SUSAN D. WIGENTON, District Judge.
Before the Court is Marketstar Corporation's ("Marketstar" or "Defendants") Motion for Summary Judgment ("Motion") pursuant to Federal Rule of Civil Procedure 56(c). This Court has jurisdiction pursuant to 28 U.S.C. § 1331. Venue is proper pursuant to 28 U.S.C. § 1391(b). This motion is decided without oral argument pursuant to Federal Rule of Civil Procedure 78. For the reasons stated below, this Court grants in part and denies in part Defendants' Motion.
This lawsuit arises from Defendants' termination of William Sample ("Sample" or "Plaintiff"). In his September 4, 2012 complaint, Sample, an African American male, alleges that he was subjected to a hostile work environment and terminated in retaliation for reporting a Caucasian co-worker's racially insensitive remarks, in violation of New Jersey Law Against Discrimination,
Between November 2007 and January 2012, Defendants employed Sample as a District Manager. (Defs.' Statement of Undisputed Material Facts ("Def. SUF") ¶ 1.) Defendants provide sales support for Verizon Communications Inc. ("Verizon") in its retail stores throughout New Jersey. (
For the first three years of his employment, Plaintiff received minimal supervision. (Def. SUF ¶ 5.) However, beginning in 2010, Marketstar and Verizon increased operational oversight of Verizon stores. (Def. SUF ¶¶ 7-11.) Consequently, Sample reported directly to Area Manager Jon Solovey ("Solovey"), and indirectly to Deann MacLeod ("MacLeod"), Marketstar's Sales Operation Manager, and Joseph Cheney ("Cheney"), Marketstar's Director of Client Services and head manager of the Verizon account. (Def. SUF ¶¶ 7-8.) In March 2011, Verizon hired Karen Markson ("Markson"), a Caucasian female, as a first-level supervisor. (
On October 28, 2011, Sample told Solovey that he was informed that Markson said Shawnta Dawson ("Dawson"), an African American employee, should be moved from the Verizon store in Westfield to the Newark location to be "with her own kind." (Scirocco Decl., Ex. C.) Allegedly, Markson further stated that she would "ride" Dawson to make the relocation a "performance issue." (
On November 8, 2011, Plaintiff lodged a second complaint against Markson. (Pl. Br. 5; Scirocco Decl., Ex. E.) In an e-mail addressed to Kaleikini, Solovey, and MacLeod, Sample reported that on or about November 5, 2011, Markson commented that Angel Santana ("Santana"), a Hispanic associate at the Newark location, was a recovering drug addict who lived in "a drug-infested area of Jersey City." (
Marketstar contends that Plaintiff was terminated due to performance deficits which became apparent after Marketstar overhauled its management protocol in early 2011, well before Sample reported Markson's comments. (Def. SUF ¶¶ 12-24.) From March through May of 2011, Verizon and Marketstar managers complained about staffing shortages and late openings at a number of stores under Sample's supervision. (Def. SUF ¶¶ 17-24.) Consequently, in May 2011, Marketstar assigned Sample a "District Coach" to help him manage his work load. (Def. SUF ¶ 15.)
Defendants allege that Sample's job performance continued to suffer despite the added help. On September 7, 2011, Diane Connors ("Connors"), Verizon's Regional Marketing Manager, emailed Plaintiff to complain that several stores in his territory opened late without notice to Verizon representatives. (O'Reilly Decl., Ex. 13.) Two days later, Connors also complained about the "flagrant violations" she observed while visiting one of Sample's stores, as well as Sample's frequent staffing shortfalls and delayed store openings.
On October 7, 2011, Karriem Wardlow ("Wardlow"), a Verizon first-level supervisor, reported "serious issues" regarding staffing and store closing procedures at Plaintiff's stores in Woodbridge and Bedminster, and described Plaintiff's response to these issues as "lackadaisical and unprofessional." (Def. SUF ¶ 27, O'Reilly Decl., Ex. 17.) Connors assured Wardlow that she would contact Solovey to "demand some type of disciplinary action for [Sample]." (Def. SUF ¶ 28.) On November 1, 2011, Connors brought these issues to Solovey's attention. (O'Reilly Decl., Ex. 21.) She also complained that Sample arrived late to a training session held the day before, was missing three members from his team, and lied to her about another employee's absence. (Def. SUF ¶ 37.)
