Pauahi Bishop Estate. Doe v. Kamehameha Schs./Bernice Pauahi Bishop Estate, 295 F.Supp.2d 1141, 1172 (D.Haw.2003). This appeal followed.IIBefore proceeding to analyze the question presented in this appeal, it is worth clarifying those which are not. Specifically, the Kamehameha Schools does not contest, and candidly admits, that its admissions process is based upon an express racial classification. Cf. Rice v. Cayetano, 528 U.S. 495, 514, 120 S.Ct. 1044, 145 L.Ed.2d 1007 (2000) ("Ancestry can be a proxy for race."). The School does not attempt to justify its admissions policy by appealing to a First Amendment right to freedom of association, see Runyon v. McCrary, 427 U.S. 160, 176, 96 S.Ct. 2586, 49 L.Ed.2d 415 (1976) ("Invidious private discrimination may be characterized as a form of exercising freedom of association protected by the First Amendment, but it has never been accorded affirmative constitutional protections."); nor does it explicitly argue for a relaxed level of scrutiny by appealing to the political nature of classifications premised on membership in a federally recognized Indian tribe. See Morton v. Mancari, 417 U.S. 535, 94 S.Ct. 2474, 41 L.Ed.2d 290 (1974) (upholding a Bureau of Indian Affairs hiring preference for Native Americans under rational basis scrutiny due to the unique relationship between the federal government and members of federally recognized Indian tribes). See also Rice, 528 U.S. at 518, 120 S.Ct. 1044 (declining to extend Mancari to uphold a race-based voting restriction for native Hawaiians absent "some beginning premises not yet established in [the Court's] case law"; namely, that Congress "has determined that native Hawaiians have a status like that of Indians in organized tribes"). We are, likewise, not presented with a challenge to the racially discriminatory admissions policy of a public school or a school which accepts federal funding. See, e.g., Gratz v. Bollinger, 539 U.S. 244, 275-76 & n. 23, 123 S.Ct. 2411, 156 L.Ed.2d 257 (2003) (applying strict scrutiny to a racial preference challenged under the Equal Protection Clause); Grutter v. Bollinger, 539 U.S. 306, 343, 123 S.Ct. 2325, 156 L.Ed.2d 304 (2003) (same).Instead, we are confronted with a question of statutory origin: whether a private school, receiving no federal funds, may legitimately restrict admission to those of the native Hawaiian race. In other words, does the Kamehameha Schools' "Hawaiians first" admissions policy constitute invidious discrimination in violation of § 1981? The district court concluded that it does not. Because the issue is one of law, we review that decision de novo. See, e.g., Desir v. Ilchert, 840 F.2d 723, 726 (9th Cir.1988) (stating that "questions concerning the requirements of the applicable statutes . . . are questions of law, which we review de novo") (internal quotation marks omitted).IIIBecause the Kamehameha Schools admits that its admissions process is premised upon an express racial classification, we must first identify the standard of scrutiny that should be applied to proffered justifications for the racially discriminatory program. Two obvious contenders exist: strict scrutiny, such as that used to analyze challenges brought under the Fourteenth Amendment's Equal Protection Clause; or the more deferential form of scrutiny employed to resolve challenges brought pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (2004).If strict scrutiny applies to the plaintiff's § 1981 challenge, the Schools must demonstrate that its admissions program is a "narrowly tailored measure[ ] that further[s] compelling governmental interests." Adarand Constructors, Inc. v. Pena, 515 U.S. 200, 227, 115 S.Ct. 2097, 132 L.Ed.2d 158 (1995). On the other hand, if Title VII scrutiny applies to this § 1981 suit, the Schools must merely "present evidence that the plaintiff was rejected, or the other applicant was chosen, for a legitimate nondiscriminatory reason." Patterson v. McLean Credit Union, 491 U.S. 164, 187, 109 S.Ct. 2363, 105 L.Ed.2d 132 (1989) (emphasis added).The plaintiff-appellant argues that strict scrutiny is the only method of review sufficiently rigorous to enforce the substantive commands of § 1981. He urges that although the McDonnell Douglas burden-shifting framework and order of proof is frequently applied to § 1981 suits, Title VII's substantive legal standards are inapplicable in this context. