A Pennsylvania district court denied a Scranton hospital's motion to dismiss discrimination charges filed by a woman who alleged she was not hired because she is a lesbian.

Margaret Dolan, of Fredericksburg, Va., went through months of screenings and interviews in a bid to become vice president of human resources for Community Medical Center Healthcare System. In December 2004, a senior vice president for Community Medical Center told Dolan she was excited Dolan was joining the team and an offer of employment was forthcoming. Then Dolan disclosed that she was a lesbian, which no Community Medical Center officer or employee previously knew.

In January, Community Medical Center informed Dolan she would not be hired because the hospital couldn't meet her salary demands. Dolan countered that they had never begun salary negotiations and that she had only stated her preferred salary. Regardless, Dolan was not hired, and the position remained open for some time before it was filled by a person who was not a homosexual.

In July 2005, Dolan sued Community Medical Center in a Pennsylvania federal district court alleging the hospital violated a Scranton anti-discrimination ordinance. Community Medical Center sought dismissal on the grounds that Dolan could not bring a claim involving a local ordinance in federal court. But the court ruled that Dolan could bring suit in federal court under the diversity jurisdiction, which allows suits between residents of different states to be heard in federal court even if no federal issue is involved.

The hospital also asserted Dolan was not a Scranton resident and therefore was not protected under Scranton ordinance. “… Interpreting the ordinance as applicable to only Scranton residents would lead to absurd results, such as Scranton businesses being permitted to discriminate against non-residents who enter the city to conduct business,” wrote Judge John Jones III. He adding in a footnote, “We think it highly unlikely that the City Council would wish to discourage those living outside of Scranton from supporting the city's economy.”