Dewitt, Phillis v. Proctor Hospital ( 2008 )


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  •                             In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________
    No. 07-1957
    PHILLIS DEWITT,
    Plaintiff-Appellant,
    v.
    PROCTOR HOSPITAL, an Illinois not-for-profit corporation,
    Defendant-Appellee.
    ____________
    Appeal from the United States District Court
    for the Central District of Illinois.
    No. 06 C 1181—Joe Billy McDade, Judge.
    ____________
    ARGUED NOVEMBER 29, 2007—DECIDED FEBRUARY 27, 2008
    ____________
    Before CUDAHY, POSNER, and EVANS, Circuit Judges.
    EVANS, Circuit Judge. After she was fired from her job as
    a registered nurse at Proctor Hospital, 47-year-old Phillis
    Dewitt sued, alleging “association discrimination” under
    the Americans with Disabilities Act (ADA) as well as age
    and gender discrimination. The district court entered
    summary judgment in favor of Proctor. The court also
    denied Dewitt’s motion for leave to amend her complaint
    to add a claim of ERISA retaliation. Today we resolve
    Dewitt’s appeal from those decisions.
    2                                                No. 07-1957
    In September 2001, Proctor, a hospital in Peoria, Illinois,
    hired Dewitt to work as a nurse on an “as-needed” basis.
    Proctor apparently liked how Dewitt did her job because
    the following month she was promoted to the permanent
    position of second-shift clinical manager. In that role,
    Dewitt supervised nurses and other Proctor staff members.
    Three years into the job, Dewitt switched to the first-shift
    clinical manager slot. In the summer of 2005, she switched
    to a part-time schedule, sharing the responsibilities of
    second-shift clinical manager with a coworker.
    Dewitt, it appears (for we must assume the facts to be
    as she presents them at this stage of the proceedings), was
    a valuable employee. In her last evaluation, her supervisor,
    Mary Jane Davis, described her as an “outstanding clinical
    manager [who] consistently goes the extra mile.” But things
    were not quite as rosy as they appeared.
    Dewitt and her husband, Anthony, were covered under
    Proctor’s health insurance plan. Throughout Dewitt’s
    tenure at Proctor, Anthony suffered from prostate cancer
    and received expensive medical care. His covered medical
    expenses were paid by Proctor, which was partially self-
    insured. It paid for members’ covered medical costs up
    to $250,000 per year. Anything above this “stop-loss”
    figure was covered by a policy issued by the Standard
    Security Life Insurance Company of New York.
    Dewitt was able to maintain health insurance coverage
    for herself and Anthony even during her short part-time
    stint, since Proctor credited Dewitt with “hospital ap-
    proved absence” (unpaid time), allowing her to reach the
    minimum number of hours necessary to qualify for bene-
    fits.
    No. 07-1957                                               3
    Since Proctor was self-insured, it took a keen interest
    in the medical claims submitted by its employees. Each
    quarter, in fact, Progressive Benefits Services, the ad-
    ministrator of Proctor’s medical plan, prepared a “stop-loss
    report” for Linda K. Buck, Proctor’s vice-president of
    human resources. The report identified all employees
    whose recent medical claims exceeded $25,000.
    The stop-loss reports highlighted Dewitt’s expenses.
    Although Dewitt was not listed on reports for 2001 and
    2002 (indicating that her family’s medical expenses,
    particularly those of her husband, were less than $25,000),
    during the next three years Anthony underwent costly
    medical procedures. In 2003, the Dewitts’ medical claims
    for Anthony were $71,684. In 2004, the figure jumped to
    $177,826. In the first eight months of 2005, the expenses
    were $67,281.50.
    In September 2004, Davis confronted Dewitt about
    Anthony’s high medical claims. Specifically, she asked
    what treatment Anthony was receiving, and Dewitt
    responded that he was undergoing chemotherapy and
    radiation. Davis asked Dewitt if she had considered
    hospice care for her husband; Dewitt responded that
    Anthony’s doctor considered less expensive hospice care
    placement to be premature. Davis explained that a commit-
    tee was reviewing Anthony’s medical expenses, which she
    described as unusually high.
    In February 2005, Davis again pulled Dewitt aside to
    ask about Anthony’s treatment. Dewitt informed her
    that Anthony’s situation had not changed.
    In May 2005, Davis organized a meeting for Proctor’s
    clinical managers. She informed the employees that Proctor
    faced financial troubles, which, according to
    Davis, required a “creative” effort to cut costs.
    4                                                    No. 07-1957
    Proctor fired Dewitt on August 3, 2005, and designated
    her as “ineligible to be rehired in the future.” Proctor
    provided no explanation for its “ineligible for rehire”
    decision.1 Dewitt’s medical benefits with Proctor continued
    through the end of August. After that, Dewitt paid for
    COBRA coverage (which she was able to get for a maxi-
    mum of 18 months) for herself and her husband. But
