Brown v. Ameriprise Financial Services, Inc.

276 F.R.D. 599, 2011 U.S. Dist. LEXIS 101038, 2011 WL 3920362
CourtDistrict Court, D. Minnesota
DecidedSeptember 7, 2011
DocketCiv. No. 09-2413 (RHK/FLN)
StatusPublished
Cited by5 cases

This text of 276 F.R.D. 599 (Brown v. Ameriprise Financial Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Ameriprise Financial Services, Inc., 276 F.R.D. 599, 2011 U.S. Dist. LEXIS 101038, 2011 WL 3920362 (mnd 2011).

Opinion

ORDER ADOPTING REPORT & RECOMMENDATION IN PART

RICHARD H. KYLE, District Judge.

INTRODUCTION

This matter is before the Court on Plaintiffs Objections (Doc. No. 140) to Magistrate Judge Noel’s August 3, 2011 Report and Recommendation (the “R & R”) (Doc. No. 119) regarding Defendant’s Motion for Rule 11 Sanctions. For the reasons that follow, the Court will overrule the Objections, adopt the Report & Recommendation in part, and dismiss Plaintiffs Complaint with prejudice.

BACKGROUND1

Plaintiff, an African-American, commenced this action in December 2009. In her three-Count Complaint, she alleged that Defendant, her former employer, had discriminated against her and other similarly situated African-American employees — numbering “at least 1000” (Compl. ¶ 15) — with respect to their terms and conditions of employment. The Complaint was both detailed and far-reaching, spanning 32 pages and 82 paragraphs, containing particularized allegations of specific (and allegedly discriminatory) policies and practices, covering conduct lasting more than a decade and concerning all levels of employment. Counts 1 and 3 asserted claims under 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964, respectively, on behalf of Plaintiff and the putative class; Count 2 asserted a Title VII claim on Plaintiffs behalf alone. The Complaint was signed by Plaintiffs former attorneys, but her current counsel substituted into this case shortly after it was filed. (See Doc. No. 2.)

In response to the Complaint, Defendant filed several Motions, seeking inter alia to streamline discovery regarding the class claims and to dismiss claims brought on behalf of certain class members; Plaintiff opposed these Motions. The Court granted the Motions in part and denied them in part (see Doc. No. 39), and certain class claims survived. Magistrate Judge Noel then held an initial pre-trial conference, after which he issued a scheduling Order setting March 1, 2011, as the deadline for Plaintiff to move for class certification and June 1, 2011, as the discovery cut-off. (See Doc. No. 45.)

The parties then proceeded with discovery, including class discovery, and on December 2 and 3, 2010, Defendant took Plaintiffs deposition. There, she was asked to provide the foundation for many of the specific allegations in her Complaint, but often she was unable to do so. For example, paragraph 43 of the Complaint alleged that “written guidelines permit employees at lower job grades to be paid more than employees at higher grades.” Yet, Plaintiff acknowledged that she was unaware of any such “written guidelines.” (Brown Dep. at 468.) Paragraph 41 of the Complaint alleged that “the median salary for African-Americans lags far behind the median salary for Caucasians. This gap increases at higher salary levels.” Similarly, paragraph 42 alleged “among employees with one year of service at [Defendant], the African-American average salary is less than the Caucasian average salary. Among employees with five years of service, this gap between average salaries rises.” But when [602]*602asked whether she had ever had “occasion to look at median salaries for African-American employees and compare those to median salaries for Caucasians,” Plaintiff answered in the negative, and she acknowledged that she had never seen any comparison of average salaries between employees with one or five years of service. (Id at 466-68.) At other times, Plaintiff was asked about certain terms appearing in quotation marks in the Complaint — such as “management nomination” and “work relationships” (Compl. ¶¶ 3(c), 31) — but could not explain where those quoted terms came from or what they meant. (Brown Dep. at 410-12, 455.) She also could not explain what was meant by the allegation in paragraph 34 that “performance is not linked to job title or education.” (Id. at 461.)

In addition, certain portions of Plaintiffs testimony contradicted some of the Complaint’s class-based allegations. For instance, she testified, “I don’t think there’s a significant representation of African-Americans among salaried employees” (id. at 419), even though the Complaint alleged that “[flew African-Americans advance to senior levels in the Company, especially when compared to the significant representation of African-Americans among salaried employees ” (Compl. ¶ 3(d) (emphasis added)). Similarly, the Complaint alleged that Defendant engaged in a pattern and practice of denying opportunities for advancement to African-Americans who were more qualified for promotions than Caucasians. (See id. ¶ 3(c).) But when she was asked to identify an African-American (other than herself) who she “believe[d] was passed over for a promotion in favor of a less-qualified white candidate,” she could not do so. (Brown Dep. at 410.)

Following this testimony, Defendant began to investigate. Ultimately, it discovered that Plaintiffs Complaint largely parroted that in another case, in another Court, brought by different plaintiffs against a different company more than a decade earlier: Abdallah v. CocaCola Co., Civ. A. No. 1-98-CV-3679 (N.D.Ga. filed Dec. 23, 1998). This is to say, the Complaint here does not simply track the legal theories or claims advanced in Coca-Cola, but rather copies large portions thereof verbatim, including those regarding specific employment policies and practices, particularly with respect to Plaintiffs class claims.

Defendant then wrote Plaintiffs counsel and asked her to dismiss the Complaint as not grounded in fact; Plaintiff refused.2 Defendant then served (but did not file) a Motion for Sanctions under Rule 11 of the Federal Rules of Civil Procedure.3 After Plaintiff maintained her refusal to dismiss the Complaint, Defendant filed the Motion, seeking dismissal of the Complaint and an award of fees and costs for Plaintiffs “detailed and precise allegations without evidentiary support and without having conducted a reasonable inquiry as required by Rule 11.” (Doc. No. 50 at 2.)

Plaintiff filed a lengthy response arguing against dismissal. (See Doe. Nos. 73-93.) She asserted that Defendant had taken her deposition testimony out of context and argued that her testimony did, in fact, support both her class-based and individual claims. She also asserted that Defendant’s failure to provide discovery had hampered her ability to proffer evidentiary support for her claims. (See Doc. No. 73 at 18-22.) Although she acknowledged that the “wording ... in many respects is identical, particularly for the class based claims,” between her Complaint and the one in Coca-Cola, she asserted that some modifications to the Coca-Cola Complaint had been made, rendering the instant Complaint consistent with the “circumstances of [Plaintiffs] employment.” (Id. at 20.)

[603]*603Defendant’s Motion was referred to Magistrate Judge Noel, who held a hearing on July 22, 2011. On August 3, 2011, he issued the R & R, recommending that the Motion be granted in part and denied in part.

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Bluebook (online)
276 F.R.D. 599, 2011 U.S. Dist. LEXIS 101038, 2011 WL 3920362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-ameriprise-financial-services-inc-mnd-2011.