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CLERKS OFFICE U.S. DIST. CO AT DANVILLE, VA IN THE UNITED STATES DISTRICT COURT PRED FOR THE WESTERN DISTRICT OF VIRGINIA DEC 14 2020 DANVILLE DIVISION JULIA C. DUDLEY, CLERK BY: s/h. MCDONALD ALLISON COATES, ) DEPUTY CLERK ) Plaintiff, ) Civil Action No. 4:19Âąev00049 ) v. ) MEMORANDUM OPINION ) SUTHARS, INC., d/b/a KARE ) PHARMACY AND COMPOUNDING, ) By: Hon. Thomas T. Cullen ) United States District Judge Defendant. ) Until she was fired in August 2018, Plaintiff Allison Coates worked as a sales representative for Defendant Suthars, Inc., d/b/a Kare Pharmacy and Compounding (âKareâ), a large compounding pharmacy and manufacturer of specialized prescription drugs, headquartered in Danville. Kareâs then-chief operating officer (âCOOâ) and part-owner, Jay Suthar (âSutharââ), unilaterally made the decisions to hire and later fire Coates, and his alleged conduct while she was employed there gives rise to this lawsuit.! After her termination, Coates filed this suit under Title VH of the Civil Rights Act of 1964, alleging a sexually hostile work environment and unlawful retaliation perpetrated by the defendantânamely Suthar. Coates alleges that beginning immediately after Suthar hired her and continuing for approximately seven months thereafter, he continually made unwanted romantic and implicitly sexual advances towards her, culminating in a marriage proposal made over dinner at a Mexican restaurant in January 2018. Coates further alleges that after she firmly ! Jay Sutharâs parents founded the business, and his father, Prakash Suthar, was its CEO at the time Coates worked there. Jay Suthar succeeded his father as CEO sometime after he fired Coates. rebuffed Sutharâs marriage proposal, he began to actively undermine her success at Kare over the next seven months. According to Coates, Sutharâs animus towards her, which she alleges was the direct result of her refusal be in a romantic relationship with him, was manifested in various ways: excluding her from key meetings, imposing unreasonable technological demands on her, failing to rectify glitches in software and other IT issues that made it difficult for her to meet these new technological demands, and openly criticizing her job performance despite achieving record-breaking sales numbers. According to Coates, as the natural conclusion to his months-long campaign to undermine her, Suthar fired her. The defendant has moved for summary judgment, arguing that Sutharâs romantic interest in and attendant conduct towards Coates over her first seven months at Kare âdoes not establish the existence of a hostile work environmentâ that is actionable under Title VII. Kare further argues that Coatesâs retaliation claim fails as a matter of law because the undisputed evidence demonstrates that Suthar terminated her because of âdocumented issues with her employment.â (Def.âs Br. in Supp. of Mot. for Summ. J. [hereinafter âDef.âs Br.â] pg. 1 [ECF No. 56].) The court has carefully reviewed the entire record and concludes that Coates has adduced sufficient facts from which a reasonable jury could find that Sutharâs conduct satisfied the elements of a hostile work environment claim, and that his decision to terminate her employment constituted unlawful retaliation. The court will therefore deny the motion for summary judgment. I. STATEMENT OF FACTS AND PROCEDURAL BACKGROUND2 In June 2017, Jay Suthar hired Allison Coates as a sales representative for Kare. Coates, who had recently graduated from Virginia Tech, applied for the position at the suggestion of her aunt, who at that time directed marketing for the pharmacy. Suthar interviewed Coates in his office in Danville and offered her a job a few days later. Other than working her way through college as a pharmacy technician, Coatesâs position at Kare was her first full-time job, and she had no prior sales or marketing experience. Immediately after her hiring, Coates spent some time at Kareâs Danville headquarters learning how the business worked before beginning her day-to-day responsibilities of visiting doctors and other health-care professionals in her assigned geographic region to market Kareâs compounded drugs. Although Suthar, as COO of the entire company, which operates in multiple states and earns annual revenues of approximately $10 million, was not Coatesâs direct supervisor, Coates allegesâand others corroborateâthat Suthar took a noticeable interest in her and, at least for a while, effectively acted as her day-to-day supervisor. Coates contends that she interacted frequently with Suthar during her first six months on the job. After she completed her training, she returned to the Danville office at least two or three times a month, and Suthar would often accompany her on sales calls to doctorsâ offices, riding with her in the car and watching her pitch to potential clients. Coates described her interactions with Suthar as follows: So he was someone who I would ask questions to, interact with, especially in the beginning, in the first six months, and try to get 2 The court summarizes the facts in the light most favorable to Coates, see Scott v. Harris, 550 U.S. 372, 380 (2007), even where there are âdisputed events that [she] may not ultimately be able to prove [at trial],â Walker v. Mod-U-Kraf Homes, LLC, 775 F.3d 202, 205 n.1 (4th Cir. 2014). direction from about how he wanted his marketing person to grow the business as well. (Allison Coates Dep. 54:4â8, Nov. 3, 2020 [ECF No. 60-1].) Coates and Suthar also regularly communicated through text messaging and daily phone calls during this period. (Coates Dep. 54:14â55:7.) Although Suthar frequently rode with Coates to visit doctorsâ offices, she recalls that he rarely provided any feedback or advice on how to make sales calls. When Coates asked for his input, Suthar replied: âThis is your job. You should know how to do it. I just like watching you.â (Coates Dep. 70:6â7.) Within a month of her hiring, Suthar began to express a romantic interest in Coates. She vividly recalls a conversation with him in her car as she drove him back to the airport, where he had left his private plane. Before getting out of the car, Suthar told Coates that he really enjoyed being with her and that he probably liked her âtoo much.