On November 7, 2011, although Solovey recommended a verbal warning, Sample was issued a formal Notice of Caution ("NOC") citing his poor "attention to detail". (Pl. Br. 6, Ex. H.) An NOC is a written warning typically issued in the third and final phase of the disciplinary process, often prior to termination. (Pl. Br. 5-6.) Sample complained to Kaleikini that the NOC was issued as a pretext because management had no genuine concerns about his performance before he reported Markson's racist comments. (O'Reilly Decl., Ex. 25). Plaintiff believed Solovey was laying the groundwork for his termination in order to "salvage [Marketstar's] relationship with [Verizon]." (
On November 30, 2011, Kim Witmer ("Witmer"), Director of Operations at Verizon, observed several policy violations during an unannounced visit to one of Sample's stores. (Witmer Dep., pp. 17:20-20:4.) On December 1, 2011, Connors sent an email to Solovey to inform him that Plaintiff notified her, hours after he had been expected to provide coverage at one of his stores, that he would be absent for the day. (O'Reilly Decl., Ex. 33.) Sample subsequently sent Solovey an email explaining that he abruptly took ill and was undergoing tests at his doctor's office. (Scirocco Decl. Ex. II.) Connors reported this incident to Witmer and expressed her general dissatisfaction with Sample's job performance. (O'Reilly Decl., Ex. 27.) Days later, Connors and Witmer initiated a conference call with Marketstar management-Cheney, MacLeod, and Solovey—to address Sample's performance issues. (Connors Dep., p. 48:6-20.) During that call, Witmer requested that Sample be removed from the Verizon program. (Witmer Dep., pps. 28:10-14; 29:3-14, 30:6-18.) On January 12, 2012, Witmer and Connors renewed their demand for Plaintiff's removal from the Verizon program, "with the understanding that Marketstar ha[d] other programs" to which he may be transferred. (Witmer Dep., p. 35:10-16.) Solovey proposed transferring Sample to the Delaware/Pennsylvania region of the Verizon program instead. (Connors Dep., p. 58:8-20.) Witmer opposed the idea. (Witmer Dep., p. 39:4-17.)
On January 19, 2012, Plaintiff received a second NOC, citing further decline in his job performance. (Def. SUF ¶ 65.) At that time, Plaintiff was advised that he was being transferred to the Pennsylvania/Delaware region effective immediately. (Pl. Br. 14.) However, the next day, January 20, 2012, Witmer told Cheney that Verizon would pull its business from Marketstar if Sample remained in the Verizon program. (Def. SUF ¶ 70.) Cheney testified that due to Sample's unsatisfactory job performance and the unavailability of comparable positions at Marketstar outside the Verizon account at the time, his employment was terminated on January 27, 2012. (Def. SUF If 71.)
"[S]ummary judgment is proper `if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.'"
"`With respect to an issue on which the non-moving party bears the burden of proof, the burden on the moving party may be discharged by `showing'—that is, pointing out to the district court-that there is an absence of evidence to support the nonmoving party's case.'"
As a preliminary matter, Defendants urge the Court to disregard Plaintiff's certification, submitted along with his opposition to this motion, under the "sham affidavit doctrine." (Def. R. Br. 8-11) The Federal Rule of Civil Procedure Rule 56(e) "permits consideration of affidavits in summary judgment proceedings."
During discovery, Plaintiff testified on three occasions that he did not personally disclose Markson's comments to Connors or to any other Verizon representative, but rather relied on Solovey's assurance that Connors would be notified. (Sample Dep. 47:23-48:11; 63:13-64:15; 216:20-217:19.) Marketstar moved for summary judgment based, partially, upon Verizon's lack of knowledge that Plaintiff engaged in activity protected by NJLAD or CEPA prior to his termination. (Def. Br. pps. 2, 18.) In the subject certification, Plaintiff alleges that he personally reported Markson's comments to "the Verizon team" during a conference call organized by Solovey on October 31, 2011. (Sample Cert. ¶ 6.) Because Plaintiff has failed to advance an explanation for the discrepancy between his certification and his deposition testimony, this Court will disregard the certification to the extent that it suggests Plaintiff reported Markson's comments directly to Connors or other Verizon managers.
