MICHAEL F. URBANSKI, District Judge.
This matter is before the court on defendant Great Eastern Resort Corporation, Inc.'s ("Great Eastern")
Great Eastern developed Massanutten resort ("Massanutten"), a 6,000 acre time-share resort located in Rockingham County, Virginia. Great Eastern built and developed the time-shares at the resort, but the Berkley Group, Inc., a Fort Lauderdale, Florida, based company, manages marketing and sales activities for Massanutten. Hierholzer Decl., Dkt. No. 78-1, at ¶¶ 2-4.
Great Eastern sells time-shares utilizing sales employees on two distinct sales teams. The "front line" sells to first time buyers, and the "in-house line" sells to existing time-share owners. Def.'s Mem. Supp. Summ. J., Dkt. No. 79, at *4. The front line and in-house line have different work schedules, give different types of tours, and their offices are located in different areas on the Massanutten property.
Typically, the front line sales representatives arrive at the resort each morning and wait for guests to arrive for tours of the property. The representatives are chosen to give tours on a rotational basis. After a tour of the property and its facilities, the representatives bring the customer back to the resort and try to convince the customer to commit to purchasing a time-share. At this point, a TO manager assists with the transaction and tries to close the sale. Ferrell Dep. at 36:11-38:12, 41:2-17. The customer either refuses to buy, makes a "full-down" purchase by paying at least ten percent of the purchase price up front, or makes a "pender" purchase where he commits to pay at least ten percent of the purchase price over a period of time. Sprouse Dep. at 41:10-42:25. TO managers also give at least one tour each day. Kent Dep. at 22:13-22. TO managers may close their own deals without the assistance of another TO manager if their sales numbers are a certain level for the preceding six months.
Sales representatives are evaluated based on a performance metric known as volume per guest ("VPG"). The VPG calculation is straightforward: the total sales revenue generated by a representative divided by the total number of customers that representative toured in a given period. Managers look at VPG over periods of time ranging from thirty or sixty days, to six months, to one year.
Great Eastern seasonally reduces its sales force to coincide with declines in tourism. Ferrell Dep. at 51:8-52:13; Kent Dep. at 59:14-21. In order to determine how many members of the sales team to retain, the project director relies on the marketing department's predicted customer flow and recommendation on the number of sales staff needed. Kent Dep. at 60:11-61:7. The project director will then rank the sales staff based on their VPG and terminate or transfer those sales representatives ranked below the number of representatives needed. Kent Dep. at 61:9-62:9.
Ferrell began working for Great Eastern as a front line sales representative in 2003. Ferrell Dep. at 45:4-10. He was promoted to TO manager in 2005, demoted to sales representative in 2007, promoted to sales manager a month later, demoted to sales representative again the following month, transferred to the exit department a few months later, transferred back to sales as a TO manager in 2008, demoted once again to sales representative the following month, and then terminated in November 2008. Ferrell Dep. at 45:15-48:12; Ferrell Dep. Ex. 4. The November 2008 termination was part of a seasonal reduction and was based on Ferrell's poor sales numbers. Clevenger Aff. at ¶ 8; Kent Dep. at 16:16-21. Great Eastern rehired Ferrell in 2009 as a sales representative, and Victor Buckley was his line director. Ferrell Dep. at 48:20-49:1; Ferrell Dep. Ex. 4. Ferrell was promoted to TO manager again in 2011. Ferrell Dep. at 49:14-16; Ferrell Dep. Ex. 4. In February 2012, Ferrell was transferred to a different line director, Rebecca Bradley, after having problems working with Buckley. Bradley Dep. at 17:20-18:9; Ferrell Dep. Ex. 4, Ex. 16 at *GERC 632; Kent Dep. at 34:16-35:22.