â (Coates Dep. 74:18â 75:15.) According to Coates, at this point Suthar âasked [her] out romantically, to which [she] declined,â explaining that it was her desire to keep her personal and professional lives separate. (Coates Dep. 75:2â3.) Coates asserts that as she tried to explain her position, Suthar abruptly cut her off, saying, âSo you donât shit where you eat?â (Coates Dep. 75:8â9.) Apparently undaunted by her initial refusal to go out with him, Suthar asked her out to dinner frequently when she visited the Danville office. (Coates Dep. 132:22â133:7; 177:5â11.) Coates testified that Sutharâs initial advances âcreeped [her] outâ and generally made her uncomfortable. (Coates Dep. 84:9, 132:3.) In July 2017, shortly after the airport incident, Suthar sent Coates a series of text messages inviting her to accompany him on his plane to Tangier Island.3 (Def.âs Br. Ex. H [ECF No. 56-2]; Coates Dep. 135:9â138:6.) In extending this invitation, Suthar texted: âI was also thinking of dropping into Richmond on the way there or back if Iâm feeling saucy.â (Def.âs Br. Ex. H.) Coates declined the invitation. She also recalls another incident in Sutharâs office in Danville, relatively close in time to Sutharâs initial advances, when Suthar asked if an acquaintance had âhit onâ her. Coates demurred and told Suthar that she could take care of herself. (Coates Dep. 119:10â120:3.) Coates contends her refusal of Sutharâs initial advances caused him to be more critical of her job performance. Specifically, Coates recalls that after she declined to go out with him multiple times, Suthar, who until that point had mainly offered praise and âpositive feedback,â began to be more negative about her progress and wrote terse emails. (Coates Dep. 105:20â 107:15.) In Coatesâs mind, there was a direct correlation between her reaction to Sutharâs romantic interest and his assessment of her performance, and she worried that her refusal to accede to his romantic entreaties would jeopardize her fledgling career. Coates explained her concerns as follows: It felt to me . . . okay, well, I said no to himâit raised a red flag. It raised a question in my head of, okay, is this going forward? This was the moment that I kind of knew this week, okay, he has already asked me out, Iâve said no. Now is it going to be a problem? And then it did continue on and became a bigger problem with future interactions that were much worse than this. (Coates Dep. 111:8â16.) 3 Tangier Island is located in the Chesapeake Bay, near the Eastern Shore of Virginia. The first of those future interactions occurred a few months later, in October 2017, when Coates accompanied Suthar and pharmacist-in-charge Ed Breslow to an overnight professional event in Richmond. After the scheduled event ended, the three of them made plans to go out to dinner. For some reason, Breslow did not show up at the restaurant, leaving Suthar and Coates to dine alone. Both of them consumed alcohol at dinner, and Suthar apparently became intoxicated. After returning to the hotel around midnight and going to their separate rooms, Suthar sent Coates a series of text messages, including one telling her that she âshouldnât be expecting him to wear pants at breakfast the next morning.â (Def.âs Br. Ex. I [ECF No. 56-2].) At breakfast the next day, Breslow asked Coates if she was dating anyone. After a brief exchange on this topic and some joking about marrying for moneyâwhich occurred in Sutharâs presenceâSuthar became angry. According to Breslow and Coates, in the car on the way to visit a doctorâs office, Suthar âblew a gasket,â lashing out at Coates in front of Breslow and criticizing her job performance. (Ed Breslow Dep. 26:10â11, Nov. 5, 2020 [ECF No. 60- 4]; see also Coates Dep. 171:19â173:15.) Later that day, Suthar sent Coates a text apologizing for his earlier outburst, adding: Can you please stop talking about gold digging old guys and how lonely and desperate you are around me. I get that youâre not interested but youâve got to stop rubbing salt in the wound. Youâre not the only one whoâs painfully alone. (Def.âs Br. Ex. I.) Coates did not respond, but testified that this message distressed her: It thoroughly stressed me out. I didnât know what to do. And to this point I thought maybe things would get better and theyâre not, and I didnât know what to do. But I need a paycheck every month and I need to put a roof over my head and food on my table and pay my bills, and I didnât know what to do. (Coates Dep. 175:22â176:6.) Despite these incidents and the anxiety that they caused, Coates pressed on with her work. She continued to interact with Suthar several times a month, usually when she visited the office in Danville or when he came to Roanoke to work on a planned expansion of the business there. For Christmas that year, Suthar sent Coates a $500 Kate Spade gift card. (Coates Dep. 185:15â186:18.) In January 2018, Suthar made his final romantic pitch to Coates over what was supposed to be a work dinner at a Mexican restaurant in Roanoke. When they arrived, Suthar asked to be seated in a âsecludedâ area, and Coates observed that he was very nervous. (Coates Dep. 201:9â202:8.) After they were seated, Suthar told Coates that he wanted her to marry him and have his children. Coates recalled: And my mind was racing, and then he proceeded to explain to me how much he liked me, and how much that work related [sic] weâre great together, the only thing thatâs missing is me accepting his offer for a romantic relationship, is me saying yes, and about he has dated other people in the past that have been too young. And he has referenced that this person that he dated was someone from the pharmacy. He also referenced during this meeting about a previous marketer that worked there and about how they had a great relationship work-wise too, and they would work so closely together that sometimes she would call her husbandâs name Jayâs name accidentally and back and forth, and it was like he was her work husband, as they would call it, and that he would haveâI remember him saying specifically he would have married the shit out of her if she werenât married and accepted. And I remember him talking about building an empire and how we worked so great together professionally, the only thing thatâs missing is a romantic relationship too, and that we could build an empire