Smith v. F.W. Morse Co., Inc.

Case Date: 02/12/1996
Court: United States Court of Appeals
Docket No: 95-1556







March 8, 1996 UNITED STATES COURT OF APPEALS UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT FOR THE FIRST CIRCUIT

_________________________

No. 95-1556

KATHY SMITH,

Plaintiff, Appellant,

v.

F.W. MORSE & CO., INC.,

Defendant, Appellee.

_________________________

ERRATA SHEET ERRATA SHEET

The opinion of this court issued on February 12, 1996, is
corrected as follows:

On page 21, line 15, change "(1st Cir. 1995)" to "(1st Cir.
1996)"








































UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT

_________________________

No. 95-1556


KATHY SMITH,

Plaintiff, Appellant,

v.

F.W. MORSE & CO., INC.,

Defendant, Appellee.

_________________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW HAMPSHIRE

[Hon. Norman H. Stahl, U.S. District Judge] ___________________
[Hon. Steven J. McAuliffe, U.S. District Judge] ___________________

_________________________

Before

Selya, Circuit Judge, _____________

Bownes, Senior Circuit Judge, ____________________

and Boudin, Circuit Judge. _____________

_________________________

Debra Weiss Ford, with whom Edmond J. Ford, Eileen L. __________________ ________________ __________
Koehler, and Ford, Ford & Weaver, P.A. were on brief, for _______ ____________________________
appellant.
Raymond P. Blanchard, with whom Taylor, Keane & Blanchard, _____________________ ___________________________
P.A. was on brief, for appellee. ____

_________________________


February 12, 1996
_________________________
















SELYA, Circuit Judge. In this appeal, the plaintiff SELYA, Circuit Judge. _____________

invites us to overrule the district court's adverse decision

under Title VII of the Civil Rights Act of 1964, 42 U.S.C.

2000e-2000e-17 (1988) (Title VII), and to reinstate her common

law causes of action for breach of contract and wrongful

discharge. We decline the invitation in all its aspects.

I. BACKGROUND I. BACKGROUND

We chronicle the events that preceded the filing of

suit and then recount what transpired thereafter.

A. Chronology of Events. A. Chronology of Events. ____________________

Damar Plastics & Metal Fabricators, Inc. (Damar)

operated a job shop in Somersworth, New Hampshire, where it

crafted custom components for high-technology applications.

Plaintiff-appellant Kathy Smith joined Damar in 1976 and advanced

steadily through the ranks until she reached the position of

production manager almost a decade later. In that capacity,

Smith scheduled production runs and coordinated delivery dates.

In late 1987, after an imbroglio with Darrol Robinson (Damar's

owner and general manager), she requested and obtained

reassignment to a different post having no responsibility for

production scheduling.

On December 23, 1988, defendant-appellee F.W. Morse &

Co., Inc. (Morse), a firm owned by Chris Bond, acquired Damar's

business and assets. Damar then had fewer than forty employees,

including seven managers reporting directly to Robinson: Michael

Hickman (production control); Robert Lane (shipping); Ronald


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Paradis (production/machining); Marc Shevenell (production/sheet

metal); Gary Bickford (engineering); Michael Seeger (sales); and

Smith. Though not titled, Smith testified that she was

considered to be a de facto manager who, largely because of

Hickman's inadequacies, performed many of the duties of the

production control manager.

Bond promptly concluded that Damar had too many chiefs

and too few Indians. Within days of the closing, he fired

Hickman. Then, in concert with Maryann Guimond, the new general

manager (who had authority to hire, fire, and discipline

personnel), he interviewed a number of employees, including

Smith. In the aftermath of this review, the company cashiered

Lane. To fill the void created by the two executive-level

departures, Morse promoted Smith to the newly created position of

materials manager, consolidating responsibilities for scheduling,

production control, inventory control, purchasing, shipping, and

receiving that had previously been spread among three managers.

All told, Morse's initial reorganization efforts

substituted Guimond for Robinson and pared second-echelon

management from seven to five. In addition to Guimond, the

reconfigured management team comprised Paradis (machining);

Shevenell (sheet metal); Bickford (engineering); Seeger (sales);

and Smith (materials). In recognition of Smith's increased

responsibilities, Morse twice hiked her pay (once in January and

again in March), thus increasing her weekly stipend by roughly

twenty-five percent.


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At about the time of the takeover, Smith informed Bond

that she had become pregnant and would need a maternity leave.

Morse, a tiny company, had no formal maternity leave policy.

