Bella Acharya v. Microsoft Corporation

Court of Appeals of Washington·Decided June 22, 2015·No. 71420-1·Unpublished

Opinion

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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

BELLA ACHARYA, No. 71420-1-1

Respondent,

DIVISION ONE

UNPUBLISHED OPINION

MICROSOFT CORPORATION, a Washington corporation, FILED: June 22, 2015

Appellant.

Appelwick, J. — Microsoft seeks dismissal of Acharya's WLAD suit, based on a forum selection clause in the employment contract between Acharya and a Microsoft subsidiary in London, or based on the doctrine of forum non conveniens. Acharya alleges violations by Microsoft occurring in Washington. The trial court did not err in denying the motion to dismiss. We affirm.

FACTS

Bella Acharya was a longtime employee of Microsoft Corporation, working at the company in various positions for roughly 16 years. In 2008, Acharya served as a business development manager in Microsoft's Advertising Business Group (ABG) in Redmond. Acharya worked with her supervisor to create a new position for her on an international team. According to Acharya, the position was initially conceived as Redmond-based and not associated with any foreign subsidiary. But, for "practical business reasons," it was decided that Acharya would relocate to London and manage the team from there.

As a term of her new position, Acharya resigned from her job at Microsoft and joined Microsoft Global Resources GmbH (MGR), a foreign subsidiary of Microsoft. According to Microsoft, this is a "common business practice among multinational employers and is the optimum way to structure international employment for taxation and administration purposes."

On July 21, 2008, a Human Resources (HR) employee from Microsoft e-mailed Acharya her MGR employment contract. The e-mail said, "It is a pleasure to confirm the terms and conditions of your MGR (Microsoft Global Resources) international assignment offer of ABG International Sales Manager based in London." The contract provided that the "terms of this agreement shall be construed in accordance with and governed in all respects by the laws of Switzerland (without giving effect to principles of conflicts of laws)." It further stated that "[a]ny dispute, controversy or claim arising under, out of or in relation to this Employment Agreement, its valid conclusion, binding effects, interpretation, including tort claims, shall be referred and finally determined by the ordinary courts at the domicile of MGR in Switzerland." Acharya signed the contract on August 26, 2008.

Accompanying the contract was an international offer letter of assignment, which stated, "Throughout the term of this assignment, you will remain an employee of MGR." The letter provided that Acharya's assignment was anticipated to be for two years. It further stated that at the end of her assignment there was "no guarantee that [Acharya] will obtain another assignment with MGR or a new position with another Microsoft affiliate."

For the first 20 months of Acharya's assignment in London, she reported to Shawn McMichael, the same Microsoft manager to whom she previously reported in Redmond. In July 2010, Acharya began reporting to a Belgium-based supervisor, Oliviervan Duuren. Van Duuren was employed by Microsoft NV, another Microsoft subsidiary. At that time, van Duuren reported to a France-based manager, who in turn reported to the Vice President of Microsoft in Redmond.

While working with van Duuren, Acharya experienced hostile gender-based conduct. For example, van Duuren told Acharya that "'there's a word for women like you,'" accused her of being a "queen sitting on a throne," and "taunted her for appearing 'emotional.'" When van Duuren reviewed Acharya's performance in 2011, he gave her a very poor rating. This varied greatly from Acharya's performance reviews in the past, when she had been rated very positively. Acharya perceived van Duuren's ratings as unfair and motivated by gender-based discrimination.

Acharya reported this to van Duuren's supervisor, who worked at Microsoft headquarters in Redmond. Her concerns were transferred to the HR and legal departments of Microsoft in Redmond. Acharya was then contacted by the Employee Relations Investigation Team (ERIT), which consisted of Microsoft employees in Redmond. On this record, it appears that ERIT member Yong Lee was investigating Acharya's claim as early as May 11, 2012. In July, Lee informed Acharya that he found no violation of Microsoft policy. Acharya challenged this finding on August 2. On September 7, ERIT member Judy Mims told Acharya that she would review Lee's findings. On September 26, Mims issued a memo to Acharya informing her that Lee's findings were warranted and that there were no policy violations. No disciplinary action was taken against van Duuren.

Acharya attempted to leave her position at MGR and applied for jobs at Microsoft in King County. She was not hired for any of the positions. Acharya discovered that van Duuren had been "poisoning the well" about her by making negative comments to potential hiring managers in Redmond. Acharya also learned that she was turned down for a job due to "the concerns [she] had raised about Olivier van Duuren." Acharya ultimately returned to King County. She has been unable to find fulltime work since.

On July 5, 2013, Acharya brought an employment discrimination suit against Microsoft in King County Superior Court. Citing the Washington Law Against Discrimination (WLAD),1 she asserted that Microsoft, as her employer, discriminated against her because she is an older woman; failed to prevent, stop, or remedy the discrimination against her; retaliated against her for reporting discrimination; negligently failed to hire, retain, monitor, and supervise its HR and ERIT departments; and negligently failed to mentor, supervise, and properly discipline van Duuren. She asserted that Microsoft's discriminatory decisions were made in Washington.

Microsoft denied Acharya's claims. It also denied that it was Acharya's employer at the time of the alleged discrimination. As affirmative defenses, it asserted that the Washington court was an improper venue and that Acharya's claims were governed by Swiss and United Kingdom law.

On October 15, 2013, Microsoft moved to dismiss Acharya's suit. Microsoft argued that the court should enforce the forum selection clause in Acharya's employment

Chapter 49.60 RCW.

contract with MGR, "which identifies Switzerland as the required forum for resolving any dispute, claim, or tort related to her MGR employment." Microsoft further argued that the suit should be dismissed on forum non conveniens grounds. In addition, Microsoft maintained that Acharya had no legitimate legal claims against Microsoft and that MGR was the proper defendant in the case.

Acharya opposed the motion. She asserted that Microsoft was the proper defendant, because Microsoft and MGR constituted an "'integrated enterprise.'" She further asserted that Washington was the proper forum, because her claims did not "'arise' under" or otherwise concern her employment with MGR. She maintained that enforcing the forum selection clause would deprive her the ability to vindicate her rights, because she could not afford to litigate in Switzerland and would be unable to bring her WLAD claims there.

At the motion hearing, Microsoft cited a newly decided United States Supreme Court case, Atlantic Marine Construction Company, Inc. v. United States District Court for the Western District of Texas. U.S. , 134 S. Ct. 568, 187 L. Ed. 2d 487 (2013). In Atlantic Marine, the Court established a new standard for evaluating forum selection clauses, requiring enforcement of the clause unless extraordinary circumstances unrelated to the convenience of the parties dictated otherwise. ]d_, at 581-82. Microsoft argued that the trial court should apply Atlantic Marine and dismiss Acharya's suit.

The trial court denied Microsoft's motion to dismiss.

Microsoft moved for discretionary review of the denial. We granted review.

DISCUSSION

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