together, like have children together. Heâs done messing around, heâs done dating people that were younger, and that if Iâm worried that itâs aâif itâs a work thing that Iâm worried about, he has dated people that heâs worked with before, that he was their boss and as the owner that it wasnât a problem. (Coates Dep. 202:9â203:16.) Coates claims that she grew increasingly upset as Suthar talked, and she reminded him that she had a boyfriend. According to Coates, Suthar dismissed this, saying that he did not care and that he âwanted to continue to fight forâ her. (Coates Dep. 203:19â20.) At this point in the conversation, Coates tried to explain how difficult his romantic interest was making her personal and professional lives: I expressed to him how much all of this upsets me and how I donât knowâIâm not functioning properly at this point and that this has stressed me out for a while, and this isâwhat he is saying in this moment scared me and gave me so much anxiety as well as everything that that had happened up to this point and thatâ I expressed to him that I donât know if we can continue working together because clearly it is affecting me, it is affecting my work, it is affecting my life, itâs affecting me 24/7. I told him how stressed out I was by it. I told him that I would have anxiety, panic attacks, that this was not okay. (Coates Dep. 209:1â14.) Suthar, obviously dejected, simply responded: â[O]kay, well, good luck with your boyfriend.â (Coates Dep. 209:16â19.) When Coates drove Suthar back to the airport after dinner, a ride that she described as â[b]eyond awkward and strange,â she suggested that she look for another job, adding, âI donât know if I can continue this job.â (Coates Dep. 210:4â13.) According to Coates, Suthar begged her to stay and not leave the company.4 (Coates Dep. 210:11â13.) 4 Suthar has provided a starkly different account of his interactions with Coates. In sum, Suthar claims that Coates was the aggressor, that she repeatedly expressed a romantic interest in him, and that she regularly initiated inappropriate physical contactâtouching his shoulders and arms, rubbing her foot against his legâduring their meetings. (See Jay Suthar Dep. 60:2â63:9, Nov. 4, 2020 [ECF No. 60-2].) According to Suthar, he tried to rebuff those advances. For purposes of summary judgment, however, the court must accept Coatesâs version of their interactions as true and cannot make any credibility determinations. Ultimately, the jury will decide who is more believable on this issue. Following this January 2018 dinner and her final rejection of his romantic advances, Coates alleges that Suthar began to lay the foundation for terminating her employment. She contends he excluded her from meetings about the Roanoke business expansion, even though it was within her marketing territory. Coates also alleges that Suthar started demanding, for the first time, that she report her sales calls and other information into a new software system by 9:00 a.m. each morning. Coates was routinely late in filing these reports and blames the software, which she and others described as unreliable and difficult to navigate. (Coates Dep. 216:3â226:10; Jason Bell Dep. 12:20â13:14, Nov. 6, 2020 [ECF No. 60-5].) Coates asked for IT assistance and ways to work around the technological issues that she faced, but her requests generally fell on deaf ears. Around the same time, Suthar began complaining to Breslow about Coatesâs performance and her sales numbers in Roanoke. This struck Breslow as odd. He testified that he thought Coates âwas doing a good job as far as bringing in business and keeping the business.â (Breslow Dep. 13:17â19.) In fact, according to Coates and confirmed by Breslow, Coates helped achieve record sales numbers in her territory through the spring and into the summer of 2018.5 (Breslow Dep. 18:22â20:3. See generally Decl. of Allison Coates ¶¶ 6â19; 26â29, Nov. 25, 2020 [ECF No. 60-13].) Shortly after the January dinner, Coates informed Breslow, one of her supervisors, about Sutharâs conduct, including the marriage and âempireâ proposition, and her refusal. 5 Suthar acknowledges the increase, but he contends that Coates simply benefited from sales of a blockbuster nutraceutical vitamin, developed by one of the companyâs pharmacists, to a physician in Blacksburg. Breslow, the pharmacist-in-charge at the time, testified that Coates deserved some credit for this increase because the prescribing doctor was in her territory and she assisted in convincing the doctor to prescribe the vitamin. (Breslow Dep. 18:8â19:2.) With this background, Breslow testified that he began to understand why Suthar had suddenly turned on her: But, you know, he never had anything bad to say about Allison, and then all of a sudden, he didnât have anything good to say about Allison, yet sales were up and number of doctors. . . . I started warning Allison that she was going to get fired, and she should start looking for another job. Then we hired Jason [Bell] to be the director of sales and marketing in June [2018]. So he started first of July, which I thought was good, because then Allison would report to Jason and not Jay, and have a little bit of a buffer there and, hopefully, we would all get a fresh start. That didnât seem to materialize. (Breslow Dep. 15:9â17:5.) As noted by Breslow, in June, Suthar hired Jason Bell to fill the newly created position of director of marketing. In his new role, Bell would supervise Coates. Immediately after Bell was hired, Suthar told him that he was thinking of terminating Coates. Bell protested and asked for an opportunity to meet her first and make his own determination. Bell recalls that he told Suthar: âNo, donât let Allison go. Like I said, Iâm brand new, let me work with her. Give me some time to work with her.