Bond nonetheless honored Smith's request and assured her that her

position was "secure." In preparation for her leave, Smith held

several meetings with Guimond, Shevenell, and Paradis. The

company temporarily distributed her managerial duties among other

supervisors and arranged for a newly-hired secretary, Kelly

Gilday, to perform her clerical functions. Along the way,

Guimond informed Smith that either Paradis or Shevenell likely

would be discharged, and told her that she would be promoted

again upon her return from maternity leave. Guimond also

indicated that, in all probability, Bickford would be demoted,

and Smith would be asked to assume a portion of his duties.

While these changes presumably would warrant increased

remuneration, Guimond did not mention an amount.

On April 7, 1989, Smith began her maternity leave,

planning to return to work in approximately six weeks. She gave

birth two weeks later. Meanwhile, Guimond, expecting the "sky to

fall," held regular "reality check" meetings with Shevenell and

Paradis. To her surprise, the plant functioned very well.1

Guimond reported the good news to Bond.

Smith visited the plant on May 1 and informed Guimond

that she wished to return to work one week earlier than
____________________

1During this same time frame, the company eliminated the
engineering manager's position. However, Bickford remained with
Morse in a lesser capacity.

5












originally anticipated. Guimond inquired about whether Smith

desired more children, and Smith replied affirmatively. The

following day, Guimond queried Karen Vendasi, Smith's sister and

co-worker, about Smith's plans to have a larger family. Vendasi

relayed this conversation to Smith and told her of nascent rumors

to the effect that she might not return to work. Smith contacted

Guimond and demanded an explanation. Guimond denied any

knowledge of the rumors, dismissed them as idle buzznacking, and

again assured Smith that her job was secure. Guimond repeated

these assurances during a chance meeting on May 4.

A few days later, Guimond concluded that the materials

manager's position was superfluous and decided to eliminate it.

She told Smith of her decision on May 11. During this telephone

conversation, Guimond asked Smith if she preferred people to be

told that she had decided to stay at home with her infant child

rather than that she had been discharged. Smith rejected the

suggestion. Nevertheless, a Morse employee repeated this canard

to several customers.2

Following Smith's severance, Guimond gave most of her

duties to Paradis in his new capacity as operations manager.

Shevenell assumed the role of manufacturing manager (in charge of

both machining and sheet metal work). Guimond also promoted two

lower-ranking employees, Peter Lapanne and Brian Hoffman, to

assistant manager positions (though evidence adduced at trial

____________________

2The company reprimanded the employee and trial testimony
tended to establish that Morse had not authorized the comments.

6












demonstrated that Lapanne had been an assistant manager as far

back as 1984, and that neither man assumed any new

responsibilities or received any salary increase in connection

with his new title). Gilday continued to perform the clerical

functions associated with Smith's former position. When the

second round of the reorganization wound down, the plant had

three second-echelon managers Paradis (operations); Shevenell

(manufacturing); and Seeger (sales) in lieu of the original

seven.

B. Procedural History. B. Procedural History. __________________

Smith sued Morse in a New Hampshire state court

alleging, inter alia, wrongful discharge based on gender _____ ____

discrimination, intentional infliction of emotional distress, and

breach of contract. Morse removed the case to federal district

court on the ground that Smith's claim "arose under" Title VII,

thus prompting federal question jurisdiction. See 28 U.S.C. ___

1331, 1343(c)(3), 1441, 1446; see also 28 U.S.C. 1367 ___ ____

(conferring ancillary jurisdiction over appended nonfederal

claims). Smith thereafter filed an amended complaint that made

her Title VII claim explicit.

Early in the proceedings, Morse moved for partial

summary judgment. The district court (Stahl, J.) granted the

motion on the common law wrongful discharge and emotional

distress claims. See Smith v. F.W. Morse & Co., No. 90-361-S, ___ _____ _________________

slip op. at 12 (D.N.H. Sept. 26, 1991) (unpublished) (Smith I). _______

Several years later, the parties simultaneously tried


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the Title VII claim to the bench (McAuliffe, J.) and the breach

of contract claim to a jury.3 At the close of the plaintiff's

case, the district court entered judgment as a matter of law in

the defendant's favor on the breach of contract claim and

disbanded the jury. The Title VII case proceeded before the

district judge. Morse asserted that it scrapped the materials

manager's position and laid off the appellant as part of an

overarching strategy to streamline a top-heavy managerial

structure, and that even if Smith had not been on maternity leave

she would have been flattened by the downsizing steamroller. The

district court agreed and entered judgment accordingly. See ___

Smith v. F.W. Morse & Co., 901 F. Supp. 40, 45 (D.N.H. 1995) _____ _________________

(Smith II). This appeal ensued. ________

II. THE TITLE VII CLAIM II. THE TITLE VII CLAIM

The crown jewel of the appellant's asseverational array

is her contention that the district court erred in finding that

Morse did not discriminate against her on the basis of her sex.