In 2012, Bob Kent ("Kent") and Steve Nichols ("Nichols") were co-project directors for the resort's sales division, and Rebecca Bradley ("Bradley") was Ferrell's line director. Clevenger Dep. at 22:14-19; Kent Dep. at 34:16-19. Ferrell was a TO manager on Bradley's line. Ferrell Dep. at 49:14-19. In late July or early August 2012, Bob Kent asked Bradley to select one of her TO managers to demote and to base her decision on either TO numbers, "team numbers", or personal VPG. Bradley Dep. at 64:4-15; Kent Dep. 48:12-22. Bradley recommended that Ferrell should be demoted because he had the lowest TO numbers among Bradley's team of TO managers and because of "how much volume he had, and how many tables he had sat on." Bradley Dep. at 65:10-16; Clevenger Dep. at 151:3-11. The final decision to demote Ferrell was Kent's responsibility. Kent Dep. at 48:4-11. Despite his demotion to sales representative, Ferrell continued to close some of his deals without the assistance of a TO manager.
Other TO managers were demoted from other lines as well. Those TO managers not only had the lowest TO numbers among the TO managers on their respective teams, but they also had the lowest personal VPG numbers as well. Clevenger Dep. at 152:24-153:6. On Bradley's line, however, there was not a TO manager who had both the lowest TO numbers and the lowest personal VPG. Ferrell had the lowest TO numbers, but Steve Morrin ("Morrin") had the lowest personal VPG.
After his demotion in August, Ferrell filed a complaint with David Clevenger ("Clevenger"), Great Eastern's human resources director at Massanutten. In that complaint, Ferrell alleged he was wrongfully demoted based on a romantic relationship between his supervisor, Bradley, and one of her subordinates, Morrin, in violation of Great Eastern's discrimination and harassment policy. Clevenger Dep. at 15:12-21; Clevenger Dep. Ex. 3. Kent and Nichols did not know Ferrell filed the August human resources complaint until this litigation began. Kent Dep. at 46:14-19; Nichols Dep. at 103:22-104:4. Bradley knew Ferrell filed a complaint about his demotion, but she did not know the particulars of the complaint. Bradley Dep. at 43:11-19, 44:2-13, 70:5-11. In September 2012, Ferrell filed a sexual discrimination charge with the EEOC. Kent Dep. at 32:12-18; Clevenger Dep. Ex. 7. Neither Bradley, Kent, nor Nichols was aware that Ferrell filed the September EEOC complaint until this litigation began. Bradley Dep. at 137:3-8; Kent Dep. at 57:12-58:9; Nichols Dep. at 104:11-20.
Bradley admits to being in a romantic relationship with Morrin at the time she demoted Ferrell. Bradley Dep. at 34:16-25. After Ferrell filed his complaint with human resources, Clevenger confirmed Bradley was in a relationship with Morrin and that she recommended Ferrell for demotion based on his TO numbers. Clevenger Dep. at 144:2-11. Clevenger also confirmed with Kent that he had asked the line directors to demote one TO manager from their teams based on the criteria the line directors chose and confirmed how the final demotion decisions were made.
In October 2012, Great Eastern began preparing for its seasonal reduction in staff. Nichols received a communication from Great Eastern's head of marketing that front line sales staff needed to be reduced to fifty-five sales representatives. Nichols Dep. at 27:2-13. Rather than cut staff down to fifty-five immediately, Kent and Nichols decided to initially cut the sales staff down to sixty-five representatives to account for the anticipated increase in tourism associated with the fall foliage.
As November drew to a close, Great Eastern decided to make the final round of cuts to the frontline sales staff. Using a November 26, 2012, year-to-date sales report, Kent and Nichols selected Steve Ferrell along with eight other members of the front line sales staff for termination. One of those individuals was a TO manager who had the lowest VPG out of all of the sales staff. Nichols Dep. Ex. 2. Kent and Nichols ranked the sales staff according to VPG and retained the top fifty-eight members of the sales staff. With the exception of the TO manager with the lowest VPG out of all of the sales staff, Kent and Nichols did not consider the other TO managers for that seasonal termination because TO managers are judged on other criteria along with VPG. Kent Dep. at 103:23-104:10; Nichols Dep. at 57:1-59:11.
