Eliuth M. Alvarez v. Royal Atlantic Developers

Court of Appeals for the Eleventh Circuit·Decided July 2, 2010·No. 08-15358·Published

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

________________________ FILED U.S. COURT OF APPEALS

No. 08-15358 ELEVENTH CIRCUIT JULY 2, 2010

JOHN LEY

CLERK

D. C. Docket No. 07-21333-CV-JAL

ELIUTH M. ALVAREZ,

Plaintiff-Appellant,

versus

ROYAL ATLANTIC DEVELOPERS, INC., a Florida corporation,

Defendant-Appellee.

Appeal from the United States District Court for the Southern District of Florida

(July 2, 2010)

Before CARNES and HULL, Circuit Judges, and GOLDBERG,* Judge. CARNES, Circuit Judge:

*

Honorable Richard W. Goldberg, Judge, United States Court of International Trade, sitting by designation.

Some people are impossible to please. No one can meet their standards and no matter how hard anyone tries, they find fault, criticize, and are unhappy with the result. They demand continuous perfection, which is more than any human being can deliver. The evidence in this Title VII case indicates that Heidi Verdezoto is one of those people. She is the Chief Financial Officer of two closely related, family-owned companies in Miami. As CFO, she supervises the controller of the companies and passes judgment on the performance of the person in that position. And it seems that the judgment she passes is always unfavorable.

The first controller, an Indian-American, was fired because he could not meet Heidi Verdezoto’s standards. Likewise with the second controller, an Anglo- American. The third controller for the companies was our plaintiff, Eliuth Alvarez, a Cuban-American. Alvarez, like the two men of different ethnic backgrounds who came before her, was also going to be fired because she could not meet the Verdezoto standards. If Alvarez had been fired as soon as the decision to let her go was made, her sole claim would have been one for discriminatory discharge, and the district court’s grant of summary judgment against her on that claim could easily have been affirmed on the basis of what we have had occasion to call the Vince Lombardi rule. See Baldwin v. Blue Cross/Blue Shield of Ala., 480 F.3d 1287, 1301 n.1 (11th Cir. 2007) (explaining that no player could accuse the great

coach of discrimination because he treated all of them like dogs).

Alvarez was not, however, fired as soon as the decision was made to replace her. Instead, she was kept on in her position while efforts were being made to find a fourth controller, one who—hope springs eternal—might be able to satisfy Ms. Verdezoto. Alvarez got wind of the plans to replace her and wrote a letter of protest to her bosses, complaining, among other things, about what she perceived to be discrimination against her based on her national origin. The company admits that Alvarez was fired sooner instead of later because of that letter, which it concedes is protected conduct. Given that admission and concession, one would think Alvarez’s retaliation claim would sail past summary judgment, although the damages remedy might be trimmed because she eventually would have been fired anyway.

But the retaliation claim did not drift, much less sail, past the shoals of summary judgment. It ran aground when the district court accepted as valid the company’s four proffered reasons for firing Alvarez sooner instead of later. The two most interesting of those reasons are that it would be “awkward and counterproductive” to keep a disgruntled employee around and that Alvarez could vindictively use her position as controller to sabotage the company’s operations. We have to decide if the company is entitled to summary judgment on those

grounds. If not, the district court’s grant of summary judgment on the retaliation claim must be reversed.

I.

The defendant, Royal Atlantic Developers, Inc., is a Miami real estate development company owned by the Verdezoto family. The Verdezotos, who are of Ecuadorian origin, also own a flower distributor, Royal Flowers International, Inc., which operates out of the same location. Edwin Verdezoto is CEO of Royal Atlantic and president of Royal Flowers, and he makes all final decisions for both companies. Heidi Verdezoto, his sister, is CFO of both companies and reports to him. Donald M. Darrach, the president and general counsel for Royal Atlantic, also reports to Edwin Verdezoto.

During the relevant time, the two companies had about 56 employees, a diverse ethnic group including Colombians, Cubans, Dominicans, Ecuadorians, Guatemalans, Haitians, Hondurans, Nicaraguans, Panamanians, Peruvians, Puerto Ricans, Venezuelans, and Anglos. The controller of Royal Atlantic, who also managed finances for Royal Flowers, reported to Heidi Verdezoto.1 The controller was responsible for creating budgets and financial statements, projecting cash

1 Although the duties of the position involved both companies, the controller was formally employed and paid by Royal Atlantic, which is the only entity sued in this case. For simplicity, we will refer to both companies as “Royal Atlantic” or “the company.”

flows, reconciling bank accounts and monthly statements, arranging wire transfers, handling receivables and payrolls, dealing with property managers, managing several accounting employees, and supervising the two assistant controllers, Joel Underwood (who is Anglo) and Rosario Ruiz (who is Cuban).2 Heidi Verdezoto had “very high expectations” for the controller position and could not find anyone who could live up to them. In late 2005 and early 2006, Heidi hired and quickly fired two controllers.3 Al Agrawal, who is Indian, lasted about three months, and Dennis Leach, who is Anglo, lasted about two months. The record does not contain any details about the job performance of Agrawal or Leach or the particular circumstances under which they were fired, aside from Heidi’s explanation that neither of them “met [her] expectations.”

On May 2, 2006, Eliuth Alvarez was hired as controller after a headhunter referred her to Royal Atlantic. The Verdezotos both interviewed Alvarez and jointly made the decision to hire her. Alvarez, an American citizen of Cuban origin, is a CPA with eighteen years of experience in accounting, auditing, finance,

2 Ruiz, who was fired around the same time as Alvarez, filed a separate lawsuit against Royal Flowers asserting similar claims of discrimination. After the district court denied the defendant’s motion for summary judgment, the parties settled.

3 From this point on, when talking about them separately we will refer to Heidi Verdezoto and Edwin Verdezoto by their first names, not as a sign of familiarity but for convenience, to minimize stilted language, and to avoid confusing references to two parties with the same last name.

and controllership. When she arrived at the company, the controller position had been vacant for two months and the company was about a year behind in its accounting. One of her responsibilities was to bring the books up to date.

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