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). We disagree. To explain our disagreement, a brief preliminary discussion of the complicated history of § 1981 is useful.* Section 1981 was originally enacted pursuant to section two of the Thirteenth Amendment as part of the Civil Rights Act of 1866. Act of Apr. 9, 1866, ch. 31, § 1, 14 Stat. 27. "The principal object of the legislation was to eradicate the Black Codes, laws enacted by Southern legislatures imposing a range of civil disabilities on freedmen." Gen. Bldg. Contractors Ass'n v. Pennsylvania, 458 U.S. 375, 386, 102 S.Ct. 3141, 73 L.Ed.2d 835 (1982). Section 1 of the Civil Rights Act provided:That all persons born in the United States and not subject to any foreign power, excluding Indians not taxed, are hereby declared to be citizens of the United States; and such citizens, of every race and color, without regard to any previous condition of slavery or involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall have the same right, in every State and Territory in the United States, to make and enforce contracts, to sue, be parties, and give evidence, to inherit, purchase, lease, sell, hold, and convey real and personal property, and to full and equal benefit of all laws and proceedings for the security of person and property, as is enjoyed by white citizens, and shall be subject to like punishment, pains, and penalties, and to none other, any law, statute, ordinance, regulation, or custom, to the contrary notwithstanding.14 Stat. 27. In response to concerns over whether the Thirteenth Amendment authorized such broad legislation, it was later reenacted, after passage of the Fourteenth Amendment, in the Enforcement Act of 1870, sometimes referred to as the Civil Rights Act of 1870. Act of May 31, 1870, ch. 114, §§ 16, 18, 16 Stat. 144. See also Hurd v. Hodge, 334 U.S. 24, 32-33, 68 S.Ct. 847, 92 L.Ed. 1187 (1948) (noting that some members of Congress supported the Fourteenth Amendment "in order to eliminate doubt as to the constitutional validity of the Civil Rights Act [of 1866] as applied to the States"); Jones v. Alfred H. Mayer Co., 392 U.S. 409, 436, 88 S.Ct. 2186, 20 L.Ed.2d 1189 (1968) (same). The Enforcement Act contained two sections which had very similar effect. Section 18 simply reenacted, literally, § 1 of the 1866 Act:And be it further enacted, That the act to protect all persons in the United States in their civil rights, and furnish the means of their vindication, passed April nine, eighteen hundred and sixty-five, is hereby reenacted; and sections sixteen and seventeen hereof shall be enforced according to the provisions of said act.16 Stat. 141, 144 (1870). In addition, the new § 16 enacted much of the substance of the 1866 Act:And be it further enacted, That all persons within the jurisdiction of the United States shall have the same right in every State and Territory in the United States to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of person and property as is enjoyed by white citizens, and shall be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and none other, any law, statute, ordinance, regulation or custom to the contrary notwithstanding. No tax or charge shall be imposed or enforced by any State upon any person immigrating thereto from a foreign country which is not equally imposed and enforced upon every person immigrating to such State from any other foreign country; and any law of any State in conflict with this provision is hereby declared null and void.16 Stat. 141, 144 (1870). Section 16 differed from § 1 of the 1866 Act in at least two respects. First, where § 1 of the 1866 Act extended its guarantees to "citizens, of every race and color," § 16 of the 1870 Act protected "all persons." See United States v. Wong Kim Ark, 169 U.S. 649, 675, 18 S.Ct. 456, 42 L.Ed. 890 (1898); Sagana v. Tenorio, 384 F.3d 731, 737 (9th Cir.2004), cert. denied, ___ U.S. ___, 125 S.Ct. 1313, 161 L.Ed.2d 110 (2005). Second, § 16 of the 1870 Act omitted language contained in the 1866 Act guaranteeing property rights equivalent to those enjoyed by white citizens; this language was reenacted separately in what is now 42 U.S.C. 1982. In 1874 federal statutory law was codified. Section 1977 of the Revised Code of 1874 is identical with the present § 1981(a), which is prefaced by the caption "Equal rights under the law," and provides the