Krause v. Lancer & Loader Group, LLC

40 Misc. 3d 385
CourtNew York Supreme Court
DecidedMay 1, 2013
StatusPublished
Cited by13 cases

This text of 40 Misc. 3d 385 (Krause v. Lancer & Loader Group, LLC) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krause v. Lancer & Loader Group, LLC, 40 Misc. 3d 385 (N.Y. Super. Ct. 2013).

Opinion

OPINION OF THE COURT

Carol R. Edmead, J.

In this pregnancy discrimination action by plaintiff Jessica Krause, defendants Lancer & Loader Group, LLC (LLG) and Jonathan Levine (collectively, defendants) move pursuant to CPLR 3211 (a) (7) for an order dismissing plaintiffs complaint.

Background Facts

LLG is a wholesaler of battery-operated LED lights located in New York, New York. Plaintiff was allegedly employed as LLG’s national sales manager from approximately March 2007 through October 19, 2011, when she was terminated. She worked mostly from home in New Jersey, but traveled several times a month for trade shows and client meetings. Plaintiff alleges that immediately prior to her termination, the company’s sales were rising, largely due to her sales efforts and the large accounts she procured.

On or about August 12, 2011, two months before her termination, plaintiff learned that she was pregnant, and began considering moving with her husband to North Carolina to start her family. On September 19, 2011, plaintiff emailed the company’s president, Levine, and vice-president, Brian Johnson, to ask for their “blessing” before she made her final decision regarding the move and to assure them that the move would not impact her work performance. However, plaintiff did not tell them she was pregnant at this time.

Later that day, Johnson replied that he had no issue with plaintiffs move and wished her luck. Having not heard from Levine, on or about September 27, 2011, plaintiff called Johnson to express her concern and officially informed him of her pregnancy. Shortly thereafter, on or about October 19, Levine fired plaintiff, stating as the reasons “poor economy” and reduced sales.

[388]*388On December 17, 2012, plaintiff commenced this action against defendants, alleging five causes of action: (1) gender/ pregnancy discrimination under the New York State Human Rights Law (NYSHRL) (Executive Law § 290 et seq.) and New York City Human Rights Law (NYCHRL) (Administrative Code of City of NY § 8-101 et seq.)-, (2) disability discrimination under the NYSHRL and NYCHRL; (3) aiding and abetting pregnancy discrimination under the NYSHRL and NYCHRL; (4) intentional infliction of emotional distress; and (5) violation of the Labor Law for unpaid wages.

In support of their motion to dismiss the complaint, defendants argue first that plaintiffs pregnancy discrimination claim should be dismissed because there is no causal connection between plaintiffs pregnancy and her loss of job. She has not adequately alleged that she satisfactorily performed her job duties, or that her discharge occurred under the circumstances giving rise to an inference of discrimination, i.e., that defendants knew she was pregnant and terminated her because of her pregnancy and that, after termination, her position was filled by a non-pregnant employee. Defendants submit an affidavit of Johnson wherein he states that plaintiff never advised him of her pregnancy and he did not know that plaintiff was pregnant until the day she was laid off. The complaint does not allege that plaintiff told Levine about her pregnancy before she was terminated (Johnson aff, exhibit C). Defendants also submit Levine’s affidavit in which he states that he only learned of plaintiffs pregnancy after he told her that LLG could no longer afford to employ her, at which time, plaintiff responded: “That’s too bad because I was going to tell you good news: I’m pregnant” (Levine aff, exhibit B, If 16).

Further, the legitimate reasons of plaintiffs termination were her poor job performance and the economic recession. Thus, her position was eliminated as part of a work force reduction. Plaintiffs claim of her high work performance is untrue as her sales numbers were the lowest in 2009-2010 and in the first two quarters of 2011, and some of her accounts generated yearly losses.

Next, plaintiffs second cause of action for disability discrimination must likewise be dismissed because plaintiff has not alleged facts connecting her disability/pregnancy to her termination, as her allegations that Johnson knew of her pregnancy are speculative.

The third cause of action for aiding and abetting in pregnancy discrimination should be dismissed because it is predicated on [389]*389the failed discrimination claim as plaintiff first has to establish the liability of her employer in order to assert this claim.

Further, plaintiffs claim for intentional infliction of emotional distress should also be dismissed for failure to allege outrageous conduct.

Finally, plaintiff fails to state a claim against Levine as an individual defendant since there are no allegations as to how Levine was personally involved in the alleged discriminatory acts. There are no allegations that Johnson relayed his purported knowledge of plaintiff’s pregnancy to Levine, such that plaintiffs pregnancy became the reason for her layoff.

Plaintiff opposes the motion, arguing that defendants’ motion is frivolous as it goes beyond the limited standards of the CPLR 3211 (a) (7). Defendants’ affidavits at most, raise disputed facts.

Plaintiffs gender/pregnancy discrimination claim is properly stated as plaintiff need not plead specific facts and giving “fair notice” of the nature of the claim is sufficient. And in any event, plaintiff pleaded facts establishing a prima facie case of discrimination, i.e., that she was in the protected class due to her pregnancy; she was “qualified” for the position, since Levine specifically solicited plaintiff for that position based on his knowledge of her sales skills at another company where they worked together; and she was fired.

Notably, the inferences of discrimination are raised by the facts that plaintiff was fired shortly after she informed her boss of her pregnancy; prior to the time of her termination in October 2011, plaintiff was the second highest revenue generator at the company, generating 30% of the company’s domestic revenue; she received praise from her superiors and clients and never received a negative performance review; plaintiff was the only employee terminated in 2010 or 2011; and, in or about April 2011, defendants hired (an) administrative assistant to assist with the increased business, largely attributed to her two new clients, Meijer, Inc. and True Value Hardware.

Next, plaintiff has alleged (in her complaint and affidavit) that defendants knew of her pregnancy because she told Johnson about it, who, as a vice-president of the company, reported directly to Levine, and therefore, was part of the “corporate hierarchy,” such that his knowledge should be imputed to the corporate defendant. Johnson was plaintiff’s supervisor, who, by his own account, was really “running the company” with Levine (Krause aff ¶¶ 8-9). Thus, it is reason[390]*390able to infer that Johnson shared the pregnancy information with Levine.

Plaintiff further argues her disability discrimination claim is adequately stated as pregnancy is considered disability within the meaning of NYSHRL and NYCHRL.

The claim for aiding and abetting pregnancy discrimination is adequately stated under Executive Law § 296 (6) and Administrative Code § 8-107 (6). Levine is individually liable for discrimination under both the state and city laws, because he knew plaintiff was pregnant when he fired her.

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Bluebook (online)
40 Misc. 3d 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krause-v-lancer-loader-group-llc-nysupct-2013.