    18 months, as it turned out, wasn’t necessary as Anthony,
    a year and a week after Dewitt was fired, gave up his
    fight with cancer. He died on August 9, 2006.
    Dewitt’s age and gender discrimination claims can be
    quickly resolved. On her age claim, she says she was
    replaced by a 25-year-old woman named Michelle Patton.
    But Dewitt’s “evidence” on this point is nothing more
    than a statement in her affidavit which is not based on
    her personal knowledge. Proctor, on the other hand, offers
    personal knowledge from Ms. Buck to the effect that during
    the two months following Dewitt’s discharge, several
    different employees (a total of eight is suggested) filled her
    spot before it was given, permanently, to Sarilee Glover,
    who was 57 years old. Dewitt’s inability to satisfy the
    requirement, under the often-cited McDonnell Douglas test,
    that she was replaced by someone outside the protected
    group—someone under 40 years of age—dooms her age
    discrimination claim.
    Ditto for her gender discrimination claim, where Dewitt
    alleges that a male employee with high medical expenses,
    a chap named Ray Lockhart, was not fired. But Lock-
    1
    In its brief, Proctor says, without elaboration, that Dewitt was
    fired for “insubordination.” That may well be Proctor’s position
    as this case moves forward, but it is not something that has
    been developed so far.
    No. 07-1957                                                 5
    hart’s medical expenses were actually quite modest as
    compared to Dewitt’s. In 2004, his expenses were $4,114.05,
    a staggering $173,712.32 short of Dewitt’s total. On top of
    that, Dewitt offers next to nothing about Lockhart’s job
    responsibilities other than to say he was a registered nurse
    and an emergency room manager. The district court, on
    this sparse record, correctly concluded that Dewitt’s gender
    discrimination claim had to fail because she did not, again
    as required by the ubiquitous McDonnell Douglas test,
    identify a “similarly situated” member of the other sex who
    received more favorable treatment from the hospital.
    Now we come to Dewitt’s best claim as she invokes
    the infrequently litigated “association discrimination”
    section of the ADA. Under 
    42 U.S.C. § 12112
    (b)(4), an
    employer is prohibited from discriminating against
    an employee as a result of “the known disability of an
    individual with whom [the employee] is known to have a
    relationship or association.” Specifically, she alleges
    that Proctor fired her to avoid having to continue to pay
    for the substantial medical costs that were being in-
    curred by her husband under Proctor’s self-insured
    health insurance plan.
    In our seminal case on this issue, Larimer v. International
    Business Machines Corp., 
    370 F.3d 698
    , 700 (7th Cir. 2004), we
    outlined three categories into which “association discrimi-
    nation” plaintiffs generally fall. We called them (1) ex-
    pense; (2) disability by association; and (3) distraction. In
    the “expense” scenario, we noted that an employee, fired
    because her spouse has a disability that is costly to the
    employer (i.e., he is covered by the company’s health plan)
    is within the intended scope of the “associational discrimi-
    nation” section of the ADA.
    6                                                  No. 07-1957
    The McDonnell Douglas test is not easily adaptable
    to claims under the section of the ADA that permits
    causes of action for association discrimination. It’s a bit like
    a mean stepsister trying to push her big foot into one of
    Cinderella’s tiny glass slippers. In Larimer, we struggled
    with the task of reformulating the McDonnell Douglas test,
    suggesting that a similar effort in Den Hartog v. Wasatch
    Academy, 
    129 F.3d 1076
     (10th Cir. 1997), while close to the
    mark, could be tweaked and improved. And so we sug-
    gested that a plaintiff, without direct evidence of discrimi-
    nation, could prove her case by establishing that: (1) she
    was qualified for the job at the time of the adverse employ-
    ment action; (2) she was subjected to an adverse employ-
    ment action; (3) she was known by her employer at the
    time to have a relative or associate with a disability; and (4)
    her case falls into one of the three relevant categories of
    expense, distraction, or association. Larimer, 
    370 F.3d at 701-02
    .
    While all this may be well and good, we think Dewitt’s
    case, in the final analysis, does not have to be considered in
    light of the tweaked McDonnell Douglas test because she has
    fairly persuasive circumstantial evidence suggesting that
    her case is best viewed as one relying on direct evidence.
    And so, we think, a jury should consider her claim.
    The uncontroverted evidence suggests that Proctor,
    which faced financial trouble, was very concerned about
    cutting costs. Because Proctor’s unusually high “stop-loss”
    coverage didn’t kick in until claims exceeded $250,000, it
    personally felt the heavy bite of Dewitt’s expenses. Proctor
    wasn’t discreet about its concerns: in the May 2005 meet-
    ing, Davis informed Proctor’s clinical managers that the
