JOHN R. PADOVA, District Judge.
Plaintiff Sarajane Hersh filed this employment action against her former employer, Defendant Manufacturers and Traders Trust Company ("M&T") and two supervisors at M&T, Defendants Miguel Baptista and Ira Brown, asserting claims of gender and disability discrimination, as well as a claim pursuant to the Equal Pay Act, 29 U.S.C. § 206 et seq. Both Plaintiff and Defendants have filed Motions for Partial Summary Judgment. Defendants seek judgment in their favor on Plaintiff's gender and disability discrimination claims, and Plaintiff seeks judgment in her favor on the Equal Pay Act claim. We deny both Motions, as there are genuine issues of material fact that preclude the entry of summary judgment in any party's favor at this time.
Plaintiff Sarajane Hersh was hired by Wilmington Trust Company ("Wilmington Trust") as a Vice President and Commercial Real Estate Relationship Manager in July 2001, after having worked for approximately five years as a relationship manager at two different banks. (Concise Statement of Stipulated Material Facts ("Stip. Facts"), attached as Ex. A to Defs.' Mot. for Partial Summ. J., ¶ 1; App. 444-45.
In 2003 or 2004, Plaintiff began reporting to Defendant Miguel Baptista, a group manager. (Stip. Facts ¶¶ 3, 18.) Two men, Chris Eckardt and Robert Howard, held similar positions to Plaintiff. (
In January of 2010, it came to Plaintiff's attention that, although she had believed her job title to be Commercial Relationship Manager III ("CRM 3"), her title was actually Commercial Relationship Manager 1 ("CRM 1"). (App. 343-44.) She asked Baptista about this, and he confirmed that she was a CRM 1, Grade 18. (App. 513.) At the time, Howard had a higher title and grade.
In May 2011, M&T Bank Corporation, M&T's holding company, acquired Wilmington Trust through a merger agreement, and Plaintiff became an employee of M&T. (Stip. Facts ¶ 5.) Following the merger, Plaintiff continued reporting to Baptista, who was one of two Group Managers for the Commercial Real Estate Department of M&T's Philadelphia region. (
In connection with the M&T-Wilmington Trust merger, cost reductions were planned, and those cost reductions included certain reductions in staff. (
Shortly after the Wilmington Trust-M&T merger, in August 2011, Baptista offered Plaintiff the opportunity to move from her position as RM to Portfolio Manager. (Stip. Facts ¶ 11.) Brown testified that, at that time, it was apparent that Plaintiff was not good or effective at developing business. (App. 173, 194.) Plaintiff advised Baptista and Brown on September 27, 2011 that she did not wish to change her position. (Stip. Facts ¶ 12.) After Plaintiff rejected the position, M&T decided not to hire a new portfolio manager. (App. 190.)
In October 2011, Howard received an $18,000 raise, making his salary $135,000, which far exceeded Plaintiff's salary at the time of $102,500. (Defs.' Ex. B, Part 1, at D001895; App. 591). M&T paperwork reflects that the reason for this raise was a "Counter Offer," and Baptista testified that it was given to Howard because he had been offered a job elsewhere and the Bank desired to keep him. (Defs.' Ex. B, Part 1, at D001895; App. 94.)
Plaintiff advised Baptista and Brown on December 19 and 20, 2011, respectively, that she had been diagnosed with multiple myeloma. (Stip. Facts ¶ 14.) According to Plaintiff, Brown asked her if she was going to lose her hair. (App. 337.) Plaintiff did not request any accommodations and her medical condition did not affect her ability to do her job. (Stip. Facts ¶ 15.) She did, however, take time away from work for treatment, and Baptista did not require her to use paid time off for her medical appointments. (App. 338-39.)
On December 22, 2011, an M&T memo documented a staffing plan for 2012 that called for twelve jobs to be eliminated in the Philadelphia region, Delaware and Georgetown. (App. 150, 476-78.) Among the employees slated to be terminated was a Philadelphia RM in Baptista's group, Jack Daryanani, who was identified as underperforming. (App. 151-52, 477.) The reduction list also forecast the departure of another RM in Philadelphia, but no particular employee was selected, because it was anticipated that the reduction would be accomplished through attrition. (App. 153, 477.) Plaintiff's name was not on the December 22, 2011 reduction list. (App. 156).