Our appraisal of this contention is in three parts.

A. Standard of Review. A. Standard of Review. __________________

Following a bench trial, the court of appeals reviews
____________________

3The Civil Rights Act of 1991, Pub. L. 102-166, 102, 105
Stat. 1071, 1073 (1991) (codified at 42 U.S.C. 1981a(c)(1)),
authorizes trial by jury in Title VII cases. Since the events
that form the basis of the appellant's claim occurred prior to
the effective date of the 1991 Act, she had no right to a jury
trial on her Title VII claim. See Landgraf v. USI Film Prods., ___ ________ ________________
Inc., 114 S. Ct. 1483, 1487 (1994) (holding that the 1991 Act is ____
not retroactive). By like token, the Price Waterhouse framework ________________
for proof of "mixed-motive" discrimination that we describe in
Part II(B), infra, is somewhat changed under the 1991 Act. See _____ ___
Fuller v. Phipps, 67 F.3d 1137, 1142 (4th Cir. 1995). ______ ______

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the trier's factual determinations for clear error, see Cumpiano ___ ________

v. Banco Santander P.R., 902 F.2d 148, 152 (1st Cir. 1990); Fed. ____________________

R. Civ. P. 52(a), but affords plenary review to the trier's

formulation of applicable legal rules, see Johnson v. Watts ___ _______ _____

Regulator Co., 63 F.3d 1129, 1132 (1st Cir. 1995). The ______________

jurisprudence of clear error constrains us from deciding factual

issues anew. See, e.g., Jackson v. Harvard Univ., 900 F.2d 464, ___ ____ _______ _____________

466 (1st Cir.), cert. denied, 498 U.S. 848 (1990); Keyes v. _____ ______ _____

Secretary of the Navy, 853 F.2d 1016, 1019 (1st Cir. 1988). _______________________

Indeed, we may not disturb the district court's record-rooted

findings of fact unless on the whole of the evidence we reach the

irresistible conclusion that a mistake has been made. See ___

Cumpiano, 902 F.2d at 152; RCI Northeast Servs. Div. v. Boston ________ __________________________ ______

Edison Co., 822 F.2d 199, 203 (1st Cir. 1987). __________

This deferential standard extends not only to factual

findings simpliciter but also to inferences drawn from the

underlying facts. See Cumpiano, 902 F.2d at 152. Similarly, ___ ________

findings regarding an actor's motivation fall within the shelter

of Rule 52(a), and, therefore, if the trial court's reading of

the record on such an issue is plausible, appellate review is at

an end. See Foster v. Dalton,71 F.3d 52, 56-57 (1st Cir. 1995); ___ ______ ______

Anthony v. Sundlun, 952 F.2d 603, 606 (1st Cir. 1991). _______ _______

B. The Jurisprudence of Title VII. B. The Jurisprudence of Title VII. ______________________________

Title VII provides, inter alia, that it is an unlawful _____ ____

employment practice for an employer to discharge an individual

because of her sex. See 42 U.S.C. 2000e-2(a)(1). After the ___


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Supreme Court held that this phraseology did not proscribe

discrimination on the basis of pregnancy, see General Elec. Co. ___ _________________

v. Gilbert, 429 U.S. 125, 145-46 (1976), Congress augmented Title _______

VII by enacting the Pregnancy Discrimination Act of 1978 (PDA),

Pub. L. 95-555, 1, 92 Stat. 2076, 2076 (1978) (codified at 42

U.S.C. 2000e(k)). The PDA made clear that:

The terms "because of sex" or "on the basis
of sex" include, but are not limited to,
because of or on the basis of pregnancy,
childbirth, or related medical conditions;
and women affected by pregnancy, childbirth,
or related medical conditions shall be
treated the same for all employment-related
purposes, including receipt of benefits under
fringe benefit programs, as other persons not
so affected but similar in their ability or
inability to work.

42 U.S.C. 2000e(k). Thus, at the time Smith and Morse parted

company, Title VII's ban on gender discrimination encompassed

pregnancy-based discrimination.

Like other Title VII plaintiffs, an employee claiming

discrimination on the basis of pregnancy may proceed under either

a disparate treatment or a disparate impact theory. See ___

generally Furnco Constr. Corp. v. Waters, 438 U.S. 567, 575, 579- _________ ____________________ ______

80 (1978) (explaining the dichotomy). Here, the appellant

alleged disparate treatment. Consequently, she had the burden of

proving that the defendant purposefully terminated her employment

because of her pregnancy.