    hospital would have to be “creative” in cutting costs.
    No. 07-1957                                               7
    That the powers-that-be at Proctor were interested
    specifically in the high cost of Anthony’s medical treatment
    is obvious. Davis, Dewitt’s supervisor (and the person
    who ultimately fired her), pulled Dewitt aside twice in
    five months to inquire about Anthony’s condition. These
    conversations indicate that Davis was very interested
    in limiting Anthony’s claims. During their first chat,
    Davis informed Dewitt that a Proctor committee was
    reviewing Anthony’s unusually high medical expenses.
    She also asked Dewitt whether Anthony’s doctor had
    considered hospice placement—a far cheaper “alternative”
    to the costly chemotherapy and radiation Anthony was
    receiving.
    Finally, the timing of Dewitt’s termination suggests
    that the financial albatross of Anthony’s continued cancer
    treatment was an important factor in Proctor’s decision.
    Dewitt was fired in August 2005—five months after her last
    chat with Davis and three months after Proctor warned
    employees about impending “creative” cost-cutting
    measures. One could reasonably infer that Dewitt was
    terminated after Proctor conducted its latest periodic
    analysis of medical claim “outliers” and, this time around,
    decided that its “wait and see” strategy with the Dewitts
    was costing the hospital tens of thousands of dollars
    every year. A reasonable juror could conclude that Proctor,
    which faced a financial struggle of indeterminate length,
    was concerned that Anthony—a multi-year cancer
    veteran—might linger on indefinitely. This later fact
    distinguishes Dewitt’s case from the situation in Larimer
    where the fired employee’s twin daughters were “healthy
    and normal” and thus no longer disabled when the em-
    ployment termination decision was made.
    Proctor makes several arguments, none of which we
    find persuasive. It contends that its decision to terminate
    8                                                No. 07-1957
    Dewitt could not have been based on the high cost of
    Anthony’s cancer treatment because the medical expenses
    of other female employees exceeded those of Dewitt.
    Specifically, Proctor points to evidence that in 2003, 2004,
    and 2005, Dewitt’s claims were exceeded by those of one
    or two other employees. It is unclear, however, whether
    these employees (or other plan members), like Anthony,
    had conditions that Proctor feared would require pro-
    longed, expensive medical treatment which could poten-
    tially continue far into the future. Thus, without a com-
    parison of employees’ cumulative medical expenses and
    treatment predictions, this argument has little appeal on
    the basis of this record at the summary judgment stage
    of the case.
    In support of its claim that it never sought to restrict
    the Dewitts’ access to health insurance, Proctor points to its
    decision to help Dewitt maintain her coverage when she
    switched to a part-time schedule in the summer of 2005.
    According to Dewitt, however, her switch to a part-time
    schedule was contingent on Proctor continuing her medical
    benefits. Since we must interpret the facts in Dewitt’s favor,
    we therefore assume that Proctor was well-aware that
    regardless of how it responded to her request to maintain
    her health coverage, Dewitt would not have relinquished
    her benefits voluntarily.
    Finally, Proctor argues that firing Dewitt would not
    have accomplished the goal Dewitt attributes to it—
    freeing itself of Anthony’s steep medical bills—since
    Dewitt was eligible for post-termination COBRA insurance.
    This argument, however, leaves out an important piece of
    the puzzle. Even if Proctor shared some finan-
    cial responsibility for the continuation of benefits, it
    would nonetheless save money by terminating Dewitt,
    No. 07-1957                                                     9
    since it feared that Anthony’s expensive treatment might
    continue indefinitely and the COBRA coverage would
    expire after 18 months.
    Because Dewitt has established that direct evidence
    of “association discrimination” may have motivated
    Proctor in its decision to fire her, a jury should be allowed
    to consider her claim.
    Lastly, Dewitt contends that the court erred in refusing
    to allow her to amend her complaint to add a claim of
    ERISA retaliation. The district court denied Dewitt’s
    motion on the basis of futility, since it determined that
    her claim would have ultimately failed. We review the
    district court’s decision to deny a motion for leave to
    amend for an abuse of discretion. Cacia ex rel. Randolph v.
    Norfolk & Western Ry. Co., 
    290 F.3d 914
    , 921 (7th Cir. 2002).
    Under § 510 of ERISA, an employer may not dis-
    charge “a participant or beneficiary for exercising any right
    to which he is entitled under the provisions of an employee
    benefit plan.” 
    29 U.S.C. § 1140
    . This provision is intended
    to discourage employers from discharging or harassing
    their employees in an attempt to prevent them from using
    their pension or medical benefits. Lindemann v. Mobil Oil