In January of 2012, Daryanani was notified that his job was being eliminated as part of M&T's ongoing restructuring. (Stip. Facts ¶ 16.) Around the same time, Plaintiff advised Baptista that she was now interested in taking the portfolio management position. (
In May of 2012, Brown contemplated additional job reductions to meet the goals set forth in the December 2011 memo. (App. 156-57.) Brown then began a performance assessment of employees to determine how to meet the bank-mandated reduction goals. (App. 157.) He determined that real estate was overstaffed and therefore focused on M&T's two real estate groups, which were managed by Baptista and another manager, Bernie Shields. (App. 158-59.) Brown, Baptista, Shields, and Human Resources worked together to identify who to terminate. (App. 159-60.)
Notably, Brown signed Plaintiff's 2011 performance review that same month, i.e., May of 2012. (App. 378.) In that evaluation, Plaintiff was rated "meets expectations" in every category except two in which she received "exceeds expectations" ratings (diversity and teamwork), and she received an overall rating of "meets expectations." (App. 378-386, 105.) The manager comments in the business development portion of the assessment state that Plaintiff is not being penalized for not having generated any new business in 2011 because, due to the merger, the focus during that review period due to the merger was on retaining clients, not new business development, and Plaintiff did well in that regard. (App. 380.) Howard and Eckardt were also rated "meets expectations" both overall and specifically for business development in their 2011 performance evaluations. (App. 105-06.)
In September 2012, before any additional employee was identified for termination, Baptista reassigned responsibility for one of Plaintiff's important clients, Frank McKee, to Howard. (App. 162, 493.) Although McKee had not been unhappy with his relationship with Plaintiff, Brown testified that he had concluded, based on his observations, that Plaintiff could not adequately articulate McKee's loan needs to the senior loan committee. (App. 162.) Baptista also assigned to Howard a second prospect for whom Howard and Plaintiff had been sharing responsibility, Rouse Chamberlain, even though Plaintiff advised him prior to the reassignment that she and Howard had decided that Plaintiff would take primary responsibility for Chamberlain. (App. 123-24.)
According to Brown, it was very apparent to him in late 2012 that Plaintiff was weak at credit underwriting, i.e., getting behind the numbers and helping to structure deals. (App. 173.) In addition, Baptista testified that there was significant deterioration in Plaintiff's performance with regard to her existing portfolio in the Summer and Fall of 2012. (App. 135.) Baptista elaborated that, in April and June of 2012, Plaintiff sought 90-day extensions to address two multi-million dollar loans that were maturing, when the loans should have been addressed prior to maturity. (App. 135-136, 138.)
On November 6, 2012, Plaintiff was placed on non-working status. (Stip. Facts ¶ 18.) Her employment with M&T ended on January 4, 2013. (
As of November 5, 2012, immediately before M&T notified Plaintiff of her termination, Plaintiff's position with M&T was Senior RM, Grade 13. (Stip. Facts ¶ 19.) Howard and Eckardt had the same titles, grades, and job descriptions. (
Plaintiff submitted a Complaint to the Pennsylvania Human Relations Commission in May 2013, and cross-filed with the Equal Employment Opportunity Commission in July 2013. She received a right to sue letter and filed her Complaint in the instant action in November 2014. The Complaint contains ten counts. Count I asserts a sex discrimination claim against M&T under Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e et seq. Count II asserts a parallel sex discrimination claim under the Pennsylvania Human Relations Act ("PHRA"), 43 Pa. Stat. Ann. § 951 et seq. Count III asserts a disability discrimination claim against M&T under the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 1210 et seq., and Count IV asserts a parallel claim under the PHRA. Counts V and VI assert a claim against Baptista for aiding and abetting sex and disability discrimination under the PHRA. Counts VII and VIII assert aiding and abetting sex and disability discrimination claims against Brown pursuant to the PHRA. Count IX asserts a claim under the Equal Pay Act against all three Defendants, and Count X asserts a Title VII claim against all Defendants, also based on unequal pay.
Defendants now move for summary judgment in their favor on the claims set forth in Counts I through VIII. Plaintiff moves for summary judgment in her favor on the claim in Count IX. No party has moved with respect to Count X.
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). An issue is "genuine" if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party."
"[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact."
Defendants seek judgment in their favor on Plaintiff's claims of sex and disability discrimination under Title VII, the ADA and the PHRA in Counts I-VIII of the Complaint.