following:All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens, and shall be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other.42 U.S.C. 1981(a).Immediately following its passage, what is now § 1981 underwent nearly a century of desuetude during which debate regarding its scope and meaning was generally subsumed by the controversy surrounding the newly ratified Fourteenth Amendment's Equal Protection Clause. Partially owing to lingering uncertainty regarding the scope of the statute and the extent of Congress's authority to prohibit discrimination divorced from state action, § 1981 would not gain independent significance until the late 1960s. See, e.g., Hurd, 334 U.S. at 31, 68 S.Ct. 847 (declaring that "governmental action" was required in a suit based on the Civil Rights Act of 1866); The Civil Rights Cases, 109 U.S. 3, 24-25, 3 S.Ct. 18, 27 L.Ed. 835 (1883) (invalidating the public accommodation provisions of the Civil Rights Act of 1875 as beyond Congress's power to enforce either the Thirteenth or Fourteenth Amendments). With two decisions, however, the Supreme Court did for § 1981 what Monroe v. Pape, 365 U.S. 167, 81 S.Ct. 473, 5 L.Ed.2d 492 (1961), did for 42 U.S.C. 1983: clarify and resurrect the statute from its prior existence, merely as a device to augment the remedies for previously recognized forms of discrimination, to a litigation tool in its own right with unparalleled theoretical coverage. See Runyon, 427 U.S. at 170, 96 S.Ct. 2586; Jones, 392 U.S. at 423, 88 S.Ct. 2186.In Jones, the Court interpreted a companion statute, 42 U.S.C. 1982, to encompass and prohibit racial discrimination in purely private transactions. 392 U.S. at 423-24, 88 S.Ct. 2186. The Court held that the right conferred by § 1982 ? the same right to "inherit, purchase, lease, sell, hold, and convey real and personal property" as is enjoyed by white citizens ? is secured against interference from both governmental and private actions. Id. ("[W]hen Congress provided in § 1 of the Civil Rights Act that the right to purchase and lease property was to be enjoyed equally throughout the United States by Negro and white citizens alike, it plainly meant to secure that right against interference from any source whatever, whether governmental or private."). Thus, relying on the legislative history of § 1 of the Civil Rights Act of 1866, the Court concluded that Congress intended to prohibit "all racial discrimination, private and public, in the sale . . . of property," id. at 437, 88 S.Ct. 2186, and, further, that this prohibition was within Congress's power under section two of the Thirteenth Amendment "rationally to determine what are the badges and the incidents of slavery, and . . . to translate that determination into effective legislation." Id. at 440, 88 S.Ct. 2186. Eight years later, in Runyon, the Court explicitly found the same result dictated under § 1981.Runyon involved a challenge to two private schools' admissions programs which categorically excluded African-American students. 427 U.S. at 170, 96 S.Ct. 2586. Although the schools received no federal or state aid of any kind, their services "were advertised and offered to members of the general public." Id. at 172, 96 S.Ct. 2586. Relying on Jones and two other recent cases, see Johnson v. Ry. Express Agency, Inc., 421 U.S. 454, 459-60, 95 S.Ct. 1716, 44 L.Ed.2d 295 (1975); Tillman v. Wheaton-Haven Recreation Ass'n, 410 U.S. 431, 439-40, 93 S.Ct. 1090, 35 L.Ed.2d 403 (1973), the Court concluded that an individual's § 1981 right "to make and enforce contracts" is violated if a private offeror refuses to extend him "the same opportunity to enter into contracts" that he extends to white offerees, solely on the basis of his race. Runyon, 427 U.S. at 170-71, 96 S.Ct. 2586. According to the Court, the schools' racially exclusive admissions policies constituted "a classic violation of § 1981." Id. at 172, 96 S.Ct. 2586. The Court found that since it is derived from both the Acts of 1866 and 1870, § 1981 validly reaches private, as well as public, racial discrimination based upon Congress's Thirteenth Amendment powers. Id. at 168 n. 8, 179, 96 S.Ct. 2586 ("Section 1981, as applied to the conduct at issue here, constitutes a[ ] [valid] exercise of federal legislative power under § 2 of the Thirteenth Amendment. . . .").Thus, together, and more than one hundred years after § 1981's passage, Jones and Runyon finally dispensed