PER CURIAM.
Plaintiff Richard Smith appeals from the entry of summary judgment dismissing his complaint against defendant Hutchinson Plumbing Heating Cooling,
The essential facts are largely undisputed, with certain notable exceptions, which we relate in the light most favorable to plaintiff. Defendant Hutchinson bills itself as the largest HVAC company in southern New Jersey, providing a full range of plumbing, heating and air conditioning services. From October 2009 until his discharge in May 2012, plaintiff worked as a commissioned salesman in Hutchinson's residential services department. He was paid entirely on commission, receiving only a weekly draw against future commissions.
In February 2010, four months after assuming his sales position, plaintiff came to believe he was not being paid his promised commission rate. Plaintiff complained that every time he questioned his commission, which was often, "Fred Hutchinson gave [him] some incomprehensible answer that made no sense at all."
The parties' relations became increasingly strained around the issue of plaintiff's commissions over the following two years. Plaintiff felt as if he could never get a straight answer as to how defendant calculated commissions. He also believed defendant changed the manner in which commissions were calculated. Defendant insisted it had not done so. Defendant's management team believed they spent a great deal of time resolving the issues to plaintiff's satisfaction, only to have him renew his complaints within weeks or months.
In September 2011, Carey Herrman, Hutchinson's general manager, sent an email to plaintiff confirming that management had reviewed with him his 2009 sales and provided him with pay summaries showing he was paid in full for 2009 in 2010, stating "[y]ou have agreed to this." The email continued:
Plaintiff replied stating:
In late 2011, plaintiff claims that his sales manager, Marcus Bratton, and Herrman told him to stop talking with the other salespeople about commissions or he would be fired. Plaintiff also claims his sales leads from the company dried up around the same time, and that he went from number one in sales to last place.
In December, plaintiff attended a meeting with Fred Hutchinson, Herrman, Bratton and Fred Mathewson, Huchinson's chief financial officer, to once more discuss plaintiff's commissions. The meeting got heated when plaintiff again raised the issue of unpaid 2009 commission. He eventually walked out and shortly thereafter hired a lawyer.
Plaintiff's lawyer wrote to defendant in January 2012 demanding documents relating to plaintiff's commission calculations and payments. Enclosed in the letter was a draft complaint asserting claims under the WPL and for breach of contract. The letter also addressed "a number of questionable business practices" at the company. Included among those claims was that "Mark Bratton put his pocket knife up against [plaintiff's] testicles" and referred to "you Jews" when addressing him.
After obtaining the details of plaintiff's allegations against Bratton from plaintiff's counsel, the company hired an outside investigator to review his claims. Plaintiff claimed in October 2011, at a poker game at Fred Hutchinson's home, Bratton said "isn't it just like the Jew not to put the money up" when plaintiff failed to "ante up" prior to a hand. The other players, almost all of whom worked for the company, laughed. At Christmastime that year, plaintiff walked into the breakroom where other employees were discussing raffling off a Christmas tree when Bratton yelled out "yeah, you Jews don't have Christmas trees do you." Plaintiff reported the other employees present all laughed.
Plaintiff also claimed that after he walked out of the contentious December meeting regarding his commissions, Bratton followed him into Herrman's office. While the two were alone, plaintiff claims Bratton took a penknife from his pocket and pressed it to plaintiff's testicles saying, "This is what we do to Jews who don't cooperate." Plaintiff claims he reported the incident to Herrman the following day. Herrman told the investigator that plaintiff "made him aware of it," and that he went to Fred Hutchinson with plaintiff's claim. The investigator was unable to substantiate any of the charges, although she noted one of the other card players recalled Bratton making the statement about Jews not putting up the money when plaintiff was slow to ante up on a hand.
Defendant provided plaintiff's counsel with sales and commission documents in response to her demand, and the parties met in an effort to resolve their pay dispute. They could not bridge their differences, however, and plaintiff filed his complaint for violations of the WPL and breach of contract in February 2012. Relations thereafter continued to deteriorate between the parties. Plaintiff missed work meetings because he was meeting with his attorney during working hours, and management complained he was also missing appointments with customers and failing to complete necessary paperwork correctly or in a timely fashion.
Plaintiff complained that he "was expected to attend meetings that were a waste of time" and that defendant was retaliating against him for his "complaints about Bratton's anti-Semitic behavior and [his] complaints about not being paid properly." Plaintiff complained to Mathewson and Herrman in April that at a sales meeting on February 24, Fred Hutchinson looked in plaintiff's direction and "suddenly and unexpectedly stopped what he was saying, said `Jew Jew' and winked at Bratton," who, unbeknownst to plaintiff, was sitting behind him.
