M. CASEY RODGERS, Chief Judge.
Plaintiff Karen Marie Wright ("Wright") filed this lawsuit against her former employer, Defendant Sandestin Investments, LLC, d/b/a Sandestin Golf and Beach Resort ("Sandestin Investments"), alleging pregnancy discrimination, in violation of
From 2002 through the date of her termination, Wright was an employee of Intrawest ULC ("Intrawest"), which operated the Sandestin Golf and Beach Resort ("the Resort"). She worked full time as an executive administrative assistant for several different vice presidents of the company, most recently for Vice President Matthew Lindley. Throughout her employment, Wright shared the office suite with one or two other executive assistants who worked for various executives.
In late 2009, Wright received approval from Intrawest to take FMLA leave for the birth of her child, and she began her maternity leave on Monday, January 11, 2010. Prior to beginning this period of leave, Wright was told of a possibility that, when she returned, she would be working for Lindley and also an anticipated new vice president, Steve Schaefer. Wright was scheduled to return to work on Monday, April 12, 2010. During her absence, Linda Taylor, who was the only other executive assistant at the time, also took a leave of absence. Lauren Callahan temporarily filled in for Taylor, and ultimately stayed on full time. When Taylor returned from her leave of absence, she began working part-time for the new vice president, Mr. Schaefer.
On March 15, 2010, during Wright's approved maternity leave, Intrawest sold the Resort to Defendant Sandestin Investments, LLC ("Sandestin Investments"). Wright acknowledged in her deposition that no one made any negative comment or expressed hostility toward her because of her pregnancy or maternity leave. However, on March 22, 2010, Wright discovered something was amiss regarding her job when informed by a personal friend that someone else's voice was on Wright's office phone voicemail; Wright called her own number and verified it was Taylor's voice. Wright telephoned Sandra Fowler, Director of Human Resources, about the matter and was informed that her position had been eliminated. Fowler suggested that Wright could apply for other available jobs with the company, but Wright asserts none of the suggested positions was comparable in pay to her prior position. Wright received a formal letter from Fowler confirming her termination dated April 2, 2010, while she was still on maternity leave, stating that her termination was due to a reorganization that would have occurred regardless of her current use of family medical leave. According to Wright, although the ownership of the resort changed from Intrawest to Sandestin Investments, nothing changed with regard
Fowler had been Director of Human Resources for Intrawest, and she kept the same position when the resort's ownership transferred to Sandestin Investments. Fowler testified that Sandestin Investments retained every Intrawest employee who chose to continue their employment after the transition of ownership; the supervisory positions did not change; she could not recall anyone who chose to leave or was terminated other than the plaintiff; and she testified that vacation and sick leave accrual was not altered during the transition, stating, "at the time, everything stayed the same." (Doc. 36-1, at 12). Fowler explained that Sandestin Investments attempted to make the transition to the new ownership as seamless as possible for employees. According to Fowler, the human resources department had to recreate a new system of employee record keeping "from a blank slate" because Intrawest took all of its files, but she explained that "we transitioned everything in, and then it was afterwards whenever we changed the structure." (Doc. 36-1, at 12-13). However, Fowler explained that FMLA leave approved by Intrawest did not transition and Sandestin Investments did not honor Intrawest's FMLA leave "because we were a new company." (Doc. 36-1, at 15).
Sandestin Investments's President John Russell was not aware of and could not recall any list prepared of employees who were identified for position elimination. He stated the company reviewed positions individually as they determined staffing levels in connection with the transition of ownership from Intrawest to Sandestin Investments. Wright's supervisor, Lindley, testified that he did not know who made the decision to terminate Wright but that he had been a party to discussions about possible cost-saving measures and he was "pretty sure" it had come up while she was out on leave.
Another executive, Ned Webster, testified that the executives were under pressure to eliminate overhead just prior to the sale and during the transition. According to Webster, Lindley had made the suggestion to eliminate Wright's executive assistant position during one of their regular morning executive committee meetings several months before and that he (Webster), Lindley and Russell were the final decision makers. He testified that Wright would have been allowed to return to work but for the company's decision to eliminate her position.