with the state action requirement and held that the Civil Rights Act of 1866 reached purely private acts of discrimination by virtue of Congress's power under section two of the Thirteenth Amendment. How far the Thirteenth Amendment enforcement power and the doctrine of Runyon extended, however, remained open.In the same term that it decided Runyon, the Court held that § 1981 prohibits racial discrimination in private employment against white persons as well as nonwhite persons. McDonald v. Santa Fe Trail Transp. Co., 427 U.S. 273, 295, 96 S.Ct. 2574, 49 L.Ed.2d 493 (1976) ("Th[e] cumulative evidence of congressional intent makes clear, we think, that the 1866 statute, designed to protect the `same right . . . to make and enforce contracts' of `citizens of every race and color' was not understood or intended to be reduced . . . to the protection solely of nonwhites."). McDonald involved a claim by two white employees of the Santa Fe Trail Transportation Company who were accused of misappropriating company property; the company had also accused an African-American employee of the same offense. Shortly thereafter, the two white employees were fired, but the African-American employee was not. Believing their termination to be racially-based, the two white employees filed suit under Title VII of the Civil Rights Act of 1964 and § 1981 alleging unlawful employment discrimination. To resolve the dispute, the Court had to address whether § 1981 encompassed discrimination against white persons. Reasoning that Congress's broad language evinced an intent "to proscribe discrimination in the making or enforcement of contracts against, or in favor of, any race," the Court observed:Unlikely as it might have appeared in 1866 that white citizens would encounter substantial racial discrimination of the sort proscribed under the Act, the statutory structure and legislative history persuade us that the 39th Congress was intent upon establishing in the federal law a broader principle than would have been necessary simply to meet the particular and immediate plight of the newly freed Negro slaves.Id. at 295-96, 96 S.Ct. 2574.Without clarifying the source of Congress's power to enact a law that prohibited private race discrimination against whites, the Court in McDonald declined to restrict § 1981 to claims only by African-Americans. By avoiding the constitutional questions implicated by its broad reading of the statute, the Court left unresolved whether Congress's power to prohibit discrimination against white persons in private employment also emanated from § 1981's Thirteenth Amendment origins or whether it might be based on some other source; particularly, Congress's power under the Commerce Clause. Because the Santa Fe Trail Transportation Company was also subject to the requirements of Title VII ? a statute whose capacity to regulate private conduct has been squarely located in the Commerce Clause, see 42 U.S.C. § 2000a; United Steelworkers of Am. v. Weber, 443 U.S. 193, 206 n. 6, 99 S.Ct. 2721, 61 L.Ed.2d 480 (1979) ("Title VII . . . was enacted pursuant to the commerce power to regulate purely private decisionmaking") ? it is questionable whether we can read McDonald as recognizing the Thirteenth Amendment as the source of Congress's power to prohibit all private discrimination against whites. Nonetheless, later cases have assumed, without discussion, that Congress does possess the power to prohibit a private school from discriminating against non-African-Americans on the basis of race. See, e.g., Saint Francis Coll. v. Al-Khazraji, 481 U.S. 604, 609-10, 107 S.Ct. 2022, 95 L.Ed.2d 582 (1987) (permitting suit under § 1981 by professor of Arabian ancestry against a private university); cf. Gen. Bldg. Contractors, 458 U.S. at 390 n. 17, 102 S.Ct. 3141 ("We need not decide whether the Thirteenth Amendment itself . . . accomplished anything more than the abolition of slavery."); City of Memphis v. Greene, 451 U.S. 100, 125-26, 101 S.Ct. 1584, 67 L.Ed.2d 769 (1981) (leaving open the question of whether § 1 of the Thirteenth Amendment did anything more than abolish slavery). Whether it stems from a broad reading of section two of the Thirteenth Amendment, or a similarly broad reading of the Commerce Clause, Congress's power to prohibit private race discrimination has not yet been seriously questioned.3After Jones, Runyon and McDonald, the theoretical coverage of § 1981 appeared almost limitless. In the cases that followed, however, the Court endeavored to define the outer bounds of, as well as the burdens of proof applicable to, § 1981 race discrimination claims. In General Building Contractors, the Court emphasized the statute's Fourteenth Amendment origins to hold "that § 1981, like the Equal Protection Clause, can be violated only by purposeful discrimination." 