FENNIMORE v. PARTYLITE GIFTS, INC.

CourtDistrict Court, D. New Jersey
DecidedAugust 17, 2021
Docket3:19-cv-15176
StatusUnknown

This text of FENNIMORE v. PARTYLITE GIFTS, INC. (FENNIMORE v. PARTYLITE GIFTS, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FENNIMORE v. PARTYLITE GIFTS, INC., (D.N.J. 2021).

Opinion

*NOT FOR PUBLICATION*

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

TERRI FENNIMORE,

Plaintiff, Civil Action No. 19-15176 (FLW) v. OPINION PARTYLITE GIFTS, INC. and PARTYLITE WORLDWIDE, LLC,

Defendants.

WOLFSON, Chief Judge:

In this age discrimination suit, Plaintiff Terri Fennimore (“Plaintiff” or “Fennimore”), alleges that Defendants PartyLite Gifts, Inc. and PartyLite Worldwide, LLC (“Defendants” or “PartyLite”) discriminated against her on the basis of her age, in violation of the New Jersey Law Against Discrimination, N.J.S.A. § 10:5-3, et seq. (“NJLAD”), and that Defendants’ conduct constituted breach of implied contract. Specifically, Fennimore claims that agents of PartyLite influenced and interfered with one of its consultant’s decisions to select a retirement designate to the detriment of Plaintiff. Defendants now move for summary judgment pursuant to Fed. R. Civ. P. 56. For the reasons set forth below, Defendants’ motion for summary judgment is GRANTED. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY The following facts are undisputed, unless otherwise noted. PartyLite manufactures and supplies candles and other home fragrance and décor products. Def. SOMF ¶ 1. Plaintiff markets and sells PartyLite products as a consultant1 under a direct selling model. Id. at ¶ 2. Consultants

1 The parties agree that consultants are not employees, but rather independent contractors. Def. SOMF ¶ 3. hold parties or other events whereby potential customers can experience and purchase PartyLite’s products. Id. at ¶ 4. Consultants are compensated on both their personal sales and the sales of other consultants who they recruit to the business under a commission schedule. Id. at ¶ 5. Thus, consultants can increase their profits by developing customers, as well as recruiting and developing

other consultants as part of their team. Id. at ¶ 6. Plaintiff began working with PartyLite in 1985, and in 1988, she became a Unit Leader. Id. at ¶ 12.2 Two years later, in 1990, Plaintiff recruited Lorraine Ricca (“Ricca”) to become a consultant for PartyLite. Id. at ¶ 9. Ricca quickly advanced through the PartyLite leadership steps, moving from Unit Leader to Senior Regional Vice President (“SRVP”) in approximately four years, and because Plaintiff recruited Ricca, she received a percentage of Ricca’s sales based on her own leadership level. Id. at ¶¶ 11 and 13. Plaintiff, herself, became a Senior Unit Leader in 1991, Group Leader in 1992, District Leader in 1993, Regional Leader in 1995, and Senior Regional Vice President in 1996. Id. at ¶ 12. Thereafter, Fennimore was reclassified3 several times between 1996 and September 2017, at which time she became a Regional Leader. Id.

In late July 2017, after approximately twenty-seven years working as a PartyLite consultant, Ricca decided to retire. Id. at ¶ 14. As an SRVP, however, Ricca had the opportunity to transition her team and book of business (also known as “lineage”) to a “Designee” of her choice in accordance with PartyLite’s SRVP Transition Plan (“Transition Plan”). Id. at ¶¶ 18-20; Pl. SOMF ¶¶ 2-8. The Transition Plan, which provides that the retiring SRVP may “select a

