Kelly v. The Project of the Quad Cities, Inc.

CourtDistrict Court, C.D. Illinois
DecidedApril 21, 2021
Docket4:19-cv-04078
StatusUnknown

This text of Kelly v. The Project of the Quad Cities, Inc. (Kelly v. The Project of the Quad Cities, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. The Project of the Quad Cities, Inc., (C.D. Ill. 2021).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS ROCK ISLAND DIVISION

WENDY KELLY, ) ) Plaintiff, ) ) v. ) Case No. 4:19-cv-04078-SLD-JEH ) THE PROJECT OF THE QUAD CITIES, ) INC., ) ) Defendant. )

ORDER

Before the Court is Defendant The Project of the Quad Cities, Inc.’s (“The Project”) Motion for Summary Judgment, ECF No. 17. For the following reasons, the motion is GRANTED to the extent it seeks judgment on Plaintiff Wendy Kelly’s claim that her termination constitutes race discrimination. BACKGROUND1 I. Position and Job Responsibilities Kelly is African American. In 2004, she was hired by The Project, a not for profit corporation. She became the executive director of The Project in 2008 and held that position until April 20, 2017. In this role, she served under the direction of The Project’s board of directors (“the board”); she was the only employee of The Project who answered directly to the board. She was responsible for agency development, growth and sustainability planning, and

1 At summary judgment, a court must “constru[e] the record in the light most favorable to the nonmovant.” Payne v. Pauley, 337 F.3d 767, 770 (7th Cir. 2003). Unless otherwise noted, the factual background of this case is drawn from The Project’s statement of undisputed material facts, Def.’s Mot. Summ. J. 2–13; Kelly’s statement of disputed material facts and additional material facts, Pl.’s Resistance Mot. Summ. J. 2–10, ECF No. 18; The Project’s reply to Kelly’s additional material facts, Def.’s Reply 1–4, ECF No. 19; and exhibits to the filings. development of prevention and care programs, in addition to her general duties to oversee the agency and supervise The Project’s employees. As executive director, Kelly initially earned a yearly salary of $44,000; at the time her employment ended, she was earning $62,000 per year, in addition to a biweekly milage allowance of $400. During the final year of her employment, she requested that her salary be

increased to $72,000 but instead received a five percent raise. At the same time that she received this raise, the board capped raises for all other non-grant employees at three percent. Kelly never had an employment contract and stated that she believed she could be fired at any time. Kelly was responsible for hiring and firing employees. In 2015, she wrote procedures for firing employees, which, she testified, were utilized “[t]o the best of ability.” Kelly Dep. 20:8– 11, Def.’s Mot. Summ. J. Ex. 1, ECF No. 17-1. She also developed a discipline structure and took part in disciplining and reprimanding employees along with Kristina Hall, the director of operations, and Thea Hansen, the director of grants and services. II. Allegedly Racially Insensitive Statements

In early 2016, The Project developed a strategic plan. A PowerPoint slide deck was created as a part of this process, incorporating written statements from board members. A slide bearing the heading “Most Significant Weaknesses” contained a bullet point that read: Staff still seems to have a slightly adversarial relationship with the Board. The Board is now full of competent, professional people, many of whom are not a part of “the community”. This is actually an advantage[—]if harnessed, the collective expertise of this Board is capable of drastically changing the impact the Agency has in the larger QC community. We have to find a way to move away from the ghetto-ized perception that just isn’t a reality in 2016.

Strategic Planning PowerPoint 4, Def.’s Mot. Summ. J. Ex. 2, ECF No. 17-2. At a strategic planning meeting, Kelly commented that she believed this statement to be racist. Board member Sarah Stevens admitted that she wrote the statement and said that “she didn’t mean it like that.” Kelly Dep. 37:22–38:7. Kelly met with Laura Kopp, another board member, in November of 2016. At that time, Kelly had natural hair and was wearing it down; she testified that “[i]t was kind of fuzzed out and a very natural look.” Id. at 81:20–82:2. Kopp asked her, “That’s the best you can do with

that?” Id. at 81:21–22. Kelly did not inform Kopp or any other board member that this conversation made her uncomfortable. III. Termination In November 2016, Kelly purchased tires using a company credit card. She states that the use of the company credit card was unintentional and that she had intended to use a personal credit card instead; charging personal purchases to a company credit card is against the policies of The Project. Approximately a week and a half after the purchase, Kelly became aware that the company credit card had been charged, and in early December 2016, she informed Kopp of the situation. Kopp responded by telling her that she needed to pay the money back. Kelly states

that on January 30 or 31, 2017, she gave five $100 bills to Hall to reimburse The Project for the purchase, plus interest. By that time, The Project had paid its credit card statement, which included the tire purchase. An emergency board meeting was called in February of 2017 to discuss the situation. The board agreed to hire Bill Stengel and Casey Stengel to perform an audit, which found that Kelly had used a company credit card to make the tire purchase and had only later paid the agency back. A second board meeting was held in April of 2017. At that meeting, the board again discussed Kelly’s actions and deliberated on whether to terminate her or take other disciplinary action. At one point during the discussion, board member Bernadette McCowan— the only African American board member—left for the bathroom. When she exited the room, disciplinary actions short of termination were being considered; when she returned, a motion for termination had been set. Every board member voted to terminate Kelly except for McCowan, who thought that this result was not warranted based on the information presented to her, and Thomas Schmits, who chose not to vote because he had not been present at the first meeting.

Because Kopp wanted a unanimous vote, a second vote was taken; McCowan again voted no. McCowan later told Kelly that she believed that the board’s decision to terminate her was racially motivated; she felt as though several discussions had taken place outside of her presence. She has neither heard anything nor received documentation to support the idea that the decision to terminate Kelly was racially motivated. On April 20, 2017, Bill Stengel met with Kelly and presented her with two options: she could sign a document resigning from her job, or she could sign another document and be fired. Kelly asserts that she was told that she knew why she was being asked to resign. She was aware of the investigation but states that she did not know whether the demand to either resign or be

terminated was related to the investigation. Kelly signed the document resigning from her position as executive director. The document also contained a handwritten provision stating “I, Wendy Kelly am unsure why I am being asked to resign. I have not been informed of any allegations brought against me.” Resignation, Def.’s Mot. Summ. J. Ex. 7, ECF No. 17-7. Kelly testified that she felt forced to sign the resignation document because—as it was presented to her—her community reputation would have been tarnished if she had signed the other document and been fired. On April 28, 2017, she emailed Donald Yule, an accountant whose company worked with The Project, stating that, although she was not sure why she had been asked to resign, she had a feeling it was over a charge made on the company credit card. After Kelly resigned, Andrea Meirick was hired as executive director of The Project. Meirick, who was Caucasian, received a base salary of $80,000. IV.

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Kelly v. The Project of the Quad Cities, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-the-project-of-the-quad-cities-inc-ilcd-2021.