    Corp., 
    141 F.3d 290
    , 295 (7th Cir. 1998).
    To determine whether the district court properly re-
    jected Dewitt’s amendment as futile, we must determine
    whether her ERISA retaliation claim would survive a
    motion for summary judgment. See Sound of Music Co. v.
    Minnesota Min. & Mfg. Co., 
    477 F.3d 910
    , 923 (7th Cir. 2007).
    If Proctor had a legitimate, nondiscriminatory reason for
    firing Dewitt, she would be out of luck. She would not then
    be able to show retaliation. Isbell v. Allstate Ins. Co., 
    418 F.3d 788
    , 796 (7th Cir. 2005). Because, however, Proctor elected
    10                                              No. 07-1957
    not to push its apparent position that Dewitt was fired for
    insubordination, Dewitt should have been allowed to
    amend her complaint to include an allegation of ERISA
    retaliation.
    A reasonable jury could conclude that Proctor retaliated
    against Dewitt, and thus committed an ERISA violation,
    when they showed her the door on August 3, 2005. But that
    said, we note that Dewitt’s two claims, one under the ADA
    and the other under ERISA, overlap, perhaps completely.
    Both essentially present the same factual question—why
    did Proctor fire Dewitt? If a jury were to find that Dewitt
    was fired for insubordination, not because her husband
    was costing the hospital a ton of money under its self-
    insured medical plan, that would be the end of the case. If
    the insubordination defense is rejected and the jury
    concludes that Anthony’s expenses were the real motivat-
    ing factor, damages—whether based on a discrimination
    claim under the ADA or a retaliation claim under
    ERISA—would seem to be the same. With that being the
    situation, on remand, some thought should be given to
    whether having two claims here instead of one does
    anything other than unduly complicate the proceedings.
    For these reasons, we AFFIRM the district court’s grant of
    summary judgment to Proctor on Dewitt’s age and gender
    discrimination claims. We REVERSE both the grant of
    summary judgment on the ADA association discrimination
    claim and the denial of Dewitt’s motion to amend her
    complaint. The case is REMANDED to the district court for
    further proceedings.
    No. 07-1957                                              11
    POSNER, Circuit Judge, concurring. I agree with the
    decision and with most of Judge Evans’s characteris-
    tically lucid majority opinion. I write separately to raise
    two questions that seem to me to be worth flagging al-
    though they do not have to be answered to decide the
    case—the alternative ways of establishing a prima facie
    case of discrimination and their suitability to the dis-
    crimination charged in this case—and a third question—the
    difference between discrimination on grounds of expense
    and discrimination on grounds forbidden by federal
    law—regarding which the discussion in the majority
    opinion seems to me incomplete and potentially mislead-
    ing.
    The standard understanding is that there are two ways to
    make out a prima facie case of discrimination—which is to
    say, a showing in advance of trial sufficient to defeat the
    defendant’s motion for summary judgment. They are the
    “direct method” and the “indirect method,” the latter being
    that of McDonnell Douglas Corp. v. Green, 
    411 U.S. 792
    (1973); see, e.g., Timmons v. General Motors Corp., 
    469 F.3d 1122
    , 1126-27 (7th Cir. 2006). The direct method is the one
    that litigants would use if there were no McDonnell Douglas
    test. The plaintiff would marshal all his direct and circum-
    stantial evidence of discrimination (“direct” here meaning,
    as distinct from its use in the phrase “direct method,”
    evidence that is not circumstantial—which, in a discrimina-
    tion case, usually means admissions) and the defendant
    would do the same with regard to evidence countering an
    inference of discrimination. The question would then be
    whether a reasonable jury could infer discrimination if
    the record at trial were the same as the record on summary
    judgment (except that some of the evidence given
    in documentary form in the summary judgment proceed-
    ings would have to be given in oral form at a trial). If
    12                                               No. 07-1957
    so, the defendant’s motion for summary judgment would
    be denied. That is the basis for the reversal of the dismissal
    of the claim of disability discrimination in this case.
    The evidence used to establish a prima facie case under
    the indirect method would often be part of the circum-
    stantial evidence presented under the direct method. In
    a case of racial discrimination, for example, the fact that a
    black employee had been replaced by a white one and
    the defendant was mum on the reason for the replace-
    ment would be some evidence of racial motivation. An-
    other element of the indirect method might be miss-
    ing—maybe the white had better qualifications and a
    slightly different kind of job and reported up a different
    chain of command. But that hole could be plugged by some
    additional evidence of discrimination, perhaps statistics on
