DAVID L. BUNNING, District Judge.
Defendants Fidelity Corporate Real Estate, Inc. and Thomas Kinney move for partial dismissal of Plaintiff Robert Sparks's Complaint (Doc. # 1-1), in which he pleads several claims arising from alleged violations of the Kentucky Civil Rights Act ("KCRA"). Kinney seeks dismissal of the religious discrimination claim set forth in Count I, arguing that the KCRA does not allow an individual to be held personally liable for a discrimination claim. Kinney and Fidelity jointly contend that Count III, which sets forth a claim for wrongful termination in violation of public policy, is preempted by the KCRA. Finally, Kinney and Fidelity ask the Court to strike Sparks's prayer for punitive damages from the Complaint because the KCRA does not authorize their recovery. The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1332.
Plaintiff Robert Sparks worked for Fidelity Corporate Real Estate, Inc. from 2000 to 2013. (Doc. # 1-1 at p. 2, ¶ 7-8). He received several awards for superior performance during this time. (Id. at p. 2-3, ¶ 9). In 2009, Sparks began working under a new supervisor named Thomas Kinney, who frequently used profanity in the workplace. (Id. at p. 3, ¶ 10-11). Sparks, a devout Christian, found this language offensive to his religious beliefs. (Id.). At first, Sparks tried to tolerate Kinney's coarseness, but the problem worsened once Fidelity restructured his department. (Id.). Sparks suddenly found himself working with others who frequently used profanity. (Id.).
Sparks finally brought his concerns to Kinney's attention in August 2012. (Id. at p. 3, ¶ 12). He specifically asked that Kinney and others in the department refrain from using foul language. (Id.). Sparks repeated this request on subsequent occasions, but Kinney was not receptive to it. (Id.). On May 2, 2013, Sparks notified Kinney via e-mail that he planned to report the matter to Human Resources. (Id.). He immediately followed through with that promise and filed a complaint with HR. (Id.). Specifically, Sparks asserted that Kinney's persistent use of profanity violated his religious beliefs. (Id.). Later that same day, Kinney responded to Sparks' e-mail. (Id. at p. 3, ¶ 14). He told Sparks that he was aware of the complaint and asked him why he felt the need to involve HR. (Id.).
On May 7, 2013, Sparks arrived at work, only to be told that HR wished to see him. (Id. at p. 4, ¶ 16-17). When he arrived at the meeting, HR informed him that he was being placed on administrative leave for allegedly threatening another employee. (Id.). Fidelity fired Sparks three days later. (Id. at p. 4, ¶ 18-19). Sparks insists that Fidelity's reason for terminating his employment was a pretext for discrimination and retaliation. (Id.).
On January 15, 2016, Sparks filed suit against Fidelity and Kinney in Kenton County Circuit Court. (Doc. # 1-1). He asserted three claims: (1) religious discrimination in violation of KRS § 344.040(1)(a); (2) retaliation in violation of KRS § 344.280(1); and (3) wrongful discharge in violation of the public policy and common law of Kentucky, as embodied in KRS Chapter 344. (Id.). Sparks also included a request for punitive damages in his prayer for relief. (Id. at 6). Fidelity and Kinney promptly removed the case to this Court, then filed the instant Motion to Dismiss. (Docs. # 1 and 5).
A complaint must include a "short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). It must also contain "sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly v. Bell Atl. Corp., 550 U.S. 544, 570 (2007)). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. "[A] formulaic recitation of the elements of a cause of action will not do." Twombly, 550 U.S. at 555. Moreover, the Court "is not bound to accept as true unwarranted factual inferences, or legal conclusions unsupported by well-pleaded facts." Terry v. Tyson Farms, Inc., 604 F.3d 272, 276 (6th Cir. 2010).
The Kentucky Civil Rights Act is intended to "provide for execution within the state of the policies embodied in the [federal civil rights statutes]."
Ky. Rev. Stat. Ann. § 344.040(1)(a); compare 42 U.S.C. § 2000e-2(a) (prohibiting an employer from discriminating on the basis of race, color, religion, sex, or national origin).
In Wathen v. General Electric Company, the Sixth Circuit considered whether an employee or supervisor, who does not otherwise qualify as an "employer," could be held individually liable for violations of Title VII.
In Count I of his Complaint, Sparks seems to claim that Kinney discriminated against him on the basis of religion.
"The tort of wrongful discharge of a `terminable-at-will' employee is a relatively recent development, having arisen out of carefully crafted exceptions to the common law doctrine that `an employer may discharge his at-will employee for good cause, no cause, or for a cause that some might view as morally indefensible.'" Hill v. Ky. Lottery Corp., 327 S.W.3d 412, 420 (Ky. 2010) (quoting Firestone Textile Co. Div. v. Meadows, 666 S.W.2d 730, 731 (Ky. 1984)). The Kentucky Supreme Court has stated that "only two situations exist where `grounds for discharging an employee are so contrary to public policy as to be actionable' absent `explicit legislative statements prohibiting the discharge.'" Grzyb v. Evans, 700 S.W.2d 399, 401-02 (Ky. 1985). The first is "where the alleged reason for the discharge of the employee was the failure or refusal to violate a law in the course of employment." Id. (internal quotations omitted). The second occurs "when the reason for a discharge was the employee's exercise of a right conferred by well-established legislative enactment." Id. (internal quotations omitted).