458 U.S. at 391, 102 S.Ct. 3141. The Court's decision foreclosed claims premised on disparate impact, claims which are actionable under Title VII. See Griggs v. Duke Power Co., 401 U.S. 424, 431, 91 S.Ct. 849, 28 L.Ed.2d 158 (1971).Seven years later, the Court revisited the relationship between Title VII and § 1981. In Patterson v. McLean Credit Union, an African-American former employee of the McLean Credit Union brought a § 1981 suit against her employer, claiming racial harassment, failure to promote, and discharge on account of her race. 491 U.S. 164, 109 S.Ct. 2363, 105 L.Ed.2d 132 (1989), superseded by statute on other grounds as stated in Estate of Reynolds v. Martin, 985 F.2d 470, 475 n. 2 (9th Cir.1993). The district court determined that a claim for racial harassment is not actionable under § 1981, and the court of appeals affirmed. The Supreme Court granted certiorari, in part, to decide whether a claim for racial harassment "falls within one of the enumerated rights protected by § 1981." Id. at 176, 109 S.Ct. 2363.4 The Court held that it does not; rather, § 1981 is limited by its terms to prohibiting discrimination in the making and enforcing of contracts, and does not extend to "postformation conduct," or problems that may arise later from the terms and conditions of continuing employment. Id. at 177-80, 109 S.Ct. 2363. Examining the petitioner's failure-to-promote claim, the Court concluded that the district court erred by instructing the jury that the petitioner had to prove that she was better qualified than the white employee who allegedly received the promotion. Id. at 186, 109 S.Ct. 2363. Drawing from Title VII case law, the Court took this opportunity to clarify the framework for analyzing a § 1981 claim against a private employer:We have developed, in analogous areas of civil rights law, a carefully designed framework of proof to determine, in the context of disparate treatment, the ultimate issue whether the defendant intentionally discriminated against the plaintiff. See Texas Dept. of Community Affairs v. Burdine, 450 U.S. 248, 101 S.Ct. 1089, 67 L.Ed.2d 207 (1981); McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). We agree with the Court of Appeals that this scheme of proof, structured as a "sensible, orderly way to evaluate the evidence in light of common experience as it bears on the critical question of discrimination," Furnco Construction Corp. v. Waters, 438 U.S. 567, 577, 98 S.Ct. 2943, 57 L.Ed.2d 957 (1978), should apply to claims of racial discrimination under § 1981.Id. at 186, 109 S.Ct. 2363. Having imported Title VII's McDonnell Douglas order of proof, the Court elaborated to explain, in detailed fashion, the specific evidentiary showings required:Under our well-established framework, the plaintiff has the initial burden of proving, by a preponderance of the evidence, a prima facie case of discrimination. . . . Once the plaintiff establishes a prima facie case, an inference of discrimination arises. In order to rebut this inference, the employer must present evidence that the plaintiff was rejected, or the other applicant was chosen, for a legitimate nondiscriminatory reason. . . . At this point, as our prior cases make clear, petitioner retains the final burden of persuading the jury of intentional discrimination. Although petitioner retains the ultimate burden of persuasion, our cases make clear that she must also have the opportunity to demonstrate that respondent's proffered reasons for its decision were not its true reasons.Id. at 186-87, 109 S.Ct. 2363 (internal quotation marks, citations and footnote omitted) (emphasis added).We find this treatment particularly instructive because the Court's discussion appears to approve the use of, in the arena of § 1981 employment discrimination claims, not only the McDonnell Douglas order of proof, but also the nature of the proof that a private defendant in a Title VII action is required to adduce. See also Olmstead v. L.C. ex rel. Zimring, 527 U.S. 