KRAMER v. FRANKLIN COVEY CO

CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 9, 2021
Docket2:18-cv-01599
StatusUnknown

This text of KRAMER v. FRANKLIN COVEY CO (KRAMER v. FRANKLIN COVEY CO) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KRAMER v. FRANKLIN COVEY CO, (W.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

SHELBY KRAMER, Plaintiff, Civil Action No. 2:18-cv-1599 v. Hon. William S. Stickman IV FRANKLIN COVEY CO, Defendant.

MEMORANDUM OPINION WILLIAM S. STICKMAN IV, District Judge Defendant, Franklin Covey Co., filed its Motion for Summary Judgment (ECF No. 34), together with an accompanying Brief in Support (ECF No. 35), requesting that the Court grant summary judgment against Plaintiff, Shelby Kramer, on all counts. After consideration of the parties’ pleadings and their positions at oral argument, the Court grants in part and denies in part Defendant’s Motion for Summary Judgment (ECF No. 34).

I. FACTUAL BACKGROUND Defendant is an organizational improvement company. Defendant’s clients often engage it to improve several aspects of their operational schemes, including improving the effectiveness of employees, leadership capabilities, execution of strategy, and overall company culture. Defendant employed Plaintiff, Shelby Kramer, from 2007 to 2014 as an Associate Client Partner (ECF No. 36, § 1-2); (ECF No. 43, 9 1-2). Client Partners are commission-based and usually earned commissions of 8% on account revenue generated and could earn up to 12% if they □

achieved all quarterly bonuses. (ECF No. 45, § 64); (ECF No. 52, 4 64). Plaintiff gave birth to her first child while employed by Defendant.! In 2014, Plaintiff resigned from her employment with Defendant to pursue employment with SkillSoft. (ECF No. 36, J] 3-4); (ECF No. 43; 9 3— 4). In 2015, Defendant rehired Plaintiff as a Sales Manager for its northeast region. Her duties as a Sales Manager included managing a group of Associate Client Partners, coaching and teaching them, holding them accountable to sales goals, attending client visits, and creating strategy for penetrating accounts. Plaintiff's supervisor at the time was General Manager Elise Roma (“GM Roma’). That same year, Defendant consolidated its sales regions, and Plaintiff's title transitioned from Sales Manager to Managing Director. (ECF No. 36, {J 6-10); (ECF No. 43, ff] 6-10). Asa Managing Director, Plaintiff had a total target annual compensation of $240,000. (ECF No. 46- 18, p. 2); (ECF No. 52, 9 65). At the same time, Defendant appointed General Manager Mark Josie (“GM Josie”) as a new supervisor for Plaintiff. (ECF No. 36, J 9); CECF No. 43, § 9).

' Defendant did not discriminate against her on account of her pregnancy, nor did it retaliate against her for taking leave under the Family Medical Leave Act (“FMLA”). (ECF No. 36, J 3); (ECF No. 43, § 3).

Plaintiff was generally known as a diligent worker and strong performer who routinely fulfilled her job responsibilities in a satisfactory manner. (ECF No. 45, { 6); (ECF No. 52, § 6). Plaintiff did not have performance issues, and her superiors believed her to be a hard worker and a good manager. (ECF No. 45, □□ 6, 8, 50-53); (ECF No. 52, 6, 8, 50-53). GM Josie told Plaintiff that he planned to expand Plaintiff's team to include twelve to thirteen Client Partners. (ECF No. 45; 4 9); (ECF No. 52, § 9). In October of 2016, Plaintiff informed GM Josie that she was pregnant and planned to take an eight-week maternity leave beginning in April of 2017.” (ECF No. 37-1, p. 14); (ECF No. 52, 10). According to Plaintiff, GM Josie’s treatment of her changed after she revealed her pregnancy and planned leave. (ECF No. 45, ¥ 11); (ECF No. 52, § 11). She claims that the following events and circumstances adversely affected her employment: (1) GM Josie began to generally ignore Plaintiff after revealing her pregnancy, and specifically, he ignored emails, requests to join meetings remotely, and stopped having scheduled meetings with her to discuss her team? (ECF No. 45, J 12); (ECF No. 52, 12); (2) although GM Josie previously promised to “scramble” the Client Partner teams (i.e., put seasoned Client Partners on each Managing