â (Bell Dep. 10:9â12.) Although Bell suspected that Coatesâs delays in submitting the early-morning summaries might be attributable to getting a late start on the workday, he did not have any evidence to confirm that. (Bell Dep. 24:9â21.) But Suthar did not give Bell time to work with Coates and assess her performance for himself. Several weeks later, Suthar fired Coates by email while Bell was out of town at a golf tournament. After firing Coates, Suthar instructed Bell to compile a record of her sales calls and other performance data, a task that Bell recalls took him nearly two days to complete. (Bell Dep. 21:17â22.) Bell later learned that Suthar had requested this information after learning that a lawyer was going to investigate allegations of sexual harassment against Suthar. Bell says that, up until that point, he had been unaware of Sutharâs alleged romantic advances towards Coates, but he âput two and two together that Iâm getting stuff together because obviously sheâs pissed off and there might be some type of lawsuit or wrongful termination.â (Bell Dep. 27:4â8.) After Suthar fired her, Coates filed a charge of discrimination with the Equal Employment Opportunity Commissioner and received her âNotice of Right to Sueâ on September 20, 2019. She filed suit in this court on December 10 of that year. (ECF No. 1.) Kare moved to dismiss that complaint, and the court dismissed her complaint with leave to amend.6 (ECF No. 25.) She filed an amended complaint on July 14, 2020 (ECF No. 27), and a second amended complaint on July 29 (ECF No. 33). Following discovery, Kare moved for summary judgment on November 20. (ECF No. 55.) The motion has been fully briefed by the parties, and the court heard oral argument on December 11, making the motion ripe for decision. II. SUMMARY JUDGMENT STANDARD OF REVIEW Under Rule 56(a), the court must âgrant summary judgment 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.â Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986); Glynn v. EDO Corp., 710 F.3d 209, 213 (4th Cir. 2013). When making this determination, the court should consider âthe pleadings, depositions, answers to interrogatories, and admissions on file, together with . . . [any] affidavitsâ filed by the parties. Celotex, 477 U.S. at 322. Whether a 6 The Hon. Jackson L. Kiser initially presided over this case and granted the defendantâs motion to dismiss with leave to amend. The undersigned took over in the fall of 2020, after the filing of the amended complaint but prior to the filing of the instant motion for summary judgment. fact is material depends on the relevant substantive law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). âOnly disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment. Factual disputes that are irrelevant or unnecessary will not be counted.â Id. (citation omitted). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. Celotex, 477 U.S. at 323. If that burden has been met, the nonmoving party must then come forward and establish the specific material facts in dispute to survive summary judgment. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586â87 (1986). In determining whether a genuine issue of material fact exists, the court views the facts and draws all reasonable inferences in the light most favorable to the nonmoving party. Glynn, 710 F.3d at 213 (citing Bonds v. Leavitt, 629 F.3d 369, 380 (4th Cir. 2011)). Indeed, â[i]t is an âaxiom that in ruling on a motion for summary judgment, the evidence of the nonmovant is to be believed, and all justifiable inferences are to be drawn in his favor.ââ McAirlaids, Inc. v. Kimberly-Clark Corp., 756 F.3d 307, 310 (4th Cir. 2014) (internal alteration omitted) (quoting Tolan v. Cotton, 572 U.S. 650, 651 (2014) (per curiam)). Moreover, â[c]redibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge.â Anderson, 477 U.S. at 255. The nonmoving party must, however, âset forth specific facts that go beyond the âmere existence of a scintilla of evidence.ââ Glynn, 710 F.3d at 213 (quoting Anderson, 477 U.S. at 252). The nonmoving party must show that âthere is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party.â Anderson, 477 U.S. at 249. âIn other words, to grant summary judgment the [c]ourt must determine that no reasonable jury could find for the nonmoving party on the evidence before it.â Perini Corp. v. Perini Constr., Inc., 915 F.2d 121, 124 (4th Cir. 1990) (citing Anderson, 477 U.S. at 248). Even when facts are not in dispute, the court cannot grant summary judgment unless there is âno genuine issue as to the inferences to be drawn fromâ those facts. World-Wide Rights Ltd. Pâship v. Combe, Inc., 955 F.2d 242, 244 (4th Cir. 1992). III. ANALYSIS AND DISCUSSION Kare makes three principal arguments in support of its motion for summary judgment: (1) that Coates relies on inadmissible evidence to refute its statement of undisputed material facts; (2) that Sutharâs conduct towards Coates was not severe or pervasive enough to create an objectively hostile work environment under Title VII; and (3) that Coates cannot establish a prima facie case of retaliation because she cannot show a causal connection between any protected activity and her termination. A. âInadmissibleâ Evidence As a threshold matter, Kare contends that Coates relies on inadmissible hearsay evidence âto manufacture a factual dispute.â This argument is belied by the record. In assessing the evidence presented by the parties on a motion for summary judgment, a court may only consider evidence that would be admissible at trial. See Md. Highways Contractors Assân, Inc., v. State of Md., 933 F.2d 1246, 1251 (4th Cir. 1991); Gregory v. Bruce, [needs docket number], 2018 U.S. Dist. LEXIS 39387, at *25 (M.D.N.C. Mar. 9, 2018); Powell v. Town of Sharpsburg, [needs docket number], 2009 U.S. Dist. LEXIS 25356, at *15 (E.D.N.C. Mar. 27, 2009). The court, therefore, must scrutinize the recordâincluding deposition testimony and affidavitsâto ensure that proffered evidence satisfies the requirements for admissibility under the Federal Rules of Evidence. And as a rule, hearsay statements are not admissibleâeven for purposes of summary judgment. See Md. Highways Contractors Assân, Inc., 933 F.2d at 1251â52. The record evidence in the case mainly consists of the depositions of the parties and other Kare employees, as well as email and text-message communications between the parties. Throughout her lengthy deposition, Coates recalled, in vivid detail, her conversations with Suthar, including specific examples of his romantic advances over a six-month period. Coatesâs account of Sutharâs various statements to her, which provide the core factual predicate for her claims against him, is not hearsay and is admissible. See Fed. R. Evid. 801(d)(2) (providing that a partyâs out-of-court statement, when offered by the opposing party, is not hearsay); Fed. R. Civ. P. 602 (establishing that a witness may testify to matters within her personal knowledge). The same is true with respect to Sutharâs statements to Breslow, Bell, and other Kare employees; Coates can point to Sutharâs out-of-court statements to other employees in arguing against summary judgment. See Fed. R. Evid. 801(d)(2). And it is not disputed that Sutharâs written communications about matters in disputeâspecifically his emails and text messagesâ are admissible. They, too, constitute admissions by a party opponent, and neither party has challenged their authenticity. See Fed. R. Evid. 901(a) (âTo satisfy the requirement of authenticating or identifying an item of evidence, the proponent must produce evidence sufficient to support a finding that the item is what the proponent claims it is.