Bella Acharya v. Microsoft Corporation

CourtCourt of Appeals of Washington
DecidedJune 22, 2015
Docket71420-1
StatusUnpublished

This text of Bella Acharya v. Microsoft Corporation (Bella Acharya v. Microsoft Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bella Acharya v. Microsoft Corporation, (Wash. Ct. App. 2015).

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UNPUBLISHED OPINION MICROSOFT CORPORATION, a Washington corporation, FILED: June 22, 2015 Appellant.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. No. 71420-1-1/2

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." No. 71420-1-1/3

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 No. 71420-1-1/4

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. No. 71420-1-1/5

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,

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