On April 3, 2013, the Fifth Circuit affirmed a ruling from the U.S. District Court for the Northern District of Texas that a plaintiff was not entitled to attorney’s fees and costs under Title VII (42 U.S.C. § 2000 e-5(g)) where a jury returned a verdict in his favor on his retaliation claim because (it found) the employer would have taken the same challenged action in the absence of protected activity even though it had an impermissible motive.  Carter v. Luminant Power Servs. Co.No. 12-cv-10642, 2013 WL 1337365 (5th Cir. April 3, 2013).

Plaintiff/Appellant Carter asserted claims of discrimination, retaliation and harassment against his former employer, Luminant Power Services Co. (Employer) following the termination of his employment.  The U.S. District Court for the Northern District of Texas partially granted his motion for summary judgment, sending two claims of retaliation to the jury.  The jury found that Carter’s protected activity was indeed a motivating factor in the Employer’s decision to impose discipline upon him and then terminate his employment, but it also found that the Employer would have taken the same actions even in the absence of his protected activity.  Carter contended that he was entitled to fees and costs pursuant to 42 U.S.C. § 2000 e-5(g)(2)(B)(1) because he proved his protected activity was a motivating factor.  The Employer, on the other hand, argued that the applicable portion of Title VII does not apply to mixed-motive retaliation claims.  The district court sided with the Employer, and Carter appealed to the Fifth Circuit.

In affirming the district court, the Fifth Circuit analyzed the language of sections 2000 e-5(g) and 2000 e-2(m) of Title VII, which defines mixed-motive discrimination, along with the relationship between those two provisions.  The Fifth Circuit interpreted the statutory language narrowly to find that, “at least for the purposes of Title VII, ‘discrimination on account of race’ does not include retaliation; likewise, employment practices motivated by retaliation are not employment practices motivated by race.”   The Fifth Circuit acknowledged Carter’s argument that, since his protected activity centered around his having filed a charge of race discrimination with the EEOC, race was a motivating factor behind the retaliation in question and should therefore fall under the ambit of section 2000 e-2(m).  Though it noted that such an argument “ha[d] some force,” the Court pointed out that Congress listed a variety of specific discriminatory practices that the section would cover, and that its “silence with respect to retaliation is informative.” 

This standard certainly favors defendant employers, and we will monitor the reaction of courts in other circuits.

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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.