New York Appellate Division Upholds Dismissal of Sexual Orientation Discrimination Complaint

The Appellate Division (First Dept.) of the Supreme Court of the State of New York recently upheld the outright dismissal of a plaintiff's complaint alleging that he was not hired by a prospective employer due to his sexual orientation. The Appellate Division's pithy decision in Matz v. Prospect Energy Corp. 2009 NY Slip Op 05373 affirms the trial court's dismissal of the complaint because of Plaintiff's failure to "establish a prima facie case of discrimination inasmuch as he failed to show that he was denied employment under circumstances giving rise to an inference of discrimination."

The case is very interesting from a procedural standpoint since, generally, courts tend to accept factual allegations in the complaint as true when reviewing a motion to dismiss. Citing precedent, however, the court noted that it "is not required to accept factual allegations, or accord favorable inferences, where the factual assertions are plainly contradicted by documentary evidence."

In this case, Mr. Matz applied for a job in senior management, and alleged that defendants refused to hire him after inquiring and learning of his sexual orientation during a reference check. Defendants were able to produce documents showing that during the application process, they were interested in evaluating plaintiff's capabilities by having him work on various projects. The documents convincingly demonstrated that prior to learning of plaintiff's sexual orientation, defendants had already become concerned about plaintiff's skills, and had rejected his aggressive style and attempts to accelerate the hiring process.

Although Mr. Matz's complaint was likely brought under New York State or City Human Rights Laws, which prohibit sexual orientation discrimination, it could not have been brought under federal discrimination laws such as Title VII since sexual orientation is currently not a protected class. However, keep your eyes on the Employment Non-Discrimination Act (ENDA) that is now pending in Congress before the House Judiciary Committee which would provide a federal right of action for employees discriminated against on the basis of their sexual orientation or gender identity.