Dwuan Hammond v. Sysco Corp.

CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 21, 2023
Docket23-5385
StatusUnpublished

This text of Dwuan Hammond v. Sysco Corp. (Dwuan Hammond v. Sysco Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dwuan Hammond v. Sysco Corp., (6th Cir. 2023).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 23a0535n.06

Case No. 23-5385

UNITED STATES COURT OF APPEALS FILED FOR THE SIXTH CIRCUIT Dec 21, 2023 KELLY L. STEPHENS, Clerk

) DWUAN HAMMOND, ) ON APPEAL FROM THE Plaintiff-Appellant, ) UNITED STATES DISTRICT ) COURT FOR THE WESTERN v. ) DISTRICT OF TENNESSEE ) SYSCO CORPORATION, ) Defendant-Appellee. ) OPINION )

Before: MOORE, McKEAGUE, and KETHLEDGE, Circuit Judges.

McKEAGUE, Circuit Judge. Dwuan Hammond claims that his former employer of

nearly twenty years, Sysco Corporation, refused to promote him to upper-level jobs because of his

race. And after he reported his concerns of discrimination, he believes Sysco retaliated against

him. The district court granted Sysco summary judgment on both of Hammond’s claims. Finding

no error, we AFFIRM.

I. BACKGROUND

A. Hammond’s Early Work at Sysco

Sysco distributes food and related products throughout the United States. Given its

national coverage, Sysco organized its operations into tiers during the time relevant to this case.

Overseeing the entire operation was the company’s central executive leadership. The corporation

then divided its operations into geographic markets: for example, the Northeast or the South. And No. 23-5385, Hammond v. Sysco Corp.

those markets were sub-divided into operating companies serving a specific metropolitan area like

Grand Rapids.

Hammond (a Black man) joined Sysco in 2000. He began as an internal auditor at the

general corporate level. While in that position, Hammond performed “operational and financial

audit[s]” on Sysco’s subsidiaries. Hammond Dep., R.79-6 at PageID 434.

For a while, his employment at Sysco progressed smoothly. After two and a half years as

an internal auditor, Sysco asked Hammond to serve as a controller for its East Wisconsin operating

company. Functionally, that position required Hammond to act as the organization’s financial

leader. Hammond was named the operating company’s director of finance just six months later.

Despite the change in title, Hammond remained “responsible for all the finance.” Hammond Resp.

to Facts, R.93-1 at PageID 654.

In mid-2005, Hammond left Sysco for a competitor. But he did not stay for long.

Hammond returned to Sysco in November 2005. Again, he had a new title. For the next

eight years, he would serve as vice president and chief financial officer of the Grand Rapids

operating company. During his time as VP/CFO, Hammond led the operating company’s financial

organization and was a partner to the president. In 2013, Hammond became VP/CFO of a “larger

subsidiary”—the Memphis operating company. Hammond Dep., R.79-6 at PageID 443.

Hammond (at least initially) excelled in his Memphis role. He received a high

rating—significantly above target—in his July 2014 annual performance review. And three people

sponsored Hammond for his individual development plans, which were designed to help him

further develop his skills.

-2- No. 23-5385, Hammond v. Sysco Corp.

B. Hammond’s Pursuit of Upper-Level Positions

Hammond then started pursuing market-level VP/CFO and operating company president

positions. Up to that point, according to one Sysco employee, no Black people had ever been

promoted to those positions.

Hammond’s first attempt came in the fall of 2015. Sysco had an opening for VP/CFO of

its Northeast market. Market VP/CFOs are generally the market’s lead finance person. One of

the job’s minimum qualifications is “10 years [of] finance or accounting management experience.”

Market VP/CFO Job Description, R.79-4 at PageID 364. But Hammond was not selected for the

Northeast market job. Bill Mastrosimone—the Sysco executive charged with selecting a

candidate—hired Jason Calabrese instead. Calabrese interviewed well, had roughly fifteen years

of finance leadership experience, and was already located in that market. Mastrosimone thought

Hammond was not as qualified as Calabrese because Hammond had less “well-rounded finance

leadership experience.” Mastrosimone Decl., R.79-11 at PageID 580.

It did not take long, however, for Hammond to receive a market-level role. In early 2016,

he started as director of revenue management for Sysco’s Mideast—later South—market. He was

the only Black member of the South market’s team. Hammond viewed that position as an

opportunity to become a “complete, more well-rounded” applicant. Hammond Dep., R.79-6 at

PageID 448. As director of revenue management, Hammond had to focus on profitability and

manage VPs of sales. Before then, Hammond did not “have [direct] Sysco sales supervisory

experience.” Id. At most, he had worked closely with a VP of operations.

Around the same time that Sysco promoted Hammond to his market-level position, another

market VP/CFO position opened up. Now, it was for the Rocky Mountain (later Mountain Central)

market. But Hammond never applied for that job. The market president, Rich Johnston, hired

-3- No. 23-5385, Hammond v. Sysco Corp.

Roger Wilder. That selection did not surprise Hammond. Wilder was the “front runner” because

Sysco was eliminating his corporate position, and he was “just as qualified” as Hammond.

Hammond Resp. to Facts, R.93-1 at PageID 662. Indeed, Wilder had nearly two decades of

experience in various financial leadership roles.

In early 2017, another new opportunity arose. The president of Sysco’s Memphis operating

company, Pete Scatamacchia, was leaving Sysco. To take his place, the company wanted someone

with substantial experience in (1) leadership “over sales or operations,” (2) “profit and loss”

responsibilities, and (3) “large team leadership.” Id. at 655. Additionally, Sysco focused its

selection process on those who had served as an executive VP for one of its operating companies.

Educational background was not one of the considerations. Nor was Scatamacchia’s

recommendation.

Sysco believed Charles Whitby checked all the necessary boxes. Whitby had served as the

executive VP for one of the corporation’s largest operating companies—Sysco Chicago. Before

that, he was the president of one of Sysco’s competitors. In Sysco’s view, Hammond’s

qualifications did not stack up as well. Though he had a business and master’s degree (which

Whitby did not), Hammond was not an executive VP and lacked the necessary sales leadership

skills. Sysco ultimately hired Whitby.

By the end of 2017, things weren’t looking up for Hammond.

First, he missed out on another market-level VP/CFO position—one for the South market.

However, he never applied for the role. Sysco hired John Summers Miller, who had more than

fifteen years of financial leadership experience in the industry.

Second, Hammond’s work performance began to decline. His supervisor, Trey Kidd,

received reports of poor communication and leadership between Hammond and the VPs in sales.

-4- No. 23-5385, Hammond v. Sysco Corp.

Some at Sysco, including senior director Becca Abbate, recommended “moving him out of the

company.” Abbate Email, R.93-3 at PageID 738. Kidd instead discussed the performance issues

with Hammond during his mid-year review. Ken Jaycox, a Sysco employee who Hammond

testified previously recommended him for an executive VP position, also reached out to

Hammond. Among other things, Jaycox raised concerns about Hammond’s leadership

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