Wright presented the deposition of Peter Reed, who had been director of finance for Intrawest and kept the same position after the transition to Sandestin Investments. He later became vice president of finance. He testified that he did not know whether there had been any reorganization
Summary judgment is appropriate "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). See Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). "[T]he substantive law will identify which facts are material" and which are irrelevant. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). An issue of fact is material if it is a legal element of the claim under the applicable substantive law which might affect the outcome of the case. See id. "If reasonable minds could differ on the inferences arising from undisputed facts, then a court should deny summary judgment." Miranda v. B & B Cash Grocery Store, Inc., 975 F.2d 1518, 1534 (11th Cir.1992) (citing Mercantile Bank & Trust Co. v. Fidelity & Deposit Co., 750 F.2d 838, 841 (11th Cir.1985)). The court must view all the evidence, and all factual inferences reasonably drawn from the evidence, in the light most favorable to the nonmoving party, see Hairston v. Gainesville Sun Publ'g Co., 9 F.3d 913, 918 (11th Cir.1993), but the nonmoving party must present more in support of his claim than evidence which is "merely colorable" or "not significantly probative," to survive a properly supported summary judgment motion, Anderson, 477 U.S. at 249, 106 S.Ct. 2505.
Pregnancy discrimination claims are analyzed the same as sex discrimination claims under Title VII. See Hamilton v. Southland Christian Sch., Inc., 680 F.3d 1316, 1320 (11th Cir.2012). A plaintiff must show that the employer intended to discriminate against her because of her pregnancy, using either direct or indirect evidence. Id.
Under the FMLA, any employer who interferes with, denies, or retaliates against an employee based on the exercise of FMLA rights is liable for damages. See 29 U.S.C. § 2615(a)(1) & (2); 29 C.F.R. § 825.220(c); see also Strickland v. Water Works and Sewer Bd. of City of Birmingham, 239 F.3d 1199, 1206 (11th Cir.2001). To be eligible for benefits, an employee must have worked for the employer for 12 consecutive months and at least 1,250 hours. An "employer" for purposes of FMLA coverage includes one who is a "successor in interest" of an employer. 29 U.S.C. § 2611(4)(A). "To state a claim of interference with a substantive [FMLA] right, an employee need only demonstrate by a preponderance of the evidence that he was entitled to the benefit denied." Strickland, 239 F.3d at 1206-07. The right to reinstatement may be denied in certain circumstances, however, such as a reduction in force. See O'Connor v. PCA Family Health Plan, Inc., 200 F.3d 1349, 1353-54 (11th Cir.2000). An employer may "raise its alleged lawful reasons for termination as an affirmative defense to liability," permitting the employer to avoid FMLA liability for damages by demonstrating "that it would have discharged [the] employee for a reason wholly unrelated to the FMLA leave." Spakes v. Broward Cnty. Sheriff's Office, 631 F.3d 1307, 1310 (11th Cir.2011). The FMLA retaliation claim requires a showing that the adverse employment decision was causally related to the protected FMLA activity. Strickland, 239 F.3d at 1207.
In Count II, Wright claims that Sandestin Investments interfered with her right to FMLA leave by terminating her employment while she was on pregnancy FMLA leave, instead of reinstating her.