â). In sum, the overwhelming weight of the evidence on which Coates relies to argue against the defendantâs motion for summary judgment is not hearsay. The defendant, however, raises a valid concern about certain statements cited by Coates that may constitute inadmissible hearsay. Specifically, the defendant points to references in the plaintiffâs opposition brief about a Kare employee stating that Suthar had hired Coates because he had the âhotsâ for her, and a similar statement by another employee about Sutharâs interest in Coates. Because the plaintiff apparently cites these statements to prove the truth of the matter assertedâessentially that Suthar exhibited a romantic interest in Coates from very early in her tenureâthey are ostensibly inadmissible hearsay, and the court will not consider them for purposes of evaluating the motion for summary judgment.7 Likely recognizing that the exclusion of these employeesâ comments does not alter, in a material way, the courtâs consideration of the remaining evidence in the record, the defendant attacks the plaintiffâs extensive reliance âon her own testimony and an affidavit that she attached to the Opposition.â (Def.âs Reply Br. in Supp. of Mot. for Summ. J. [hereinafter âDef.âs Replyâ] pg. 4 [ECF No. 67].) In so doing, the defendant cites the Fourth Circuitâs decision in Evans v. Technologies Applications & Service Co., arguing that this court should âgenerally consider self-serving opinions without objective corroboration not significantly probative.â 80 F.3d 954, 962 (4th Cir. 1996). This argument misreads Evans, which does not stand for the proposition suggested by the defendantâthat a district court, in reviewing a motion for summary judgment, should not give weight to the plaintiffâs deposition testimony about factual matters. To the contrary, Evans stands for the limited but important principle that, in weighing a partyâs affidavit on summary judgment, a court should be skeptical of âunsupported assertions,â âself-serving opinions,â and statements not based on personal 7 The plaintiff could argue, however, that one or more of these statements might fall under the exclusion for âstatements made by a partyâs agent or employee on a matter within the scope of that relationship and while it existed.â Fed. R. Evid. 801(d)(2)(D). In any event, the court will not consider these statements for purposes of summary judgment. knowledge. Id. (emphasis added). As summarized above and discussed in more detail below, the plaintiffâs deposition testimony does not implicate these concerns. At bottom, Coatesâs detailed factual account of her interactions with Suthar is based on her personal knowledge, and key aspects are corroborated by witnesses and other admissible evidence. Although the defendant disputes the veracity of Coatesâs account and her arguments about its legal significance, the court must consider her testimony for purposes of summary judgment. Fed. R. Civ. P. 56(c)(1)(A) (noting that deposition testimony is to be considered at summary judgment); McAirlaids, 756 F.3d at 310 (âIt is an axiom that in ruling on a motion for summary judgment, the evidence of the nonmovant is to be believed, and all justifiable inferences are to be drawn in [her] favor.â (cleaned up)); cf. Summerlin v. Edgar, 809 F.2d 1034, 1039 (4th Cir. 1987) (finding error in the district courtâs conclusion that deposition testimony could not be used to dispute an affidavit). B. Hostile Work Environment Claim The defendant next argues that Coatesâs hostile work environment claim fails âeven when all the evidence and inferences are construed in her favor[,]â because the evidence does not meet the âdemanding standard necessary to establish a hostile work environment.â (Def.âs Reply pg. 7.) The court disagrees. As an initial matter, it is necessary for the court to determine the precise nature of the plaintiffâs Title VII claim. The defendant correctly points out that, in opposing their motion for summary judgment, the plaintiff asserts that the Supreme Court has abrogated the distinction between quid pro quo sexual harassment and claims based on hostile work environment in cases involving unlawful action by a supervisor, and that, in such cases, a plaintiff does not have to prove the elements of these traditional claims. Plaintiff is incorrect on this key point. It is well established that the Supreme Court and the Fourth Circuit continue to recognize and distinguish between quid pro quo harassment and hostile work environment claims, and that plaintiffs, even those alleging actionable misconduct by their supervisors, must satisfy the long-standing requirements of these separate claims. See Burlington Indus., Inc. v. Ellerth, 523 U.S. 742, 753â54 (1998) (noting that, once discrimination is shown via the quid pro quo or hostile work environment elements, a separate inquiry, controlled by the courtâs decision, will determine whether an employer is vicariously liable for the discrimination); Moser v. MCC Outdoor, LLC, 256 F. Appâx 634, 642 (4th Cir. 2007) (quoting Ellerth to set forth the elements of a quid pro quo claim, implying the validity of the distinction post-Ellerth); Okoli v. City of Baltimore, 648 F.3d 216, 220 (4th Cir. 2011) (setting forth the elements of a hostile work environment claim over 12 years after Ellerth was decided, implying that hostile work environment claims, and their requisite elements, continue to exist post-Ellerth). The defendant also rightfully suggests that, in