EEOC v. Ryan's Pointe Houston

CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 27, 2022
Docket19-20656
StatusUnpublished

This text of EEOC v. Ryan's Pointe Houston (EEOC v. Ryan's Pointe Houston) 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
EEOC v. Ryan's Pointe Houston, (5th Cir. 2022).

Opinion

Case: 19-20656 Document: 00516486225 Page: 1 Date Filed: 09/27/2022

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

FILED September 27, 2022 No. 19-20656 Lyle W. Cayce Clerk

Equal Employment Opportunity Commission,

Plaintiff—Appellant,

Magali Villalobos,

Intervenor Plaintiff—Appellant,

versus

Ryan’s Pointe Houston, L.L.C.; Advantage Property Management, L.L.C.,

Defendants—Appellees.

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:15-CV-2782

Before Richman, Chief Judge, and Higginbotham and Willett, Circuit Judges. Priscilla Richman, Chief Judge:*

* Pursuant to 5th Circuit Rule 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5th Circuit Rule 47.5.4. Case: 19-20656 Document: 00516486225 Page: 2 Date Filed: 09/27/2022

No. 19-20656

The Equal Employment Opportunity Commission filed suit against Ryan’s Pointe Houston, L.L.C. and Advantage Property Management, L.L.C., alleging the companies had engaged in national origin and sex-based discrimination. Magali Villalobos, the subject of the adverse employment action at issue, intervened. The district court granted summary judgment in favor of the defendants. We reverse and remand for further proceedings. I Magali Villalobos is a United States citizen originally from Mexico. Villalobos previously served as a property manager for Ryan’s Pointe Houston (Ryan’s Pointe), the owners of a 280-unit apartment complex managed by Advantage Property Management (Advantage). She was fired from that position on March 21, 2012. Villalobos subsequently alleged that this adverse employment action was the result of national origin and sex- based discrimination. Villalobos was originally hired as a leasing agent at the complex in May of 2011. Tawana Rowghani, who was then serving as the complex’s property manager, interviewed Villalobos for that position. Rowghani had worked with Villalobos previously and was excited at the prospect of the two working together again. At the time Villalobos was hired, the complex was owned and operated by CNC Management. Villalobos was subsequently promoted to assistant manager. During Villalobos’s tenure as assistant manager, Ryan’s Pointe took ownership of the apartment complex. Ryan’s Pointe’s owners, including Robert Hayman, Michael Treiman, and Julian Blum, had purchased the property in order to renovate it and resell it for a profit. Initially, Blum oversaw the day-to-day management of the property. Accordingly, Villalobos reported to Rowghani who, in turn, reported to Blum.

2 Case: 19-20656 Document: 00516486225 Page: 3 Date Filed: 09/27/2022

Rowghani’s role began to expand almost immediately after Ryan’s Pointe took ownership of the complex. Specifically, Rowghani became a regional director, responsible for overseeing several apartment complexes owned by Ryan’s Pointe. To backfill her previous position, Rowghani eventually decided to interview Villalobos for the property manager position. Blum also interviewed Villalobos before she was hired as the complex’s property manager on January 1, 2012. Around the time Villalobos began serving as property manager, a series of management changes occurred at Ryan’s Pointe. Hayman fired Rowghani, and Blum ceased overseeing the day-to-day management of the complex. A belief that the property was underperforming prompted both personnel changes. Hayman and Treiman then formed Advantage in order to manage the apartment complex. On February 9, 2012, Advantage hired Bobbie Dusek to serve as regional supervisor. Dusek then began a thirty-day review of each of her subordinates, one of whom was Villalobos. As part of this review, Dusek immediately came to question Villalobos’s job performance. According to her deposition testimony, Dusek grew concerned with at least three aspects of Villalobos’s job performance. First, Villalobos was allegedly failing to prepare vacant units for rental in a timely manner. Second, Villalobos was allegedly failing to submit invoices in a timely fashion. Lastly, Villalobos was supposedly doing a poor job of managing the complex’s delinquencies—the outstanding receivables that result when tenants fail to pay rent on time. The January and February delinquency reports, for example, showed $11,567.63 and $7,128.40 in delinquencies, respectively. According to Dusek, the complex’s delinquencies should not have exceeded $2,000. In an effort to correct these deficiencies, Dusek allegedly provided Villalobos with oral and written warnings that her job performance fell below standards.

3 Case: 19-20656 Document: 00516486225 Page: 4 Date Filed: 09/27/2022

On February 28, 2012, well within her thirty-day review period, Dusek hired a headhunter to find a replacement for Villalobos. The headhunter was instructed to keep the inquiry “super confidential.” Shortly thereafter, Dusek interviewed Rebecca Johnson for the position. Johnson, who appears white, was ultimately hired as the complex’s property manager on March 9th. Dusek then fired Villalobos on March 21st. According to Dusek, her decision was based entirely on Villalobos’s poor job performance. Villalobos was immediately concerned that her firing had not, in fact, been motivated by her performance as the property’s manager. She filed a complaint with the Equal Employment Opportunity Commission (EEOC) alleging she was fired because of her national origin and because she had recently informed her employers that she was pregnant. The EEOC subsequently filed suit against Ryan’s Pointe and Advantage under Title VII. Villalobos intervened on behalf of the plaintiff. Taken in the light most favorable to the EEOC, resulting discovery in the case revealed a highly toxic work environment at Ryan’s Pointe and Advantage. 1 According to deposition testimony, Hayman, Blum, and Treiman expressed a desire to change “the demographics” of the complex, a term several witnesses testified was often times synonymous in the industry with the race of the tenants. Testimony also indicated that Hayman referred to a tenant as “a trashy Mexican” and that Blum referred to a tenant as “a dumb Mexican.” Some of the owners were likewise alleged to have made improper comments about the racial makeup of the staff. Hayman, for instance, expressed dismay at the fact that the office staff were “all

1 See Harville v. City of Houston, 945 F.3d 870, 874 (5th Cir. 2019) (citing Alkhawaldeh v. Dow Chem. Co., 851 F.3d 422, 425-26 (5th Cir. 2017)) (noting that appellate courts “review a district court’s grant of summary judgment de novo, viewing all facts and drawing all inferences in a light most favorable to the non-moving party”).

4 Case: 19-20656 Document: 00516486225 Page: 5 Date Filed: 09/27/2022

Mexicans.” Both Hayman and Treiman likewise expressed a desire to “change the demographic[s]” of the staff. Testimony also called into question Dusek’s contention that Villalobos was fired entirely based on her poor job performance. According to an affidavit Dusek provided to the EEOC, she was told by Hayman and Treiman to begin “working toward” Villalobos’s termination when she started work at Advantage. Importantly, Hayman had also told Dusek to hire a “higher class of individual with the look of Ken and Barbie,” which Dusek understood as a hiring preference for those who are “petite, attractive, young[,] and Caucasian.” Indeed, Hayman’s preference for a “white” staff was made known on multiple occasions. Evidence likewise seemingly contradicts Dusek’s assertions that Villalobos received oral and written warnings concerning her job performance. According to Villalobos, she was never counseled on her allegedly poor job performance.

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EEOC v. Ryan's Pointe Houston, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eeoc-v-ryans-pointe-houston-ca5-2022.