Eventually, plaintiff refused to attend commission meetings with the sales staff concluding that "Hutchinson management was never going to give [him] an understandable explanation." He also refused to take any more sales calls in Pennsylvania and then refused to take any sales calls at all until he received commissions he believed were owed. Plaintiff claimed "that after two years of being `jerked around' by [defendant, he] was fed up and declined to attend meetings that were a waste of time and declined to make calls in Pennsylvania, as he had not been hired to work in Pennsylvania." After several written warnings, Fred Hutchinson terminated plaintiff's employment in May 2012 based on information regarding plaintiff's performance provided by Mathewson, Bratton and Herrman.
Following his firing, plaintiff amended his complaint to add claims of hostile work environment. He subsequently amended it again to add claims of retaliatory discharge under the LAD and CEPA. In that second amended complaint, plaintiff alleged defendant cheated customers out of a portion of a rebate offered by an equipment manufacturer on specified items by increasing the price of the item to cover defendant's participation share and signed customers' names without their permission to ballots submitted to the Courier Post newspaper's "Best of South Jersey" contest in violation of the contest's rules. Plaintiff asserted he complained about both of these practices to Herrman. Plaintiff included in his complaint a count for negligent spoliation of evidence based on defendant's failure to retain copies of the ballots it submitted to the newspaper.
After hearing argument, the trial court granted defendant's motion for summary judgment and dismissed plaintiff's claims in their entirety. The court found that despite extensive discovery, plaintiff had failed to present any evidence that defendant did not maintain proper records, had not paid plaintiff all wages due and owing, or had ever changed the method of calculating plaintiff's commission. The court found that plaintiff had no proof of any intentional or negligent misrepresentation and no evidence of any fraud.
As to plaintiff's wrongful discharge claims, the court found that following the filing of his complaint, plaintiff refused to attend meetings or take sales calls in Pennsylvania. The court rejected plaintiff's claims that he was excused from attending scheduled work meetings because he was engaged in the protected activity of meeting with his lawyer. Citing plaintiff's admitted conduct of refusing to attend meetings called by his employer he considered a waste of time and refusing to take sales calls in Pennsylvania, despite it being within the territory assigned in his employment agreement, the court dismissed plaintiff's claims for wrongful discharge.
The trial court focused the greater part of its opinion, as the parties had their arguments, on the hostile environment claim. The court found plaintiff never reported Bratton's "alleged hostile remark" following the December 2011 commission meeting and that the outside investigator was unable to substantiate plaintiff's claim. Finding that defendant has a "comprehensive anti-harassment program" which plaintiff failed to utilize, the court concluded that single incident was not sufficient to create a hostile environment under
We review summary judgment using the same standard that governs the trial court.
We agree with the trial court that all of plaintiff's claims relating to the payment of his commissions were properly dismissed on summary judgment. Plaintiff acknowledges that defendant produced over 300,000 documents in discovery. In addition to every estimating spreadsheet he used during his employment, plaintiff also inspected every job file for all sales he made from 2009 through 2012 and "imaged" the company laptop he used during his employment. Although plaintiff continues to maintain unspecified documents have not been produced, that defendant changed its method of calculating his commission and that he has not been paid all that is due, he produced no evidence for his claims, notwithstanding this extensive discovery.
We do not agree, however, that plaintiff's hostile environment claim could be resolved on summary judgment. To establish a cause of action under the LAD based on a hostile work environment, plaintiff must prove that the complained-of conduct: (1) would not have occurred but for the employee's protected status and was (2) severe or pervasive enough to make a (3) reasonable person of plaintiff's protected status believe that (4) the conditions of employment have been altered and that the working environment is hostile or abusive.
In determining whether conduct is sufficiently severe or pervasive to constitute an actionable hostile environment, the focus is not on plaintiff's subjective response to the alleged hostile acts but on the acts themselves.
Bratton, created an actionable hostile environment based on plaintiff's Jewish faith and ancestry. Thus the appropriate test for measuring his claim is whether "a reasonable person of plaintiff's religion or ancestry would consider the workplace acts and comments made to, or in the presence of, plaintiff to be sufficiently severe or pervasive to alter the conditions of employment and create a hostile working environment."
For reasons not altogether clear to us, the trial court looked only at the penknife incident in evaluating plaintiff's claim, considering whether that incident, standing alone, was sufficiently severe to create a hostile environment under
Moreover, we think there is no doubt that a rational factfinder could reasonably find the penknife incident sufficiently severe to make a reasonable person of Jewish faith or ancestry believe the conditions of his employment had been altered and the workplace rendered a hostile one.