Defendants argue Plaintiff waived his right to bring NJLAD claims when he also alleged a CEPA violation, resting upon similar proofs, in his Complaint. (Def. Br. pps. 6-9.) Additionally, Defendants argue that the undisputed record evidence supports summary judgment on Plaintiff's CEPA claim because 1) Plaintiff has failed to establish a prima facie case of CEPA retaliation; 2) record evidence proves Marketstar had a legitimate non-retaliatory reason for terminating Sample's employment, and 3) his termination was not pretexual because record evidence shows that the Verizon decision-makers who demanded Sample's removal from the Verizon account were unaware that he made a complaint about Markson.
Plaintiff concedes the waiver of his NJLAD retaliation claim "for the purposes of this motion," but nonetheless maintains that he has raised a freestanding NJLAD hostile work environment claim which survives CEPA's waiver provision. Plaintiff's NJLAD hostile work environment claim is subsumed within his NJLAD retaliatory claim and is likewise subject to the CEPA waiver because it is predicated upon a singular factual premise: that Plaintiff was subjected to a hostile work environment and then abruptly fired in retaliation for seeking official reprimand of a co-worker who made racist comments.
CEPA's waiver provision states that:
N.J.S.A. § 34:19-8. NJLAD protects employees from discrimination because of, among other things, race, color, or national origin. N.J.S.A. § 10:5-4. Although not every NJLAD claim is waived by the assertion of a CEPA claim, "retaliation claims under [NJLAD] necessarily fall within the CEPA waiver provision."
In Count I of his complaint, Plaintiff alleges that "MARKETSTAR created both a hostile work environment and retaliated against Plaintitff . . . for raising concerns about racist comments regarding a co-employee" in violation of NJLAD. (Compl. ¶ 19.) Thus, he clearly asserted a retaliatory discharge claim under NJLAD. Even if Plaintiff asserted a distinct hostile work environment claim in Count I of his Complaint, that claim is still susceptible to dismissal under CEPA's waiver provision because it stems from the same facts and circumstances underlying his CEPA claim and requires a showing of similar proofs.
New Jersey's CEPA statute prohibits an employer from taking "any retaliatory action against an employee" who:
N.J.S.A. 34:19-3. To establish a claim of CEPA retaliation, Plaintiff must present a prima facie case of retaliatory action by demonstrating that: 1) he reasonably believed his employer's conduct violated a law, or rule or regulation pursuant to law; 2) he performed a whistleblowing activity by either disclosing or threatening to disclose the activity to a supervisor or public body, or objected to or refused to participate in the activity; 3) retaliatory action was taken against him; and 4) a causal connection exists between the whistleblowing activity and the adverse employment action.
If Defendants satisfy this burden, the "presumption of retaliatory discharge created by the prima facie case disappears" and the burden reverts to Plaintiff who, within the context of a summary judgment motion, must offer sufficient evidence from which a reasonable jury may find that Marketstar's articulated reason for the discharge was pretexual and that retaliation for the whistleblowing indeed motivated the discharge.
Initially, plaintiff must "set forth facts that would support an objectively reasonable belief" that a law, rule, or regulation has been violated.
Defendants counter that Markson's statements do not amount to the type of discrimination prohibited by NJLAD for three reasons: 1) Plaintiff, in his reports and during his deposition, described the comments as being "of a racial nature" and "inappropriate for the workplace" rather than discriminatory; 2) Plaintiff conceded at his deposition that the discriminatory adverse employment action that Markson vowed to orchestrate against Dawson did not occur and could not have occurred, given that it was Plaintiff who made staffing decisions for the Newark and Westfield locations; and 3) the comments were not severe or pervasive enough to create a hostile work environment. (Def. Br. pps. 14-17.)
As a threshold matter, this Court notes that CEPA's protection from retaliation extends to the disclosure of discriminatory conduct by a person or company with whom an employer maintains a business relationship. N.J.S.A. 34:19-3(a). Likewise, Marketstar's anti-harassment policy "prohibits unlawful harassment by any employee including . . . vendors, customers, independent contractors and any other persons." (Scirocco Decl., Ex, A.) Furthermore, this Court is guided by the New Jersey Supreme Court's instruction that CEPA "`is a remedial statute. . . that should be construed liberally to effectuate its important social goal.'"