Although the Kentucky Supreme Court has recognized the existence of a common law claim for wrongful discharge in violation of public policy, it has also stated that there are "circumstances in which the doctrine of preemption would block the creation of" such a claim. Hill, 327 S.W.3d at 421. In Grzyb, for example, the plaintiff asserted claims for common law wrongful discharge and violation of his civil rights under the KCRA, both of which were based on allegations of sex discrimination. See 700 S.W.2d at 401-02. The Kentucky Supreme Court held that the plaintiff had failed to state a claim for wrongful discharge, stating simply that "the claim of sex discrimination would not qualify as providing the necessary underpinning for a wrongful discharge suit because the same statute that enunciates the public policy prohibiting employment discrimination because of `sex' also provides the structure for pursuing a claim for discriminatory acts in contravention of its terms." Id. In other words, "[w]here the statute both declares the unlawful act and specifies the civil remedies available to the aggrieved party, the aggrieved party is limited to the remedy provided by the statute." Id.
The Kentucky Supreme Court later revisited the Grzyb analysis, clarifying that the wrongful discharge claim was preempted because it was based on the same law as the sex discrimination claim, and not because both claims were predicated on the same conduct. See Hill, 700 S.W.2d at 401-02. It further explained that "[t]he only `fundamental and well-defined public policy' that [the Grzyb plaintiff] could articulate to meet the requirement for a wrongful discharge claim was the very same public policy embodied in the civil rights statutes of KRS chapter 344."
In Count III of his Complaint, Sparks alleges that "Defendants violated the public policy of Kentucky in wrongfully discharging Plaintiff on the basis of his religious beliefs and/or retaliating against Plaintiff for his complaints about religious discrimination and harassment." (Doc. # 1-1 at p. 5, ¶ 33). Although the KCRA creates the public policy underpinning Sparks's wrongful discharge claim, he insists that his claim is not preempted because the KCRA does not declare all of the conduct at issue in this case unlawful, nor does it offer a remedy for all of the alleged conduct. (Doc. # 6 at 2-7). In support of this proposition, Sparks points out that KRS § 344.040(1)(a) "mentions nothing about retaliation against an employee for making an internal complaint of discrimination." (Id. at 4). He further asserts that KRS § 344.280, which prohibits retaliation, does not "explicitly protect an employee from retaliation for asserting an intra-company grievance." (Id. at 5).
This distinction is artificial at best. While KRS Chapter 344 may not explicitly address Sparks's precise situation, it does proscribe a wide array of practices. From the Court's perspective, the alleged conduct would qualify as a discharge on the basis of religion, which is prohibited by KRS § 344.040(1)(a). Similarly, the alleged conduct could qualify as retaliation for opposing a practice made unlawful by the KCRA, which is proscribed by KRS § 344.280. Because the KCRA declares the alleged conduct unlawful and specifies the civil remedies available for such violations, Sparks's common law discharge claim is preempted by the KCRA and must be dismissed.
The Kentucky Supreme Court has held that punitive damages are not recoverable under the KCRA. McCullough, 123 S.W.3d at 137-138 (analyzing the scope of KRS § 344.450, entitled "Civil remedies for injunction and damages"); see also Childers Oil Co. v. Adkins, 256 S.W.3d 19, 27 (Ky. 2008) (finding that "[t]he trial court's instruction allowing punitive damages for an action brought under KRS § 344.450 . . . was clearly erroneous" in light of McCullough).
Although Sparks requested punitive damages in his prayer for relief, he concedes that they are not recoverable under the KCRA. (Docs. # 1-1 at 6; 6 at 7). Instead, he attempts to tie his request for punitive damages to the common-law wrongful discharge claim plead in Count III of the Complaint. (Doc. # 6 at 7). Because punitive damages are recoverable for common law claims, and because Count III is a common law claim, Sparks insists that his request for punitive damages must survive. (Id.). However, the Court has already disposed of Sparks's common law claim, finding that it is preempted by the KCRA Therefore, that claim cannot serve as a basis to recover punitive damages. See Russell v. Rhodes, Nos. 2003-CA-000923-MR, 2004-CA-000492-MR, 2005 WL 736612 at *5 (Ky. Ct. App. Apr. 1, 2005) (explaining that dismissal of a punitive damages count is proper when the underlying tort claims have been dismissed). Sparks's request for punitive damages must be stricken from the Complaint.
Accordingly, for the reasons stated herein,
(1) Defendants' Motion to Dismiss (Doc. # 5) is hereby
(2) Count I of Plaintiff's Complaint (alleging religious discrimination in violation of the KCRA) is
(3) Count III of Plaintiff's Complaint (alleging wrongful discharge in violation of public policy) is
(4) Plaintiff's demand for punitive damages is
(5) Defendants shall
Id. at 423. "Because the statutes that declare the unlawful act of perjury are not the same statutes that declare and remedy civil rights claims," the court held that "the [plaintiffs'] claims under KRS Chapter 344 do not preempt [their] common law claims for wrongful discharge based on the public policy against perjured testimony." Id.