making these arguments in her opposition brief, Coates appears to raise a quid pro quo claim for the first time. The defendantâs additional concerns are well-taken. The plaintiffâs amended complaint undoubtedly raises a hostile work environment claim, not a quid pro quo claim,8 and the court will apply the appropriate framework in analyzing it. 8 At oral argument, Plaintiff asserted that she raised two claims in count one: sexual harassment and an overarching âsex discriminationâ claim. The court has reviewed Plaintiffâs second Amended Complaint (ECF No. 33) and concludes that only a hostile work environment claim has been raised. See, e.g., Henderson v. McClain, No. 7:19cv00685, 2020 WL 6136850, at *5 (W.D. Va. Oct. 19, 2020) (declining to read a complaint to assert a claim when âthe complaint cannot be read to state a claim to relief under that theoryâ). As a general rule, plaintiffs should allege and describe separate causes of action in separate counts. See Fed. R. Civ. P. 8(a)(2); Fed. R. Civ. P. 10(b) (directing parties to set out each claim âin a separate countâ). Under Title VII, employers are prohibited from discriminating against individuals â[w]ith respect to . . . terms, conditions, or privileges of employment, because of such individualâs . . . sex.â 42 U.S.C. § 2000e-2. âSince an employeeâs work environment is a term and condition of employment, Title VII creates a hostile working environment cause of action.â Walker v. Mod-U-Kraf Home, LLC, 775 F.3d 202, 207 (4th Cir. 2014). A plaintiff alleging a hostile work environment must prove four elements: (1) that there was unwelcome conduct; (2) that the unwelcome conduct was based on her sex; (3) that the unwelcome conduct was sufficiently severe or pervasive to alter the plaintiffâs conditions of employment and to create an abusive working environment; and (4) that the conduct is imputable to the employer. Id.; Okoli, 648 F.3d at 220 (quoting Mosby-Grant v. City of Hagerstown, 630 F.3d 326, 334 (4th Cir. 2010)). Kare argues it is entitled to summary judgment on this claim because Sutharâs conduct, viewed in the light most favorable to Coates, does not satisfy the third element of a hostile work environment claimâthat the conduct was severe or pervasive.9 This third prong has both subjective and objective components, and it requires a plaintiff to establish that âshe perceivedâand that a reasonable person would so perceiveâthe environment to be abusive and hostile.â Walker, 775 F.3d at 208. In applying this test, the court must consider the totality of the circumstances faced by the plaintiff, including: âthe frequency of the discriminatory 9 It is undisputed that Coates has satisfied the other three elements of this claim. There is ample evidence to support Coatesâs contention that Sutharâs persistent romantic advances were âunwelcome,â and Suthar undoubtedly directed his attention towards Coates âbecause of her sex.â Hoyle v. Freightliner, LLC, 650 F.3d 321, 331 (4th Cir. 2011) (âAn employee is harassed or otherwise discriminated against because of his or her gender if, but for the employeeâs gender, he or she would not have been the victim of discrimination.â). Finally, Sutharâs conduct is imputable to the defendant because he was the COO and part owner, rather than a low-level employee. See, e.g., Andonissamy v. Hewlett-Packard Co., 547 F.3d 841, 848 (7th Cir. 2008) (âUnder Title VII, an employer can be vicariously liable for a hostile work environment created by a supervisor[.]â). conduct; its severity; whether it is physically threatening or humiliating, or a mere offensive utterance; and whether it unreasonably interferes with an employeeâs work performance.â Harris v. Forklift Sys., Inc., 510 U.S. 17, 23 (1993). This test is intended to âfilter out complaints attacking the ordinary tribulations of the workplace, such as the sporadic use of abusive language, gender-related jokes, and occasional teasing.â Faragher v. City of Boca Raton, 524 U.S. 775, 788 (1998) (cleaned up). But this test is also intended to protect âworking women from the kind of male attentions that can make the workplace hellish for women.â Baskerville v. Culligan Intâl Co., 50 F.3d 428, 430 (7th Cir. 1995). On the one hand, Sutharâs conduct towards Coates is distinguishable from that of defendants in many hostile work environment cases. It is undisputed that he never made unwanted physical advances towards Coates; he did not use sexually explicit language with her; and he did not display or transmit sexually provocative or offensive images. But on the other hand, the nature of Sutharâs behavior towards Coates was more than âordinary socializing in the workplaceâsuch as . . . intersexual flirtation.â Oncale v. Sundower Offshore Servs, Inc., 523 U.S. 75, 81 (1998). As described in detail above, Coatesâs testimony establishes that, from the time Suthar hired her to work at his company, Suthar embarked on an unrelenting and grinding campaign to win Coatesâs affection. When viewed in isolation, none of his acts constituted patently offensive or abusive conduct. But, when considered collectively, Sutharâs comments and conduct, including making remarks about watching her during sales calls and liking her too much; constantly asking her out to dinner; inviting her to accompany him on a private plane with a stopover in Richmond if he was feeling âsaucyâ; sending a sexually suggestive text message at 1:30 in the morning regarding him not wearing pants; berating and humiliating her in front of her direct supervisor out of romantic jealously; and propositioning her to marry him, have his children, and âbuild an empireâ during a work dinner, lead to the valid conclusion that a reasonable person in Coatesâs shoes would perceive that working environment to be abusive and hostile. See Okoli, 648 F.3d at 222 (âOverall, Okoli presents a strong claim for hostile work environment, when objectively viewing the severity of the harassment from the perspective of a reasonable person in the plaintiffâs position.â (cleaned up)); see also Walker, 775 F.3d at 208 (âThe totality of the record before us creates too close a question as to whether [the defendantâs] behavior created an objectively hostile or abusive work environment to be decided on summary judgment.