Ellis v. Costco Wholesale Corp.

372 F. Supp. 2d 530, 2005 U.S. Dist. LEXIS 15139, 86 Empl. Prac. Dec. (CCH) 42,003, 2005 WL 1278174
CourtDistrict Court, N.D. California
DecidedMay 31, 2005
DocketC 043341MHP
StatusPublished
Cited by16 cases

This text of 372 F. Supp. 2d 530 (Ellis v. Costco Wholesale Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellis v. Costco Wholesale Corp., 372 F. Supp. 2d 530, 2005 U.S. Dist. LEXIS 15139, 86 Empl. Prac. Dec. (CCH) 42,003, 2005 WL 1278174 (N.D. Cal. 2005).

Opinion

MEMORANDUM & ORDER

PATEL, District Judge.

Shirley Rae Ellis, Leah Horstman, and Elaine Sasaki, current and former employ *533 ees of defendant Costco Wholesale Corporation, have brought a putative class action alleging gender discrimination in defendant’s promotion and management practices. Pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. section 2000e, et seq., plaintiffs allege that defendant’s promotion system has a disparate impact on female employees, that Costco’s management discriminates against women in promotions, and that defendant has retaliated against persons seeking redress for discrimination. In addition, plaintiffs bring pendent causes of action alleging gender discrimination in violation of the Fair Employment and Housing Act, California Government Code section 12940, et seq. Now before the court is defendant’s motion under 28 U.S.C. section 1404(a) to transfer plaintiffs’ complaint to the District of Colorado, or in the alternative, to the Western District of Washington or the Southern District of California. After considering the parties’ arguments and submissions, and for the reasons set forth below, the court rules as follows. BACKGROUND 1

I. The Parties

A. Plaintiff Shirley Rae Ellis

Plaintiff Ellis has worked as an Assistant Manager at Costco since 1998. Before her employment with defendant, Ellis worked as a General Manager at Wal-Mart’s Sam’s Club, a position similar in function and duties to Costco’s General Manager position. Ellis began her employment with defendant in a Michigan warehouse, but subsequently transferred, upon her request, to a Costco facility in Colorado in 2000. Def s Mot. at 3.

Ellis alleges that throughout her time with the company, she repeatedly advised Costco managers of her interest in a promotion to General Manager, as well as a willingness to consider a promotion located anywhere in the country. Due to defendant’s failure to post or otherwise notify employees of management openings, Ellis was unable to apply for specific promotional opportunities. In a letter dated August 29, 2002, Ellis expressed her “burning desire to help the company be successful” and to advance within the company, stating that she wanted to learn how selection of General Managers worked, where she stood as a candidate for promotion, and what she might need to do to become a General Manager. Kadue Dec. (Oct. 18, 2004), Exh. C. She wrote: “If there is not an opportunity [in this region], would you consider recommending me to another Regional VP. I would love to stay in Colorado, but I love Southern California and Texas as well. I would definitely consider any promotional opportunity.” Id. She said that she was “trying to find out where [she] fit in the Costco Wholesale picture.” Id. No promotional opportunities surfaced.

Plaintiff filed a charge of discrimination with the EEOC on or about October 30, 2002, alleging failure to promote on the basis of gender. She received a Notice of Right to Sue in relation to the charge. In 2004, she filed a second charge of discrimination with the EEOC, alleging retaliation, including a disadvantageous warehouse transfer, in response to her first EEOC grievance.

B. Plaintiff Leah Horstman

Plaintiff Horstman was hired for the position of “caller” in defendant’s warehouses in 1981. She held numerous positions over the course of her twenty-three *534 year employment with defendant, including fifteen years in management positions. The full span of her employment was within Costco’s San Diego Region. Horstman EEOC Aff. at 1. She remained an employee of defendant until 2004, most recently as a Receiving Manager in the La Mesa warehouse.

