Gonsalves v. Gensler

District Court, District of Columbia·Decided February 13, 2025·No. Civil Action No. 2024-1162·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

DIA GONSALVES, Plaintiff,

v. Case No. 1:24-cv-1162 (TNM)

MARK UYEDA, Defendant.

MEMORANDUM ORDER

Dia Gonsalves works for the Securities and Exchange Commission. She says it discriminated against her because of her race and sex. According to Gonsalves, she filed an internal complaint about the discrimination, but the SEC refused to address her concerns and instead embarked on a multi-year campaign of retaliation. So she sued its Chairman under Title VII. 1 Gonsalves brings eight counts premised on discrimination, retaliation, and a hostile work environment. The leadup to this case spans over six years and implicates a host of SEC employees and managers. The SEC moves to partially dismiss, asserting that four of the eight counts fail to state a claim. The SEC is correct on two. The Court dismisses Counts II and III— both premised on race and sex-based discrimination—because the Amended Complaint does not have the facts necessary to infer discriminatory animus. But the remaining counts survive. The Court denies leave to amend because Gonsalves’s in-passing request to amend if the Court rules against her is procedurally deficient.

1 Defendant Mark Uyeda is Acting Chairman of the SEC, replacing former Chairman Gery Gensler. Under Federal Rule of Civil Procedure 25(d), when a public officer sued in an official capacity vacates the office while the action is pending, his successor is automatically substituted as a party.

I.

In recounting the background of this case, the Court accepts the facts in Gonsalves’s Amended Complaint as true. See Air Excursions LLC v. Yellen, 66 F.4th 272, 277 (D.C. Cir. 2023). Gonsalves is an African American woman who has worked for the SEC since July 2016. Am. Compl., ECF No. 15, ¶ 2. Over her three-decade career as a federal employee, she has served in various capacities including a decade in management. Id. ¶ 3. Before this job, she has never had disciplinary issues and always received positive performance evaluations. Id.

But Gonsalves’s time at the SEC has not been smooth sailing. She felt her managers discriminated against her because of her race and sex. Id. ¶ 5. So she expressed her concerns in an informal complaint with the SEC’s Office of Equal Employment Opportunity in June 2019. Id. After she converted her complaint to a formal one, her allegations marched their way through an investigation and hearing before an Administrative Law Judge at the Equal Employment Opportunity Commission (“EEOC”). Id. ¶¶ 5, 7. The EEOC sided with the SEC in May 2022 and found no discrimination. Id. ¶ 7.

But things did not end there. While her formal complaint was being investigated, Gonsalves felt the SEC began retaliating against her. Id. ¶ 8. And the mistreatment only escalated after the EEOC sided with the SEC. Id. ¶ 9. So Gonsalves filed another informal complaint in June 2023. Id. ¶ 15. She converted it to a formal complaint in August 2023, but the investigation was never finalized. Id. After 180 days passed and her administrative remedies were exhausted, she filed this lawsuit. Id. ¶¶ 15–16. With that general timeline established, the Court turns to Gonsalves’s specific allegations.

Gonsalves’s first-line manager from 2017–20 was a Caucasian man. Id. ¶ 18. She contends that her boss and his subordinates “frequently” drank in the office or at local bars

during work hours. Id. ¶ 23. Once in 2018, her manager “forced” Gonsalves to attend a work meeting at a local bar. Id. ¶ 27. He proceeded to “bully” her into drinking. Id. She also claims she saw him come to work drunk one day in 2020. Id. ¶ 28.

Gonsalves recounts being sexually harassed by coworkers in this same timeframe as well.

Id. ¶ 30. She says one male coworker made “almost daily comments about his desire to have sexual intercourse” with her. Id. He would also ask inappropriate questions about Gonsalves’s romantic life. Id. ¶ 31. Her manager heard at least one of these comments but did not stop the behavior. Id. ¶ 32. In another instance, a different male coworker hugged her and “grabbed her left buttock” at a work party. Id. ¶ 34. Gonsalves included none of these allegations in her original 2019 discrimination complaint, purportedly because she feared immediate reprisal from her then-manager. Id. ¶ 36.

In March 2020, the section Gonsalves worked in was reorganized, leading to a change in leadership. Id. ¶¶ 19–20. As part of the restructuring, the SEC assigned Gonsalves five subordinates. Id. ¶ 45. Four the five were known for having “performance and conduct issues.” Id. Gonsalves contends the SEC gave her these employees to “set [her] up for failure.” Id.

Gonsalves also got a new first-line manager in the reorganization—an African American woman who supervised her from March 2020 until January 2023. Id. ¶ 20. Shortly after taking over, this manager accused her of harassment without providing Gonsalves any evidence. Id. ¶ 44. In 2022, the manager also made Gonsalves submit medical documentation when using four days of sick leave, without requiring one of Gonsalves’s Caucasian coworkers to submit documentation for similar leave. Id. ¶ 46. Her manager also expressed concerns with Gonsalves’s performance during a midyear review in 2022 but did not provide examples of

Gonsalves’s supposed shortcomings. Id. ¶ 47. Again, the manager did not treat Caucasian male employees this way, or employees who have not filed discrimination complaints. Id. ¶ 47.

Gonsalves’s second-line supervisor also allegedly discriminated against her. From January through May 2023, he refused to provide Gonsalves the resources she needed to perform her job. Id. ¶ 48. Yet he did provide some of her Caucasian male coworkers with additional resources, including staff. Id. ¶¶ 49–50. She believes this disparity was another intentional step designed to sabotage her job performance. Id. ¶ 48. In early 2023, the same second-line supervisor also pressured her into closing a harassment complaint she had filed against one of her Caucasian managers. Id. ¶ 51. He did not properly investigate her complaint when she lodged it in 2022 either. Id. ¶ 52.

The trouble continued in February 2023 when her second-line supervisor did not select her for promotion, despite her experience. Id. ¶ 53. He declined to promote her a second time in June 2023 and selected a less qualified woman for the job. Id. ¶ 62. And in May 2023, the same supervisor launched an administrative investigation into her conduct but did not tell her why. Id. ¶ 54.

But it was not just her supervisors discriminating against her. She alleges discrimination from two attorneys in the SEC’s Office of General Counsel (“OGC”) too. See id. ¶¶ 63–67; 69– 70. Gonsalves went to the OGC attorneys to discuss one of her employees who was having performance issues. See id. The first attorney was initially helpful but then pivoted and “refused to help” Gonsalves. Id. ¶ 69. The other attorney—a supervisor—supported the first attorney’s behavior, which Gonsalves alleges was discriminatory. See id. ¶ 70. She alleges that the OGC did not treat Caucasian male employees this way, or employees who have not filed discrimination complaints. Id.

All of this prompted Gonsalves to file the second informal discrimination complaint in June 2023 with the SEC. Id. ¶ 73. She converted it to a formal complaint in August 2023 and made additional amendments after that. Id. ¶ 74.

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