581, 617 n. 1, 119 S.Ct. 2176, 144 L.Ed.2d 540 (1999) (Thomas, J., dissenting) ("This Court has applied the `framework' developed in Title VII cases to claims brought under [§ 1981].") (citing Patterson, 491 U.S. at 186, 109 S.Ct. 2363); Whidbee v. Garzarelli Food Specialties, Inc., 223 F.3d 62, 69 (2d Cir.2000) (analogizing a § 1981 claim to a Title VII claim); Brown v. Am. Honda Motor Co., 939 F.2d 946, 949 (11th Cir.1991) ("[T]he test for intentional discrimination in suits under § 1981 is the same as the formulation used in Title VII discriminatory treatment causes. . . . [T]he defendant must come forward with evidence demonstrating legitimate, nondiscriminatory reasons for its conduct."). While the Court could have suggested that a § 1981 defendant must demonstrate that race-based action is narrowly tailored to further a compelling governmental interest, see, e.g., Adarand, 515 U.S. at 227, 115 S.Ct. 2097, it stated instead that the employer must show merely "that the plaintiff was rejected, or the other applicant was chosen, for a legitimate nondiscriminatory reason," Patterson, 491 U.S. at 187, 109 S.Ct. 2363 (emphasis added).The appellant aptly notes that use of the McDonnell Douglas burden-shifting framework does not necessarily, or even usually, signify that Title VII's substantive standard of scrutiny ? in particular, the requirement that the defendant "present evidence that the plaintiff was rejected . . . for a legitimate nondiscriminatory reason" ? also governs. Patterson, 491 U.S. at 187, 109 S.Ct. 2363 (emphasis added). The appellant points out that at least one court has made the McDonnell Douglas burden-shifting framework available to plaintiffs who must prove intentional discrimination in order to make out a violation of the Equal Protection Clause. See English v. Colo. Dep't of Corr., 248 F.3d 1002, 1007 (10th Cir.2001) (employing the McDonnell Douglas framework to analyze § 1983 claim alleging a violation of the Equal Protection Clause by the Colorado Department of Corrections); cf. St. Mary's Honor Ctr. v. Hicks, 509 U.S. 502, 506 n. 1, 113 S.Ct. 2742, 125 L.Ed.2d 407 (1993) (assuming, absent objection from the parties, that it was permissible for the lower court to apply the McDonnell Douglas framework to the plaintiff's equal protection claim as well as his Title VII claim); Fed. Deposit Ins. Corp. v. Henderson, 940 F.2d 465, 472 & n. 14 (9th Cir.1991) (declining to decide whether McDonnell Douglas is the appropriate framework for analyzing an equal protection claim). Nonetheless, the Patterson Court specifically found that the district court, while correctly recognizing that the Title VII "scheme of proof should apply in § 1981 cases," erred in "describing the petitioner's burden." Patterson, 491 U.S. at 186, 109 S.Ct. 2363. We find the Court's complete description of the burden ? setting forth both the order of proof and the nature of the proof required ? to be the best indication from the Supreme Court as to how lower courts should shape the contours of a § 1981 challenge to a private entity's racially discriminatory practice.In the Civil Rights Act of 1991, Congress amended the statute specifically to overrule Patterson's holding that § 1981 does not extend to postformation conduct. See 42 U.S.C. 1981(b) (defining the phrase "make and enforce contracts" to include "the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms and conditions of the contractual relationship"). The amended statute also clarified any residual doubt as to Congress's intention that § 1981 apply to private discrimination: "[t]he rights protected by this section are protected against impairment by nongovernmental discrimination." 42 U.S.C. 1981(c). Importantly, nothing in the amended statute calls into question Patterson's discussion of the McDonnell Douglas proof structure or the nature of proof required in a § 1981 suit against a private entity.Although the question has never been squarely presented,5 we read the Court's decisions both in Patterson and in General Building Contractors to indicate a willingness to look to the Fourteenth Amendment as a means for restricting liability to the types of racially motivated practices that led Congress to enact § 1981 ? namely, intentional discrimination on the basis of race ? but to look to Title VII jurisprudence to clarify the order and nature of the proof. See also City of Memphis, 451 U.S. at 