Bernal v. The Boeing Company

District Court, W.D. Washington·Decided January 22, 2024·No. 2:22-cv-00533·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON PAUL BERNAL, CASE NO. 2:22-cv-00533-TL Plaintiff, FINDINGS OF FACT AND v. CONCLUSIONS OF LAW THE BOEING COMPANY, Defendant.

This matter was tried before the Court without a jury from November 6 to November 9, 2023. The Court heard all the testimony at trial and has reviewed the admitted trial exhibits (Dkt. No. 65), the Parties’ briefing (Dkt. Nos. 50, 53, 67, 68), and the Parties’ revised findings of fact and conclusions of law (Dkt. Nos. 75, 76). The Court now makes the following findings of fact and conclusions of law by a preponderance of the evidence, pursuant to Federal Rule of Civil Procedure 52. The findings and conclusions below are based upon the Court’s consideration of all the admissible evidence and the Court’s assessment of the credibility of the trial witnesses. Any conclusion of law denominated as a finding of fact shall be deemed a conclusion of law, and any finding of fact denominated as a conclusion of law shall be deemed a finding of fact. Plaintiff Paul Bernal (“Bernal”) brought this action for damages under the Washington

Law Against Discrimination (“WLAD”), RCW 49.60 et seq., in King County Superior Court. Dkt. No. 1-1. Defendant removed the case to federal court. Dkt. No. 1. Bernal alleged that his employer, The Boeing Company (“Boeing”), retaliated against him after he reported to his former supervisor, Rick Svoboda, concerns regarding age discrimination of other workers by a colleague, Dr. Linda Beltz. In particular, Bernal asserts that as a result of raising the concern with Svoboda on July 19, 2018, Svoboda demoted him and subjected him to a hostile work environment, and that the hostile work environment continued when Svoboda assigned Bernal to work under Beltz. A. The Parties

1. Plaintiff Paul Bernal is a resident and citizen of Washington. 2. Defendant Boeing is a corporation organized and existing under the laws of Delaware. Boeing’s headquarters and principal place of business are in Chicago, Illinois. Boeing is thus a citizen of Delaware and Illinois. B. Bernal General Background 3. Bernal filed his complaint for damages in King County Superior Court on April 15, 2022. 4. The claims in this case arise from Bernal’s employment with Boeing in King County. 5. Bernal graduated from college with a degree in finance. 6. Bernal began working for Boeing in 1989, resigned to take a position at Microsoft in

approximately 2000, returned to Boeing in January 2004, and has worked there since that time. 7. While employed at Boeing, Bernal obtained an MBA. 8. Bernal does not have a law degree. 9. In 2011, Bernal was promoted to an “M Level” Senior Manager position with Boeing Management Company (“BMC”). In his M-Level position, Bernal managed teams of

specialists who licensed Boeing’s intellectual property (“IP”) to companies around the world. The M-Level manager position is the highest, non-executive management position at Boeing. 10. During his employment with Boeing, Plaintiff generally received positive performance reviews, pay increases, and bonuses. As a team leader, Bernal was recognized for giving his employees responsibility, holding them accountable, and motivating them. He worked very well with his small team of direct reports and had high employee engagement scores. However, since at least 2014, Svoboda consistently noted in the comments to Bernal’s performance evaluations the following area for improvement: earn the trust of his other Intellectual Property Management (“IPM”) colleagues outside of his team; be

more open, honest, and transparent with them; and coordinate with them. C. Background of Bernal’s Working Group within Boeing 11. BMC, a wholly owned Boeing subsidiary, eventually became Boeing Intellectual Property Licensing Company (“BIPLC”). BMC and BIPLC were part of Boeing’s IPM organization. 12. Beginning in 2013, Bernal reported to Rick Svoboda, the President of BIPLC, who, in turn, reported to Boeing Vice President Pete Hoffman, the head of IPM. 13. The head of BIPLC prior to Svoboda was known to be almost exclusively interested in making money through licensing Boeing’s intellectual property without regard to whether

other Boeing business units were being impacted or affected. 14. Hoffman was hired into his role with the understanding that he was to repair the substantially poor relationship between IPM and its internal clients at Boeing, especially with Boeing Commercial Airplanes (“BCA”). Hoffman hired Svoboda, who had a decades-long tenure in BCA sales and contract groups, to facilitate efforts to improve the

poor relationship between BIPLC and BCA. 15. While working at BCA, Svoboda and his colleagues had found it frustrating to get licensing agreements out in a timely manner. When he began heading up BIPLC, he found a lack of urgency amongst the group’s employees. For example, one employee had been working on a license deal for six months, and the last contact with the potential customer had been about a month or two prior to the conversation with Svoboda. When asked if the employee planned to visit the potential customer, the response was that an e- mail had been sent a couple months ago, and the employee was waiting to hear back. 16. Between 2013 to 2014, Svoboda reorganized BIPLC into three main groups of Licensing Specialists, with each group responsible for a specific licensing subject matter instead of

territory. The new groups were: (1) Commercial Aerospace Licensing (“CAL”); (2) Defense IP Licensing; and (3) Global Patent and Technology (“GP&T”). Bernal managed GP&T, and Svoboda hired Dr. Linda Beltz in 2014 as an M-Level Senior Manager to manage CAL. 17. Bernal led the development of a business plan concept in which Boeing would explore opportunities to license its intellectual property to business outside of the aerospace sector (a project and work group that was known as Non-Core Licensing). Bernal believed he needed five to seven years to determine if the project would be successful, but he was told he would be given three or maybe four years. Svoboda noted in Bernal’s

2013 performance review his “willingness to take on a risky new business challenge in a new arena for Boeing.” 18. Svoboda gave Beltz specific instructions to repair the group’s previously poor relationship with BCA and to improve the professional attire and professionalism of the

BIPLC group. D. Complaints Received and Made by Bernal 19. Beginning in 2015, Bernal started to hear complaints from employees regarding the manner in which Beltz treated them. At least three employees on Beltz’s team complained that she was subjecting some employees to unwarranted and heightened oversight and criticism in an unprofessional manner. 20. The complaints continued into 2016. For example, Sam Wong told Bernal that he felt singled out in staff meetings for his written and verbal communication style and was concerned he would be written up, put on a performance improvement plan, or fired. Roger Freeman had discussions with Bernal about the treatment of older staff in their

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Bernal v. The Boeing Company, (W.D. Wash. 2024).

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