After deciding who to terminate, Nichols sent an e-mail to Vickie Ruiz ("Ruiz"), Human Resources Director for the Berkley Group, to inform her of the selections. Nichols Dep. Ex. 2 at *GERC 6019. Ruiz and Nichols spoke on the telephone, and she requested the reports Nichols and Kent used in order to confirm the grounds for the terminations. Nichols Dep. at 44:8-45:15. Nichols sent Ruiz another e-mail that included the last page of the year-to-date sales report for November 26, 2012. Nichols Dep. Ex. 3. Ferrell and the other sales staff were terminated on December 2, 2012. Nichols Dep. Ex. 5.
Soon after he was fired, Ferrell filed a human resources complaint with Clevenger alleging his termination was in retaliation for his filing the August human resources complaint and September EEOC complaint. Ferrell Dep. Ex.15 at *FERRELL 12. Ferrell filed another EEOC complaint regarding his termination shortly thereafter. Ferrell Dep. Ex. 15 at *FERRELL 8. Neither Bradley, Nichols, nor Kent were aware that Ferrell filed the December human resources complaint or EEOC complaint until this litigation began. Kent Dep. at 58:10-59:3; Bradley Dep. at 137:9-138:12; Nichols Dep. at 105:11-106:7. Ferrell attempted to apply for a sales position on the in-house line in July 2013. Ferrell Dep. at 181:16-19; Clevenger Dep. at 69:20-70:8. In August, Ferrell discovered he was not eligible for the position on the in-house line because he had been designated as "not for rehire" in his employee file. Ferrell Dep. at 197:21-198:2; Clevenger Dep. at 70:23-71:8.
Clevenger marked Ferrell's employment file as ineligible for rehire after Ferrell's termination. Clevenger Dep. at 135:2-23; Clevenger Dep. Ex. 8; Bradley Dep. at 117:1-119:6. Clevenger marked Ferrell as not eligible for rehire because he
Pursuant to Federal Rule of Civil Procedure 56(a), the court must "grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a);
In determining whether a genuine issue of material fact exists, the court views the facts and draws all reasonable inferences in the light most favorable to the non-moving party.
Great Eastern moves for summary judgment on two grounds. First, Great Eastern argues that Ferrell fails to establish a prima facie retaliation claim because there is no evidence that the decision makers responsible for his termination knew of the protected activity at the time of their alleged retaliatory actions. Second, Great Eastern argues that Ferrell failed to exhaust his administrative remedies as to the alleged "schemes to depress his compensation" and the designation of Ferrell as ineligible for rehire. In the alternative, Great Eastern claims it had legitimate, nondiscriminatory, and irrefutable reasons for terminating Ferrell and designating him as ineligible for rehire. Ferrell moves for partial summary judgment that he engaged in protected activity, he exhausted his administrative remedies, there was a causal link between the protected activity and Ferrell's termination, and Great Eastern did not have a legitimate reason for terminating Ferrell.
The decisions to terminate Ferrell and designate him ineligible for rehire were made by separate individuals. Kent and Nichols were responsible for the termination decision, but Clevenger was responsible for designating Ferrell as "not for rehire." Therefore, the court will first address Ferrell's termination and then address his ineligibility for rehire.
To establish a prima facie case of retaliation under Title VII, a plaintiff must prove three elements: "(1) that [he] engaged in a protected activity; (2) that [his] employer took an adverse employment action against [him]; and (3) that there was a causal link between the two events."
42 U.S.C. § 2000e-3(a). In short, "[a]n employer may not retaliate against an employee for participating in an ongoing investigation or proceeding under Title VII, nor may the employer take adverse employment action against an employee for opposing discriminatory practices in the workplace."
The Supreme Court of the United States recently addressed the causation standard for Title VII retaliation claims in
If a plaintiff establishes a prima facie case, "the employer may rebut it by presenting evidence of a legitimate, non-retaliatory reason for the adverse action."
In light of that analytical framework, Ferrell's claim fails to produce sufficient proof to meet the causation standard for a retaliatory discharge claim under Title VII and fails to show his designation as ineligible for rehire was pretextual. First, the decision-makers responsible for Ferrell's termination were unaware of Ferrell's protected activity. Second, the evidence presented in this case shows Great Eastern designated Ferrell as ineligible for rehire for a legitimate, non-discriminatory reason, and Ferrell fails to rebut that reason with evidence of pretext.
