Denise Badgerow v. REJ Properties, Incorporated, e

CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 11, 2020
Docket19-30687
StatusPublished

This text of Denise Badgerow v. REJ Properties, Incorporated, e (Denise Badgerow v. REJ Properties, Incorporated, e) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denise Badgerow v. REJ Properties, Incorporated, e, (5th Cir. 2020).

Opinion

Case: 19-30584 Document: 00515561595 Page: 1 Date Filed: 09/11/2020

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit _______________________ FILED September 11, 2020 No. 19-30584 Lyle W. Cayce consolidated with Clerk No. 19-30687 _______________________

DENISE A. BADGEROW, on behalf of herself and a class of those similarly situated,

Plaintiff - Appellant Cross-Appellee

v.

REJ PROPERTIES, INCORPORATED, doing business as Walters, Meyer, Trosclair and Associates,

Defendant - Appellee Cross-Appellant

Appeals from the United States District Court for the Eastern District of Louisiana

Before JOLLY, GRAVES, and DUNCAN, Circuit Judges. E. GRADY JOLLY, Circuit Judge: Denise Badgerow is a former Associate Financial Advisor (AFA) for REJ Properties, Inc. She was fired and then filed this gender discrimination suit in federal district court. Badgerow appeals the district court’s summary Case: 19-30584 Document: 00515561595 Page: 2 Date Filed: 09/11/2020

No. 19-30584 c/w No. 19-30687

judgment-dismissal of her claims against REJ. 1 REJ cross appeals the district court’s denial of attorney’s fees. We affirm the district court’s grant of summary judgment on Badgerow’s disparate pay, hostile work environment, and breach of contract claims. We also affirm the district court’s denial of attorney’s fees. But, because there is a genuine dispute of material fact with respect to whether REJ’s proffered reason for Badgerow’s discharge is mere pretext for unlawful retaliation, we reverse and vacate the district court’s grant of summary judgment on Badgerow’s Title VII retaliation claim. We remand only that aspect of the case for further proceedings. I. Badgerow worked at Louisiana-based REJ from January 2014 to July 2016. In July 2016, REJ terminated Badgerow’s employment. In September 2017, Badgerow filed this gender discrimination suit in the Eastern District of Louisiana. After discovery, REJ moved for summary judgment. In connection with REJ’s motion, the parties filed a series of deposition transcripts, affidavits, and exhibits that revealed the following facts. REJ was a small private financial advisory practice affiliated with Ameriprise Financial Services, Inc. The principals of REJ, during the relevant time of this lawsuit, were Gregory Walters, Thomas Meyer, and Ray Trosclair, all of whom were Ameriprise Franchise Financial Advisors. Walters originally hired Badgerow as a paraplanner, but she was later promoted to serve as one of his AFAs. Under REJ’s structure, each financial advisor was a franchisee of Ameriprise, and an AFA obtained her license by working under one of the

1 Badgerow does not address the dismissal of her Title VII disparate treatment and Louisiana Employment Discrimination Law claims. Thus, she has abandoned those claims on appeal. See United States v. Thibodeaux, 211 F.3d 910, 912 (5th Cir. 2000). 2 Case: 19-30584 Document: 00515561595 Page: 3 Date Filed: 09/11/2020

franchisees. Further, Badgerow testified that because she worked under Walters, he was the only REJ principal who could fire her. Badgerow’s promotion to the AFA position enabled her to earn commissions, but REJ deducted Badgerow’s salary from her earned commissions when the commissions exceeded the amount of her salary draw. According to Badgerow, the salary draw against commissions compensation scheme violated an agreement she had with Walters to pay her $30,000 in salary plus commissions. During Badgerow’s tenure at REJ, three senior male AFAs—David Ponson, Lloyd Kern, and Andrew Walters—were paid a fixed salary plus commissions. Evan Weibel, who began working as an AFA approximately seven months before Badgerow, was also paid a base salary. But Nathan Walters, Christopher Callahan, and John Meyer, who became AFAs after Badgerow, were paid in salary draws against commissions, the same as Badgerow. According to Badgerow, Thomas Meyer, one of the principals, would bully her through Skype and text messages. For example, Meyer, although he had no direct authority over her, would message Badgerow to criticize how she clocked in and out on her time card. Badgerow felt that Meyer intentionally singled her out for unfair treatment, and she testified that she believed Meyer’s behavior towards her was because she is a woman. Badgerow did not support her opinion with other testimony that tied Meyer’s messages to her gender. Badgerow, however, testified that Gregory Walters once told her that Meyer was a misogynist and speculated that Meyer “did not want a female . . . as a financial advisor.” Walters, however, did not testify to that effect. Badgerow claims that Meyer’s bullying included enlisting others to spread rumors that she had engaged in sexually suggestive conduct. 3 Case: 19-30584 Document: 00515561595 Page: 4 Date Filed: 09/11/2020

On July 13, 2016, Badgerow discussed concerns specifically about REJ’s failure to comply with Ameriprise regulations regarding pay and how REJ treated her with Marc Cohen, an Ameriprise compliance officer who visited the local office annually. Badgerow told Cohen that she “was not sure if she was not treated fairly because she was not family or because she is a woman.” 2 On July 26, 2016, Cohen told Walters about the conversation he had had with Badgerow and advised Walters that he should consider consulting an attorney. That same day, Walters terminated Badgerow’s employment. According to Walters, he fired Badgerow because of the stress of dealing with constant complaints about Badgerow from her coworkers. II. Badgerow then sued REJ, asserting claims of hostile work environment, gender discrimination, disparate pay, Title VII and Louisiana Employment Discrimination Law retaliation, 42 U.S.C. § 1985 conspiracy, and breach of contract. 3 Badgerow’s Title VII disparate treatment claims were brought on behalf of herself and a putative class of similarly situated individuals. Badgerow eventually moved for leave to amend her complaint, which the district court granted in part, allowing Badgerow to withdraw the class action, conspiracy, and joint employer liability claims. Subsequently, the district court granted REJ’s motion for summary judgment on Badgerow’s remaining claims against it. REJ then moved to recover the attorney’s fees it had incurred in defending against Badgerow’s action. The district court denied the motion.

Some of the AFAs were related to some of the principals; except Badgerow, all the 2

AFAs occupying her job classification were male. 3Badgerow also named Ameriprise as a defendant, alleging joint employer liability. The district court granted Ameriprise’s motion to compel arbitration as to each of Badgerow’s claims against it, and those claims are not the subject of this appeal. 4 Case: 19-30584 Document: 00515561595 Page: 5 Date Filed: 09/11/2020

Badgerow then moved for the district court to reconsider its summary judgment ruling. 4 Badgerow’s motion relied, in part, on an untimely supplemental expert report, which she argued demonstrated that she needed additional discovery on her pay disparity claims. The district court denied Badgerow’s motion. REJ then moved to recover the attorney’s fees it incurred in connection with Badgerow’s motion to reconsider, and again, the district court declined to award attorney’s fees. Badgerow appeals the dismissal of her complaint. 5 REJ cross appeals the district court’s denial of its supplemental motion for attorney’s fees. III. We review a district court’s grant of summary judgment de novo, viewing all the facts and evidence in the light most favorable to the non-movant. 6 Juino v. Livingston Par. Fire Dist. No.

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