In Counts I, II, V, and VII of the Complaint, Plaintiff contends that Defendants discriminated against her on the basis of her gender in violation of Title VII and the PHRA when they terminated her employment. Title VII makes it unlawful for an employer to discharge or "otherwise discriminate against any individual with respect to his compensation, terms, conditions or privileges of employment because of such individual's race, color, religion, sex, or national origin." 42 U.S.C. § 2000e-2(a). The PHRA similarly provides that it is "an unlawful discriminatory practice . . . [f]or any employer because of . . . race, color, religious creed, . . . age, [or] sex, . . . to . . . discharge from employment such individual . . . or to otherwise discriminate against such individual . . . with respect to compensation, hire, tenure, terms, conditions or privileges of employment." 43 Pa. Stat. Ann. § 955(a). We analyze claims brought pursuant to Title VII and the PHRA pursuant to the same standard.
To bring a successful claim under Title VII, a plaintiff must prove that "an employer has `treated [a] particular person less favorably than others because of' a protected trait . . . [and] `that the defendant had a discriminatory intent or motive'. . . ."
"Under
Once the plaintiff establishes a prima facie case of discrimination, "`the burden of production shifts to the employer to articulate a legitimate, nondiscriminatory reason for its decision.'"
If the defendant meets its burden, "the burden of production [shifts] back to the plaintiff to provide evidence from which a factfinder could reasonably infer that the employer's proffered justification is merely a pretext for discrimination."
Defendants argue that they are entitled to summary judgment on Counts I, II, V, and VII both because Plaintiff cannot establish a prima facie case of gender discrimination and because she cannot show that its legitimate, nondiscriminatory reasons for her termination are pretextual.
For purposes of their Motion, Defendants concede that Plaintiff can establish that she is a member of a protected class, was qualified for her position, and suffered an adverse employment action insofar as she was discharged from employment. They argue, however, that she cannot establish that the circumstances of her job loss give rise to an inference of discrimination. Thus, in order to decide whether Plaintiff has established a prima facie case of gender discrimination, we must determine whether Plaintiff has pointed to evidence that Defendant treated her differently in connection with her termination than it did other, similarly situated male employees and/or whether the termination occurred under other "circumstances that could give rise to an inference of intentional discrimination."
Plaintiff argues that she can satisfy the fourth prong of her prima facie case because she can establish that her termination "occurred under circumstances that could give rise to an inference of intentional discrimination."
As noted above, the evidence is that, in November 2012, there were three senior relationship managers in Baptista's real estate group, two males (Howard and Eckardt) and Plaintiff, all of whom had the same title and salary grade, and yet Plaintiff was paid significantly less than both Howard and Eckardt. (Stip. Facts ¶¶ 19-20; App. 532.) Moreover, the evidence reflects that Plaintiff had been paid less than both Howard and Eckardt throughout their careers at Wilmington Trust and M&T. (
The evidence is also clear that Howard and Eckardt retained their jobs with M&T when Plaintiff was discharged in late 2012. (Stip. Facts ¶ 18; Defs.' Ex. B, Part 1, at D001884, D001895.) Plaintiff's termination letter stated that her termination was based on a "business decision to restructure the Philadelphia Commercial Real Estate department." (App. 523.) However, Brown has suggested that Plaintiff was terminated following a performance analysis and, thus, also based on her performance. (
With respect to Baptista's allegedly sexist attitude, there is evidence in the record that, on at least two occasions in or around 2005, Baptista entertained clients at strip clubs and that, on one of those occasions, Howard went to the strip club as well. (App 132-33.) The record also reflects that Baptista held an annual Thanksgiving luncheon on the Wednesday before Thanksgiving and, at least in 2011 and 2012 (and, indeed, in every year that Baptista could recall), he invited only men, including male clients, both Howard and Eckardt, and the male spouses of certain uninvited female bank employees. (App. 125-29, 587.) There is also evidence that Baptista once stated to Plaintiff: "You frustrate me like my wife frustrates me, and I'm still married to her."
Based on the evidence, viewed in the light most favorable to Plaintiff, we conclude that a reasonable jury could conclude that Plaintiff's compensation lagged behind her male counterparts, in spite of her satisfactory and comparable job performance, and that Plaintiff's direct supervisor exhibited behavior that evidenced a discriminatory attitude towards women. We therefore conclude that a reasonable jury could conclude that Plaintiff's termination occurred under circumstances that give rise to an inference of intentional sex discrimination. Plaintiff has thus satisfied her initial burden of establishing a prima facie case of discrimination that she was terminated on account of her gender.