    the racial composition of the defendant’s work force in
    relation to the pool of potential workers. “Any demonstra-
    tion strong enough to support a judgment in the plaintiff’s
    favor if the employer remains silent will do, even if the
    proof does not fit into a set of pigeonholes.” Carson v.
    Bethlehem Steel Corp., 
    82 F.3d 157
    , 159 (7th Cir. 1996) (per
    curiam).
    So it was a mistake for the parties in this case to think
    that the way to litigate it was to address the two methods
    of establishing a prima facie case as if each were in its
    own sealed compartment. One consequence was that the
    defendant’s lawyer made a damaging tactical error by
    failing to produce any evidence (even a simple sworn
    denial) of a nondiscriminatory reason for terminating
    the plaintiff (though he claims to have such evidence), on
    the ground that the plaintiff had failed to establish a prima
    facie case by either method taken separately. Maybe so, but
    the plaintiff presented other evidence of discrimination
    No. 07-1957                                                 13
    besides the defendant’s silence on why it had fired the
    plaintiff, and that silence, though insufficient in itself, was
    enough (at least given another tactical blunder by the
    defendant, which I discuss later) to make out a prima facie
    case when added to the balance. “[W]hen a plaintiff in a
    discrimination case has direct evidence of discrimination as
    well as the indirect evidence required to make out a prima
    facie case under McDonnell Douglas he does not have to
    show that either approach, taken in isolation from the
    other, makes out a prima facie case—he can combine
    them.” Simple v. Walgreen Co., 
    511 F.3d 668
    , 670-71 (7th Cir.
    2007); cf. Logan v. Kautex Textron North America, 
    259 F.3d 635
    , 638-40 (7th Cir. 2001); Burns v. AAF-McQuay, Inc., 
    96 F.3d 728
    , 732 (4th Cir. 1996).
    So far I have assumed that McDonnell Douglas provides
    an appropriate method of establishing a prima facie case
    under the rarely litigated “association” provision of the
    Americans with Disabilities Act, the provision that for-
    bids discrimination against “a qualified individual be-
    cause of the known disability of an individual with
    whom the qualified individual is known to have a rela-
    tionship or association.” 
    42 U.S.C. § 12112
    (b)(4); see Larimer
    v. International Business Machines Corp., 
    370 F.3d 698
     (7th
    Cir. 2004). As we explained in Larimer, and repeated in a
    slightly different context in Timmons v. General Motors
    Corp., supra, 
    469 F.3d at 1127-28
    , an attempt to clone the
    McDonnell Douglas test for use in an association case would
    enable a plaintiff to establish a prima facie case merely by
    showing that the employer, knowing that the plaintiff (a
    qualified worker in the sense of meeting his employer’s
    expectations) had an association with a disabled person,
    fired the plaintiff or took other adverse employment action
    against him and replaced him with (or did not take similar
    14                                                No. 07-1957
    adverse employment action against) someone who did not
    have a known association with a disabled person. 
    370 F.3d at 701-02
    . Yet the inference from these scanty facts that the
    association had induced the employer’s action would be
    too weak to justify forcing the defendant to produce
    evidence that he had taken the action for a different, an
    innocent reason.
    Some people do feel distaste for associating with a
    disabled person. But the employer (and employees whose
    prejudices the employer might share or condone) are not
    being asked in an “association” case to associate with a
    disabled person. He is not another employee, but a stranger
    to the workplace with whom one of the employees happens
    to have a relationship. Prejudice against an employee who
    merely has a relationship with a disabled person doubtless
    exists; as we pointed out in Larimer v. International Business
    Machines Corp., supra, 
    370 F.3d at 699-700
    ; see also Tyndall
    v. National Education Centers, Inc., 
    31 F.3d 209
    , 214 (4th Cir.
    1994), an employer might worry that the plaintiff would be
    distracted from his work by the disability of the person
    with whom he had a relationship, or might think the
    disease creating the disability catching (perhaps the person
    is the plaintiff’s husband and has AIDS). But that is a
    sufficiently rare occurrence to require the plaintiff to go be-
    yond a bobtailed McDonnell Douglas test and show, as
    the court in Den Hartog v. Wasatch Academy, 
    129 F.3d 1076
    ,
    1085 (10th Cir. 1996), put it, that “the adverse employment
    action occurred under circumstances raising a reasonable
    inference that the disability of the relative or associate was
    a determining factor in the employer’s decision.” See also
    Timmons v. General Motors Corp., supra, 
    469 F.3d at 1126-27
    ;
    Larimer v. International Business Machines Corp., supra, 
    370 F.3d at 701
    ; Hilburn v. Murata Electronics North America, Inc.,
    No. 07-1957                                                  15
    
