Carmona v. Resorts International Hotel, Inc.

915 A.2d 518, 189 N.J. 354, 2007 N.J. LEXIS 185, 99 Fair Empl. Prac. Cas. (BNA) 1604
CourtSupreme Court of New Jersey
DecidedFebruary 21, 2007
StatusPublished
Cited by100 cases

This text of 915 A.2d 518 (Carmona v. Resorts International Hotel, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carmona v. Resorts International Hotel, Inc., 915 A.2d 518, 189 N.J. 354, 2007 N.J. LEXIS 185, 99 Fair Empl. Prac. Cas. (BNA) 1604 (N.J. 2007).

Opinions

Justice RIVERA-SOTO

delivered the opinion of the Court.

This appeal arises in the context of an employee who alleged that, after he complained about claimed unfair treatment, he was retaliated against in violation of the Law Against Discrimination (LAD), N.J.S.A. 10:5-12d. Specifically, this appeal requires that we address two separate issues: whether the employee’s complaint that allegedly triggers a retaliation claim must be made in good faith and on a reasonable basis, and whether an investigative report prepared by an employer, which the employer claims provided an independent basis for the employee’s discharge, should have been admitted into evidence. Both the trial court and the Appellate Division held that the LAD contains no independent requirement that a plaintiff in a LAD-retaliation case also prove that the complaint predicate to a retaliation claim must have a reasonable, good-faith basis, and that it was not an abuse of discretion to exclude from evidence the investigative report prepared by the employer. We do not agree.

We hold that, in a case alleging retaliation under the LAD, the plaintiff bears the burden of proving that his or her original complaint was made reasonably and in good faith. Stated conversely, an unreasonable, frivolous, bad-faith or unfounded complaint cannot satisfy the statutory prerequisite necessary to establish liability for retaliation under the LAD. We also hold that, when an employer defends against a claim that an employee’s discharge was the product of retaliation, an investigative report prepared by the employer that purports to demonstrate a non-[360]*360retaliatory reason for the employee’s termination is a non-hearsay statement. Finally, we hold that the admissibility of an investigative report in these circumstances is subject not only to all other relevant evidentiary limitations, but also to proof that a decision maker relied on that report in deciding to discharge the employee from employment.

I.

In 1999, plaintiff Reinaldo Carmona was hired as a front desk agent or clerk by defendant Resorts International Hotel, Inc., d/b/a Resorts Atlantic City (Resorts). As a front desk agent, plaintiff was responsible for checking guests into and out of Resorts. Plaintiff was employed by Resorts until November 9, 2001, when he was fired. The disputed reason for that termination — plaintiffs claim of retaliation for an internal claim of discriminatory or disparate treatment, or Resorts’ claim that plaintiff was terminated for stealing — is what gives rise to this lawsuit.

According to plaintiff, he was a recovering cocaine user prone to relapses. Because of the relapses, plaintiff missed work on several occasions. Under Resorts’ progressive discipline policy for absenteeism, a policy that did not apply in instances of serious misconduct, including theft, the absences accumulated as “points” against plaintiff. By August 2001, plaintiff had accumulated sufficient “points” so that another unexplained or unauthorized absence would render him liable to termination. His supervisor explained to plaintiff that absences pursuant to an approved medical leave would not be counted against him. Yet, plaintiff did not explore seeking an approved medical leave to treat his cocaine dependency. Instead, he focused on other Resorts employees who had applied for and received approved medical leaves of absence. He later claimed that Resorts applied its absenteeism/termination policy unevenly.

In particular, plaintiff noted the case of co-plaintiff William Santiago, who also was employed as a front desk agent at Resorts. [361]*361In November 2001, Santiago reported to work although he was suffering from problems with his face. His supervisor sent Santiago to the hospital, where he was diagnosed with Bell’s Palsy. Santiago returned to work that same day. He did so because he was concerned that he had reached the limit on “points” he could accumulate as a result of absenteeism, which placed him at risk of termination from employment. In this instance, Santiago’s supervisor elected not to discipline him, choosing instead to make an “exception.”

Plaintiff also focused on Robin Hewitt, another front desk agent who had excessive absences. He was informed by a supervisor that Hewitt had applied for and received a medical leave and, thus, her absences were not counted for disciplinary purposes. Plaintiff confirmed this information by looking at Hewitt’s attendance sheet, which contained entries for “leave of absence” or “FMLA”1 but did not accumulate any “points” based on her absences.

Resorts had adopted an anti-discrimination policy, and employees who complain of discrimination are encouraged to bring those complaints to Resorts’ internal equal employment opportunity (EEO) office. Accordingly, three months after having this information in hand, on Tuesday, November 6, 2001, plaintiff went to Resorts’ EEO office to complain. He met with the director of EEO at Resorts, noted that Hewitt was receiving medical leave without the accumulation of any points, and claimed that

it wasn’t fair that [Hewitt] was out and she was only employed at Resorts for like no more than three months and she was placed on the family leave, and I have been there two years and I wasn’t placed on one, and I couldn’t go to a hospital [for drug rehabilitation] because of being afraid of getting points, which I brought a doctor’s note for that and I got points anyway.

Plaintiff attributed the difference in treatment between Hewitt, who was on medical leave, and plaintiff and Santiago, who had not been placed on medical leave, to racism: Hewitt is Caucasian, [362]*362while Santiago and plaintiff are Hispanics. Resorts’ EEO director informed plaintiff that she would conduct an investigation of his allegations. However, shortly after she started her inquiry, she was informed that both plaintiff and Santiago were being terminated for stealing. Resorts’ EEO director then ended her investigation of plaintiffs allegations.

On Monday, November 5, 2001 — the day before plaintiff complained to Resorts’ EEO office — plaintiff and Santiago were observed improperly upgrading rooms in exchange for tips. That is, plaintiff and Santiago would dole out room accommodations that were better, larger, or more luxurious than what the guest was being charged for, and the guests would then “tip” plaintiff and Santiago for the upgraded accommodations. Plaintiff was not a stranger to those allegations: he had twice before been reprimanded — in October 1999 and July 2000 — for upgrading rooms without authorization. Those observations made their way to Resorts’ labor relations counselor, who asked that the hotel reservations data for that day be produced. That data showed that both plaintiff and Santiago, without authorization, had upgraded a number of hotel rooms for guests; Santiago alone upgraded twenty of twenty-six hotel rooms. The information was then transmitted to Resorts’ investigations department.

On Wednesday, November 7, 2001, two Resorts investigators interviewed Santiago. According to one of the investigators, “[d]uring the interview Mr. Santiago admitted that he had done upgrades for gratuities[,] to receive gratuities. He also implicated other employees [including plaintiff]. He also informed [Resorts] that [plaintiff] had a password of one of the supervisors to access the computer to do this.” Based on those allegations, on November 8, 2001, the Resorts investigators asked that the front desk supervisors audit plaintiffs work for the prior month.

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915 A.2d 518, 189 N.J. 354, 2007 N.J. LEXIS 185, 99 Fair Empl. Prac. Cas. (BNA) 1604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carmona-v-resorts-international-hotel-inc-nj-2007.