Because the decision-makers responsible for terminating Ferrell were unaware of his protected activity, Ferrell's retaliation claim as to his termination is without merit. An employer must be aware of an employee's protected activity before it can retaliate against it.
In
In
Other circuit courts of appeals agree it is fundamental that the decision-maker must be aware of the prior discrimination complaint for there to be a prima facie retaliation claim. In
In this case, no reasonable juror could conclude that the decision-makers responsible for Ferrell's termination were aware of Ferrell's protected activity. Kent and Nichols both testified that they were unaware of both the internal human resources complaint about Ferrell's demotion and the corresponding EEOC charge. Kent Dep. at 46:14-19, 57:12-58:9; Nichols Dep. at 103:22-104:4, 104:11-20. Additionally, even assuming Bradley played any role in the actual decision to terminate Ferrell—a notion completely unsupported by the record—she was not aware of the EEOC complaint and only knew that Ferrell had filed a human resources complaint regarding his demotion. However, she had no knowledge of the specifics of his complaint. Bradley Dep. at 43:11-19, 44:2-13, 70:5-11, 137:3-8. This testimony flatly refutes Ferrell's allegation that the decision-makers were aware of Ferrell's EEOC charge "no later than October 7, 2012." Pl.'s Mem. Supp. Summ. J., Dkt. No 81, at *26.
Ferrell presents absolutely no evidence to create a genuine issue of material fact on this issue. Defense counsel specifically asked Ferrell in his deposition:
Ferrell Dep. at 172:4-24. Indeed, Ferrell improperly relies on mere speculation and assumptions to conclude Kent and Nichols were aware of the September EEOC complaint. Additionally, it was Great Eastern's policy not to divulge information about human resources complaints or EEOC complaints to anyone outside the human resources department. Nichols Dep. at 103:22-104:4, 106:2-7; Clevenger Dep. at 171:16-19; Ruiz Aff, Dkt. No. 79-2, at ¶¶ 7-8.
Relying on the Fourth Circuit's decision in
Furthermore, while not dispositive of the issue, the fact that Great Eastern did not terminate Ferrell during the October 2012 reduction of staff is compelling that his termination was not in response to his September 2012 EEOC complaint. Rather, the record supports Great Eastern's proffered reason for terminating Ferrell: his "poor production" decreasing his VPG. For instance, according to the August 4, 2012 year-to-date ("YTD") VPG sales report for the front-line sales staff, Ferrell's VPG was 1931.77. Bradley Dep. Ex. 13 at *GERC 1550-51. According to the August 26, 2012, YTD VPG report, Ferrell's VPG dropped to 1804.00. Bradley Dep. Ex. 17 at *GERC 1485-86. On October 7, 2012, Ferrell's YTD VPG was 1777.66.
Considering the evidence in the light most favorable to Ferrell, his retaliation claim as to his termination is without merit. There is no dispute that the relevant officials, Kent and Nichols, were unaware of Ferrell's protected activity when they decided to fire him. Therefore, Ferrell fails to show a sufficient causal link to make out a prima facie case of retaliation under Title VII for his termination.
Clevenger was aware that Ferrell filed a complaint with the EEOC, and he made the determination to designate Ferrell as ineligible for rehire. Clevenger Dep. at 34:11-35:4, 135:2-23.
Clevenger placed Ferrell on the "not for rehire" list because of numerous complaints he received from co-workers about Ferrell's behavior. Clevenger Dep. at 129:9-23. Multiple employees complained of Ferrell's threatening, intimidating or otherwise inappropriate behavior in the workplace. Clevenger Dep. Ex. 23. At least one sales representative and one TO manager complained to Clevenger that Ferrell's behavior caused front-line sales to suffer. Clevenger Dep. Ex. 23 at *GERC 1581, *GERC 1590. Clevenger reported these complaints to Ruiz. Ruiz Aff., Dkt. No. 79-2, at ¶ 9; Clevenger Aff., Dkt. No. 79-4, at ¶ 12; Clevenger Dep. at 222:18-223:22. Both Clevenger and Ruiz agreed Ferrell's behavior was an adequate reason to designate him as ineligible for rehire by the company. Ruiz Aff., Dkt. No. 79-2, at ¶ 10; Clevenger Aff., Dkt. No. 79-4, at ¶ 13; Clevenger Dep. at 34:22-35:4, 268:8-269:3. That proffered reason is clearly not discriminatory on its face, and it is not the province of the court "to decide whether the reason was wise, fair, or even correct, ultimately, so long as it was truly the reason for the plaintiffs termination."