    181 F.3d 1220
    , 1230-31 (11th Cir. 1999); Ennis v. National
    Ass’n of Business & Educational Radio, Inc., 
    53 F.3d 55
    , 57-59
    (4th Cir. 1995). Otherwise the number of spurious suits
    would soar. An employee who, perhaps fearing the axe,
    wanted to prepare a discrimination case would have
    only to talk up at work his relationship to a disabled
    person; such relationships are not uncommon.
    An employer’s most likely concern about an employee
    who has a disabled relative, especially a spouse or child,
    is that the relative’s medical expenses may be covered
    by the employer’s employee health plan. There is a posi-
    tive correlation between being disabled and having ab-
    normally high medical expenses, just as there is a posi-
    tive correlation between the age of an employee and his
    salary because most employees receive regular raises
    as long as they perform satisfactorily. Suppose a com-
    pany encounters rough waters and decides to retrench
    by firing its most expensive employees. They are likely to
    be older on average than the employees who are re-
    tained, but as we said many years ago, and the Supreme
    Court confirmed in Hazen Paper Co. v. Biggins, 
    507 U.S. 604
    ,
    611-12 (1993), “nothing in the Age Discrimination
    in Employment Act forbids an employer to vary em-
    ployee benefits according to the cost to the employer; and
    if, because older workers cost more, the result of the
    employer’s economizing efforts is disadvantageous to older
    workers, that is simply how the cookie crumbles.” Karlen v.
    City Colleges of Chicago, 
    837 F.2d 314
    , 319 (7th Cir. 1988); see
    also EEOC v. Francis W. Parker School, 
    41 F.3d 1073
    , 1076-78
    (7th Cir. 1994); Bramble v. American Postal Workers Union,
    