In cases predating the Civil Rights Act of 1991, see ___

supra note 3, the framework for proving intentional _____

discrimination varies depending on the availability of direct


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evidence. See Fields v. Clark Univ., 966 F.2d 49, 51-52 (1st ___ ______ ___________

Cir. 1992), cert. denied, 113 S. Ct. 976 (1993); Cumpiano, 902 _____ ______ ________

F.2d at 153. Absent the evidentiary equivalent of a "smoking

gun," the plaintiff must attempt to prove her case by resort to a

burden-shifting framework. See Texas Dep't of Community Affairs ___ ________________________________

v. Burdine, 450 U.S. 248, 254-56 (1981); McDonnell Douglas Corp. _______ _______________________

v. Green, 411 U.S. 792, 802 (1973). Under this framework, a _____

plaintiff can establish a prima facie case of pregnancy

discrimination by showing that (1) she is pregnant (or has

indicated an intention to become pregnant), (2) her job

performance has been satisfactory, but (3) the employer

nonetheless dismissed her from her position (or took some other

adverse employment action against her) while (4) continuing to

have her duties performed by a comparably qualified person. See, ___

e.g., Cumpiano, 902 F.2d at 153; Lipsett v. University of P.R., ____ ________ _______ ___________________

864 F.2d 881, 899 (1st Cir. 1988). Establishing the prima facie

case raises a rebuttable presumption that discrimination sparked

the adverse employment action, see Cumpiano, 902 F.2d at 153, and ___ ________

imposes upon the employer a burden to put forward a legitimate,

nondiscriminatory motive for the action. See Burdine, 450 U.S. ___ _______

at 254-55; Lipsett, 864 F.2d at 899. If the defendant clears _______

this modest hurdle, the presumption of discrimination vaporizes,

see Mesnick v. General Elec. Co., 950 F.2d 816, 823 (1st Cir. ___ _______ __________________

1991), cert. denied, 504 U.S. 985 (1992),4 and the plaintiff _____ ______
____________________

4Mesnick is a case brought under the Age Discrimination in
Employment Act (ADEA), 29 U.S.C. 621-634, rather than under
Title VII. The same burden-shifting framework applies in both

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(who retains the ultimate burden of persuasion on the issue of

discriminatory motive throughout) must then prove that the

employer's proffered justification is a pretext for

discrimination, see St. Mary's Honor Ctr. v. Hicks, 113 S. Ct. ___ ______________________ _____

2742, 2749 (1993); Mesnick, 950 F.2d at 823-24. _______

On the relatively rare occasions when a smoking gun is

discernible that is, when a plaintiff produces direct evidence

that the protected characteristic was a motivating factor in the

employment action the McDonnell Douglas framework is ___________________

inapposite. See Fields, 966 F.2d at 52. In those cases, direct ___ ______

evidence of discriminatory motive say, an admission by the

employer that it explicitly took actual or anticipated pregnancy

into account in reaching an employment decision serves to shift

the burden of persuasion from employee to employer. The latter

must then affirmatively prove that it would have made the same

decision even if it had not taken the protected characteristic

into account. See Price Waterhouse v. Hopkins, 490 U.S. 228, 258 ___ ________________ _______

(1989) (plurality op.); id. at 265-67 (O'Connor, J., concurring). ___

The seeming neatness of this dichotomy is illusory in

certain respects, for evidence rarely comes in tidy,

geometrically precise packages. In many cases, the line between

McDonnell Douglas, on one hand, and Price Waterhouse, on the _________________ _________________

other hand, is blurred. In those situations, classification

____________________

instances; therefore, ADEA cases have solid precedential value in
Title VII litigation. Hence, we cite herein interchangeably to
Title VII and ADEA cases, often without distinguishing between
them.

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depends on both the quantity and quality of the proof that a

court deems sufficient to constitute direct evidence of

discriminatory animus.

Discretion is sometimes the better part of valor, and

courts often wisely decide to sidestep difficult theoretical

questions if answers to them are not essential to the proper

resolution of a given case. We have here a good example of such

a prudential approach. The trial court largely bypassed any

differential direct evidence/circumstantial evidence tamisage,

preferring to go directly to a finding that, on the totality of

the evidence presented, Morse had proven that gender

discrimination did not trigger the firing. See Smith II, 901 F. ___ ________

Supp. at 44-45. This approach negates any need for us to pursue

the question of an analytic framework to a definite conclusion.

While we agree with our concurring colleague that the decisional

process is important, there comes a point at which slavish

insistence upon process for its own sake serves only to exalt the

trappings of justice over its substance. Here, the district

court's finding on causation, if sustainable, resolves the Title

VII claim whether the appellant's prima facie case arises under

the McDonnell Douglas or Price Waterhouse paradigm. And as we _________________ _________________

illustrate below, see infra Part III(C), that finding passes ___ _____

muster.

