RICHARD H. KYLE, District Judge.
Plaintiff Harry B. Bundy, Jr., who is African-American, worked for Defendant
Most of the relevant facts are undisputed, although the dates of several key events are somewhat muddled.
When first hired to head the Bond of Indemnity/Bondholder Processing group, Bundy reported to Dan Hill, who oversaw bondholder communications, and Hill, in turn, reported to Jim Nielsen, Senior Vice President in charge of CTSS. Hill praised Bundy's work, and in March 2007, he was promoted to Operations Manager 2 and received a pay raise, though his job duties did not materially change. When Hill resigned a short time later, Bundy began reporting to Sarah Thorstad, who had been hired by Nielsen to manage the CTSS department, including the Bond of Indemnity/Bondholder Processing group and other groups labeled "Call Center, Private Label, and Unclaimed Property and Advanced Research."
According to Bundy, Thorstad repeatedly engaged in discriminatory conduct toward him; he offers several examples. He notes that in January 2008, the manager of the Call Center resigned, and although Bundy expressed interest in that position, Thorstad hired a younger white male, Scott Missman.
Bundy further avers that, after Missman was hired, several female employees complained to him that Missman was making sexually inappropriate comments in the workplace. Bundy relayed those complaints to Thorstad, after which he alleges he was "targeted" by both Thorstad and Missman, including being denied the opportunity to work from home on occasion even though Missman was permitted to do so. In addition, Bundy discovered that he was being investigated for sexual harassment, although that charge ultimately was not substantiated and he was not disciplined.
According to Bundy, the sexual-harassment investigation was "the last straw," and he felt he had to "try to stop the discriminatory treatment going on with the white employees clearly favoring their white friends and hand selecting them to positions." Hence, in October 2008, he complained to U.S. Bank's human-resources (HR) department, which undertook an investigation that included speaking with Nielsen. According to Bundy, Nielsen falsely informed HR that Hill had expressed concerns, before his resignation, about Bundy's performance. Bundy further avers that Nielsen made these (and other) false statements to HR in order "to justify his discriminatory practices," apparently referring to Nielsen hiring Thorstad without posting the position.
Bundy alleges that discrimination and retaliation escalated following his complaint to HR. He asserts that shortly after his complaints, Nielsen convened a meeting with Thorstad and HR representatives in which he (Nielsen) wrongly reported that Bundy had performance issues and should be placed on an "action plan" to address them. He also claims that Thorstad began "papering his file," falsely asserting that his 17f-1 compliance was below expectations.
In December 2008, the CTSS department was restructured in the wake of Thorstad's resignation. Bundy's group was placed under the supervision of Tom Campbell, head of Payments, while Missman's group fell under Nielsen's direct supervision as he debated whether to fill Thorstad's position. The restructuring resulted in Missman gaining several employees under his command while the number of Bundy's direct reports dropped significantly, which he labels "a transparent attempt to retaliate against" him. As a result, Bundy once again complained to HR, asserting among other things that (1) the restructuring was in retaliation for his prior complaints, (2) Thorstad had been trying to "usurp" his work by moving certain tasks to Missman, and (3) his job was being unfairly put in jeopardy by U.S. Bank's "unreasonable" 17f-1 performance standard, to which Missman was not subject when he held the same position. He also informed Campbell that he had raised these concerns with HR.
After exhausting administrative remedies, Bundy commenced this action against U.S. Bank in May 2012.
Summary judgment is proper if, drawing all reasonable inferences in favor of the nonmoving party, there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(a); Ricci v. DeStefano, 557 U.S. 557, 586, 129 S.Ct. 2658, 174 L.Ed.2d 490 (2009). The moving party bears the burden of showing that the material facts in the case are undisputed. Torgerson v. City of Rochester, 643 F.3d 1031, 1042 (8th Cir.2011) (en banc);
Bundy's Third Amended Complaint alleges race and age discrimination based on his (purported) disparate treatment by U.S. Bank and based on the termination of his employment. Bundy's Memorandum, however, narrows these claims — although he contends "not being permitted to apply for positions and being singled out for reduction of his group" constitute discrimination, he avers that his "primary discrimination claim is his termination claim" (Mem. in Opp'n at 28), which is all that he addresses in his Memorandum. Accordingly, the Court follows his lead and assumes that only discrimination claims arising out of the termination of his employment remain for resolution.
