Evans v. Valley Electric Association, Inc.

CourtDistrict Court, D. Nevada
DecidedJanuary 13, 2023
Docket2:20-cv-00986
StatusUnknown

This text of Evans v. Valley Electric Association, Inc. (Evans v. Valley Electric Association, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evans v. Valley Electric Association, Inc., (D. Nev. 2023).

Opinion

2 UNITED STATES DISTRICT COURT 3 DISTRICT OF NEVADA 4 ANGELA EVANS, an individual; Case No. 2:20-cv-000986-ART-VCF 5 Plaintiff, ORDER 6 v.

7 VALLEY ELECTRIC ASSOCIATION, INC.; DOES I through X and ROE 8 CORPORATIONS XI through XX, inclusive; 9 Defendants. 10 11 12 I. SUMMARY 13 Plaintiff Angela Evans (“Evans”) brings this action alleging that Defendant 14 Valley Electric Association (“VEA”) unlawfully terminated her and discriminated 15 against her on the basis of race, sex, national origin, and age, among other 16 claims. Before the Court is Defendant VEA’s Motion for Summary Judgment (ECF 17 No. 80) and Evans’ Motion for an Order Directing Additional Discovery (ECF No. 18 87). For the reasons set forth in this order, the Court grants in part and denies 19 in part VEA’s Motion for Summary Judgment and denies Evans’ Motion for an 20 Order Directing Additional Discovery. 21 II. BACKGROUND 22 Except as noted, the following facts are undisputed. Angela Evans is a fifty- 23 nine-year-old, Hispanic woman with thirty years of experience working with 24 public utilities. (Compl. ¶¶27, 28; ECF No. 1-1). VEA is a member-owned electric 25 utility cooperative established in 1965 and headquartered in Pahrump, Nevada. 26 (Mot. Summ. J. at 1:18-19, ECF No. 80 (“MSJ”)); Compl. ¶18). VEA is governed 27 by an elected board of directors and serves 45,000 ratepayers across Southwest 28 Nevada. (Hall Aff. ¶3, ECF No. 80-1; Compl. ¶19). 1 A. Evans Was Hired at VEA and Promoted to CEO 2 Evans was initially hired at VEA as an Executive Vice President and was 3 promoted to permanent Chief Executive Officer (“CEO”) approximately twenty 4 months later. (MSJ at 2:7-3:12). On January 10, 2017, VEA offered Evans a 5 position as “Executive Vice President of Operations” after Evans responded to an 6 online job posting created by VEA. (Compl. ¶¶29, 30; Evans Offer Letter, 1, ECF 7 No. 80-6). In February 2017 Evans accepted VEA’s offer and began work at VEA 8 later that month. (Compl. ¶ 30). Evans’ starting salary was $180,000 per year, 9 which was $50,000 less than other Executive Vice Presidents at VEA—two white 10 women and a non-white man—who were paid a higher salary of $230,000 per 11 year. (Evans Dep. Tr. at 37:23-25, ECF No. 80-4; MSJ at 13:16-19). On or about 12 April 14, 2018, VEA’s previous CEO, Tom Husted (“Husted”), selected Evans and 13 another employee—Ken Johnson (“Johnson”)—to temporarily rotate through two 14 COO positions and increased Evans’ salary to $230,000 per year. (Evans Dep. at 15 78:1-22, ECF No. 80-4). 16 Shortly after Evans was rotated into the COO position, VEA fired Husted after 17 a female employee accused him of sexual misconduct. Evans, who was the only 18 candidate considered for the interim CEO position, was promoted to interim CEO 19 on May 4, 2018. After VEA’s preferred candidate for permanent CEO, Byron 20 Nolde, withdrew from consideration, Evans was promoted to permanent CEO on 21 or about October 1, 2018. (Compl. ¶¶32-33; MSJ at 2:19-24, 3:5-13). As CEO, 22 Evans oversaw a significant rate increase and workforce reductions intended to 23 improve VEA’s financial health. (MSJ at 3:15-19). Workforce reductions included 24 a voluntary separation program in December 2018 and involuntary layoffs in late 25 January or early February 2019. (Evans Dep. at 105:22-24, 112:7-23, ECF No. 26 80-4). The 2019 rate increase was the first imposed on VEA’s members in more 27 than ten years and “enraged” VEA’s members. (MSJ at 3:20-23). 28 Also in January or early February 2019, Evans supervised the termination of 1 Johnson, who was accused of sexual harassment by thirteen female VEA 2 employees. (Evans Dep. Tr. p. 128:13-23, ECF No. 80-7). 