Fayant v. ALK-Abello, Inc.

District Court, D. Montana·Decided September 15, 2025·No. 6:24-cv-00086·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA HELENA DIVISION

LOUIS FAYANT, CV 24-86-H-DWM

Plaintiff, VS. OPINION and ORDER ALK-ABELLO, INC. and JOHN DOES I-XXX, Defendants.

Plaintiff Louis Fayant alleges he was subject to discrimination while working for his former employer, Defendant ALK-Abello, Inc. (“ALK-Abello”). On June 2, 2024, Fayant, a 62-year-old Turtle Mountain Band of Chippewa Indians tribal member, brought suit in state court alleging ALK-Abello engaged in discriminatory practices that violated his rights under the Montana Human Rights Act, led to his wrongful discharge pursuant to the Montana Wrongful Discharge from Employment Act, and inflicted emotional distress. (Doc. 12; see Doc. 19.) On December 12, 2024, the case was removed to this Court. (Doc. 1.) Fayant’s claims arise out of ALK-Abello’s alleged discrimination against him based on his age, gender, race, and perceived sexual orientation, which took the form of disparaging comments, disparate treatment, and termination. The

disparaging comments included his direct supervisor Doug Waddell stating on a team conference call that it “looks like [Fayant] is in a men’s locker room trolling,”! (Doc. 19 at { 15), and a coworker “challeng[ing]” Fayant’s “Native American heritage” at a team dinner by stating “everyone probably has some Native American in them[,]” (id. | 29). The disparate treatment took the form of Waddell’s denial of Fayant’s access to resources, (id. J] 26-27), and his utilization of compensation days, (id. J 31), requiring Fayant go on short-term disability, (id.), failure to promote Fayant, (id. § 32), failure to pay Fayant a salary equivalent to that of “non-Native” employees, (id. Jf 18, 33), and constraint of Fayant’s role, (id. 4 24, 32). Lastly, Fayant was terminated because of his “immutable characteristics” including age, gender, race, and perceived sexual orientation. (/d. {| 12, 14.) These allegations are assumed to be true and construed in Fayant’s favor. See Ariix, LLC v. NutriSearch Corp., 985 F.3d 1107, 1114 (9th Cir. 2021). They are more thoroughly discussed in the analysis below. ALK-Abello seeks to dismiss Fayant’s claims for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. (Doc. 23; see also Docs. 27, 28, 30.) That motion is granted in part and denied in part.

' “Trolling is urban slang for seeking out a gay sexual partner.” (Doc. 19 at J 15.)

LEGAL STANDARD To survive a motion to dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Beil Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Jd. Dismissal is appropriate “where there is no cognizable legal theory or an absence of sufficient facts alleged to support a cognizable legal theory.” L.A. Lakers, Inc. v. Fed. Ins. Co., 869 F.3d 795, 800 (9th Cir. 2017) (internal quotation marks omitted). In diversity cases such as this, a federal court applies federal procedural law and the substantive law of the state. Hanna v. Plumer, 380 U.S. 460, 465-66 (1965) (citing Erie R. Co. v. Tompkins, 304 U.S. 64 (1938)). ANALYSIS Fayant alleges three claims: wrongful discharge under the Montana Wrongful Discharge from Employment Act (Count I), violations of the Montana Human Rights Act (Count II), and infliction of emotional distress (Count III). (Doc. 19.) ALK-Abello argues that most of Fayant’s Human Rights Act discrimination allegations are time-barred, and without these allegations, Fayant’s discrimination claim fails to meet the required pleading standards. Next, ALK-

Abello asserts that because “Fayant’s Amended Complaint solely ties the circumstances of his termination to ALK’s purported discrimination[,]” Fayant’s wrongful discharge claim is precluded by the Montana Human Rights Act. (Doc. 24 at 8, 21-23.) Lastly, ALK-Abello argues that because infliction of emotional distress claim was not asserted independently, it also must fail. Ultimately, ALK- Abello is correct as to Fayant’s wrongful discharge and infliction of emotion distress claims, however, Fayant’s claims under the Montana Human Rights Act

may proceed as explained below. I. Montana Human Rights Act Fayant alleges that ALK-Abello’s discriminatory practices violated the Montana Human Rights Act. ALK-Abello argues that the “vast majority” of Fayant’s discrimination allegations are time-barred, see Mont. Code Ann. § 49-2- 501(4)(a), and without these allegations, Fayant does not allege sufficient facts to support his claims under the Act. While ALK-Abello is correct that many of the alleged unlawful discriminatory practices are time-barred, Fayant’s claims of discrimination and hostile work environment may proceed as detailed below.”

* Fayant’s Verified Complaint and Amended Verified Complaint with the Montana Human Rights Bureau and its Final Investigative Report are “incorporated by reference into” his Amended Complaint because these “document[s] form[] the basis of [his] claim.” Chambers Mont. Contractors Ass’n Health Care Tr., 797 F. Supp. 2d 1050, 1053 (D. Mont. 2009) (quoting United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003)). Accordingly, conversion to summary judgment is not required here. Jd.

a. Administrative Exhaustion The Montana Human Rights Act provides that no court has jurisdiction to entertain a discrimination claim under the Act “other than by the procedures specified” in the Act. Mont. Code Ann. § 49-2-512(1). Any person seeking to

pursue a claim of discrimination in court must first file a complaint with the Montana Human Rights Bureau stating “the particulars of the alleged discriminatory practice.” Mont. Code Ann. § 49-2-501(3). Upon receipt of the complaint, the Montana Human Rights Bureau must “investigate the matters set out in the complaint promptly and determine whether there is reasonable cause to believe that the allegations are supported by a preponderance of the evidence.” Mont. Code Ann. § 49-2-504(1). The claimant may not file a lawsuit in a district court based on the alleged discriminatory practice until the Act’s administrative procedures have been exhausted. Mont. Code Ann. § 49-2-512(3); Borges v. Missoula Cnty. Sheriff's Office, 415 P.3d 976, 981 (Mont. 2018). Here, the parties were ordered to brief administrative exhaustion, (Doc. 27), and did so, (Docs. 28, 30). Fayant filed a Verified Complaint and Verified Amended Complaint with the Montana Human Rights Bureau. (Does. 31-1, 31-2.) Upon review of Fayant’s allegations, the Bureau investigated whether ALK-Abello (i) discriminated against Fayant because of his race, age, and sexual orientation by subjecting him to a hostile work environment (“Hostile Work Environment

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