Deborah Tobacco v. Avera McKennan

Court of Appeals for the Eighth Circuit·Decided August 10, 2026·No. 25-2881·Published

Opinion

United States Court of Appeals For the Eighth Circuit

No. 25-2881

Deborah A. Tobacco

Plaintiff - Appellant

v.

Avera McKennan, doing business as Avera Research Institute

Defendant - Appellee

Appeal from United States District Court for the District of South Dakota - Western

Submitted: May 12, 2026 Filed: August 10, 2026

Before L.R. SMITH, BENTON, and STRAS, Circuit Judges.

BENTON, Circuit Judge.

Deborah A. Tobacco sued her former employer, Avera McKennan (Avera), doing business as Avera Research Institute (ARI), for race discrimination. The district court1 granted summary judgment to Avera, finding Tobacco failed to

1 The Honorable Camela C. Theeler, United States District Judge for the District of South Dakota.

establish a prima facie case of race discrimination, and that she failed to show ARI’s reduction in force was a pretext for discrimination. Having jurisdiction under 28 U.S.C. § 1291, this court affirms.

I.

ARI, a research institute within Avera, conducts health studies for underserved populations, particularly Native Americans. ARI had offices in Sioux Falls, Rapid City, and Pine Ridge, South Dakota.

In 2017, Dr. Amy Elliott, ARI’s Chief Clinical Research Officer, recruited Tobacco, a Native American, as a Clinical Research Manager. She worked primarily in the Pine Ridge office. Tobacco supervised one full-time Research Assistant, Paul Forney, also Native American. According to Tobacco, ARI considered her race in hiring her, “because of its perceptions that her race would make her qualified to connect with Native American research study participants, and for the appearance of including a Native American person on its management team.”

ARI—largely grant-funded—paid almost all its employees’ wages with grant funds. Any internal (non-grant) money paid only those in ARI’s leadership. Most of Tobacco’s salary was funded with internal money. The salaries of the two other managers (at Rapid City and Sioux Falls) were paid primarily from grant funds. ARI attributed this difference to fewer grants awarded to the Pine Ridge office.

In 2020, Tobacco and Forney were assigned to a specific study, Dr. Arielle Deutsch’s Systems of Native Community Health (SYNCH). For this study, ARI had to “recruit specific numbers of participants” from Pine Ridge and Rapid City. Tobacco and Forney—the only Native American employees on the study—recruited participants door-to-door in Pine Ridge.

Rebecca Andrews, the Clinical Research Manager for Rapid City, initially led the SYNCH study. She managed two part-time Research Assistants, Nick Palko and

Kylie Medler. She also worked on other projects, supervising over 20 employees in total. According to Tobacco, the Rapid City office had recruiting problems in 2022. As a result, Forney assisted in Rapid City. Tobacco claimed no one told her about Forney’s new assignments, which frustrated her. Dr. Deutsch later directed Tobacco to join Forney in assisting with the SYNCH study in Rapid City. According to ARI, “[t]his was because there was not much left to do with the SYNCH project at the Pine Ridge location, and there was a lot more to be done in Rapid City.”

That same year, Tobacco replaced Andrews as the lead on the SYNCH study.

ARI called this a “better” redistribution of work across its different offices. The lead position did not change Tobacco’s salary, benefits, or job description. According to Dr. Deutsch and Teresa Frederick—the Human Resources Officer—Tobacco was not the manager of the SYNCH study, but the “lead,” with the responsibility for “scheduling the meetings, handling the meetings.”

As lead, Tobacco prioritized participant recruitment. She directed Palko and Medler to conduct door-to-door recruitment in Rapid City. They expressed concern about their safety. Rapid City had experienced shootings, stabbings, and other forms of violence. Responding to their concerns, Tobacco invited Palko and Medler to join Forney and her in door-to-door recruitment in Pine Ridge. Tobacco also suggested that ARI provide self-defense training. Palko and Medler refused Tobacco’s invitation and suggestion. They went to Andrews, their manager. Palko testified that Andrews told Medler and him to “take a pause on going door-to-door recruiting until she could figure out the safety concerns issue.” According to Frederick in HR, Andrews remained Palko and Medler’s manager.

According to Tobacco, Dr. Deutsch—the SYNCH principal investigator—

told her she had authority to direct Palko and Medler to recruit door-to-door. Tobacco viewed Palko’s and Medler’s refusals as insubordination. Forney, the other Native American on the study, said that Palko and Medler “appeared [to be] afraid of interacting with the Native community.” Forney told Tobacco that “he felt like ARI was treating them like ‘token Indians’ for the SYNCH project.”

Andrews proposed an alternative video-recruitment method for Rapid City to her supervisor, Christine Hockett. Hockett supported the alternative, testifying that Palko’s and Medler’s safety concerns “had nothing to do with Native American communities,” “or with [Tobacco] being the person managing or leading the study.” This alternative eventually reached Dr. Deutsch.

On March 22, 2022, Tobacco and Dr. Deutsch, one-on-one, discussed “systemic race discrimination against Native people in Rapid City, weak efforts at DEI training, and their respective personal struggles with how to talk about race discrimination in the SYNCH team setting.” They also discussed “discriminatory microaggressions.” According to Tobacco, she shared her belief that generalized microaggressions and “discriminatory feelings” drove Palko’s and Medler’s refusals to recruit. She also told Dr. Deutsch she found the ARI workplace difficult, expressing concerns about “mak[ing] things worse” by speaking up about the microaggressions. Dr. Deutsch testified she interpreted Tobacco’s statements about discrimination as limited to the context of the research at ARI. She believed Tobacco was discussing systemic racism, not discrimination against her at ARI. Dr. Deutsch did not report this discussion to HR.

According to Tobacco, her work environment grew only more chaotic and demeaning after this conversation. Tobacco stated that for months Palko and Medler continued to ignore her directives. Both Forney and she “were frustrated with the fact that Forney was having to drive to Rapid City to do Palko and Medler’s work.” Tobacco asked HR to explore disciplinary action against Palko and Medler. According to her, HR took no action for these complaints.

At a SYNCH team meeting, Tobacco confronted Palko and Medler about why they were not going into the Native American communities. They replied with their fears of violence. Tobacco testified she viewed their fears as discriminatory. Tobacco then asked Jyoti Angal (her supervisor) and Andrews (Palko and Medler’s manager), “Why is it okay for me and [Forney] to go out in a dangerous community?” She told Dr. Deutsch, Angal, and Andrews that this difference in

treatment was “discriminatory” and “outright racist.” According to Tobacco, they responded with silence.

At another SYNCH team meeting, Tobacco shared “she felt tokenized in the study.” Palko testified that Medler and he reported Tobacco’s statement to Andrews. Palko did not recall HR contacting him afterwards.

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