Jones v. Wells Fargo

CourtDistrict Court, E.D. Louisiana
DecidedSeptember 23, 2019
Docket2:17-cv-08712
StatusUnknown

This text of Jones v. Wells Fargo (Jones v. Wells Fargo) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Wells Fargo, (E.D. La. 2019).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

KIM N. JONES CIVIL ACTION

v. NO. 17-8712

WELLS FARGO BANK, N.A. SECTION "F"

ORDER AND REASONS Before the Court is Wells Fargo Bank, N.A.’s motion for summary judgment. For the reasons that follow, the motion is GRANTED. Background This Title VII employment discrimination and state law whistleblower lawsuit arises from a 58-year-old African American woman’s claim that Wells Fargo wrongfully terminated her after 16 months as a home mortgage consultant. Kim Jones alleges that Wells Fargo discriminated against her because of her age (58), her race (African American), and her sex (female) in violation of state and federal antidiscrimination law. In addition to asserting wrongful termination, Jones alleges that she was mistreated because of these protected categories of age, race, and sex. She also alleges state law claims in which she seeks to recover for wrongful termination as a whistleblower, to recover unpaid commissions, and for negligence. 1 From August 14, 2015 until her termination on December 10, 2016, Kim Jones worked for Wells Fargo as a mortgage loan officer. During her employment, she failed to meet the minimum production

standards Wells Fargo required of mortgage loan officers. In September 2016, Wells Fargo placed Jones on a performance improvement plan, which set forth specific requirements she had to meet to remain employed. She failed to meet them. In December 2016, her employment was terminated. Kim Jones was hired on August 13, 2015 to work as a home mortgage consultant for Wells Fargo Bank at its Metairie, Louisiana location. At that time, Maurice Williams, an African-American

male who is about five years older than Jones, managed Wells Fargo’s Metairie branch. Williams was responsible for managing the day to day operations of the Metairie branch; hiring and training home mortgage consultants; and ensuring that the branch met Wells Fargo’s market-based production goals. Williams interviewed, hired, and supervised Jones. And, he eventually participated in the collective decision to fire her. Williams reported to Area Manager Stephen Cook and Regional Manager Jamie Klinnert; collectively, the three generally made hiring and firing decisions regarding home mortgage consultants like Jones.

2 As a loan officer or “home mortgage consultant,” Jones was responsible for originating residential mortgage loans for Wells Fargo. All mortgage consultants must meet minimum production

requirements. Jones signed the Minimum Production Threshold Acknowledgment, which provided that her employment could be terminated if she did not meet the minimum requirements. Jones also signed the Minimum Production Volume Standards Application and Funded agreements, which set forth the production requirements for home mortgage consultants, requiring that they fund at least $5.4 million in loan volume after being in the role for 12 months. During her first three months working as a home mortgage

consultant, Jones was paid an hourly rate. After that interim period, Jones received an hourly draw as an advance on her commissions or incentive payments, which were determined based on the loans she closed. If she did not earn enough commission to cover her hourly draw, she would carry a deficit, also known as being “in the hole.”1

1 Home mortgage consultants are paid an hourly draw against their commissions. If a home mortgage consultant’s commission earnings in a month fail to exceed their hourly pay, then their hourly pay deficit is carried over to the next month. Carrying a deficit is sometimes referred to as being “in the hole.” The deficit will carry over until the home mortgage consultant earns sufficient commissions to eliminate the deficit. A home mortgage consultant who has a deficit when her employment terminates, however, is not required to repay the hourly earnings deficit amount. 3 Jones now says that she disagreed with or took issue with some Wells Fargo processes. For example, as part of the loan origination process, Jones alleges that when a loan application

was delayed, Williams on behalf of Wells Fargo ordered her to contact her clients and have them pay a rate lock fee to preserve their original, lower interest rate. Jones says that the delays were not her customers fault, but Williams nevertheless threatened to call customers if she refused. Within the first three months of her employment, as part of a federal audit, Jones alleges that she took issue with her manager again; she says she reported that Williams regularly followed and enforced practices that conflicted with the Equal Credit Opportunity Act. Williams, Jones alleges, supported withholding less desirable loan applications from review and encouraged review by loan officers who were not trained to qualify applicants in order to increase the number of approved

applications -- a figure Jones suggests is directly tied to Williams’ bonus and compensation. She contends that Williams reprimanded her for “throwing him under the bus.” Jones struggled to meet the home mortgage consultants’ minimum production requirements. She first became aware that she was “in the hole” in April 2016. By the end of August 2016, Jones had failed to fund the requisite $5.4 million in loan volume (or 36 purchase units) in the previous 12 months, nor had she funded 4 $1.35 million in the previous three months; she also had a negative carryover commission balance of $5,129.37. As a result, in September 2016, Williams issued Jones a performance improvement

plan (PIP), effective until November 30, 2016. The plan mandated that Jones fund $450,000 in loans each month between September and November 2016.2 Jones failed to do so. On December 6, 2016, Williams emailed Human Resources to request a meeting to discuss terminating Jones’s employment because she had not met the production requirements of the performance improvement plan. The next day, Williams and Cook spoke with Human Resources Consultant Melissa Pritchard. During

the call, Williams stated that Jones had loans in her pipeline, but that she was not timely closing the loans. Williams stated that Jones was resistant to his coaching and failed to follow his instructions for structuring and submitting loans. Cook stated that the pipeline was meaningless if the loans did not close, and

2 Supervisors had access to more leads than non-supervisors. Williams distributed leads for potential customers to home mortgage consultants including Jones. Williams provided Jones with leads weekly; upon request, he gave Jones more leads. In September 2016, Williams gave Jones access to the leads to which Williams had access. And in October 2016, Jones learned how to use the lead tracker system, which allowed Jones to find her own leads. Jones increased her originations and felt that she had a sufficient number of leads by October 2016. 5 that Jones was not adhering to Wells Fargo’s application standards and should not have accepted some of the loan applications.

Jones was out of the office on Friday, December 9, 2016.3 Williams emailed her and told her that she must report to the office to attend a meeting that afternoon at 4:00 p.m. Wondering why she had to report to the office to attend a meeting on her day off, Jones contacted Human Resources; Senior Employee Relations Consultant Glenda Longren took the call. Jones told Longren that Williams had told her to report to the office and that she (Jones) believed Williams had done something “fraudulent” with a loan.4 Jones also said she realized that her vacation days had been

cancelled in the system. Jones acknowledged that she was on a

3 Jones testified that her “day off was Friday” but that she was working from home, working on leads.

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