Although an employee is not eligible for the protections of the FMLA until she has worked for the employer for at least 12 consecutive months, and Wright did not work for the new owner, Sandestin Investments, for this length of time, there is no dispute in this case that Wright had worked for Intrawest for more than 12 months and over 1.250 hours, making her an eligible employee at the time she took her approved FMLA maternity leave. There is also no dispute that she was terminated by Sandestin Investments while she was out on this approved FMLA leave and that the transition of ownership of the resort from Intrawest to Sandestin Investments occurred while she was on FMLA leave. A new employer may be liable as a "successor in interest of an employer." 29 U.S.C. § 2611(4)(A)(ii)(II). The FMLA does not define the term "successor in interest," and the Eleventh Circuit has not yet provided guidance on the term. However, the Department of Labor ("DOL") regulations instruct that for purposes of the FMLA, Title VII factors should be considered in determining whether an employer is a successor in interest, except that notice of the employee's claim is not a factor. See 29 C.F.R. § 825.107(a). The regulation outlines eight factors which courts should evaluate in the totality of the circumstances to determine whether there is (1) substantial continuity of business operations; (2) use of the same plant; (3) the same work force; (4) similar jobs and working conditions; (5) similar supervisory personnel; (6) similar equipment or production methods; (7) similar products and services; and (8) whether the predecessor had the ability to provide relief. Id. § 825.107(a), (b). The origins of successor liability are equitable and "intensely fact-specific [in] nature," rendering fairness "a prime consideration in its application." Sullivan v. Dollar Tree Stores, Inc., 623 F.3d 770, 782 (9th Cir.2010) (internal marks omitted). The Sixth Circuit has explained that the regulation's enumerated factors are part of "an overarching, three part test considering the equities of imposing a particular legal obligation on a successor," in which courts consider (1) the employee's interests, (2) the employer's interests, and (3) "the federal policy goals of the statute."
Wright has presented deposition testimony indicating that there was substantial continuity in the business operations between Intrawest and Sandestin Investments, and similarity in the work force, jobs, and supervisory personnel. Fowler testified that all employees transitioned to
As to the three overarching equitable considerations, see Grace, 521 F.3d at 672, the employee's interest here is consistent with the FMLA's goals of ensuring reasonable medical leave. The congressionally expressed purposes of the FMLA include balancing the demands of the workplace with the needs of families and entitling employees to take reasonable leave for medical reasons, such as the birth of a child, all in a manner that also accommodates the employers' legitimate business interests. 29 U.S.C. § 2601(b). There is no dispute Wright was eligible for FMLA leave with Intrawest and her maternity leave had been properly pre-approved. Sandestin Investments has not set forth any genuine issue of material fact impacting these equitable considerations in favor of the employer's interest in this inquiry. Fowler's testimony indicates that Sandestin Investments simply chose not to honor Intrawest's FMLA leave, despite the fact that any changes in policies or benefits impacting employees occurred at some point after the transition of ownership. Having fully considered the record in relation to the relevant DOL factors and overarching equities, the court finds no genuine issue of fact and that consideration of the relevant factors and equities weighs in favor of a conclusion that Sandestin Investments was "a successor in interest to the employer" under the FMLA.
Wright argues that because the defendant is a successor in interest, she is entitled to partial summary judgment for FMLA interference based on strict liability and the failure to reinstate. Sandestin Investments argues that even assuming it was incorrect on the successor in interest question, liability is not established because it is entitled to proceed on its defense that it would have terminated the
The court concludes that the successor in interest issue merely establishes that the defendant is subject to liability as an "employer" under the FMLA and that, by virtue of the continuity of the business, the plaintiff's FMLA eligibility carried over to the new owner. This is not, however, equivalent to finding the employer liable for an FMLA violation. As the cases cited above demonstrate, strict liability is not the rule. Wright does not argue in her motion for partial summary judgment that she is entitled to judgment as a matter of law on Sandestin Investments' defense. Accordingly, the motion for partial summary judgment will be denied.