Pursuant to
With respect to Plaintiff's performance in managing her client portfolio, Defendants observe that Plaintiff testified that one of her clients, Eli Kahn, was taken away from her in January 2012, and she was told that the client had complained to Baptista that she did not sufficiently understand his business operations (App. 364-65.) At the same time, there is no evidence that a client ever lodged a similar complaint concerning Howard or Eckardt. Finally, Defendants rely on Baptista's testimony that in the Spring and Summer of 2012, Plaintiff was not managing her clients' loans well and permitted certain loans to mature without addressing the ramifications of the loan maturing in a timely manner. (App. 135-36.)
In light of this evidence, we conclude that Defendants have satisfied their burden of production by articulating (and supporting with record evidence) legitimate and nondiscriminatory reasons for their decision to terminate Plaintiff.
Pursuant to
Plaintiff maintains that a jury could reasonably conclude, based on the record evidence, that Defendants' proffered reasons for terminating her position 2012 that a layoff was necessary and she was the lowest performing candidate — are not credible and, thus, are pretextual. With respect to Defendants' assertion that her layoff was a necessary component of M&T's cost reduction plan, she points to evidence that a number of individuals previously identified for layoffs in connection with the merger were instead transferred to other positions. (App. 152-54, 476-78.) She further notes that there is evidence to support a conclusion that there was an alternative to her own layoff, because the record reflects that M&T posted an RM position in the Philadelphia region in October of 2012, and offered the position to a Wilmington-based RM, Melissa Govette, on November 9, 2012, just three days after Plaintiff was put on non-working status. (
Plaintiff further asserts that there is a genuine issue of material fact as to whether her credit skills had actually declined between August of 2011 and January of 2012, as Brown has testified (App. 196-97), and maintains that the evidence establishes that she was no different from at least one other relationship manager in Baptista's group (albeit not a
Plaintiff further asserts that there is evidence from which a jury could conclude that Defendants' assertion that she was weak at business development in comparison to Howard and Eckardt was both incredible and pretextual. She argues that the evidence demonstrates that Baptista favored Howard and Eckardt when assigning clients and quantifying their business development successes, thereby giving the two men an unfair business development advantage over Plaintiff and ultimately assessing them more favorably using more lenient standards. She points to evidence that in 2011, Baptista chose to reassign to Eckardt an account that was being handled by another RM who was transferring to Delaware, and then, in his discretion and with Brown's approval, characterized a $18 million loan modification for that client in 2012 as new business on Eckardt's business ledger, reasoning that it was a "major modification" and thus merited unorthodox treatment. (App. 120-21, 212, 475.) She also points to evidence that Baptista used his discretion in 2012 to assign to Howard a top client prospect that both she and Howard were pursuing, and who was potentially worth $10 million, even though Howard and Plaintiff had agreed that
Upon consideration of this evidence and the remaining record, we conclude that there is a genuine issue of material fact regarding the credibility of Defendants' proffered reasons for Plaintiff's discharge, and that a reasonable fact finder, weighing the evidence, could find Defendants' reasons to be "`unworthy of credence.'"
In Counts III. IV, and VI and VIII of the Complaint, Plaintiff claims that Defendants discriminated against her on the basis of a disability in violation of the ADA and the PHRA when it terminated her employment. Title I of the ADA bars discrimination against qualified individuals "on the basis of disability in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions and privileges of employment." 42 U.S.C. § 12112(a). The PHRA provides that "[i]t shall be an unlawful discriminatory practice . . . [f]or any employer because of . . . non-job related handicap or disability. . . to refuse to hire or employ or . . . to otherwise discriminate against such individual . . . with respect to compensation, hire, tenure, terms, conditions or privileges of employment." 43 Pa. Stat. Ann. § 955(a). "The analytical framework used to evaluate a disability discrimination claim under the PHRA is effectively indistinguishable from that under the ADA, thus allowing courts to dispose of both ADA and PHRA claims on the same grounds."
"In order to make out a prima facie case of disability discrimination under the ADA, [a plaintiff] must establish that she (1) has a disability, (2) is a qualified individual, and (3) has suffered an adverse employment action because of that disability."
