Chan v. Wells Fargo Advisors, LLC.

124 F. Supp. 3d 1045, 2015 U.S. Dist. LEXIS 111423, 2015 WL 5011457
CourtDistrict Court, D. Hawaii
DecidedAugust 24, 2015
DocketCIV. NO. 14-00344 SOM /KSC
StatusPublished
Cited by11 cases

This text of 124 F. Supp. 3d 1045 (Chan v. Wells Fargo Advisors, LLC.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chan v. Wells Fargo Advisors, LLC., 124 F. Supp. 3d 1045, 2015 U.S. Dist. LEXIS 111423, 2015 WL 5011457 (D. Haw. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR SUMMARY JUDGMENT

Susan Oki Mollway, Chief United States District Judge

I. INTRODUCTION.

This arises out of an alleged statement by a financial advisor’s assistant to a supervisor that the financial advisor had made an illegal trade. Whether the financial advisor decided that he no longer wanted to work with the assistant as a result of that complaint or whether the decision to move the assistant to a different financial advisor was made for other legitimate, nondiscriminatory reasons is the question at heart of this lawsuit.

[1048]*1048Ultimately, the assistant allegedly suffered great anxiety and was unable to work. After the assistant had exhausted his two years of unpaid medical leave, the company terminated him. Whether the company was required to grant the assistant more leave as a reasonable accommodation is another issue before the court.

The company, Defendant Wells Fargo Advisors, has. moved for summary judgment.

With respect to Count I of the First Amended Complaint, asserting a termination in violation of public policy, the court grants Wells Fargo summary judgment, as this portion of the motion is unopposed. Plaintiff Paul Chan fails to show that he was terminated in violation of public policy.

With respect to Count II, asserting a violation of Hawaii’s Whistleblowers’ Protection Act, section 378-62 of Hawaii Revised' Statutes, the, court denies the request for summary judgment, determining that there are questions of fact as to whether Chan suffered an adverse employment action because he purportedly reported an illegal trade to his employer.

With respect to Count III, asserting a claim of intentional infliction of emotional distress, the court grants summary judgment in favor of Wells Fargo, determining that Hawaii’s workers’ compensation provisions provide the exclusive remedy for work-related injuries. If appropriate, however, emotional distress damages may be sought as a remedy in connection with other causes of action.

With respect to Count IV, asserting a claim of punitive damages, the court grants summary judgment in favor of Wells Fargo because no independent claim for punitive damages exists. However, if appropriate, punitive damages may be sought as a remedy in connection with other causes of action.

Finally, with respect to Count V, asserting a claim of disability discrimination, the court denies Wells Fargo’s request for summary judgment, determining that there are issues of fact as to whether Wells Fargo engaged in the required interactive process to determine whether it could make any reasonable accommodation that .would have allowed Chan to return to work.

II. FACTUAL BACKGROUND.

In 1998, Chan was hired as a client associate by Herman Ching, a senior financial advisor at Prudential Securities. See Deck of Paul' Chan ¶3, ECF No. 52-6, PagelD #985; Deck of Herman Ching ¶ 6, ECF No. 47-17, ECF No. 756. Chan coordinated Herman Ching’s clients and appointments for 15 'years. Chan Deck ¶ 10. Every month, Herman Ching gave Chan an envelope containing between $100 and $1,000 to personally thank Chan. In other words, this money came from Herman Ching, not the company. Id. ¶ 12; Videotaped Depo, of Paul Chan at 105-06, ECF No. 47-2, PagelD #s 393-94; Videotaped Depo. of Herman Ching at 28, ECF No. 52-2, PagelD #918; Herman Ching Deck ¶ 17, ECF No. 47-17, PagelD # 758. Herman Ching also gave Chan gifts for special occasions like Christmas or his birthday, and whenever Ching wanted to reward him, such as when Ching had a good month. See Chan Depo. at 119, ECF No. 47-2, PagelD # 397.

Prudential Securities eventually became Wells Fargo. Chan Deck ¶ 7.