C. The Merits. C. The Merits. __________

Consistent with the district court's approach, Morse

must be assumed to have had the burden of proving that it would


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have taken the same action the elimination of the materials

manager's position whether or not the appellant became

pregnant, took a maternity leave, or planned to bear more

children. The court found that Morse carried the devoir of

persuasion on this pivotal issue. It concluded that Morse's

decision was "motivated by business judgment and represented an

effort to economize by placing the most qualified personnel in

the fewest number of managerial positions possible, and was not

based on plaintiff's gender, pregnancy, or her expressed desire

to have more children." Smith II, 901 F. Supp. at 44. The court ________

also concluded "that even if Guimond is assumed to have

considered impermissible gender-based factors, the same decision

to eliminate plaintiff's position would still have been made at

the same time" for reasons of business necessity. Id. The crux ___

of our inquiry is whether these findings are clearly erroneous.

There is little doubt that an employer, consistent with

its business judgment, may eliminate positions during the course

of a downsizing without violating Title VII even though those

positions are held by members of protected groups (pregnant women

included). See, e.g., LeBlanc v. Great Am. Ins. Co., 6 F.3d 836, ___ ____ _______ __________________

844-45 (1st Cir. 1993), cert. denied, 114 S. Ct. 1398 (1994); _____ ______

Goldman v. First Nat'l Bank, 985 F.2d 1113, 1118-19 (1st Cir. _______ _________________

1993); Montana v. First Fed. Sav. & Loan Ass'n, 869 F.2d 100, _______ ______________________________

105, 107 (2d Cir. 1989); Dister v. Continental Group, Inc., 859 ______ ________________________

F.2d 1108, 1115 (2d Cir. 1988); Pearlstein v Staten Island Univ. __________ ___________________

Hosp., 886 F. Supp. 260, 268-69 (E.D.N.Y. 1995). This is merely _____


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a reflection of a central theme that permeates the relevant

jurisprudence: insofar as Title VII is concerned, an employer

can hire or fire one employee instead of another for any reason,

fair or unfair, provided that the employer's choice is not driven

by race, gender, pregnancy, or some other protected

characteristic. See Foster, 71 F.3d at 56; Keyes, 853 F.2d at ___ ______ _____

1026; see also Freeman v. Package Mach. Co., 865 F.2d 1331, 1341 ___ ____ _______ _________________

(1st Cir. 1988) (elucidating similar proposition in ADEA case).

The flip side of the coin, however, is that an employer who

selectively cleans house cannot hide behind convenient euphemisms

such as "downsizing" or "streamlining." Whether or not trimming

the fat from a company's organizational chart is a prudent

practice in a particular business environment, the employer's

decision to eliminate specific positions must not be tainted by a

discriminatory animus. See Goldman, 985 F.2d at 1118 n.4; ___ _______

Maresco v. Evans Chemetics, 964 F.2d 106, 111 (2d Cir. 1992); _______ ________________

Mesnick, 950 F.2d at 825; Pearlstein, 886 F. Supp. at 268-69. _______ __________

Against this backdrop, we believe that the evidence

adequately supports the trial court's findings. When Morse took

over, Damar had an inordinately high ratio of managers to workers

and the managers' responsibilities overlapped.5 Both Bond and

Guimond testified that from the very start they believed that

Damar's sprawling organizational structure defied rhyme or

reason. Accordingly, they set out to compress some of the
____________________

5To cite an example, Damar split the responsibility for
manufacturing between two managers (Shevenell and Paradis), a
situation that, in appellant's own phrase, caused daily "chaos."

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sprawl. The district court credited their intention, noting that

the witnesses' actions matched their stated objective. More to

the point, Guimond testified that she terminated the appellant

"because I had a position that I no longer felt needed to be

filled." Bond testified in the same vein, indicating that he,

too, had become convinced that Smith's position was expendable.

The court accepted this evidence, concluding that the materials

manager's position would have been eliminated within the same

time frame whether or not Smith had taken a maternity leave.

In our view, this determination, while not inevitable,

is supportable. In the first place, the record strongly suggests

that, in fact, the position was expendable. In the second place,

any other choice would have entailed a loss of engineering

expertise that Damar could ill afford.6 In the third place, the

court's view is bolstered by the reception that the appellant

originally received from the new ownership. Bond and Guimond

apprised her of the planned downsizing and assigned her

significant new responsibilities when other managers were

dismissed. They also promoted her and increased her

compensation. These actions, undertaken with full knowledge that

the appellant was pregnant and would be taking a six-week

maternity leave, are inconsistent with a bias against pregnant

____________________

6Bond testified that he purchased Damar to acquire its
engineering talents. Paradis and Shevenell were highly trained
and experienced engineers, while Smith had no such credentials.
When Morse discovered that it could function with one less
manager, the decision to retain Paradis and Shevenell, and
dismiss Smith, seems quite plausible.