â). While this case lacks some of the indicia of traditional hostile work environment claims, it presents a unique and, in the courtâs view, aggravating elementâa substantial disparity in power. As previously stated, when considering whether a work environment is hostile, â[a]ll the circumstances are examined . . . .â Jennings v. Univ. of N.C., 482 F.3d 686, 696 (4th Cir. 2007) (en banc); see also Oncale, 523 U.S. at 81 (â[T]he objective severity of harassment should be judged from the perspective of a reasonable person in the plaintiffâs position, considering âall the circumstances.ââ (quoting Harris v. Forklift Sys., Inc., 510 U.S. 17, 23 (1993)). This court is keenly aware that â[t]he specific circumstances of the working environment and the relationship between the harassing party and the harassed . . . bear on whether that line [into actionable conduct] is crossed.â Alamo v. Bliss, 864 F.3d 541, 550 (7th Cir. 2017). Moreover, â[w]hen evaluating the context in which harassment takes place, [the Fourth Circuit has] often focused on the âdisparity in power between the harasser and the victim.ââ E.E.O.C. v. Fairbrook Med. Clinic, P.A., 609 F.3d 320, 329 (4th Cir. 2010) (quoting Ziskie v. Mineta, 547 F.3d 220, 227 (4th Cir. 2008)). In Jennings v. University of North Carolina, a former UNC soccer player sued the university, claiming that Anson Dorrance, the legendary womenâs soccer coach, created a hostile or abusive environment in violation of Title IX by, inter alia, engaging in sexually explicit conversations with his players and asking inappropriate, probing questions of them, both in front of other team members and in private. 482 F.3d at 691. In reversing summary judgment and remanding the case to the district court, the Fourth Circuit noted: Dorrance was not just any college coach. He was and still is the most successful womenâs soccer coach in U.S. college history, and he has coached the national team. Dorrance thus had tremendous power and influence over a playerâs opportunity for achievement in the soccer world, both at UNC and beyond. . . . The disparity in power between Dorrance and his players trapped players into responding to his [disrespectful and degrading] questions and enduring the environment. Id. at 696 (emphasis added). Likewise, in E.E.O.C. v. R&R Ventures, the Fourth Circuit concluded that âthe severity of Wheelerâs [the harasserâs] sexual misconduct was compounded by the context in which it took place. Throughout his campaign of torment, Wheeler was an adult male in a supervisory capacity over young women barely half his age.â 244 F.3d 334, 340 (4th Cir. 2001). And in E.E.O.C. v. Fairbrook Medical Clinic, the Fourth Circuit held that âa jury could . . . conclude that [the] severity of Kesselâs [the harasserâs] conduct was exacerbated by the fact that he was not only Waechterâs [the victimâs] immediate supervisor but also the sole owner of Fairbrook [the medical clinic where Waechter worked]. Unlike one of Waechterâs fellow employees, Kessel had significant authority over her on a day-to-day basis and the ability to influence the rest of her career.â 609 F.3d at 329. Like Kessel in Fairbrook Medical Clinic, Suthar was not a mere coworker, and he was much more than Coatesâs supervisor. He was the COO and part owner of the company. He had unlimited power and discretion over the terms and conditions of his employeesâ jobsâ plenary power that he consistently wielded to Coatesâs detriment. In sum, the evidence, viewed in the light most favorable to Coates, suggests that Suthar made the unilateral decision to hire Coates right out of college; he thereafter doggedly pursued his romantic interest in ways that undermined her professional and personal wellbeing; and, when his efforts finally proved futile, he terminated her employment. This disparity in power was not insignificant, and it tips the analysis in favor of the plaintiff for purposes of summary judgment. See Okoli, 648 F.3d at 221 (overturning the district courtâs granting of summary judgment to the defendant on a hostile work environment claim after considering the disparity of power between the defendant, a high-ranking city official, and the plaintiff, âa new secretary whose job required her to have a lot of one-on-one contact with her boss,â in conjunction with the alleged severe and pervasive conduct). C. Retaliation Claim In support of its motion for summary judgment on Coatesâs retaliation claim, the defendant essentially makes two arguments: (1) that Coates cannot establish a prima facie case of retaliation because she cannot show a causal connection between any protected activity and her termination; and (2) that even if Coates could make out a prima facie case, it is still entitled to summary judgment because it terminated her for legitimate, nonretaliatory reasons. Neither argument is persuasive. Plaintiffs claiming retaliation under Title VII must satisfy the burden-shifting structure set forth by the Supreme Court in McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973). To establish a prima facie case, Coates must show that: (1) she engaged in a protected activity; (2) the defendant acted adversely against her; and (3) the protected activity was the but-for cause of her termination, rather than just a motivating factor. Walker, 775 F.3d at 210; Okoli, 648 F.3d at 223. Once a plaintiff has made a prima facie showing, the burden shifts to the defendant to provide a legitimate, nonretaliatory explanation for its decision to terminate her. If the defendant makes that showing, the burden shifts back to Coates to show that Kareâs proffered reason was pretext for retaliation. Id. The burden on the defendant is only a burden of production; the burden of persuasion always remains with the plaintiff. Tx. Depât of Cmty. Affs. v. Burdine, 450 U.S. 248, 253 (1981). Coates has made the requisite prima facie showing of retaliation. In its brief and at oral argument, Kare conceded that Coates had engaged in a protected activity.10 The overwhelming 10 The court therefore assumes, for purposes of summary judgment, that Coates engaged in a protected activity at some point, but notes that pinpointing exactly when she did is not so simple. The question of whether merely declining a supervisorâs romantic advances constitutes a protected activity is unsettled. Compare Ogden v. Wax Works, Inc., 214 F.3d 999, 1007 (8th Cir. 2000) (holding that an employee âengage[s] in the most basic form of protected activity when she [tells] her supervisor . . . to stop his offensive conduct), and E.E.O.C. v. New Breed Logistics, 783 F.3d 1057, 1067 (6th Cir. 2015) (â[A] demand that a supervisor cease his/her harassing conduct constitutes protected activity covered by Title VII.