2 With Unit Leader being the lowest level and Senior Regional Vice President being the highest level, Consultants advance in the following steps: Unit Leader, Senior Unit Leader, Group Leader, District Leader, Regional Leader, Regional Vice President, and Senior Regional Vice President. Def. SOMF ¶ 10. 3 Defendants characterize this downward reclassification as a “demotion,” a term that Plaintiff disputes. See Pl. Responsive SOMF ¶ 12. designated leader to lead his/her lineage,” affords financial benefits to both the retiring SRVP and the Designee over the course of a ten-year transition period. Pl. SOMF ¶¶ 1 and 8. During the first year of the Transition Plan, the retiring SRVP earns 80% of the lineage’s sales while the Designee earns 20%. Id. at ¶ 1. These percentages then gradually decrease over the course of the

remaining nine years of the Transition Plan, with the SRVP receiving 60% in the second year, 50% in the third year, 40% in the fourth year, and 30% in years five through ten. Id. The Transition Plan specifies that to be eligible for Designee-status, the consultant must (1) be a current Leader, (2) have signed a Leader Agreement with PartyLite, (3) be an active PartyLite Leader for three consecutive years prior to his or her approval and acceptance into the Transition Plan by PartyLite, (4) have held the title of Regional Leader, or higher, during the three years prior to his or her approval and acceptance into the Transition Plan, and (5) be actively involved in his or her business and be in good standing with PartyLite. Id. at ¶ 3. Once the retiring SRVP selects her Designee, PartyLite must approve the decision through a process which includes, at a minimum, an interview, a review of “downline and upline lineage,” and company sanctioned training and business

involvement. Id. at ¶ 10. On August 2, 2017, Ricca confirmed her decision to end her consultancy and inquired about the transition process during a telephone call with PartyLite’s Vice President of Sales, Tracy Graham (“Graham”), and PartyLite’s Manager of Sales Compensation, Policy and Analysis, Rachel Kane (“Kane”). Def. SOMF ¶ 29. At this time, Ricci communicated that Plaintiff was her choice for Designee because (1) Fennimore was her friend, (2) Fennimore brought Ricca into the business twenty-seven years earlier, (3) Fennimore was the only other leader she knew of in New Jersey, (4) Ricca’s team knew and respected Fennimore, and (5) Fennimore’s account was in good standing with PartyLite. Id. at ¶ 30; Pl. SOMF ¶¶ 20 and 24. Indeed, in an email to Graham and Kane following their telephone call, Ricca wrote: It is important that my Team have someone whom they know, trust and respect. If there is anything else you need from me, just let me know. I am hoping you will consider Terri Fennimore for this.

Pl. SOMF ¶ 28; see also Certification of Richard M. Schall, Esq. in Opp. to Def. Motion for Summary Judgment (“Schall Cert.”), Ex. 4, August 2, 2017 Email. The parties agree, however, that at that time, Ricca did not have access to, or any knowledge of, Fennimore’s performance as a consultant with PartyLite, and during that telephone call on August 2, 2017, Graham recommended that prior to making a final decision, Ricca review Plaintiff’s performance history to ensure that Fennimore was the best candidate to grow Ricca’s well-established and profitable lineage. Id. at ¶¶ 31 and 32. Indeed, Kane testified that during the telephone call with Ricca, Graham explained that Ricca should “do some homework,” so that she put her team and her income “in the hands of someone who will take care of that, try to grow that, and you’ll earn […] income off that, off what you built.” Pl. SOMF ¶ 31 (citing Schall Cert., Ex. A, Kane Dep. at 35:1-4 and 36:7-12); Def. SOMF ¶ 32. Ricca agreed to resume her conversation regarding her Designee and the Transition Plan with Graham and Kane following PartyLite’s annual conference. Def. SOMF ¶ 33. On August 15, 2017, following the annual conference, Graham expressed concern to Kane and Angela Reckley, a PartyLite Business Development Manager, about Fennimore assuming the role of Ricca’s Designee based upon her age. Pl. SOMF ¶ 41. Specifically, Graham wrote in an email to Kane and Reckley that “[Plaintiff is] also ‘older’ which concerns me regarding a 10 year plan.” Id. (citing Schall Cert., Ex. 5, August 15, 2017 Email.) That same day, Graham also provided Ricca with Plaintiff’s sales statistics and recent performance history. Def. SOMF ¶¶ 34- 35.

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FENNIMORE v. PARTYLITE GIFTS, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fennimore-v-partylite-gifts-inc-njd-2021.