In order to show Great Eastern's decision was pretextual, Ferrell must show that Great Eastern's reason was both "false and that discrimination was the real reason for the challenged conduct."
First, the statements in the declaration are not corroborated by anything in the record. Nicole Jones ("Jones"), a former Great Eastern employee, declares Bradley made derogatory comments about Ferrell and forced Jones to make false statements about Ferrell. Dec. of Nicole Jones, Dkt. No. 102-9, at ¶¶ 7-13. Jones also stated that Clevenger asked her leading questions that reflected negatively on Ferrell, and that she did not write a letter complaining about Ferrell that purported to be written by Jones.
During her deposition, Bradley responded to questions about her interaction with Jones after Ferrell's demotion. Bradley specifically testified:
Bradley Dep. at 125:24-128:13.
In addition, both Strickler and Parcell were deposed in this matter and their testimony clearly shows that Jones' declarations as to them are based on nothing but speculation. Parcell stated "[Ferrell] was starting to make me feel very uncomfortable at work, and I wanted him to leave me alone at work. That's when I initiated the complaint against him with all the questioning." Parcell Dep. at 51:5-7. Parcell elaborated
Strickler testified during her deposition about an incident involving Ferrell that caused her to break down in tears. Strickler Dep. at 17:19-20-25. Strickler went to talk to Clevenger and told him "how angry [Ferrell's actions] made me feel and how uncomfortable it made me feel. . . .[T]t was more like it was aggravating. It was — it was intimidating and aggravating, and it made me mad."
Jones' declaration is not supported by any evidence in this case, and her speculation does not establish a genuine issue of material fact as to the motive for Ferrell's designation as ineligible for rehire. Furthermore, nothing in Jones' declaration creates an issue of fact that at least Strickler, Parcel, and several other employees felt uncomfortable in Ferrell's presence and complained about his behavior. Therefore, Jones' declaration standing on its own does not create a triable question for the jury that Great Eastern's proffered reason was false.
Ferrell argues that his change of employment form does not mention anything about threatening or intimidating behavior. That argument also fails to establish an issue as to pretext. Clevenger and Bradley both testified about the change of employment form. Bradley marked the box labeled "TERMED" to indicate Ferrell's termination, and in the "Reason for Change" section, Bradley wrote "at will." Bradley Dep. at 108:19-109:8, Ex. 19. Bradley did not write "poor production" or check the box designating Ferrell as ineligible for rehire.
Finally, simply because Great Eastern did not take any immediate disciplinary action against Ferrell with regard to the employee complaints does not make the complaints or Great Eastern's reason for marking Ferrell ineligible for rehire false. It is not the court's role to act as a "`superpersonnel department weighing the prudence of employment decisions made by firms charged with employment discrimination.'"
In the retaliation context, it is the "perception of the decision[Hmaker which is relevant not the self-assessment of the plaintiff;" and no reasonable juror could conclude that Great Eastern's "proffered explanation is unworthy of credence."
In sum, Ferrell fails to make out a prima facie case of retaliation for his termination from Great Eastern because the decision-makers responsible for his termination had no knowledge of his human resources or EEOC complaints. Additionally, Ferrell fails to show that Great Eastern's reason for designating him as ineligible for rehire was pretextual. Because there is no genuine issue of material fact as to either of these issues, Great Eastern is entitled to judgment as a matter of law. An appropriate Order will be entered this day.
The Clerk is directed to send a copy of this Memorandum Opinion to all counsel of record.