Horstman alleges that she informed defendant of her availability and interest in promotion to the position of Assistant Manager, and she may have advised Costco of her willingness to relocate outside of the San Diego area or outside of California. 2 Due to defendant’s failure to post openings or use a standardized application procedure, she did not apply for specific positions. Plaintiff filed a charge of discrimination with the EEOC and the California Department of Fair Housing and Employment on or about October 11, 2003.

C. Plaintiff Elaine Sasaki

In 1985, plaintiff Elaine Sasaki began her twenty-year career with Costco as a front-end cashier. From 1995-96, Sasaki worked in Livermore, California as an administrative assistant to the Regional Vice Presidents of the Bay Area Region. In 1996, Sasaki was promoted to Assistant Manager, a position she still holds today. Other than a one-year stint at a warehouse in Texas, Sasaki’s employment has been within Costco’s Bay Area Region, in several different warehouses.

Sasaki alleges that her upward rise at Cosco has been thwarted by gender discrimination. Sasaki has repeatedly expressed her interest in promotion to a General Manager position by speaking to Vice Presidents and Senior Vice Presidents within her region as well as to management in other regions. See Sasaki Dec. at ¶ 3. On the basis of representations that growth in the Texas region promised better prospects for promotion, she transferred there in 2001. She returned to the Bay Area Region one year later, again on the basis of representations that growth would provide greater opportunities for advancement. In September, 2003, plaintiff wrote a letter to Judy Vad-ney, Director of Human Resources located in Issaquah, Washington, expressing her concern that she was being overlooked for promotion due to her gender. Sasaki Dep. at 19:1-7. Due to defendant’s failure to post openings or use an application procedure, she did not apply for specific positions. She filed a discrimination charge with the EEOC on March 1, 2005 and is presently awaiting her Notice of Right to Sue.

D. Costco Wholesale Corporation

Defendant is a corporation headquartered in Issaquah, Washington, which operates “cash-and-carry membership warehouses” throughout the United States. Defs Mot. (Oct. 15, 2004) at 2. Costco’s nationwide operations are divided into three divisions (Southwest, Eastern, and Northern/Midwest), each governed by an Executive Vice President. See Zook Dec. at ¶ 2, Zook Dec., Exh. A. These divisions are in turn divided into regions managed by Senior Vice Presidents. Id. Relevant to the present analysis, Costco’s Southwest *535 Division, headquartered in San Diego, encompasses the San Diego Region (which includes operations in Southern California, Colorado, Arizona, Utah, Nevada, and New Mexico), the Los Angeles Region, and the Texas Region. Id.; Vaehris Dec. ¶2. Costco’s Northern/Midwest Division, headquartered in Issaquah, Washington, encompasses the Bay Area Region, the Midwest Region, and the Northwest Region.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(PS) Cianchetta v. Driscoll
E.D. California, 2025
Coleman v. Trican Well Service
89 F. Supp. 3d 876 (W.D. Texas, 2015)
Barnes & Noble, Inc. v. LSI CORP.
823 F. Supp. 2d 980 (N.D. California, 2011)
Arroyo-Pérez v. Demir Group International
733 F. Supp. 2d 314 (D. Puerto Rico, 2010)
Vernon v. Qwest Communications International, Inc.
643 F. Supp. 2d 1256 (W.D. Washington, 2009)
Turnley v. Banc of America Investment Services, Inc.
576 F. Supp. 2d 204 (D. Massachusetts, 2008)
Costco Wholesale Corp. v. Superior Court
74 Cal. Rptr. 3d 345 (California Court of Appeal, 2008)
United States v. Lafferty
Third Circuit, 2007
Costco Wholesale Corp. v. Liberty Mutual Insurance
472 F. Supp. 2d 1183 (S.D. California, 2007)
Onyeneho v. Allstate Insurance
466 F. Supp. 2d 1 (District of Columbia, 2006)
Tamashiro v. Harvey
487 F. Supp. 2d 1162 (D. Hawaii, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
372 F. Supp. 2d 530, 2005 U.S. Dist. LEXIS 15139, 86 Empl. Prac. Dec. (CCH) 42,003, 2005 WL 1278174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-costco-wholesale-corp-cand-2005.