3 B. Evans Was Arrested and Put on Administrative Leave 4 After he was fired, Johnson became an active critic of VEA and Evans, and 5 spearheaded a campaign to have Evans arrested and removed as CEO. Johnson 6 founded “VEA Members for Change” (“MFC”), a group committed to recalling 7 VEA’s Board of Directors, including CEO Evans, around February 15, 2019. (MSJ 8 at 3:24-4:5; Facebook Poll at 2, ECF No. 80-30 (showing a MFC page creation 9 date of February 15, 2019); Johnson Dep. Tr. 18:4-25, ECF No. 80-13). Johnson 10 tipped off another member of MFC, Nye County Sheriff’s Office (“NCSO”) 11 Lieutenant Boruchowitz, about alleged criminal acts by Evans. Boruchowitz 12 helped Johnson establish MFC and later became a spokesperson for the group. 13 (MSJ at 4:14-23). 14 Based on Johnson’s tips and with Boruchowitz’s help, the NCSO investigated 15 and ultimately arrested Evans in February 2019. Prior to Evans’ arrest, the NSCO 16 twice obtained and executed search warrants orchestrated by Boruchowitz. (MSJ 17 at 4 fn.3). The first search warrant, executed on February 22, 2019, was based 18 on allegations that VEA paid “hush money” to keep secret the allegations against 19 former CEO Husted. (MSJ at 4:24-5:4). On February 25, 2019, Johnson again 20 contacted the NCSO, this time claiming that Evans had work performed on VEA 21 infrastructure behind a home she was planning to purchase at no cost to Evans. 22 (MSJ at 5:5-7; Perra Email at 1, ECF No. 80-18). The next day, on February 26, 23 2019, NSCO obtained and executed a second search warrant at VEA and arrested 24 Evans on suspicion of embezzling from VEA. (MSJ at 5:9-11). 25 After Evans’ arrest, VEA placed Evans on paid administrative leave on 26 February 26, 2019 and ordered an investigation into Evans’ arrest and related 27 matters. (Compl. ¶ 39; MSJ at 6:20-7:2). VEA hired Dick Peck, a white male, to 28 serve as its interim CEO while Evans was on administrative leave. (MSJ at 6:9- 1 10). 2 From March until late May, Evans did not know if she would be allowed to 3 return to VEA, even after it cleared her of criminal wrongdoing. A VEA Board 4 Member, Ken Derschan, allegedly told Evans in late March that she could return 5 to work on or about April 27, 2019, under the supervision of Peck, the interim 6 CEO. (Compl. ¶¶ 41, 43; Evans Decl. ¶2, ECF No. 86-1; Evans Dep. Tr. at 94:21- 7 24, ECF No. 86-5). 8 VEA’s internal investigation of Evans cleared her of criminal wrongdoing but 9 reprimanded her for violating an internal VEA policy Peck characterized publicly 10 as an “integrity policy.” (Pub. Summ. of Josh M. Reid Rep. at 2; Jeffrey Meehan, 11 Two months after arrest, no charges filed on VEA’s Evans, PAHRUMP VALLEY TIMES, 12 May 1, 2019, at 3, ECF No. 51-3). The summary of the report generated by VEA’s 13 internal investigation is dated April 22, 2019. (Pub. Summ. of Josh M. Reid Rep. 14 at 1). The summary found “Ms. Evans’ [sic] did not commit any illegal acts with 15 respect to the Property,” and that “the allegations made by the Nye County 16 Sheriff’s Office relating to Ms. Evans’ actions are unfounded.” (Id. at 2). The 17 summary also found that that Evans violated VEA’s “integrity policy” because she 18 “should have disclosed her interest in The Property to her supervisor, former VEA 19 CEO Thomas Husted . . . pursuant to VEA Employment Policy #107.” (Pub. 20 Summ. of Josh M. Reid Rep. at 2). Evans claims that she did inform VEA 21 leadership she was planning to purchase the Property. (Evans Dep. Tr. at 95:2- 22 95:20, ECF No. 86-5). Evans and VEA agree that the embezzlement allegations 23 against Evans are false. (Evans Dep. at 125:1-16, ECF No. 80-4; MSJ at 5:1-2). 24 While VEA publicized those findings, it waited one month to transmit the report 25 to the District Attorney. Interim CEO Peck announced the investigation’s findings 26 to the press, communicating that Evans violated no laws. (Press Footage of 27 Richard Peck, ECF No. 80-27). Referring to “The private investigation of the 28 Angela Evans Affair—as I call it,” Peck stated that “the investigation found no 1 illegal activities.” (Id.).

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