Gresham v. State Div. of Human Rights, 48 N.Y.2d 821 (1979)

Judicial review is available for non-final orders of the State Human Rights Appeal Board, but the Board’s power to overturn the State Division of Human Rights is limited to cases where the Division’s order lacks substantial evidence or is arbitrary, capricious, or an abuse of discretion.

Summary

James Gresham, a black vocational instructor, was laid off due to fiscal constraints and claimed he should have replaced a white instructor with less seniority. The State Division of Human Rights found no probable cause of discrimination. The State Human Rights Appeal Board reversed, ordering a public hearing. The Court of Appeals held that the Appellate Division had jurisdiction to review the non-final order of the Appeal Board, but that the Appeal Board exceeded its authority because the Division’s initial finding was not arbitrary or unsupported by substantial evidence. The Court emphasized the Division’s expertise in evaluating discrimination claims.

Facts

James Gresham, a black vocational instructor IV (electrical) with the State Office of Drug Abuse, was laid off due to the closure of his rehabilitation center. Gresham claimed he should have replaced Thomas Van Asco, a white instructor with less seniority at another facility. Van Asco taught specialized electrical fields (air conditioning, refrigeration, heating), while Gresham taught conventional electrical work. The agency informed the State Department of Civil Service that it could consider the specialty taught when determining “bumping” rights. The director of the rehabilitation center, who was black, requested that the status quo be maintained regarding the air conditioning course.

Procedural History

Gresham filed a complaint with the State Division of Human Rights, alleging race and color discrimination. The Division found no probable cause and dismissed the complaint. Gresham appealed to the State Human Rights Appeal Board, which reversed and remanded for a public hearing. The employer appealed to the Appellate Division, which annulled the Board’s decision and reinstated the Division’s determination. Gresham appealed to the Court of Appeals.

Issue(s)

1. Whether the Appellate Division has jurisdiction to hear an appeal from a non-final order of the State Human Rights Appeal Board.
2. Whether the State Human Rights Appeal Board was warranted in setting aside the State Division of Human Rights’ finding of no probable cause.

Holding

1. Yes, because section 298 of the Executive Law allows any “person aggrieved by any order of the board [to] obtain judicial review thereof.”
2. No, because the Division’s finding of no probable cause was not arbitrary, capricious, or an abuse of discretion, nor was it unsupported by substantial evidence.

Court’s Reasoning

The Court of Appeals held that section 298 of the Executive Law explicitly allows judicial review of “any order” of the Human Rights Appeal Board, regardless of finality. This promotes the remedial intent of anti-discrimination laws by providing expedient dispute resolution. The court cited precedents where Appellate Divisions uniformly rejected jurisdictional challenges based on lack of finality.

Regarding the Board’s reversal, the court emphasized that the Board’s review is limited to whether the Division’s order is supported by substantial evidence or is arbitrary, capricious, or an abuse of discretion. The Court found that the Division’s decision was rationally based, considering Van Asco’s extensive experience in air conditioning and refrigeration, the growing demand for those vocational skills, and the lack of evidence that Gresham possessed similar qualifications. “[T]he division’s expertise in evaluating discrimination claims and formulating appropriate remedies may not be lightly disregarded in view of its wide discretion, legislatively endowed, to weigh and assess the conduct of the parties and to reach conclusions based on what is fairly inferable from the facts”. The Court concluded that there was ample evidence to support the Division’s finding of no probable cause of racial discrimination and that the Board overstepped its bounds in reversing that determination.