? Defendant’s Response to Plaintiffs Concise Statement of Additional Material Facts provides that Defendant “does not dispute that [Plaintiff], at some point, informed [GM] Josie that she was pregnant. However, the exhibit that Plaintiff cites in support of this statement . . . does not support the assertion that [Plaintiff] did so on October 10, 2016.” (ECF No. 52, § 10). While the Court was unable to locate an exact date as to when Plaintiff notified GM Josie that she was pregnant, Plaintiff testified that she had notified him sometime in October of 2016. 3 Defendant disputes that GM Josie was routinely cancelling meetings with Plaintiff on the grounds that “Plaintiff could only identify one ‘one-on-one’ that [GM] Josie postponed” (ECF No. 52, { 12), and that there is only one circumstance wherein GM Josie ignored Plaintiff's request to join a meeting remotely (ECF No. 52, ¥ 12). Plaintiff's testimony was given in response to questioning by defense counsel, and she was not asked to identify additional instances of cancelled meetings. She also stated unambiguously that “the one-on-ones always occurred, and all of a sudden they were not happening and [GM Josie] was cancelling them or he was too busy to have them with me.” (ECF No. 46-2, p. 15).

Director’s team) to give each team a fair chance to produce revenue, GM Josie “scrambled” all teams except for Plaintiff's (ECF No. 37-1, p. 14); (ECF No. 45, 4 13); (ECF No. 52, 4 13); 3) although the company’s operating guidelines prohibited doing so, GM Josie permitted other teams to take account targets from Client Partners on her team (ECF No. 45, § 15); (ECF No. 52, ¥ 15); (4) GM Josie did not provide Plaintiff's team with gift cards for achieving substantial growth in the prior fiscal year, despite awarding other teams gift cards (ECF No. 45, { 17); (ECF No. 52, § 17); and (5) GM Josie cancelled hiring on Plaintiff’s team because he believed it would not be a good idea to hire employees shortly before Plaintiff began her leave (ECF No. 53-3, pp. 3-6); (ECF No. 52, § 18). Some of these circumstances prompted Plaintiff to have phone discussions with Chief People Officer, Todd Davis (“CPO Davis”). During Plaintiff's first conversation with CPO Davis, she complained of GM Josie allowing other teams to take accounts and alleged that there was “favoritism” at play. (ECF No. 45, 7 16); (ECF No. 52, § 16). In Plaintiffs second conversation with CPO Davis, she told CPO Davis that she was not comfortable with GM Josie’s cancelling of the hiring on her team because of her pregnancy. (ECF No. 45, §] 22); (ECF No. 52, 22). During the same conversation, Plaintiff also informed CPO Davis of the instance in which GM Josie refused to provide her team with gift cards, and she further noted that she was “getting scared” . because GM Josie “was starting to ignore [her] emails and cancel [her] one-on-ones.”* (ECF No. 36, J 90); (ECF No. 43, § 90). Neither GM Josie nor Executive Vice President of Global Sales

4 Plaintiff testified that CPO Davis specifically stated in reply to the hiring freeze that the company had a right to protect itself from her pregnancy. (ECF No. 46-1, p. 10); (ECF No. 46-2, p. 25). CPO Davis, however, testified that “those were never the words that [he] used.” (ECF No. 46-1, p. 24).

and Delivery, Paul Walker (“EVP Walker”) were informed of these discussions. (ECF No. 37-2, p. 6); (ECF No. 36, Jf 91, 93); (ECF No. 43, 9 91, 93). Around the same time that Plaintiff disclosed her pregnancy, Defendant began introducing a subscription-based product labeled “All Access Pass,” which allowed clients to obtain subscriptions to all of Defendant’s content and solutions simultaneously. (ECF No.36, {| 11); ECF No. 43 § 11). Defendant began transitioning its business model to accommodate changes in its business strategy, including implementing changes in its hiring practices to suit different methods of selling. (ECF No. 36, J 12); (ECF No. 43, § 12).

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KRAMER v. FRANKLIN COVEY CO, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kramer-v-franklin-covey-co-pawd-2021.