126, 101 S.Ct. 1584 (finding § 1982 inapplicable where "the record discloses no racially discriminatory motive" but instead "demonstrates that the interests that did motivate the [defendant] are legitimate").Contrary to the appellant's argument, we do not find the Court's recent decisions in the "Michigan Affirmative Action Cases" relevant to our analysis. See Grutter, 539 U.S. at 343, 123 S.Ct. 2325 (concluding that the University of Michigan Law School's admissions program satisfied strict scrutiny under the Equal Protection Clause and, therefore, that it also satisfied Title VI and § 1981); Gratz, 539 U.S. at 275-76 n. 23, 123 S.Ct. 2411 (concluding that the University of Michigan's undergraduate admissions program failed strict scrutiny under the Equal Protection Clause and, therefore, that it also violated Title VI and § 1981). Aside from the fact that both cases involved a challenge to a public university's use of racial preferences in admissions, neither case presented the Court with an occasion to address, at any length, the appropriate standard of scrutiny for a § 1981 challenge. Because the preference in Grutter satisfied strict scrutiny, it necessarily would satisfy a lower standard; as the preference in Gratz failed strict scrutiny, the invalidity of the university's admissions program rendered it unnecessary for the Court to consider whether it could satisfy a lower standard.6 The appellant relies, however, on the Court's citation, in Grutter, to General Building Contractors, which is followed by the parenthetical note, "the prohibition against discrimination in § 1981 is co-extensive with the Equal Protection Clause." Grutter, 539 U.S. at 343, 123 S.Ct. 2325 (citing Gen. Bldg. Contractors, 458 U.S. at 389-91, 102 S.Ct. 3141). The Court in Gratz similarly dropped a footnote citing General Building Contractors for the proposition that "purposeful discrimination that violates the Equal Protection Clause of the Fourteenth Amendment will also violate § 1981." Gratz, 539 U.S. at 276 n. 23, 123 S.Ct. 2411 (citing Gen. Bldg. Contractors, 458 U.S. at 389-90, 102 S.Ct. 3141). See also Sagana, 384 F.3d at 743.Mindful of the inherent dangers of according undue weight to isolated statements from decisions not directly on point, we read these parenthetical notes simply as recognizing that both the Equal Protection Clause and § 1981 require a showing of intentional discrimination; they are co-extensive on this point. The Court's decision in Patterson incorporated this holding, seven years after General Building Contractors, when it instructed lower courts to apply the McDonnell Douglas framework to claims of racial discrimination in employment brought under § 1981, while noting that the "petitioner retains the final burden of persuading the jury of intentional discrimination." Patterson, 491 U.S. at 187, 109 S.Ct. 2363 (emphasis added). Simply put, the Supreme Court's parenthetical notations in Grutter and Gratz should be read in light of the specific import of the cited case, and General Building Contractors does nothing more than specify that intentional discrimination must be established in order to sustain both an equal protection and a § 1981 challenge. Although, like the Fourteenth Amendment, § 1981 reaches only intentional discrimination, § 1981 is not otherwise co-extensive with the Equal Protection Clause.From the historical context in which it was passed as well as the cases interpreting its command, we are persuaded that § 1981, like Title VII, "was not intended to incorporate and particularize the commands of the Fifth and Fourteenth Amendments," Weber, 443 U.S. at 206 n. 6, 99 S.Ct. 2721, nor was it intended to apply those commands to private sector discrimination. For this reason, we conclude that § 1981 should not be read in pari materia with the Fourteenth Amendment to require the application of strict scrutiny to all private race-based preferences. See id. (declining to read Title VII and Title VI in pari materia); Johnson, 480 U.S. at 630 n. 8, 107 S.Ct. 1442 (noting Congress's "desire to preserve a relatively large domain for voluntary employer action"). In sum, having generally abandoned, after Runyon and Jones, the Fourteenth Amendment as the model for interpreting, and limiting the reach of, §§ 1981 and 1982, we conclude that the substantive standards embodied in modern civil rights laws better capture the jurisprudence