Equal Employment Opportunity Commission v. Crye-Leike, Inc.

800 F. Supp. 2d 1009, 2011 U.S. Dist. LEXIS 85752
CourtDistrict Court, E.D. Arkansas
DecidedAugust 3, 2011
Docket4:10-cv-02070
StatusPublished
Cited by4 cases

This text of 800 F. Supp. 2d 1009 (Equal Employment Opportunity Commission v. Crye-Leike, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Crye-Leike, Inc., 800 F. Supp. 2d 1009, 2011 U.S. Dist. LEXIS 85752 (E.D. Ark. 2011).

Opinion

MEMORANDUM AND ORDER

SUSAN WEBBER WRIGHT, District Judge.

The Equal Employment Opportunity Commission (EEOC or Commission) brings this action against Crye-Leike, Inc. and its wholly-owned subsidiary, Crye-Leike of Arkansas, Inc. d/b/a Bankers Asset Management (collectively, Crye-Leike), pursuant to 42 U.S.C. § 1981a and Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., to redress alleged discrimination on the basis of race (black) and retaliation. The EEOC claims that intervening plaintiffs Rosalind Brown, Lisa Martin, Kenya Ransom, Brandy Robinson, and a class of black applicants were denied employment with Crye-Leike because of their race, that intervening plaintiff Stephanie Harvill was retaliated against for opposing discrimination and participating in a black applicant’s race discrimination lawsuit, and that intervening plaintiff Vicki Holcomb and interested party Christy Lute (who has not intervened in this action to date) were retaliated against for participating in a black applicant’s race discrimination lawsuit. The EEOC additionally alleges that Crye-Leike destroyed and failed to maintain and preserve applications of black applicants in violation of 29 C.F.R. § 1602.14 — Preservation of Records Made or Kept.

The matter is before the Court on joint motion of Crye-Leike and the intervening plaintiffs for summary judgment based on the failure of the EEOC to conciliate in good faith [doc.# 17]. The EEOC has responded in opposition to Crye-Leike’s and the intervening plaintiffs’ joint motion, Crye-Leike and the intervening plaintiffs have filed a reply to the EEOC’s response, and the EEOC has filed a supplemental brief following Crye-Leike’s and the intervening plaintiffs’ reply. Having considered the matter, the Court denies the joint motion of Crye-Leike and the intervening plaintiffs for summary judgment based on the failure of the EEOC to conciliate in good faith.

I.

A.

In order to put into context the dispute concerning the parties’ failed conciliation, *1011 the Court sets forth the history of the underlying charges of discrimination and two separate lawsuits.

1.

On November 18, 2008, attorney J. Cody Hiland filed a lawsuit against Crye-Leike in the United States District Court for the Eastern District of Arkansas on behalf of Crystal Fowlkes alleging that she was terminated from her employment with Crye-Leike because of her race (black). The case is styled Fowlkes v. Crye-Leike, Inc., No. 4:08-cv-4161-BSM (the Fowlkes suit). Fowlkes alleged, inter alia, that her supervisor, Ann Ball, President of Bankers Asset Management (BAM), commented after the hiring of Fowlkes that “we aren’t going down that road ever again because blacks are lazy and will not work,” and “Do we want another one?” Crye-Leike moved for summary judgment. United States District Judge Brian S. Miller granted summary judgment in favor of Crye-Leike finding that Fowlkes’s case lacked merit because Fowlkes admitted she voluntarily failed to return to work at the end of her maternity leave. See Fowlkes v. Crye-Leike, Inc., No. 4:08-cv-4161-BSM, 2010 WL 961585 (E.D.Ark. Mar. 16, 2010). Following that ruling, Crye-Leike filed a motion for costs and attorney’s fees. Judge Miller found that Fowlkes’s suit was frivolous and lacked merit and awarded Crye-Leike attorney’s fees in the amount of $66,465.50 and costs in the amount of $6,643.73. Fowlkes appealed the grant of summary judgment and the award of attorney’s fees and costs to the United States Court of Appeals for the Eighth Circuit. The Eighth Circuit, however, dismissed Fowlkes’s appeal for lack of jurisdiction as Crye-Leike still maintained a counterclaim against Fowlkes in the District Court. Upon remand, Judge Miller dismissed the counterclaim and Fowlkes once again appealed the grant of summary judgment and the award of attorney’s fees and costs to the Eighth Circuit. That appeal remains pending.

2.

In January 2009, intervening plaintiffs Rosalind Brown, Lisa Martin, Kenya Ransom, and Brandy Robinson, filed charges of discrimination with the EEOC alleging that they had been denied employment with BAM because of their race. Also in January 2009, intervening plaintiff Stephanie Harvill filed a charge of discrimination with the EEOC alleging that she was constructively discharged in retaliation for recommending a black applicant for employment at BAM.

3.

While the EEOC was investigating the above January 2009 charges, intervening plaintiff Robinson, represented by attorney Hiland, filed a class action lawsuit against Crye-Leike in the Circuit Court of Pulaski County, Arkansas alleging that she and others were not hired based on their race. The case, filed on May 15, 2009, is styled Robinson v. Crye-Leike, Inc., et al., No. CV 09-3562-3 (the Robinson suit). Crye-Leike states that the Robinson suit is based on the same evidence as the EEOC’s present suit in this Court and alleges that Crye-Leike’s failure to hire Robinson and other black applicants was due to a policy dictated by Ann Ball of refusing to hire blacks and screening black applicants from consideration for employment. In support of the Robinson suit, Robinson attached affidavits from interested party Christy Lute and intervening plaintiffs Harvill and Vicki Holcomb, all former employees and/or managers at BAM. The affidavits of Lute, Harvill and Holcomb essentially state that they were told either by Ball or Lute to screen out black applicants based on race and that they did in fact personally participate in *1012 such screening of the applicants in varying degrees.

On July 6, 2009, Crye-Leike answered the complaint in the Robinson suit denying that Ball made any discriminatory employment-related decisions on behalf of Crye-Leike. It was Crye-Leike’s position, as stated in its answer, that Crye-Leike did not instruct, authorize, or in any way condone Lute’s, Harvill’s, and Holcomb’s decisions to engage in any of the alleged racially discriminatory hiring practices which they allege to have personally participated in and which are the subject of the Robinson suit. Crye-Leike states that to the extent Lute, Harvill, and Holcomb engaged in the alleged racially discriminatory hiring practices described in the Robinson suit, they are liable in whole or in part to Crye-Leike for all or part of the claims against Crye-Leike. In this respect, on July 20, 2009, Crye-Leike filed a third-party complaint in the Robinson suit against Lute, Harvill, and Holcomb for common law indemnity, breach of duty of loyalty, breach of fiduciary duty, and breach of the covenant of good faith and fair dealing. Crye-Leike based their third-party complaint on the affidavits submitted by Lute, Harvill, and Holcomb in the Robinson suit.

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800 F. Supp. 2d 1009, 2011 U.S. Dist. LEXIS 85752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-crye-leike-inc-ared-2011.