    135 F.3d 21
    , 25-26 (1st Cir. 1998); Adams v. Florida Power
    Corp., 
    255 F.3d 1322
    , 1325-26 (11th Cir. 2001); cf. Troupe v.
    May Department Stores Co., 
    20 F.3d 734
    , 738 (7th Cir. 1994).
    16                                               No. 07-1957
    The majority opinion in this case does not cite any of these
    precedents or acknowledge the difference between distaste
    and expense as grounds for a discrimination suit—though
    the fault for the omission, as we’ll see, is the defendant’s.
    Now it is true, as we know from the discussion in the
    Larimer case of the “expense” form of association dis-
    crimination, 
    370 F.3d at 700-01
    , that an employer who
    discriminates against an employee because of the latter’s
    association with a disabled person is liable even if the
    motivation is purely monetary. But if the disability
    plays no role in the employer’s decision—if he would
    discriminate against any employee whose spouse or
    dependent ran up a big medical bill—then there is no
    disability discrimination. It’s as if the defendant had simply
    placed a cap on the medical expenses, for whatever cause
    incurred, that it would reimburse an employee for. This
    appears to be such a case. So far as the record reveals, the
    defendant fired the plaintiff not because her husband was
    disabled but because his medical expenses—which might
    not have been any lower had they been due to a condition
    that did not meet the statutory definition of a disabil-
    ity—were costing the defendant an amount of money that
    it was unwilling to spend. All the evidence recited in the
    majority opinion concerns costs (“cutting costs,” “high cost
    of Anthony’s medical treatment,” “financial albatross,”
    etc.) that a person who had a nondisabling medical condi-
    tion could equally incur.
    If cost was indeed, as appears to be the case, the defen-
    dant’s only motive for the action complained of, the
    defendant was not guilty of disability discrimination.
    Christian v. St. Anthony Medical Center, Inc., 
    117 F.3d 1051
    ,
    1052-53 (7th Cir. 1997). But it has never made
    this argument, and so reversal is proper. Since, however, a
    No. 07-1957                                                  17
    defendant does not have to file a motion for summary
    judgment at all, 11 Moore’s Federal Practice, § 56.32[1], at pp.
    56-260 to 56-261 (3d ed. 1997); Fed. R. Civ. P. 56(b), and if
    he does file one doesn’t have to include all his arguments
    in it, Smith v. Richert, 
    35 F.3d 300
    , 305 (7th Cir. 1994), the
    defendant will be able to argue the cost point on remand
    unless the district judge finds that it has been forfeited by
    being withheld for so long. The majority opinion in this
    court need not be an obstacle to the defendant’s making the
    argument. In not remarking the distinction between
    disability discrimination and expense discrimination, the
    opinion merely accepts the parties’ framing of the issues.
    USCA-02-C-0072—2-27-08
    

Document Info

Docket Number: 07-1957

Judges: Evans

Filed Date: 2/27/2008

Precedential Status: Precedential

Modified Date: 9/24/2015

Authorities (22)

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Mary M. Tyndall v. National Education Centers, Incorporated ... , 31 F.3d 209 ( 1994 )

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Joan M. Ennis v. The National Association of Business and ... , 53 F.3d 55 ( 1995 )

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Harvey Karlen, Arnold Kuhn, and Loretta Carsello v. City ... , 837 F.2d 314 ( 1988 )

Thomas Larimer v. International Business MacHines Corp. , 370 F.3d 698 ( 2004 )

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William Smith v. John Richert, Judge, Pulaski Circuit Court ... , 35 F.3d 300 ( 1994 )

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Joshua Cacia, a Minor, by and Through His Mother and Next ... , 290 F.3d 914 ( 2002 )

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Vervia D. Logan v. Kautex Textron North America , 259 F.3d 635 ( 2001 )

Dock Timmons v. General Motors Corporation , 469 F.3d 1122 ( 2006 )

Cathy Carson v. Bethlehem Steel Corporation , 82 F.3d 157 ( 1996 )

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