In the absence of direct evidence of discrimination, which is nowhere suggested here, Bundy's claims are analyzed under the familiar burden-shifting framework set forth in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). See, e.g., Holmes v. Trinity Health, 729 F.3d 817, 821 (8th Cir.2013) ("In both ADEA and Title VII discrimination cases, the claimant may either offer direct evidence of the discrimination or satisfy the burden-shifting scheme established by McDonnell Douglas."); Anderson v. Durham D & M, L.L.C. 606 F.3d 513, 520-21 (8th Cir.2010) (McDonnell Douglas applies to claims under § 1981); Hunter v. United Parcel Serv., Inc., 697 F.3d 697, 702 (8th Cir.2012) ("The Minnesota Supreme Court has adopted [McDonnell Douglas] to analyze MHRA claims where, as here, the claimant relies on indirect evidence of discrimination."); Fisher Nut Co. v. Lewis ex rel. Garcia, 320 N.W.2d 731, 734 (Minn.1982) (SPCRO claims governed by McDonnell Douglas). Under this framework, "once the plaintiff employee establishes a prima facie case of discrimination, the burden shifts to the defendant employer to articulate a legitimate, nondiscriminatory reason for its actions. If the defendant offers such a reason, the burden shifts back to the plaintiff to put forth evidence showing the defendant's proffered explanation is a pretext for unlawful discrimination." Gilbert v. Des Moines Area Cmty. Coll., 495 F.3d 906, 914 (8th Cir.2007) (citations omitted).
Here, the Court harbors serious doubts whether Bundy has established a prima facie case of either race or age discrimination in connection with his termination. One element of the prima facie case requires Bundy to show that "the circumstances [surrounding his termination] give rise to an inference of discrimination." Muor v. U.S. Bank Nat'l Ass'n, 716 F.3d 1072, 1076 (8th Cir.2013). But regarding race, Bundy overlooks that he was not the only employee terminated at the time he lost his job; Bonnie Hoberg, who is white, also had her position eliminated in the Bond of Indemnity/Bondholder Processing group when U.S. Bank implemented cost-cutting measures. Similarly, the record reflects that employees older than Bundy in the Bond of Indemnity/Bondholder Processing group were not terminated at the time U.S. Bank laid him off. Given these facts, it does not appear that Bundy has established a prima facie case. See Guimaraes v. SuperValu, Inc.,
Despite its doubts, however, the Court will assume arguendo that Bundy has established a prima facie case of race and age discrimination based on the termination of his employment. U.S. Bank has offered a legitimate, nondiscriminatory reason for the termination: cost-cutting necessary due to the bank's poor 2008 financial performance, and Bundy's lower score on the Peer Group Analysis when Campbell decided which manager to eliminate. The burden, therefore, rests with Bundy to proffer sufficient evidence to create a jury question that this is a pretext for discrimination.
"When an employer articulates a nondiscriminatory reason for an [employment action], the factual inquiry proceeds to a new level of specificity." Gibson v. Am. Greetings Corp., 670 F.3d 844, 856 (8th Cir.2012) (alteration in original) (citation omitted). To avoid summary judgment, Bundy must come forward with evidence both calling into doubt U.S. Bank's proffered reason and creating a genuine issue that discrimination was the real reason for his termination. Id.; Haigh v. Gelita USA Inc., 632 F.3d 464, 470 (8th Cir.2011) ("[T]he showing of pretext necessary to survive summary judgment requires more than merely discrediting an employer's asserted reasoning for terminating an employee. A plaintiff must also demonstrate that the circumstances permit a reasonable inference of discriminatory animus."). He cannot overcome this hurdle here.
Bundy first challenges U.S. Bank's proffered reason, arguing the Peer Group Analysis was "false" because it was conducted before Campbell was informed of the need for cost-cutting. He notes that the Analysis is dated January 28, 2009, but Campbell (ostensibly) learned of the need to reduce costs only when he received a
Bundy next argues that U.S. Bank has offered shifting explanations for his termination. "Substantial changes over time in the employer's proffered reason for its employment decision support a finding of pretext," Rodgers v. U.S. Bank, N.A., 417 F.3d 845, 855 (8th Cir.2005), but Bundy has not shown that U.S. Bank's reasons shifted here. In support of his argument, Bundy asserts he was told the decision to end his employment "had been based on staffing levels, volume levels, ability to absorb the work, and ability to manage risk." (Bundy Decl. ¶ 56.) He claims U.S. Bank has now "changed" its explanation because these items "are nowhere [mentioned] in the [P]eer [G]roup [Analysis." (Id. ¶ 63.) Yet, Bundy ignores that the Peer Group Analysis was the second step in the decision to terminate his employment, used by Campbell to decide which manager (Bundy or Strantz) should be laid off. Campbell first had to decide whether a manager should be eliminated, and as set forth above, in making that decision he considered workload, staffing, and the ability to allocate job functions to other managers — the factors Bundy now claims have "changed."
Bundy next argues that U.S. Bank did not follow its own policies when it terminated his employment. He claims that Campbell violated a directive contained in the February 5 e-mail from U.S. Bank's CEO to reduce non-personnel expenses before considering layoffs. Yet again, this argument misconstrues the record. It is undisputed that Campbell reduced contract labor costs and overtime, restricted merit increases, and "closed" a bond-operations position following an employee's retirement. Bundy offers no evidence that there were other costs that could have, or should have, been eliminated before Campbell decided to proceed with layoffs. In fact, the February 5 e-mail recognized that cost-cutting alone would not suffice and that layoffs likely were necessary. (See Wyatt-Brown Decl. Ex. K at 10 ("[L]imit[ing] unnecessary travel, meetings, subscriptions, and other costs ... will NOT accomplish this entire [costcutting] task, [and] therefore the remainder of the steps will include personnel" actions) (emphasis in original).)
