John-Baptiste v. HSBC, USA, N.A.

CourtDistrict Court, E.D. New York
DecidedApril 29, 2025
Docket1:19-cv-03164
StatusUnknown

This text of John-Baptiste v. HSBC, USA, N.A. (John-Baptiste v. HSBC, USA, N.A.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John-Baptiste v. HSBC, USA, N.A., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK nena ewen nenenenenenennnenn neanenennnmnenenen MAKIDA JOHN-BAPTISTE, : Plaintiff, : MEMORANDUM & ORDER v. : 19-CV-3164 (WFK) HSBC BANK USA, N.A., Defendant. nnem □□□ □□□ □□ eeenen enenenennnn K WILLIAM F. KUNTZ, I, United States District Judge: Plaintiff Makida John-Baptiste (“Plaintiff”) brings this action against Defendant HSBC Bank USA, N.A. (“HSBC”) alleging discrimination based on gender and pregnancy in violation of the New York State Human Rights Law, N.Y. Exec. Law § 290, et. seq. (“(NYSHRL”), and New York City Human Rights Law, N.Y.C. Admin. Code § 8-101, et. seg. (NYCHRL”). Notice of Removal, Ex. A (“Complaint”), ECF No. 1-1. Before the Court is HSBC’s motion for summary judgment. Def.’s Mot. for Summ. J. (“Def. Mem.”), ECF No. 40-3. For the reasons set forth below, the Court GRANTS HSBC’s motion. I. BACKGROUND A. Statement of Facts The following facts, drawn from the parties’ Local Rule 56.1 Statements and the record of admissible evidence, are undisputed. Fed. R. Civ. P. 56(c); E.D.N.Y. Local Rule 56.1. Facts supported by the record and not contradicted by admissible evidence are admitted. Sanchez v. N.Y.C. Transit Auth., 17-CV-5818, 2020 WL 5763860, at *1 n.1 (E.D.N.Y. Sept. 28, 2020) (DeArcy Hall, J.) (“If the opposing party . . . fails to controvert a fact so set forth in the moving party’s Rule 56.1 statement, that fact will be deemed admitted.”) (quoting Giannullo v. City of New York, 322 F.3d 139, 140 (2d Cir. 2003)).

Defendant HSBC is an international bank with several retail branches in New York. Sealed Pl.’s Resp. to Def.’s Rule 56.1 Statement (“PI. Rule 56.1 Stmt.”) J 1, ECF No. 42-25.' In 2012, HSBC appointed Plaintiff Makida John-Baptiste to Branch Relationship Banker (“BRB”) at a retail branch in Brooklyn, New York. /d. 15. In 2015, HSBC promoted Plaintiff to Premier Relationship Manager (“PRM”) at a retail branch in Manhattan, New York. Id. 417. BRBs and PRMs sell banking products and services to HSBC’s retail customers by “acquiring new HSBC clients and upgrading existing clients.” Jd. 17. “Upgrading” means moving an existing client account to a higher tier: for example, from an “Advance” to a “Premier” account. Jd. 6. Once upgraded, clients must maintain a minimum account balance or meet certain other criteria to avoid incurring a monthly service charge. Jd. | 8. The minimum account balance for a Premium account is $100,000.00. Jd. BRBs and PRMs must obtain clients’ consent before upgrading their accounts. /d □ 7. Clients can request “downgrades” to a lower tier without charge. Id 79. BRBs and PRMs were eligible to receive quarterly performance bonuses determined, in part, by whether they met quarterly sales targets for account upgrades. /d. 21. Bonuses were assessed at the end of each quarter and did not account for whether an upgraded account was subsequently downgraded the next quarter. /d 922. Plaintiff earned multiple such quarterly bonuses during her employment with HSBC. Jd. J 23. In November 2016, Plaintiff was put on a Performance Improvement Plan (“PIP”) addressing her high rate of account upgrades and downgrades. Jd. J] 62-63. The PIP stated: In Q1 [of 2016], all the upgrades performed by [Plaintiff] were 100% downgraded. To ensure the upgrades/onboards to our Premier proposition are done in an ethical