We further do not conclude that defendant's anti-discrimination policy, relied upon by the trial court, entitled defendant to summary judgment on this record. First, an anti-discrimination policy will not shield an employer from liability for discriminatory acts of a supervisor acting within the scope of his employment.
The scenario presented on the motion was not the more common example of sexual harassment pursued for the harasser's own ends.
In our view, there can be little doubt that Bratton was acting within the scope of his employment in attempting to dissuade plaintiff from pursuing his claims for unpaid commissions.
Second, even if Bratton is considered to have acted outside the scope of his employment, factual disputes over plaintiff's utilization of defendant's anti-discrimination policy and its effectiveness preclude summary judgment to defendant on this record. In evaluating defendant's vicarious liability for Bratton's conduct under
Defendant contended it was entitled to summary judgment on plaintiff's hostile environment claim because plaintiff did not utilize the company's anti-discrimination policy by promptly reporting the penknife incident. Plaintiff disputes that. He contends that he complained to Herrman about the incident the next day, and the investigator's notes appear to corroborate his claim. This dispute of fact was sufficient to deny defendant summary judgment, and the court erred in overlooking it in accepting defendant's contention that plaintiff never reported Bratton's conduct.
But the trial court also erred in failing to consider plaintiff's proofs that defendant's anti-discrimination policy was ineffective because it was incomplete and the company had never conducted any training on workplace discrimination or harassment.
Here, defendant presented the deposition testimony of defendant's human resource manager that the company never conducted any training on its anti-discrimination policy. Accordingly, defendant's proof of lack of training on the policy put its effectiveness in issue and precluded summary judgment to defendant on the basis of the affirmative defense. There was thus no basis for entry of summary judgment to defendant on plaintiff's hostile environment claim.
We also disagree that all of plaintiff's claims for retaliatory discharge were properly dismissed on summary judgment. In order to prove a retaliatory discharge claim under the burden-shifting analysis of
We agree with the trial court that plaintiff failed to muster the proofs required to establish a prima facie case that he was fired in retaliation for his alleged complaints about the manufacturer's rebate program or the "Best of South Jersey" promotion. Although plaintiff did not plead his CEPA violation with any specificity, he has not identified either "a law, or a rule or regulation promulgated pursuant to law[,]"
The same is not true, however, of plaintiff's claim of retaliation under the LAD.
The burden would then shift to the employer to articulate a legitimate, non-retaliatory reason for the discharge.
Defendant's non-retaliatory reason for the discharge was that plaintiff refused sales calls in Pennsylvania, refused to attend meetings and scheduled appointments with customers, failed to correctly complete and submit necessary paperwork and generally refused managerial direction. There are certainly facts in the record to allow a rational jury to agree that defendant fired plaintiff for those reasons and not in retaliation for his complaints about Bratton.
But plaintiff can point to other facts suggesting defendant's reasons were a pretext for retaliation. In addition to the "Jew Jew" comment plaintiff alleges Fred Hutchinson made, plaintiff also points to proof that other sales people missed meetings and refused sales calls in Pennsylvania and were not terminated. Although defendant claims that "this matter is simply one of pay" and plaintiff's LAD and CEPA claims added only as an afterthought, we are satisfied that plaintiff mustered sufficient facts on the motion to allow a rational jury to reasonably conclude that defendant's claims about plaintiff's performance were a pretext, and that the real reason plaintiff was fired was because he complained about Bratton's anti-Semitic conduct. Because plaintiff adduced sufficient facts on the motion to put the issue of pretext before the jury, his claim for retaliatory discharge should not have been decided on summary judgment.
In sum, we affirm the grant of summary judgment to defendant dismissing all of plaintiff's claims relating to the calculation and payment of plaintiff's commissions. Specifically, we affirm the dismissal of plaintiff's claims to compel an accounting, for violation of the WPL, breach of contract, quantum meruit, unjust enrichment, breach of the implied covenant of good faith and fair dealing, intentional misrepresentation, negligent misrepresentation, fraudulent concealment of evidence and negligent destruction of evidence. We also affirm the grant of summary judgment to defendant on plaintiff's CEPA claims arising out of the manufacturer's rebate program and the "Best of South Jersey" promotion. We reverse the grant of summary judgment to defendant on plaintiff's claim for hostile environment on the basis of his Jewish faith and ancestry and for retaliatory discharge based on his complaints about Bratton's anti-Semitic conduct.
Affirmed in part; reversed in part and remanded for further proceedings consistent with this opinion. We do not retain jurisdiction.