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employees. In the fourth place, the district judge, sitting as

the trier of fact, had the right to credit Bond's testimony that

the "maternity leave never played a role in itself" because the

same decision "would have been made in a very close time frame,"

and Guimond's testimony to like effect. In a bench trial, such

credibility judgments are the judge's prerogative. See Anthony, ___ _______

952 F.2d at 606.

To be sure, the record could support a less innocuous

conclusion. The chronal proximity of Guimond's questions anent

Smith's plans to have more children and her dismissal, Guimond's

ill-advised suggestion that customers and employees be told that

Smith decided to stay at home to care for her daughter, and

Smith's termination while on maternity leave are troubling so

much so that we, if free to write a palimpsest, might have

characterized the impetus behind the appellant's ouster

differently. But whether the trial court could have drawn an

inference of discriminatory intent is not the test. See Foster, ___ ______

71 F.3d at 55; Keyes, 853 F.2d at 1027. As long as a contrary _____

inference is also supportable and that is the situation here

then it is for the trial court, not the court of appeals, to call

the tune. After all, "when there are two permissible views of

the evidence, the factfinder's choice between them cannot be

clearly erroneous." Johnson, 63 F.3d at 1138 (citing Anderson v. _______ ________

City of Bessemer City, 470 U.S. 564, 574 (1985)). _____________________

In an effort to evade the force of this principle, the

appellant hauls two further arguments from her bag. First, she


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asseverates that Morse did not in fact eliminate her position,

and that the district court's contrary finding, see Smith II, 901 ___ ________

F. Supp. at 43, is itself clearly erroneous. This asseveration

leads down a blind alley.

When an employer defends an employment discrimination

case on the ground of position elimination, the position may not,

like a Dali painting, fade from one image to another only for the

first image to reemerge at the blink of an eye. See Gallo v. ___ _____

Prudential Residential Servs., Ltd. Partnership, 22 F.3d 1219, _________________________________________________

1226-28 (2d Cir. 1994); LeBlanc, 6 F.3d at 846; Barnes v. GenCorp _______ ______ _______

Inc., 896 F.2d 1457, 1465 (6th Cir.), cert. denied, 498 U.S. 878 ____ _____ ______

(1990). Yet, a position elimination defense is not defeated

merely because another employee, already on the payroll, is

designated to carry out some or all of the fired employee's

duties in addition to his own, or because those duties are

otherwise reallocated within the existing work force. See ___

LeBlanc, 6 F.3d at 846; Barnes, 896 F.2d at 1465. The _______ ______

elimination of a position signifies the employer's belief that it

can get by with one less helper; it does not necessarily convey a

belief that the work the employee had been doing was superfluous

and need not be performed at all.

Here, the undisputed evidence before the district court

indicates that after Guimond dismissed Smith, the position that

Smith had occupied materials manager fell into desuetude.

There is no basis in the record for a suggestion that Lapanne or

Hoffman assumed any of the appellant's former duties; those


18












duties, which Paradis, Shevenell, and Gilday had performed during

Smith's leave, continued to be performed by them (or, at least,

by Paradis and Gilday). In short, the second round of the

reorganization (which cost Smith her job) bore a striking

resemblance to the first round (which gave Smith her promotion to

materials manager). Given these facts, the district judge's

determination that Morse eliminated the appellant's position is

unimpugnable.

The appellant next endeavors to surmount the sharp

escarpment of the clearly erroneous rule by casting a hook at the

legal standard applied by the trial court. This is a

theoretically sound way to climb the mountain, see, e.g., ___ ____

Reliance Steel Prods. Co. v. National Fire Ins. Co., 880 F.2d __________________________ _______________________

575, 577 (1st Cir. 1989) (explaining that appellate courts review

questions of law de novo, even after a bench trial), but in this

case the hook does not hold. The appellant's thesis is as

follows. She says that Title VII prohibits an employer from

dismissing an employee while she is on maternity leave even if

the employer, in the process of rationalizing its work force,

discovers that her position is redundant and eliminates it for

that reason.

Refined to bare essence, this thesis suggests that,

since Morse would not have discovered the redundancy at that time

(if ever) but for the fact that Smith took a maternity leave, the






19












leave brought about the firing.7 And the appellant attempts to

drive this point home by citing Bond's testimony that "because"

Smith was out on maternity leave, Morse was able to discover that

her position was expendable testimony which the appellant

optimistically equates with an admission that Morse dismissed her

"because" of her pregnancy. With respect, we believe that this

argument, which seeks to apply a black-letter legal principle in

a totally mechanical fashion, plays mischievously on the

mendacity of language by substituting sound for sense.