' Plaintiff's Response to Defendant’s Sealed Rule 56.1 Statement (“Def. Rule 56.1 Stmt.”), ECF No. 40-5, combines Paragraphs Ten and Eleven of Defendant’s Statement. As a result, there is a one-paragraph misalignment between the parties’ respective Rule 56.1 Statements.

and professional manner{,] [c]lients have to be aware of the Premier requirements and we need to make sure that Premier is the right fit based on their banking needs. Preston Decl., Ex. H (“PIP”), ECF No. 40-113 (emphasis added).” Project Woodchip In the fall of 2016, HSBC launched an internal investigation into unethical sales practices dubbed “Project Woodchip.” Pl. Rule 56.1 Stmt. §{] 24-26. Members of Project Woodchip included Anthony Glover, Executive Vice President and Head of U.S. Retail Banking; Paula Zagora, Senior Vice President and Head of Employee Relations; Peter Hutter, Vice President of Employee Relations; and Lisa McEldowney, Vice President and Human Resources Business Partner for HSBC’s branch network. Jd. J] 2,29. Attorneys from HSBC’s Global Internal Investigations Group and outside legal counsel conducted the underlying investigative work. Def. Interrog. Resp. (‘‘Def. Interrog. Resp.”) No. 4, ECF No. 40-15; Pl. Rule 56.1 Stmt. 729. The investigation “included the review of electronic searches applied on a companywide basis” and “covered thousands of [HSBC] employees nationwide.” Def. Interrog. Resp. Nos. 5, 8. Twenty-five HSBC employees were ultimately disciplined in connection with Project Woodchip, including Plaintiff and three of her former branch managers. Def. Interrog. Resp., Ex. A; Pl. Rule 56.1 Stmt. 147. Fourteen of these twenty-five employees were male; eleven were female. Pl. Rule 56.1 Stmt. [| 44-45. There is no evidence anyone in this group besides Plaintiff was pregnant. Id. 445. Seven employees, including Plaintiff, were terminated. Pl. Rule 56.1 Stmt. J 44. Four of the terminated employees were male; three were female. Id.

2 Shortly after receiving her PIP, Plaintiff filed an internal complaint against her supervisor for creating a hostile work environment. See Def. Rule 56.1 Stmt. 1 91; Pl. Rule 56.1 Stmt. 990. The complaint did not allege discrimination; it asserted the branch lacked a “positive working environment . .. because of the ongoing spirit of division.” Jd.

Plaintiff's Termination Anthony Glover made the decision to terminate Plaintiff. Def. Interrog. Resp. No. 1; see also Anthony Glover Dep. Tr. (“Glover Tr.”) at 80:6-11, ECF No. 40-7 (testifying “ultimately I said yes or no” about whether HSBC would terminate Plaintiff); Peter Hutter Dep. Tr. at 106:11- 20, ECF No. 40-13 (testifying Glover “was responsible for making the ultimate decision to terminate” Plaintiff); Lisa McEldowney Dep. Tr. at 59:17-21, ECF No. 40-11 (testifying Glover “was the final decision maker in terms of what disciplinary actions would occur” with respect to Plaintiff). Plaintiff's termination was recommended by members of Project Woodchip and supported by HSBC’s legal team. Def. Interrog. Resp. No. 2; Glover Tr. at 80:6-11. Glover was unaware of Plaintiff's pregnancy. Pl. Rule 56.1 Stmt. J 46. On February 12, 2018, Peter Hutter and another HSBC employee, Anthony Mancusi, met with Plaintiff to inform her of her termination. /d. ¢ 77. Hutter and Mancusi provided Plaintiff with a Corrective Action Termination Form (“CATF”) and walked her through the reasons for her termination. Id. The CATF explains the reasons for Plaintiff's termination as follows: During a recent investigation into unauthorized sales practices, it was brought to management’s attention that during the period covering 2014, 2015, and 2016, [Plaintiff] was found to be acting with a lack of integrity and outside of the company’s policies and objectives in respect to her sales and earning sales credit. These activities included: e During sametime’ chats with co-workers during 2014 and 2015, [Plaintiff] made several mentions of unauthorized account upgrades, either ones she did herself or those done by others.

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Bluebook (online)
John-Baptiste v. HSBC, USA, N.A., Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-baptiste-v-hsbc-usa-na-nyed-2025.