Kumar v. RENEWAL, INC.

554 F. Supp. 2d 589, 2008 U.S. Dist. LEXIS 36576, 2008 WL 1943437
CourtDistrict Court, W.D. Pennsylvania
DecidedMay 1, 2008
DocketCivil Action 06-1279
StatusPublished

This text of 554 F. Supp. 2d 589 (Kumar v. RENEWAL, INC.) 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
Kumar v. RENEWAL, INC., 554 F. Supp. 2d 589, 2008 U.S. Dist. LEXIS 36576, 2008 WL 1943437 (W.D. Pa. 2008).

Opinion

MEMORANDUM and ORDER

GARY L. LANCASTER, District Judge.

This is an employment discrimination case. Plaintiffs, Vijay Kumar and Badri Narayan, allege that defendant, Renewal, Inc., discriminated against them due to their country of national origin, ie., India. They also allege that Renewal retaliated against them after they filed charges of discrimination. Kumar and Narayan contend that Renewal has violated Title VII of the Civil Rights Act of 1964, and that they are entitled to damages, including punitive damages, interest, costs, and fees.

Renewal has filed a motion for summary judgment [doc. no. 31] arguing that Kumar and Narayan cannot establish a prima fa-cia case, nor, even if they could, produce any evidence of pretext. In addition, Renewal claims that Kumar and Narayan have no evidence that they suffered damages as a result of any alleged retaliatory actions. Kumar and Narayan argue that they have produced enough evidence on each of their claims to allow the case to reach a jury. We agree, and for the reasons that follow, deny the motion for summary judgment.

I. FACTUAL BACKGROUND

Unless otherwise noted, the following facts are not in dispute. Other facts may be discussed in context throughout this opinion.

At the time of his termination, Vijay Kumar had worked for Renewal for approximately twelve years. While employed there, Kumar held various posi *590 tions, including Executive Vice President. As Executive Vice President, Kumar often acted as Chief Executive Officer.

At the time of his termination, Badri Narayan had worked for Renewal for approximately eight years. While employed there, Narayan held various positions, including Manager of Information Services. As Manager, Narayan supervised the other three members of that department, one of which was also Indian, and two of which were Caucasian.

Renewal hired Doug Williams to be CEO on June 23, 2003. Kumar was one of five finalists considered for the position. Within weeks of Williams becoming CEO, Kumar was demoted to Vice President of Administration. He took a $50,000 pay cut as a result.

On December 10, 2003, the Renewal Board of Directors voted to eliminate Ku-mar’s position. Prior to this vote, Williams told the Board that Kumar’s position was not necessary. Williams did not notify Kumar of his termination, however, until January 9, 2004, the day after Williams called Kumar at home, late in the evening, and angrily accused him of .viewing child pornography at work and planting self-destruction programs in Renewal’s computer systems. The termination was made effective immediately.

On January 14, 2004, the Board voted to outsource the Information Services Department’s functions. Prior to this vote, Williams, citing concerns about the security and HIPAA compliance of Renewal’s computer systems, hired a consulting firm to evaluate Renewal’s IS systems and staff. That firm, relying on concerns that Williams expressed to them as to the loyalties of certain IS staff members, recommended that the IS function be outsourced. At the same time that it made this recommendation, the consulting firm also recommended that some former in-house staff members be rehired by the consulting firm to service the Renewal contract. In fact, the consulting firm did hire the two Caucasian members of Renewal’s IS department, but not the two Indian members. The day after the Renewal Board voted to outsource the IS Department, Williams notified Narayan that his position had been eliminated. The termination was made effective immediately-

By eliminating Kumar’s position, and outsourcing the IS Department, Renewal terminated all three of its employees of Indian national origin. Although two Caucasian employees were also terminated, they were soon thereafter hired by the IS consulting firm for the specific purpose of servicing the Renewal contract.

To supplement his income after his demotion at Renewal, Kumar formed a consulting company called iOrange in September of 2003. Narayan was an officer of iOrange and began working there several months after Renewal fired him. After Renewal terminated Kumar and Narayan, Renewal sued iOrange, Kumar, and Na-rayan accusing them of selling Renewal’s software programs to a hospital in St. Louis. There was no factual basis for that suit, as was later discovered when Renewal conducted limited factual investigation and research. In addition, one of Renewal’s board members contacted Children’s Hospital of Pittsburgh, which had contracted with iOrange, to express concerns that Renewal’s former employees were using Renewal’s software programs. An investigation revealed that there was no factual basis for these accusations either.

II. Legal Authority

Fed.R.Civ.P. 56(c) provides that summary judgment may be granted if, drawing all inferences in favor of the non-moving party, “the pleadings, depositions, answers to interrogatories, and admissions on file, *591 together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (internal quotation marks omitted). The party moving for summary judgment “bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of ‘the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,’ which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). When the moving party does not bear the burden of persuasion at trial, as here, its burden “may be discharged by ‘showing’-that is, pointing out to the district court-that there is an absence of evidence to support the nonmoving party’s case.” Id. at 325, 106 S.Ct. 2548. Once the moving party has filed a properly supported motion, the burden shifts to the nonmoving party to “set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e).

A dispute over those facts that might affect the outcome of the suit under the governing substantive law, i.e. the material facts, is a genuine issue that will preclude the entry of summary judgment. Anderson, 477 U.S. at 248, 106 S.Ct. 2505. In determining whether the dispute is genuine, the court’s function is not to weigh the evidence or to determine the truth of the matter, but only to determine whether the evidence of record is such that a reasonable jury could return a verdict for the non-moving party. Id. at 248-49, 106 S.Ct. 2505. “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no ‘genuine issue for trial.’ ” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp.,

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