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ARTICLE · 22 FEBRUARY 2002

Racial Discrimination Claim Based on Unequal Severance Package Survives Summary Judgment

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United StatesEmployment and HR

Originally appeared in Labor and Employment Newsletter - February 2002

In McGuinness v. Lincoln Hall, the United States Court of Appeals for the Second Circuit reversed, in part, the summary judgment decision by a New York district court dismissing the claims of Sheila McGuinness, a former executive at Lincoln Hall who claimed that she was offered a less favorable severance package than a black employee because of her sex and her race.

The Second Circuit affirmed summary judgment with regard to McGuinness’ sex discrimination claim, but reversed the district court’s judgment on her race discrimination claim, holding that McGuinness had presented sufficient evidence that she was offered a less favorable severance package upon her termination than a similarly situated black employee because of her race. McGuinness and another executive, Carlton Mitchell, were both terminated as part of a reorganization by Lincoln Hall. McGuinness was offered a severance package of two weeks pay, with

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