of § 1981.Although the instant case involves a § 1981 claim against a private school, we find no reason to depart from the standards outlined in Patterson and well-established in the cases interpreting Title VII. While the analysis necessarily must be modified in order to account for differences of context, the substantive guarantee should remain the same: the right to make and enforce contracts free from illegitimate and unlawful discrimination on the basis of race. Accordingly, we hold that a § 1981 suit against a purely private school is governed by the substantive standards applicable to race-based challenges brought pursuant to Title VII of the Civil Rights Act of 1964. This means that once the § 1981 plaintiff establishes a prima facie case of intentional race discrimination, the defendant must come forward with a legitimate nondiscriminatory reason justifying the challenged practice; if such a reason is offered the plaintiff may still attempt to show that the reason is a pretext for unlawful race discrimination.It remains to clarify how these standards should operate in the context of private education.BUnder the proof structure and accompanying substantive standards that we now import, the complainant in a § 1981 suit against a purely private school must carry the initial burden of establishing a prima facie case of racial discrimination. See McDonnell Douglas, 411 U.S. at 802, 93 S.Ct. 1817.7 Where an explicit race-based admissions policy exists, proof of this fact alone is sufficient to establish a prima facie case.If the plaintiff proves his prima facie case, a rebuttable presumption of intentional discrimination arises, see Tex. Dep't of Comty. Affairs v. Burdine, 450 U.S. 248, 254, 101 S.Ct. 1089, 67 L.Ed.2d 207 (1981), and the burden of production shifts to the school to articulate a legitimate nondiscriminatory reason for its admissions policy. See McDonnell Douglas, 411 U.S. at 802, 93 S.Ct. 1817. See also Burdine, 450 U.S. at 255-56, 101 S.Ct. 1089. If the school satisfies this burden, the burden of production again shifts to the plaintiff to prove that the school's articulated reason is a pretext for unlawful race discrimination. See Hicks, 509 U.S. at 515-16, 113 S.Ct. 2742; McDonnell Douglas, 411 U.S. at 804, 93 S.Ct. 1817. Despite the shifting burdens, the ultimate burden of persuasion that the school intentionally discriminated on the basis of race remains with the plaintiff at all times. Hicks, 509 U.S. at 507, 113 S.Ct. 2742.We turn, next, to the task of applying these standards to the plaintiff-appellant's § 1981 challenge to the racially exclusionary admissions policy in place at the Kamehameha Schools.IVIt is undisputed that the Kamehameha Schools employs an express racial classification designed to deny admission to all students possessing no aboriginal blood, so long as qualified native Hawaiian applicants seek admission in sufficient number to fill the positions.8 Accordingly, the issue becomes whether the Schools can articulate a legitimate nondiscriminatory reason justifying this racial preference. Toward this end, the Schools urge that its policy constitutes a valid affirmative action plan rationally related to redressing present imbalances in the socioeconomic and educational achievement of native Hawaiians, producing native Hawaiian leadership for community involvement, and revitalizing native Hawaiian culture.The Supreme Court has held that Title VII's prohibition against racial discrimination "does not condemn all private, voluntary, race-conscious affirmative action plans." Weber, 443 U.S. at 208, 99 S.Ct. 2721. Consequently, in the Title VII context, if the challenged employment decision was made pursuant to such a plan, the existence of an affirmative action plan itself can form the basis of a legitimate nondiscriminatory rationale. See Johnson, 480 U.S. at 626, 107 S.Ct. 1442. We assume, absent objection from the parties, that the same principle applies to a § 1981 suit against a purely private school. See, e.g., Edmonson v. United States Steel Corp., 659 F.2d 582, 584 (5th Cir.1981) (per curiam) (applying Title VII standards in the context of § 1981 employment discrimination challenge to race-conscious affirmative action plan); accord Setser v. Novack Inv. Co., 657 F.2d 962, 966-68 (8th Cir.1981) (en banc), cert. denied,Try vLex for FREE for 3 days
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