Beltran v. Hard Rock Hotel Licensing, Inc.

CourtCalifornia Court of Appeal
DecidedDecember 5, 2023
DocketG062736
StatusPublished

This text of Beltran v. Hard Rock Hotel Licensing, Inc. (Beltran v. Hard Rock Hotel Licensing, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beltran v. Hard Rock Hotel Licensing, Inc., (Cal. Ct. App. 2023).

Opinion

Filed 12/5/23

CERTIFIED FOR PARTIAL PUBLICATION *

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

STEPHANIE BELTRAN,

Plaintiff and Appellant, G062736

v. (Super. Ct. No. PSC1802081)

HARD ROCK HOTEL LICENSING, OPINION INC., et al.,

Defendants and Respondents;

MAXUM INDEMNITY COMPANY,

Intervener.

Appeal from a judgment of the Superior Court of Riverside County, Kira L. Klatchko, Judge. Affirmed in part, reversed in part, and remanded. The Blue Law Group and Michael K. Blue for Plaintiff and Appellant. Fox Rothschild, John J. Shaeffer and Meeghan H. Tirtasaputra for Defendants and Respondents. Wilson, Elser, Moskowitz, Edelman & Dicker, David S. Eisen and Robert Cooper for Intervener. * * *

* Pursuant to California Rules of Court, rules 8.1105(b) and 8.1110, this opinion is certified for partial publication as to parts I, II A, B, G, and III. Plaintiff Stephanie Beltran, a server, worked at the Hard Rock Hotel in Palm Springs. She alleged she was sexually harassed by her superior and sued multiple entities and individuals for workplace sexual harassment under the California Fair Employment and Housing Act (Gov. Code, § 12900 et seq.) (FEHA), among other 1

causes of action. The trial court eventually granted summary judgment against three of the defendants. Below, we review each cause of action in turn. As to the individual defendant, Donna Shepherd, we find no personal liability and affirm summary judgment in her favor. As to the entity defendants, we shall affirm summary adjudication in their favor as to most, but not all, of Beltran’s 15 claims. In the published portion of the opinion, we shall discuss the adoption of Government Code section 12923 and its impact on hostile work environment claims, particularly in the context of summary judgment motions. In light of this statute, we conclude that because the trial court used outdated standards to conclude no triable issue of material fact existed, summary adjudication should not have been granted as to the hostile work environment cause of action. We also discuss the deeply problematic misuse of the separate statement of material facts by all parties and how separate statements can be brought into compliance with existing law. In the remainder of the opinion, we reverse in part and remand on Beltran’s claims for failure to prevent sexual harassment under FEHA, intentional infliction of emotional distress, and for violation of the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.). The judgment is affirmed as to the remaining causes of action.

Subsequent statutory references are to the Government Code unless otherwise indicated. 1

2 I FACTS A. The Parties Among other business activities, a Hard Rock entity licenses the Hard Rock brand name for the development and operation of hotels. The Hard Rock Hotel (the Hotel) at issue in this case is located in Palm Springs. Kittridge Hotels & Resorts, LLC (Kittridge), a nonparty to this action, owned the Hotel during the time period relevant to this action, between early 2014 and the end of 2018. Under an agreement with Kittridge, defendant Hard Rock Hotel Licensing, Inc. (HRH) operated the Hotel. Defendant Palm Springs Hospitality, LLC (PSH), “provided management services to Kittridge.” Except for the Hotel’s executive staff, which was hired by HRH, PSH was the employer of the Hotel’s employees. In its capacity as the management company, HRH “hired, trained, discharged, and otherwise managed all Hotel employees.” An individual and nonparty named Andre Carpiac was the managing member of Kittridge during the relevant period. He was also the sole member of PSH. Defendant Juan Rivera was hired by HRH in November 2016 as the Hotel’s General Manager. He was the most senior person working at the Hotel during the relevant time period. Beltran began her employment at the Hotel in February 2017. She worked as a server in different parts of the Hotel. From approximately July 2017 to April 2018, defendant Donna Shepherd worked as a Human Resources Consultant at the Hotel. She was designated “as an independent contractor providing onsite human resources services.” As a consultant, Shepherd did not have the personal authority to hire or fire any Hotel employee.

3 B. Facts Relevant to the Instant Motions Beltran was hired to work at the Hotel in February 2017. She worked as a server in the Hotel’s nightclub and occasionally in room service. During Beltran’s employment, HRH had a written policy against sexual harassment. On or about September 4, 2017, a security supervisor named Anthony Morgan, who worked for the Hotel’s security contractor, sent an e-mail to another security employee. That employee forwarded the e-mail to Shepherd. Morgan stated that Rivera had “caused several issues” during Morgan’s time at the Hotel. As relevant here, he related an instance where Rivera had claimed that the child of a server named Rebecca M. (Rebecca) was Rivera’s child, “implying that they had sexual relations,” which had upset Rebecca. During a party, Rivera “had forcefully grabbed” Rebecca and pulled her towards him twice. Morgan also referred to an incident between Beltran and Rivera. “During club hours, [Beltran] had c[o]me to me and said [Rivera] was grabbing her inappropriately. I watched him for the rest of the night and he continued to do so. While she was trying to work he was grabbing her, trying to dance [with] her, not letting her do her job.” He added that Rivera was “under the influence during these altercations.” Shepherd began an investigation. She stated in a declaration that prior to this report, she was not aware of inappropriate behavior by Rivera. Within 24 hours of starting the investigation, she made Rivera aware of the allegations. She told him to stay away from Beltran and out of the nightclub area as much as possible. Rivera denied any inappropriate conduct. During a meeting with Shepherd on September 6, Morgan stated that the incident where Beltran had complained to him that Rivera had “‘grabbed her ass’” occurred on August 19. After Beltran had complained to him, Morgan kept an eye out and Rivera “kept grabbing her and trying to get her to dance with him.” Morgan stated he had been hearing about this kind of behavior from Rivera since before he began

4 working at the Hotel. The former security site supervisor had asked to be transferred away from the Hotel and had “stated that [Rivera] is a creep.” Rivera, Morgan said, was always “‘brushing up on the girls.’” Shepherd met with Beltran on September 8. Her summary of this meeting was two paragraphs long. Beltran told Shepherd about the incident Morgan had referred to. Beltran stated she was speaking with Rivera and mentioned to him that a friend of hers had seen him outside the Hotel. Rivera asked Beltran jokingly if she was stalking him. When Beltran turned to move away, “he slapped her on the ass [and] she was very upset.” Later on, at her deposition, Beltran did not recall whether Rivera grabbed or slapped her, but he touched her buttocks in what she felt was a sexual manner. According to Beltran, during this interview, Shepherd asked her if she was wearing the same clothing that she wore during the shift in question. Shepherd’s declaration stated she asked Beltran this because she noticed Beltran was wearing her club uniform although she was scheduled to work room service. Shepherd stated she reminded Beltran of the importance of wearing the more conservative room service uniform during such shifts because room service employees entered guest rooms alone and late at night. Beltran, however, perceived this as inappropriate and victim-shaming. Beltran also told Shepherd that an employee named Tomika Morgan had witnessed the incident. Later that night, Rivera had grabbed Beltran’s arm when she was working.

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