It is settled under Title VII that an employer may not

discharge an employee based on the categorical fact of her

pregnancy. See Newport News Shipbuilding & Dry Dock Co. v. EEOC, ___ ________________________________________ ____

462 U.S. 669, 684 (1983); Cumpiano, 902 F.2d at 153. By the same ________

token, since a short-term inability to work is bound up with the

very nature of pregnancy and childbirth, that disability is a

pregnancy-related condition within the meaning of 42 U.S.C.

2000e(k), and Title VII thus prohibits an employer from

dismissing an employee in retaliation for taking an authorized

maternity leave. Nevertheless, under the PDA, pregnancy does not

confer total immunity.8 An employer may discharge an employee
____________________

7We note in passing that the appellant's reasoning is
hopelessly circular. Morse demonstrated a firm commitment to
downsizing and actively sought ways to streamline its operations.
Consequently, there is no basis for surmising that Morse would
have failed to realize that the materials manager's position was
superfluous whether or not Smith took a maternity leave.

8We stress that this case is brought pursuant to, and is
governed by, Title VII. If the recently enacted Family and
Medical Leave Act of 1993, P.L. 103-3, 107 Stat. 6 (1993)
(codified at 29 U.S.C. 2601-2654) were applicable, a different

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while she is pregnant if it does so for legitimate reasons

unrelated to her pregnancy. See, e.g., Troupe v. May Dept. ___ ____ ______ _________

Stores Co., 20 F.3d 734, 738 (7th Cir. 1994); Pearlstein, 886 F. __________ __________

Supp. at 268-69; see also Lipsett, 864 F.2d at 899 (holding that ___ ____ _______

an employer may dismiss an employee who is in a protected class

for a nondiscriminatory reason); Johnson v. Allyn & Bacon, Inc., _______ ___________________

731 F.2d 64, 70 (1st Cir. 1984) (similar). It follows, then,

that an employer may discharge an employee while she is on a

pregnancy-induced leave so long as it does so for legitimate

reasons unrelated to her gravidity.

Harmonizing these principles leads to the following

conclusions. Title VII mandates that an employer must put an

employee's pregnancy (including her departure on maternity leave)

to one side in making its employment decisions but the statute

does not command that an employer bury its head in the sand and

struthiously refrain from implementing business judgments simply

because they affect a parturient employee. See Troupe, 20 F.3d ___ ______

at 738 (holding that the PDA "requires the employer to ignore an

employee's pregnancy, but . . . not her absence from work");

Crnokrak v. Evangelical Health Systems Corp., 819 F. Supp. 737, ________ _________________________________

743 (N.D. Ill. 1993) (stating that "the PDA does not force

employers to pretend that absent employees are present whenever

their absences are caused by pregnancy"). At bottom, Title VII

requires a causal nexus between the employer's state of mind and

the protected trait (here, pregnancy). The mere coincidence
____________________

set of rules would obtain.

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between that trait and the employment decision may give rise to

an inference of discriminatory animus, see St. Mary's, 113 S. Ct. _________ ___ __________

at 2747, but it is not enough to establish a per se violation of

the statute (at least when, as now, the justification advanced by

the employer in support of the employment decision is on its face

legitimate and nondiscriminatory).9

To sum up, an employee (pregnant or not) runs a risk of

suffering the ordinary slings and arrows that suffuse the

workplace every day she goes to work and every day she stays

away. Title VII is neither a shield against this broad spectrum

of employer actions nor a statutory guaranty of full employment,

come what may. Applying the PDA as the appellant asks would

eliminate an employer's business necessity defense long

recognized under Title VII and cripple industry's ability to

manage workers in keeping with nondiscriminatory considerations.

That is not the law. See Bowen v. Valley Camp of Utah, Inc., 639 ___ _____ _________________________

F. Supp. 1199, 1204 (D. Utah 1986) (explaining that Title VII, as

amended by the PDA, does not "preclude an employer from

articulating legitimate nondiscriminatory reasons for terminating

a woman while she was on maternity leave"); see generally Blackie ___ _________ _______
____________________

9Say, for example, a Jewish employee, in charge of
maintaining corporate records, stays home for a week to observe
Passover. In her absence, her employer rummages through the file
drawers that she maintains in search of a particular memorandum.
The employer finds a packet of heroin. The employer would not
have had the occasion to look through the file drawers but for
the fact that the employee was on religious leave; he would
simply have asked the employee for the memo. In such
circumstances, we think it is clear that the employer can fire
the employee for introducing drugs into the workplace without
violating Title VII's ban on religious discrimination.

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v. Maine, ___ F.3d ___, ___ (1st Cir. 1996) [No. 95-1777, slip _____

op. at 13] (suggesting, in retaliation case, that "[a] contrary

rule would mummify the status quo").