Furthermore, Bundy overlooks that the February 5 e-mail provided only guidance to each operating group as to how to cut costs. Nothing suggests that e-mail mandated how expenses were to be reduced — and its text indicates just the opposite. (See id. ("[T]he overall goal for the entire bank is to reduce operating expenses by 5% for the entire year. Instead of prescribing
Bundy further argues that when undertaking the Peer Group Analysis, Campbell should not have compared him with Strantz, who "was in no way [his] peer," but rather with Missman, whose "rating was far inferior" and who was "in the midst of very serious sexual harassment allegations which resulted in both a verbal and a written warning." (Mem. in Opp'n at 23.) Yet, it is "not the role of this court to sit as a super-personnel department" and "second guess the wisdom of the Peer Group Analysis. Evers v. Alliant Techsystems, Inc., 241 F.3d 948, 957 (8th Cir.2001) (internal quotation marks omitted). Moreover, there is a simple explanation why Campbell compared Bundy to Strantz and not Missman: Campbell was not Missman's supervisor. As set forth above, Bundy began reporting to Campbell after Thorstad resigned, while Missman began reporting directly to Nielsen (Campbell's boss). See Floyd-Gimon v. Univ. of Ark. for Med. Sci., 716 F.3d 1141, 1150 (8th Cir.2013) (comparator evidence probative only when "[t]he individuals used for comparison... have dealt with the same supervisor").
To be sure, the Peer Group Analysis is not entirely immune from challenge. Many of the criteria contained therein were subjective, see Wingate v. Gage Cnty. Sch. Dist., No. 34, 528 F.3d 1074, 1080 (8th Cir.2008) (cautioning that subjective criteria deserve careful scrutiny because they are "easily fabricated"), and the poor scores Bundy received do not dovetail neatly with his last annual performance review, which indicated that he was "consistently [meeting] and at times exceeding] expectation^]" (Bundy Decl. Ex. A). But Bundy has offered little to suggest that Campbell did not believe the "deficiencies" noted in the Analysis. Campbell supervised Bundy for only a short period of time before deciding to terminate his employment, and in that time he counseled Bundy on several occasions concerning his performance.
All told, the record fails to create a genuine issue whether U.S. Bank's proffered reason for Bundy's termination was pretextual. Accordingly, the bank is entitled
Bundy's retaliation claims — which are also analyzed under the McDonnell Douglas framework, see Muor, 716 F.3d at 1076; Guimaraes, 674 F.3d at 978 — are broader than his discrimination claims. In addition to claiming that his termination was retaliatory, he also labels as retaliation (1) Thorstad "funnel[ling] his work to Missman," (2) Nielsen and Thorstad "papering" his file and conspiring to put him on an action plan, and (3) the loss of "a great deal of his direct reports" after the CTSS restructuring. (Mem. in Opp'n at 33.) None of these claims survives summary judgment.
First, besides termination, all of the conduct Bundy challenges is not actionable. Because retaliation laws are designed to "protect[ ] an individual not from all retaliation, but from retaliation that produces an injury or harm," Burlington N. & Santa Fe Ry. Co. v. White, 548 U.S. 53, 67, 126 S.Ct. 2405, 165 L.Ed.2d 345 (2006), a plaintiff must establish that he "suffered a materially adverse employment action" in order to avoid summary judgment. Jackman v. Fifth Judicial Dist. Dep't of Corr. Servs., 728 F.3d 800, 804 (8th Cir.2013). Simply put, "trivial harms... do not rise to the level of retaliation." Redo v. Creighton Univ., 521 F.3d 934, 940 (8th Cir.2008). And under Eighth Circuit law, shunting work to others, having an employment file "papered," being placed on an action plan, and losing subordinates are not materially adverse employment actions in the absence of evidence that Bundy suffered negative consequences (such as lost opportunities for promotion or pay increases) as a result. See, e.g., Hill v. City of Pine Bluff, Ark., 696 F.3d 709, 715 (8th Cir.2012) ("[S]ending a critical letter that threatened appropriate disciplinary action, or falsely reporting poor performance ... [a]re actions that d[o] not establish a prima facie case of retaliation, absent showings of materially adverse consequences to the employee."); Clegg v. Ark. Dep't of Corr., 496 F.3d 922, 929 (8th Cir.2007) (finding none of the following materially adverse: "failure to provide training and orientation, denying... access to needed employment tools, failure to reinstate [plaintiff] to her prior position, interfering with her authority, unfairly adding negative reports and reprimands to her personnel file, treating her differently than her coworkers, excluding her from meetings, giving her a negative evaluation, ... and adding days to a training assignment at a different unit"); Devin v. Schwan's Home Serv., Inc., 491 F.3d 778, 785-87 (8th Cir.2007) (no retaliation claim despite plaintiff (1) being unfairly disciplined, (2) losing out on pay guarantees given to others, (3) having coworkers interfere with the performance of her job, (4) being denied employment tools, and (5) having her complaints not fairly considered).
Based on the foregoing, and all the files, records, and proceedings herein,