Sandestin Investments moves for summary judgment, first arguing that Wright's pregnancy discrimination claim is not actionable under the Florida Civil Rights Act ("FCRA"), Fla. Stat. § 760.10. Wright disagrees, citing state and federal law to the contrary. The Florida statute does not expressly protect against "pregnancy" discrimination, and the Florida District Courts of Appeal are not in agreement with regard to whether pregnancy discrimination is actionable under the FCRA. Compare Delva v. Continental Group, Inc., 96 So.3d 956, 957-58 (Fla. 3d DCA 2012) (concluding a prohibition against pregnancy-based discrimination is not included in Florida law, and following O'Loughlin v. Pinchback, 579 So.2d 788, 790 (Fla. 1st DCA 1991)), with Carsillo v. City of Lake Worth, 995 So.2d 1118, 1119 (Fla. 4th DCA 2008) (construing the Florida statute consistently with Title VII, and noting that Congress explained in enacting the PDA that it had intended to prohibit discrimination based on pregnancy when it passed Title VII; thus, pregnancy is a protected class under Florida law), rev. denied, 20 So.3d 848 (Fla.2009), cited with approval in Valentine v. Legendary Marine FWB, Inc., No. 3:09cv334/MCR/EMT, 2010 WL 1687738 (N.D.Fla.2010). The court in Delva, which was decided on July 25, 2012, certified to the Florida Supreme Court a conflict with the Carsillo case. The Florida Supreme Court has not yet resolved the conflict. Federal district courts in this circuit are also divided on the issue, and it has not been addressed by the Eleventh Circuit. Compare, e.g., DuChateau v. Camp Dresser & McKee, Inc., 822 F.Supp.2d 1325 (S.D.Fla.2011) (concluding the FCRA does not provide a claim for pregnancy discrimination because when the Florida legislature renamed its statute in 1977 and again in 1992, the language was not amended to mirror the language of the PDA), with Terry v. Real Talent, Inc., No. 8:09cv1756, 2009 WL 3494476, at *2 (M.D.Fla.2009) (construing
Absent express guidance by the Florida Supreme Court and in light of the conflict among the intermediate courts, this court must do its best to anticipate how the Florida Supreme Court will rule on the issue. See State Farm Mut. Auto. Ins. v. Duckworth, 648 F.3d 1216, 1224 (11th Cir.2011). The Florida Supreme Court instructs, "it is axiomatic that in construing a statute courts must first look at the actual language used." Woodham v. Blue Cross and Blue Shield of Fla., Inc., 829 So.2d 891, 897 (Fla.2002). The FCRA prohibits discrimination in employment "because of such individual's race, color, religion, sex, national origin, age, handicap, or marital status." Fla. Stat. § 760.10(1)(a). The term "sex" is not explicitly defined. However, the Florida legislature expressly declared that the FCRA "shall be liberally construed to further the general purposes stated in this section." Fla. Stat. § 760.01(3); see also Woodham, 829 So.2d at 894. Additionally, the Florida Supreme Court has noted that the FCRA's "stated purpose and statutory directive are modeled after Title VII."
Sandestin Investments also asserts that it is entitled to summary judgment on the pregnancy discrimination claims, arguing that Wright cannot make out a prima facie case because she was not replaced, and instead, her position was legitimately eliminated as a cost-saving measure in conjunction with the change of ownership. Wright argues she has established a prima facie case of discrimination and has also shown inconsistencies in Sandestin Investment's reason for terminating her, raising a question of pretext.
Under Title VII and FCRA, which are construed similarly, the court considers the record through the framework of McDonnell Douglas Corp. v. Green, 411 U.S. 792, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973), and Texas Dep't of Comty. Affairs v. Burdine, 450 U.S. 248, 101 S.Ct. 1089, 67 L.Ed.2d 207 (1981), to determine whether there is circumstantial
Finally, Sandestin Investments asserts it is entitled to summary judgment on its affirmative defense to the FMLA interference claim, i.e., that it would have terminated Wright regardless of her use of FMLA leave, and on the FMLA retaliation
Accordingly:
1. Plaintiff's motion for partial summary judgment (doc. 34) is DENIED.
2. Defendant's motion for summary judgment (doc. 45) is DENIED.
3. Because mediation occurred more than one year ago, the court hereby refers this case to the magistrate judge for a settlement conference to be concluded within thirty (30) days.
4. The case shall be scheduled for trial by separate order.