In May 2009, Chan became the primary client associate for Eric Ching, Herman Ching’s son. See Herman Ching Deck ¶¶ 11, 20, ECF No. 47-17, PagelD # 757-59. At the same time, Kay Yamasaki became Herman Ching’s primary client associate. Id. ¶ 20, ECF No. 47-17, PagelD # 759.

[1049]*1049Eric Ching continued his father’s practice of giving Chan personal cash gifts to thank Chan for his work. These gifts came from Eric Ching’s personal funds, not the company’s, see Decl. of Eric Ching ¶ 8, ECF No. 47-18, PagelD #763, and were less frequent than those from Herman Ching, see Chan Decl. ¶ 13, ECF No. 52-6, PagelD #986; Chan Depo. at 119, ECF No. 47-2, PagelD # 397.

Herman Ching, Eric Ching, Chan, and Yamasaki all reported to Thomas McCarthy, a Senior Vice President-Complex Manager for Wells Fargo. Herman Ching Decl. ¶ 13, ECF No. 47-17, PagelD # 757.

In June 2012, one of Wells Fargo’s clients called, concerned that her required minimum IRA distribution was late. Herman Ching told Chan that the client was unhappy. See Chan Depo. at 134-35, ECF No. 47-2, PagelD #407-08. On Friday, June 22, 2012, Chan processed the client’s request for the required minimum distribution. See Chan. Decl. ¶ 22, ECF No. 52-6, PagelD #987. In so doing, Chan noticed that funds were missing from the client’s IRA account. Id. ¶ 23. Chan says that Eric Ching must have violated the law by trading with the client’s funds without permission. Chan concludes this based on Eric Ching’s statement to Chan that, seeing a cash balance in the client’s account, he had made investments in what Eric Ching called a “discretionary account.” Id. ¶¶ 25-28, ECF No. 52-6, PagelD # 988. In his deposition, Chan was asked whether he knew whether Eric Ching had permission to make the trade. Chan indicated that he did not know, but had to assume that Eric Ching had such permission. See Chan Depo. at 148-49, ECF No. 47-2, PagelD # 409-10.

Chan says that Yamasaki cancelled the paperwork he prepared to get the client paid. Chan Decl. ¶30, ECF No. 52-6, PagelD #988. Yamasaki had processed the same paperwork, and one of the two payment requests had to be cancelled. See McCarthy Decl. ¶ 12, ECF No. 47-19, PagelD # 770. Chan was livid about this. He says that, because he had been verbally and physically harassed by Yamasaki, causing him to avoid talking with her from about 2005, he went to the copy room and ranted. Id. ¶ 31. Not knowing that anyone else was in the copy room, Chan complained, “What the hell is she doing? Why is she bulldozing people? She successfully chased away her daughter and her husband cheated on her.” Id, PagelD # 989. Another staff member overheard Chan and reported his statements to Yamasaki. Id. Yamasaki then complained about Chan’s rant to Wells Fargo’s human resource department. See id. ¶ 38, PagelD # 990.

The next working day, Monday, June 25, 2012, Herman Ching told Chan that human resources was involved and that Chan had to leave the office and not come back until told to do so. Chan Decl. ¶ 34, ECF No. 52-6, PagelD # 989. Chan was later told by Eric Ching to return to work the next day for a meeting with Herman Ching and McCarthy. Id. ¶ 41, PagelD # 990.

On Tuesday, June 26, 2012, Chan met with Herman Ching and McCarthy separately. Chan Decl. ¶ 42, ECF No. 52-6, PagelD #990. Chan admitted what he had said in the copy room. Id. Chan says he explained to Herman Ching and McCarthy what had happened before he went on his rant, including describing the possible unauthorized trade. Id. ¶¶ 42-44, PagelD #991.

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124 F. Supp. 3d 1045, 2015 U.S. Dist. LEXIS 111423, 2015 WL 5011457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chan-v-wells-fargo-advisors-llc-hid-2015.