Coates v. Legacy Health

District Court, D. Oregon·Decided October 3, 2024·No. 3:23-cv-00931·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON PORTLAND DIVISION

ELIZABETH COATES, an individual, No. 3:23-cv-00931-JR KELLY HICKMAN, an individual, ELAINA SIGAFOOSE, an individual, OPINION AND ORDER DARLENE ANDERSON, an individual, STEPHANIE BRENDEN, an individual,

Plaintiffs,

v.

LEGACY HEALTH, a corporation, Defendant.

BAGGIO, J., On July 16, 2024, Magistrate Judge Jolie A. Russo issued her Findings and Recommendation (“F&R”), recommending that this Court grant Defendant Legacy Health’s (“Defendant”) Motion to Dismiss. The Court ADOPTS in part. The magistrate judge makes only recommendations to the court, to which any party may file written objections. 28 U.S.C. § 636(b)(1)(C). If a party objects, the court “shall make a de novo determination of those portions of the report or specified proposed findings or recommendation to which objection is made.” Id. The court is not, however, required to review, de novo or under any other standard, the factual or legal conclusions of the magistrate judge as to those portions of the F&R to which no objections are addressed. Thomas v. Arn, 474 U.S. 140, 149 (1985); United States v. Ramos, 65 F.4th 427, 433 (9th Cir. 2023). While the level of scrutiny that the court applies to its F&R review depends on whether a party has filed objections, the court is free to accept, reject, or modify any part of the F&R. 28 U.S.C. § 636(b)(1)(C); see also Thomas,

474 U.S. at 154. BACKGROUND Plaintiffs Elizabeth Coates, Kelly Hickman, Elaina Sigafoose, Darlene Anderson, and Stephanie Brenden (collectively, “Plaintiffs”) brought this action against Defendant alleging religious discrimination in violation of 42 U.S.C. § 2000e et. seq. (“Title VII”) and Oregon Revised Statute (“O.R.S.”) § 659A.030. FAC [ECF 27], ¶¶ 34-47. Plaintiffs are healthcare workers who Defendant employed when Defendant implemented and enforced a workplace COVID-19 vaccine mandate. Id. ¶ 5. Plaintiffs sought religious exemptions to the vaccine mandate. Id. ¶¶ 7, 9, 13, 17, 20-23. Defendant denied Plaintiffs’ religious exemption requests. Id. ¶¶ 7, 9, 14, 17, 27. Plaintiffs allege that Defendant has not explained why it denied each of the Plaintiffs’ requested religious

exemptions or “why, in [Defendant’s] view, after nearly two years of being able to work without incident during the pandemic, that Plaintiffs suddenly created an unacceptable health and safety risk necessitating them being placed on unpaid administrative leave, followed by termination.” Id. at ¶¶ 31. Defendant moved to dismiss Plaintiffs’ complaint in its entirety due to insufficient factual allegations. In response, Plaintiffs’ counsel produced the religious exemption request for each Plaintiff. Subsequently, Defendant withdrew its challenge as to Plaintiffs Coates and Anderson’s claims, each of whom relied on the alleged use of aborted fetal cells in the vaccine’s development in seeking a religious exemption. The Court granted Defendant’s motion as to Plaintiffs Hickman, Sigafoose, and Brenden’s claims. See generally Coates v. Legacy Health, 2024 WL 1181827 (D. Or. Jan. 8, 2024), adopted by 2024 WL 1177124 (D. Or. Mar. 19, 2024). Plaintiffs subsequently filed their first amended complaint (“FAC”).1 Thereafter, Defendant moved to partially dismiss Plaintiffs FAC pursuant to Fed. R. Civ. 12(b)(6). Def.’s Mot.

Dismiss [ECF 29] 2. In her F&R, Judge Russo granted Defendant’s motion as to Plaintiffs Hickman, Sigafoose, and Brenden’s failure to accommodate claims, Plaintiffs’ disparate impact claims, Plaintiffs’ retaliation claims, Plaintiffs’ pattern or practice claims, and Plaintiffs’ hostile work environment claims. F&R [ECF 34] 12, 15, 17, 18, 20. Such that only Plaintiffs Coates and Anderson’s failure to accommodate claims remain. F&R 21. Plaintiffs objected to the findings and recommendation that this Court should dismiss Plaintiffs Hickman, Sigafoose, and Brenden’s failure to accommodate claims. Pls.’ Obj. to Findings & Recommendation (“Pls.’ Objs.”) [ECF 39]. The Court reviews Plaintiffs objections de novo.

STANDARD Where the plaintiff “fails to state a claim upon which relief can be granted,” the court must dismiss the action. Fed. R. Civ. P. 12(b)(6). To survive a motion to dismiss under Fed. R. Civ. P. 12(b)(6), a complaint must contain sufficient factual matter that “state[s] a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is plausible

1 The FAC includes three amendments. First, the FAC incorporates in part, the exemption requests of Plaintiffs Hickman, Sigafoose, and Brenden. Compare generally Compl. [ECF 1] and Janzen Decl. [ECF 12], with FAC. Second, the FAC provides additional allegations in relation to Plaintiff Brenden’s objection to vaccines based on her pro-life religious belief, allegations that Defendant did not ask Plaintiffs any follow-up questions, and allegations that Defendant sent constant emails reminding Plaintiffs to get vaccinated. FAC ¶¶ 23-25. Lastly, the FAC asserts new theories, namely – wrongful termination, disparate treatment and disparate impact, wrongful reduction in pay, retaliation, failure to provide reasonable accommodations, company-wide, or systemic discriminatory patterns or practice, and hostile work environment. FAC ¶¶ 39, 46. on its face when the factual allegations allow the court to infer the defendant’s liability based on the alleged conduct. Ashcroft v. Iqbal, 556 U.S. 662, 663 (2009). The factual allegations must present more than “the mere possibility of misconduct.” Id. at 678. When considering a motion to dismiss, the court must accept all allegations of material fact

as true and construe those facts in the light most favorable to the non-movant. Burgert v. Lokelani Bernice Pauahi Bishop Tr., 200 F.3d 661, 663 (9th Cir. 2000). But the court is “not bound to accept as true a legal conclusion couched as a factual allegation.” Twombly, 550 U.S. at 555. DISCUSSION Defendant argues that Plaintiffs Hickman, Sigafoose, and Brenden failed to plead prima facie cases of employment discrimination under Title VII, 42 U.S.C. § 2000e, and O.R.S. § 659A.030(1)(a).2 FAC ¶¶ 34-47. Title VII makes it unlawful for an employer to discharge an employee because of their religion. 42 U.S.C. § 2000e-2(a)(1); Heller v. EBB Auto Co., 8 F.3d 1433, 1437 (9th Cir. 1993). The term “religion” encompasses all aspects of religious practice and belief. 42 U.S.C. § 2000e(j); Peterson v. Hewlett-Packard Co., 358 F.3d 599, 602 (9th Cir. 2004).

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