Contrary to Defendants' assertion that Plaintiff did not characterize Markson's comments as being racially discriminatory, in his November 8, 2011 email to Kaleikini, Plaintiff remarked that Markson's comments about Santana, "could be considered racially bias [sic]" which, when combined with her previous comments about Dawson, signaled "a bigger issue that need[ed] to be addressed." (Scirocco Decl., Ex. E.) He further stated in that email that he was making the complaint to "protect [his] team from being subjected to a hostile work environment or defamation . . ." (
Further, Defendants' argument regarding the futility of Markson's intent to relocate Dawson are unpersuasive. The fact that the relocation did not or could not occur does not eliminate Plaintiff's claim. Rather, it is relevant that Plaintiff complained that the comment itself was indicative of unlawful racial animus. (
Next, as it relates to Markson's comments, accepting Plaintiff's allegations as true, a rational fact-finder may determine that a reasonable African American could consider them to be severe or pervasive enough to create a hostile or abusive work environment.
Sample asserts that he suffered two adverse employment actions: (1) reassignment to a different region within the Verizon program, and (2) his termination. Defendants do not dispute that termination is an adverse employment action, but disputes that Sample's transfer was an adverse action, arguing that had the transfer been successful, Sample would have retained his job title, job responsibilities, and salary. To the extent that Sample asserts that his proposed transfer was part of a larger hostile environment created by Defendants in retaliation for his claimed protected conduct, it may constitute an adverse employment action under CEPA. As the New Jersey Supreme Court explained in
Sample asserts that the transfer was designed to force him to resign as he would have been required to travel from his home in Elizabeth, New Jersey to Pennsylvania or Delaware on a daily basis. (Compl. ¶¶ 14-15.) Thus, a reasonable factfinder could conclude that the transfer was a hostile action insofar as it deprived Sample of a preferred post. The undesirable transfer and the eventual termination, combined, could support a conclusion that Defendants took an adverse employment action against Sample.
To establish a prima facie case, Plaintiff must demonstrate a causal link between his whistle blowing activity
On September 30, 2011, Plaintiff received a written review of his job performance for the months of July, August, and September of 2011. (Scirocco Decl., Ex. B.) He was awarded a weighted final score of 3.23 out of 4.0. (
Defendants assert that Plaintiff's whistleblowing activities cannot be deemed a "substantial or motivating factor" for his termination because the Verizon decision makers who demanded Plaintiff's elimination from the Verizon account were not aware he engaged in protected conduct. (Def. Br. p. 18.) However, a genuine issue of material fact exists given the testimony of Kaleikini. Kaleikini claimed she reported Markson's comments to Verizon in January 2012, even though the record reflects contact was made in February 2012. (Kaleikini Dep. 23:1-4, 42:1-12; Scirocco Decl., Ex. T.)
Having established that Plaintiff has made a prima facie showing of retaliatory discharge, the burden of production now shifts to Marketstar to articulate a "legitimate, non-discriminatory reason for the employment decision."
Defendants contends that even if Sample can establish a prima facie claim under CEPA, his claim must nevertheless fail because the record evidence does not show that the reasons for Defendants' actions were pretextual. To withstand summary judgment, Sample must point to some evidence, direct or circumstantial, from which a factfinder could either "(1) discredit [Marketstar's] articulated legitimate reasons or (2) believe that an invidious retaliatory reason was a motivating or determinative cause of [Marketstar's] action."
There is sufficient evidence from which a jury could reasonably find that Defendants' proffered legitimate, non-discriminatory reason for terminating Plaintiff was pretexual. As previously discussed, Plaintiff received two NOCs, without preliminary warnings as mandated by company policy, days after he complained of inappropriate racial comments. Moreover, Sample's performance was favorably reviewed through September 2011, four months before he was terminated. Consequently, this Court finds that Defendants are not entitled to summary judgment as to Count II.
This Court declines to reach the issue of punitive damages in light of the foregoing analysis. Defendants may renew their application at the time of trial.
For the foregoing reasons, Marketstar's motion for summary judgment is