Cruz v. Farmers Insurance, et al., No. 21-1069 (10th Cir. 2022)
Annotate this CaseMichael Cruz sued defendant insurance companies alleging they terminated his contract, under which he sold defendants’ insurance products, on the basis of race, in violation of 42 U.S.C. § 1981. In support, Cruz relied on a statement allegedly made by his district manager, which Cruz argued represented direct evidence of discrimination, as well as circumstantial evidence. The district court granted summary judgment to defendants, ruling that the district manager’s statement was inadmissible hearsay and that Cruz’s circumstantial evidence did not otherwise demonstrate discriminatory intent. Without considering Cruz’s circumstantial evidence, the Tenth Circuit reversed because the district manager’s alleged comment was not inadmissible hearsay; it was admissible under Federal Rule of Evidence 801(d)(2)(D) as a party-opponent admission made by an agent within the scope of the agency relationship. And because that admission constituted direct evidence of discrimination, the grant of summary judgment was reversed and the matter remanded for further proceedings.
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