Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company

District Court, N.D. California·Decided February 24, 2025·No. 3:24-cv-08528·Unknown

Opinion

KYMBERLY ALEEM DUNCAN, Case No. 24-cv-08528-JCS Plaintiff, v. ORDER GRANTING MOTION TO STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, et al., Re: Dkt. No. 13 Defendants.

Plaintiff Kymberly Aleem Duncan brought this employment discrimination case in the Superior Court of the State of California, County of Alameda, asserting state law claims against State Farm Mutual Automobile Insurance Company and Jeanette Nicole Little. Defendants removed the case to federal court pursuant to 28 U.S.C. §§1441(a) and (b) and 1446 based on diversity jurisdiction under 28 U.S.C. § 1332. Although it is undisputed that Duncan and Little are citizens of California, Defendants asserted in the Notice of Removal that there is complete diversity of citizenship because Little was fraudulently joined in this action. Plaintiff now brings a Motion to Remand (“Motion”) asserting that the case should be remanded to state court because Little was not fraudulently joined and therefore, there is no diversity jurisdiction. The Court finds that the Motion is suitable for determination without oral argument and therefore vacates the motion hearing set for February 26, 2025 pursuant to Civil Local Rule 7-1(b). The Case Management Conference set for the same date is also vacated. For the reasons stated below, the Motion is GRANTED.1 A. Allegations in the Complaint Plaintiff is an individual residing in the City of Hayward, Alameda County, California. Compl. ¶ 1. Defendant State Farm Mutual Automobile Insurance Company is a corporation with its principal place of business in Bloomington, Illinois. Id. ¶ 2. Defendant Jeanette Nicole Little is an individual residing in the City of Pleasanton, Alameda County, California. Id. ¶ 3. According to Plaintiff, she “worked in State Farm’s Pleasanton, California office and had been working in the Claims Department until on or about June 16, 2016[,] when State Farm offered [her] a position as a Litigation Attorney in the Claims Litigation Counsel (‘CLC’) Department.” Id. ¶ 8. She was “the only African-American woman out of twenty-one attorneys in the Pleasanton office.” Id. Plaintiff alleges that she had previously sought such a transfer and had met with the former managing attorney of CLC, Philip Anderson, to discuss a lateral transfer to CLC in 2011. Id. ¶ 10. Plaintiff was not offered a transfer at that time and was told that such a transfer would entail a pay cut, but a white male State Farm employee was offered a transfer to CLC in 2011 and was not required to take a pay cut. Id. Plaintiff alleges that she was not offered a transfer in 2011 because Defendant Little, who was second in command at CLC and had worked with Anderson for twenty years at State Farm, convinced Andersen not to offer Plaintiff the lateral position. Id. When Anderson offered Plaintiff the litigation associate position in 2016, he told her he had “grown so much” and was “more open now[,]” which Plaintiff took “to mean that [Anderson] was now open to hiring people of color.” Id. ¶ 11. According to Plaintiff, Anderson was her managing partner at CLC from June 16, 2016 to approximately June 18, 2021. Id. ¶ 13. Although she “was a top performer and consistently received positive performance reviews” during this period, Anderson allegedly “personally conveyed his unhappiness with Plaintiff’s success as a litigation attorney under his supervision.” Id. ¶ 14. As an example, Plaintiff alleges Anderson “periodically told [her] that the paralegals were ‘afraid’ of her and criticized Plaintiff for walking around like she was still a manager.” Id. known racist stereotype, often described as the ‘Angry Black Woman[ ]’” – a stereotype that “promotes a false narrative about African-American women, who are performing their work in a manner professionally and appropriate to the workplace and are falsely tagged by supervisors as loud, angry and aggressive in performance reviews as a pretext for denial of promotions, discipline and/or termination.” Id. According to Plaintiff, she later spoke to her work colleagues “and they confirmed to Plaintiff that she was not doing anything that might be construed as intimidating or likely to cause co-workers to be afraid of her.” Id. Plaintiff alleges that on one occasion, Andersen “made a side agreement with a white, male attorney, who represents plaintiffs who sue State Farm insureds, that Plaintiff would be removed from a pending case and that this attorney, as counsel adverse to State Farm, would not have to work with Plaintiff.” Id. She alleges that there was no cause for the agreement, which was never explained, and that it “was so irregular and against State Farm’s policies that Executive Manager, Kevin McGuire (Anderson’s supervisor) determined that there was cause to intervene and require Anderson to apologize to Plaintiff.” Id. Around June 2021, Anderson retired and Little took over his position, making her Plaintiff’s managing attorney. Id. ¶ 15. Plaintiff alleges that in the two years that followed, “Little, who has remained a close friend of Anderson since his retirement, oversaw a series of escalating racially discriminatory actions toward Plaintiff, as herein alleged, including working behind the scenes to derail job promotions for which Plaintiff was both eligible and qualified, and creating a fraudulent record of performance issues that included the same racist stereotypes alluded to by Anderson and now presented with even greater racial animus by Little.” Id. According to Plaintiff, the racially motivated hostile work environment created an “intolerable situation” that resulted in her constructive discharge in May 2023. Id. Plaintiff alleges the following specific facts in support of her claim that Little created a hostile work environment: 16. Little’s and State Farm’s unlawful conduct was ongoing and escalating throughout 2021 and 2022. Plaintiff is informed and believes that Andersen was instructed by upper management to train Plaintiff to be a managing attorney, which he never started. After 17. Further, as Plaintiff’s managing attorney, Little assigned Luke Fornwald (“Fornwald”), to be Plaintiff’s new paralegal. Plaintiff is informed and believes that Little reassigned Fornwald at the request of another attorney, who Little favored. Plaintiff is informed and believes that Little knew of Fornwald’s performance issues at the time of the reassignment. On or about November 23, 2021, Plaintiff notified Little that Fornwald was experiencing performance issues and requested that Little assign a different paralegal to Plaintiff. Plaintiff is informed and believes that Little knew that Fornwald had performance issues and the potential impacts on Plaintiff’s workload. Nevertheless, Little rejected Plaintiff’s request to reassign Fornwald. 18. Further, in or around 2021, Plaintiff requested that Little assign Plaintiff as a “Law and Motion” specialist. Little did not respond to Plaintiff’s request. In or around 2022, Plaintiff followed up on her request to be assigned as a Law and Motion specialist. Little again did not respond. Little subsequently appointed another attorney in the department to the Law and Motion specialist position.

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Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company, (N.D. Cal. 2025).

Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company (Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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