Here, the district court found the requisite nexus

lacking between the employer's mindset and the employee's

gravidity. In the court's estimation, Morse discharged the

appellant for nondiscriminatory reasons. The record permits that

view of the facts. That the discharge took place while the

appellant was on maternity leave possessed considerable

evidentiary significance but that circumstance neither

transformed the character of the employer's action nor rendered

it per se unlawful under Title VII. The district court therefore

did not apply an erroneous legal standard.

III. THE BREACH OF CONTRACT CLAIM III. THE BREACH OF CONTRACT CLAIM

We turn now to the appellant's partially tried breach

of contract claim. At the close of her case, the trial court

took this claim from the jury and directed a verdict in Morse's

favor. The appellant assigns error.

A. Standard of Review. A. Standard of Review. __________________

The court of appeals reviews the grant of a motion for

judgment as a matter of law de novo, applying the same legal

principles that inform the trial court's ruling. See Rolon- ___ ______

Alvarado v. Municipality of San Juan, 1 F.3d 74, 77 (1st Cir. ________ _________________________

1993). Accordingly, we "examine the evidence and the inferences

reasonably extractable therefrom in the light most hospitable to

the nonmovant." Fashion House, Inc. v. K Mart Corp., 892 F.2d ____________________ _____________


23












1076, 1088 (1st Cir. 1989). If the proof, eyed from this

standpoint, permits a reasonable factfinder to reach only a

conclusion favorable to the movant, then the court must remove

the issue from the jury's consideration. See id. ___ ___

While this approach does not allow the court to

"consider the credibility of witnesses, resolve conflicts in

testimony, or evaluate the weight of the evidence," Wagenmann v. _________

Adams, 829 F.2d 196, 200 (1st Cir. 1987), neither does it pave _____

the way for every case, no matter how sketchy, to reach the jury.

Thus, "a mere scintilla of evidence is not enough to forestall a

directed verdict, especially on a claim or issue as to which the

burden of proof belongs to the objecting party." Fashion House, _____________

892 F.2d at 1088.

B. The Merits. B. The Merits. __________

The parties who concur on very little else agree

that New Hampshire law governs the breach of contract claim.

Under that law, the at-will status of an employment relationship

is "one of prima facie construction." Panto v. Moore Business _____ ______________

Forms, Inc., 547 A.2d 260, 267 (N.H. 1988). That is to say, ____________

unless an employment relationship explicitly provides for a

definite duration, it is presumed to be at-will. See Butler v. ___ ______

Walker Power, Inc., 629 A.2d 91, 93 (N.H. 1993) (explaining that ___________________

the at-will presumption "is a gap filler for determining duration

when the parties' contract of employment is silent as to its

expiration"). This is critically important when an employee

challenges her ouster; an employer can give an at-will employee


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even one who has been a stellar performer her walking papers at

any time, for any reason or no reason, unless a statute, a

collective bargaining agreement, or some aspect of public policy

proscribes firing the employee on a particular basis. See Panto, ___ _____

547 A.2d at 267.

Of course, an employer and an employee may alter the

at-will status of the employment relationship. See Butler, 629 ___ ______

A.2d at 93; Panto, 547 A.2d at 267. Such a modification _____

sometimes may be accomplished if the employer makes a binding

offer that the employee can accept by remaining on the job. See ___

Panto, 547 A.2d at 265. Standard contract formation principles _____

govern the creation and construction of such contracts. See id. ___ ___

at 264. Thus, the "offer must be so definite as to its material

terms or require such definite terms in the acceptance that the

promises and performances to be rendered by each party are

reasonably certain." Chasan v. Village Dist. of Eastman, 523 ______ _________________________

A.2d16, 21 (1986) (quoting Restatement of Contracts 32 (1932)).

Definiteness, like beauty, is frequently in the eye of

the beholder. At best, it involves matters of degree. In the

last analysis, the standard is reasonable certainty, not

mathematical precision. See Sawin v. Carr, 323 A.2d 924, 926 ___ _____ ____

(N.H. 1974). The provisions of a contract need only be

"sufficiently certain to allow claims of breach to be resolved

readily, and to enable a reasonably certain computation of

damages." Panto, 547 A.2d at 264 (internal citations omitted); _____

accord Phillips v. Verax Corp., 637 A.2d 906, 910 (N.H. 1994); ______ ________ ___________


25












Sawin, 323 A.2d at 926. _____

In this instance, the appellant takes bits and pieces

of various conversations that she had with Guimond and Bond,

pastes them together, and argues that a rational jury, mulling

the ensuing patchwork, could conclude that Morse offered to

reinstate and promote her followi