â), with LeMaire v. Louisiana, 480 F.3d 383, 389 (5th Cir. 2007) (observing that âthe only arguable protected activityâ was the plaintiffâs âactual rejection of [the harassing supervisorâs] advancesâ and that the plaintiff had provided âno authority for the proposition that rejecting sexual advances constitutes a protected activity for the purposes of a retaliation claim under Title VIIâ). âThe Fourth Circuit has not addressed the question of âwhether a person who rejects a supervisorâs sexual advances has engaged in a protected activity.ââ Owen v. Cnty. of Fairfax, 358 F. Supp. 3d 545, 550 (W.D. Va. 2019) (quoting Tate v. Exec. Mgmt. Servs., Inc., 546 F.3d 528, 532 (7th Cir. 2008)). Just last year, the Honorable Glen E. Conrad of this court sided with the Sixth and Eighth Circuits, holding âthat an employee engages in protected activity when the employee asks a supervisor to stop his sexually harassing behavior.â Id. at 551. The court is not prepared to say that declining an invitation to go on a date with a supervisor is the same as âask[ing] a supervisor to stop his sexually harassing behavior,â id., because declining an invitation is not the same as telling someone to stop asking and because simply asking a subordinate on a dateâwhile unwiseâis neither unlawful under Title VII nor per se âharassing.â Nevertheless, the court finds that Coatesâs January 2018 conversation with Suthar, where she expressed to Suthar that his repeated entreaties were wreaking havoc in her personal and evidence indicates that, after Coates engaged in protected activity, the defendantâby and through Sutharâtook adverse action against her, and that Coatesâs refusal to submit to Sutharâs romantic desires was the but-for cause of his ultimate decision to fire her. Coates has provided compelling evidence of the dramatic change in Sutharâs demeanor towards her following the January dinner, Sutharâs efforts to put new and burdensome demands on her, and the general animus he exhibited towards her and in conversations with others about her, all of which culminated in his unilateral decision to fire her seven months later. But the strongest evidence on this point is provided by Breslow, who vividly recalled Sutharâwho up until that time had nothing but positive things to say about Coatesâsuddenly having only negative things to say about her. (Breslow Dep. 15:19â17:5.) Based on this marked change in Sutharâs demeanor, Breslow presciently concluded that the writing was on the wall, and he warned Coates that she would be fired. (Breslow Dep. 16:21â23.) Defendant argues that the seven-month delay between the January dinner and Coatesâs terminationâa lack of temporal proximityâundermines Coatesâs claim of a direct correlation. See, e.g., King v. Pulaski Cnty. Sch. Bd., 195 F. Supp. 3d 873, 885 (W.D. Va. 2016). While it is true that Suthar did not actually terminate Coatesâs employment until August, it is more than plausible that he began to lay the groundwork for that adverse action almost immediately after she rebuffed him at the January dinner. Simply put, given the evidence of Coatesâs generally positive track record and development until that time, as established by Coates and Breslow, professional lives, would constitute asking Suthar to stop and thus qualify as a complaint about what she reasonably perceived to be a hostile work environment. It would therefore be an act âoppos[ing] [a] practice made an unlawful employment practice byâ Title VII, 42 U.S.C. § 2000e-3(a). See also Peters v. Jenney, 327 F.3d 307, 321 (4th Cir. 2003) (noting that one engages in a protected, oppositional activity when she complains about a practice she subjectively believes is unlawful, so long as that belief was objectively reasonable). Suthar had a lot of work to do before he could fire her. Though a great deal of time elapsed between Coatesâs protected activity and her termination, Coatesâs evidence suggests it was only a matter of days before Suthar began a campaign to undermine, and ultimately fire, her. Kare further argues that, even if Coates can establish a prima facie case, the defendant has established she was terminated for legitimate, nonretaliatory reasons. In support of this claim, it points to a 30% decline in sales during the month of December 2017, Coatesâs difficulties utilizing certain software to log her call notes, and Sutharâs anger about having to pay her significant commissions for huge increases in her sales numbers during the late spring and early summer of 2018. Indeed, Bell lends some support to the latter claim, testifying that, in his opinion, the commission issue contributed to Sutharâs decision to fire her. (Bell Dep. 60:7â13.) But even assuming that Suthar was motivated, in part, by not wanting to pay Coates larger commissions, Coates has presented more than sufficient evidence that her resistance to Sutharâs final romantic proposal was the but-for cause of her termination. As the Fourth Circuit noted in Okoli, â[a]ny dispute about [the defendantâs] alternative, legitimate basis for firing her returns to the question of mixed-motives and pretext. For the purposes of summary judgment, [the plaintiff] has eliminated legitimate reasons for her firing, so it is more likely than not the employer, who we generally assume acts with some reason, based his decision on an impermissible consideration.â 648 F.3d at 225 (citing Funco Constr. Corp. v. Waters, 438 U.S. 567, 577 (1978) (internal quotation marks omitted)). Such is true here, and Coates is entitled to have a jury sort it out. IV. CONCLUSION For the reasons stated, the court will deny the defendantâs motion for summary judgment. The clerk is directed to forward a copy of this Memorandum Opinion and accompanying Order to all counsel of record. ENTERED this 14th day of December, 2020. __/s/ Thomas T. Cullen______________ HON. THOMAS T. CULLEN UNITED STATES DISTRICT JUDGE
Case Information
- Court
- W.D. Va.
- Decision Date
- December 14, 2020
- Status
- Precedential