Blue Fountain Pools and Spas Inc. v. Superior Court

California Court of Appeal·Decided August 10, 2020·No. E074121·Published

Opinion

Filed 8/10/20 CERTIFIED FOR PUBLICATION IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA FOURTH APPELLATE DISTRICT DIVISION TWO

BLUE FOUNTAIN POOLS AND SPAS INC. et al., E074121

Petitioners,

(Super.Ct.No. CIVDS1715712)

v.

OPINION

THE SUPERIOR COURT OF SAN BERNARDINO COUNTY,

Respondent;

DAISY ARIAS, Real Party in Interest.

ORIGINAL PROCEEDINGS; petition for writ of mandate. Donald Alvarez, Judge. Petition denied.

Law Offices of Robert E. Williams and Robert E. Williams for Petitioners.

Hannemann Law Firm, Brian G. Hannemann; Broslavsky & Weinman, Zack Broslavsky and Jonathan A. Weinman for Plaintiff and Real Party in Interest.

No appearance for Respondent.

Daisy Arias suffered sustained, egregious sexual harassment for most of the time she was employed by defendant and petitioner, Blue Fountain Pools & Spas Inc. 1 The primary culprit was defendant and petitioner, Sean Lagrave, a salesman who worked in the same office as Arias. Arias says Lagrave did everything from repeatedly asking her for dates to grabbing her buttocks to praising his own sexual prowess to describing his sexual conquests to confronting her with smartphone photographs of himself engaging in sex acts with other women. This list is not complete.

Arias complained about Lagrave’s conduct repeatedly over the course of her employment, but things came to a head on April 21, 2017. On that day, Lagrave yelled at Arias in front of coworkers, used gender slurs, and then physically assaulted her, bumping her chest with his own. Arias called the police and later left work.

Arias told the owner, defendant and petitioner, Farhad Farhadian, she wasn’t comfortable returning to work with Lagrave. Farhadian did nothing initially, refused to remove Lagrave, then terminated Arias’s health insurance, and finally told Arias to pick up her final paycheck. Though Farhadian claimed Arias had quit, she says she was fired.

The termination wasn’t Farhadian’s only alleged misconduct. Arias also says he ignored several complaints and participated himself in creating a sexualized environment in the office. Arias says Farhadian’s own misconduct started at an office Christmas party in December 2015, where he openly ogled Lagrave’s girlfriend, commented on her breast

1 Ownership of the company changed in January 2015. Before that, the company was known as Blue Fountain Pools, Inc. We will refer to the company as Blue Fountain throughout and note the change of ownership where relevant.

implants, and then planned to continue the celebration with Lagrave and the girlfriend at a local strip club. Arias says Lagrave later made a habit of discussing Farhadian’s conduct in repeated trips to the strip club. She says Lagrave also made it known to coworkers, including Arias, that Farhadian was engaging in sexual relations with dancers from the club.

Arias filed a complaint with the Department of Fair Employment and Housing and received a right to sue letter on August 14, 2017. She then filed this lawsuit alleging, relevant to this appeal, hostile work environment sex discrimination and failure to prevent sexual harassment. Petitioners filed a motion for summary adjudication in the trial court seeking, among other things, to have the hostile work environment claim dismissed as time-barred and the failure to prevent harassment claim dismissed as having an insufficient basis after limiting the allegations to the conduct that wasn’t time-barred. The trial court concluded Arias had created a genuine issue of material fact as to all her causes of action and denied the motion.

Petitioners brought a petition for writ of mandate, renewing their statute of limitations argument. They point out Arias began working at the company around October 2006, Lagrave engaged in workplace sexual misconduct almost from the time she started, and Arias consistently complained about his conduct to her supervisors, who didn’t correct the situation. Petitioners argue that means the one-year statute of limitations has run on her hostile work environment claim unless she can establish a continuing violation under the test set out in Richards v. CH2M Hill, Inc. (2001) 26 Cal.4th 798 (Richards). They say she can’t establish a continuing violation because she’s

admitted she had concluded further complaints were futile. That means she can’t establish, as required by Richards, that the discrimination hadn’t reached a degree of permanence, triggering her obligation to bring her claim within one year.

There are three problems with their argument. First, Arias has presented evidence several incidents of sexual harassment occurred in the one-year period preceding her termination, that is, during the limitations period. That means it would have been improper for the trial court to dismiss her cause of action, even if the court concluded the incidents outside the limitations period can’t be the basis for liability and excluding evidence about them is warranted because it would be more prejudicial than probative. Second, as petitioners themselves emphasize, Farhadian purchased the business and took over operations in January 2015. Thus, even if the conduct of prior management made further complaining futile, the arrival of new management created a new opportunity to seek help. We conclude Arias has shown she can establish a continuing violation with respect to all the complained of conduct that occurred during Farhadian’s ownership of the company. Third, there is a factual dispute over whether and when Arias’s employer made clear no action would be taken and whether a reasonable employee would have concluded complaining more was futile. On this record, where Arias continued complaining about obviously harassing conduct and tried complaining to different people, we conclude that question must be resolved by a jury.

We will therefore deny the petition so Arias’s claims may proceed to trial.

I

FACTS

A. The Parties and the Transfer of Ownership Defendant and petitioner Blue Fountain Pools and Spas Inc. is a pool and spa construction business. Defendant and petitioner Farhad Farhadian owns and operates Blue Fountain and was one of Arias’s supervisors starting when he bought the company in January 2015.

Plaintiff and real party in interest Daisy Arias worked for Blue Fountain long before Farhadian bought the company. She started working for Blue Fountain as a customer service representative around October 2006 and by the time of her discharge, around May 2017, she was their office manager. Defendant and petitioner Sean Lagrave was a salesman at Blue Fountain and supervised Arias.

B. The Harassment and Arias’s Complaints Shortly after Arias started at Blue Fountain, Lagrave began to make sexual overtures to her. He started by asking her out on a date. Arias refused, but she overheard Lagrave telling another employee, “Oh, I’ll get her. I’ll go out with her.” The parties agree “[b]eginning in or about November 2006, [Arias] was sexually harassed by defendant Lagrave,” and “[w]ithin one week of Lagrave’s initial harassment, [Arias] complained to [her direct supervisor] Don Hubbell about Lagrave harassing her by asking her out on a date.”

Lagrave continued his advances, and Arias continued to turn him down. Around December 2006, Lagrave escalated. He came up to Arias, used his whole hand to grab her butt, and made a sexual noise. Arias complained again to Hubbell, who said he would talk with Lagrave. If anything, Lagrave’s conduct got worse. He began to hit on Arias and make sexual passes at her on a regular basis. He would also compare himself to other men, telling Arias “I’m better” and repeatedly bragged about his own sexual prowess, saying things like “girls always call me,” “I’m a sex toy,” and “I should start charging for sex.” She complained about these comments frequently to Hubbell. Lagrave also frequently touched her waist and hair in passing, and Arias complained about that conduct too.

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