In response to Defendants' Motion, Plaintiff points to evidence in the record that Defendants offered to transfer her to the portfolio management position in August 2011, before she became ill, and refused her request to move to that same position in January of 2012, after her December 2011 diagnosis with multiple myeloma. (Stip. Facts ¶¶ 11, 14, 17; App. 125.) In her view, "[t]he timing and circumstances of Defendants' decision not to allow her to take refuge in the Portfolio Manager position [in January of 2012] give ample evidence that her cancer diagnosis was the final contributing factor in Defendants' determination to" terminate her employment. (Pl.'s Mem. in Opp. To Defs.' Mot. for Partial Summ. J. at 12.) Plaintiff avers in her sworn affidavit that, after her cancer diagnosis, Brown and Baptista became more critical of her. (App. 596 ¶ 60.) By way of example, on January 5, 2012, Baptista criticized her for failing to present at a December 28, 1011 meeting, when he knew that she was undergoing radiation treatment at the time. (App. 15 ¶ 34.) In addition, on January 18, 2012, in a one-on-one meeting, Baptista criticized Plaintiff's sales performance, stating that she had not been performing well for six months and warning her that the bank would terminate people who had not met their sales goals in the prior two years and, in the same meeting, he asked her how many Thursdays she would be out for chemotherapy. (App. 15 ¶ 36.) Baptista also criticized Plaintiff in 2012 for failing to be sufficiently aggressive with one of her clients. (App. 16 ¶ 38.) There is also evidence in the record that Brown added another employee to a December 22, 2012 email string between himself and Plaintiff, even though that email referenced Plaintiff's cancer treatments, and Plaintiff had not yet disclosed her illness to others at the bank. (App. 599.) Moreover, when Plaintiff confronted Baptist with his error, he simply called the mistake "unfortunate" and apologized. (
We conclude that there is sufficient record evidence to establish the third element of Plaintiff's prima facie case. Indeed, viewing the totality of the evidence in the light most favorable to Plaintiff, including Plaintiff's account of her treatment following her disclosure of her medical condition and her discharge eleven months later, we conclude that a reasonable jury could conclude that her termination in November of 2012 was due, at least in part, to discrimination based on her medical condition. We therefore conclude that Plaintiff has sufficiently set forth a prima facie case of disability discrimination.
Moreover, for the same reasons we set forth above with respect to Plaintiff's gender discrimination claim, we conclude that Defendants have articulated legitimate, non-discriminatory reasons for her discharge, but that Plaintiff has raised sufficient credibility questions regarding those reasons to give rise to genuine issues of material fact as to whether she was, instead, discharged for discriminatory reasons, including disability in addition to gender. We therefore deny Defendants' Motion insofar as it seeks judgment in Defendant's favor with respect to Plaintiff's disability discrimination claims and, thus, deny Defendant's Motion for Partial Summary Judgment in its entirety.
Plaintiff asks in her Motion for Partial Summary Judgment that we enter judgment in her favor on Count IX of her Complaint, which is her claim against all three Defendants under the Equal Pay Act and which seeks compensation for the unequal pay she received from November 21, 2011 through November 5, 2012.
"Unlike . . . Title VII claims, claims based on the Equal Pay Act, 29 U.S.C. § 206 et seq., do not follow the three-step burden-shifting framework of McDonnell Douglas; rather, they follow a two-step burden-shifting paradigm."
Plaintiff argues that she has submitted evidence that establishes that, during the time period for which she seeks to recover (November 21, 2011 to November 5, 2012), her two male counterparts, Eckardt and Howard, held her same job title, had the same job description, and reported to the same manager (Baptista), and yet her salary was $102,500, Howard's salary was $135,000, and Eckardt's salary was $123,000. (App. 532; Stip. Facts ¶ 19.) She thus maintains that she had met her prima facie case. She further argues that Defendants have offered no evidence to prove their apparent affirmative defense, which is that the salary differentials are based on factors other than gender.
Defendants do not dispute that Plaintiff can establish her prima facie case. They argue, however, that we should deny Plaintiff's Motion because, contrary to Plaintiff's contention, the record contains sufficient evidence from which a jury could reasonably conclude that Plaintiff's salary was lower than that of Eckardt and Howard based on factors other than sex. Generally, they point to testimony that "[n]ot every relationship manager is paid the same," and that an RMs' pay "depends on their background, their experience, how they negotiated when they came in, [and] their performance percentage increases they get every year based on performance." (App. 292.) With respect to the specific salary difference between Eckardt and Plaintiff, Defendants point to evidence that Eckardt (1) was hired nine months before Plaintiff (
While Plaintiff maintains that this evidence is insufficient under the standard set forth in
For the foregoing reasons, we deny both Defendants' and Plaintiff's Motions for Partial Summary Judgment. An appropriate Order follows.