Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company

CourtDistrict Court, N.D. California
DecidedFebruary 24, 2025
Docket3:24-cv-08528
StatusUnknown

This text of Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company (Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 KYMBERLY ALEEM DUNCAN, 7 Case No. 24-cv-08528-JCS Plaintiff, 8 v. ORDER GRANTING MOTION TO 9 REMAND STATE FARM MUTUAL AUTOMOBILE 10 INSURANCE COMPANY, et al., Re: Dkt. No. 13 11 Defendants.

12 13 I. INTRODUCTION 14 Plaintiff Kymberly Aleem Duncan brought this employment discrimination case in the 15 Superior Court of the State of California, County of Alameda, asserting state law claims against 16 State Farm Mutual Automobile Insurance Company and Jeanette Nicole Little. Defendants 17 removed the case to federal court pursuant to 28 U.S.C. §§1441(a) and (b) and 1446 based on 18 diversity jurisdiction under 28 U.S.C. § 1332. Although it is undisputed that Duncan and Little 19 are citizens of California, Defendants asserted in the Notice of Removal that there is complete 20 diversity of citizenship because Little was fraudulently joined in this action. Plaintiff now brings a 21 Motion to Remand (“Motion”) asserting that the case should be remanded to state court because 22 Little was not fraudulently joined and therefore, there is no diversity jurisdiction. The Court finds 23 that the Motion is suitable for determination without oral argument and therefore vacates the 24 motion hearing set for February 26, 2025 pursuant to Civil Local Rule 7-1(b). The Case 25 Management Conference set for the same date is also vacated. For the reasons stated below, the 26 Motion is GRANTED.1 27 1 II. BACKGROUND 2 A. Allegations in the Complaint 3 Plaintiff is an individual residing in the City of Hayward, Alameda County, California. 4 Compl. ¶ 1. Defendant State Farm Mutual Automobile Insurance Company is a corporation with 5 its principal place of business in Bloomington, Illinois. Id. ¶ 2. Defendant Jeanette Nicole Little is 6 an individual residing in the City of Pleasanton, Alameda County, California. Id. ¶ 3. 7 According to Plaintiff, she “worked in State Farm’s Pleasanton, California office and had 8 been working in the Claims Department until on or about June 16, 2016[,] when State Farm 9 offered [her] a position as a Litigation Attorney in the Claims Litigation Counsel (‘CLC’) 10 Department.” Id. ¶ 8. She was “the only African-American woman out of twenty-one attorneys 11 in the Pleasanton office.” Id. 12 Plaintiff alleges that she had previously sought such a transfer and had met with the former 13 managing attorney of CLC, Philip Anderson, to discuss a lateral transfer to CLC in 2011. Id. ¶ 10. 14 Plaintiff was not offered a transfer at that time and was told that such a transfer would entail a pay 15 cut, but a white male State Farm employee was offered a transfer to CLC in 2011 and was not 16 required to take a pay cut. Id. Plaintiff alleges that she was not offered a transfer in 2011 because 17 Defendant Little, who was second in command at CLC and had worked with Anderson for twenty 18 years at State Farm, convinced Andersen not to offer Plaintiff the lateral position. Id. When 19 Anderson offered Plaintiff the litigation associate position in 2016, he told her he had “grown so 20 much” and was “more open now[,]” which Plaintiff took “to mean that [Anderson] was now open 21 to hiring people of color.” Id. ¶ 11. 22 According to Plaintiff, Anderson was her managing partner at CLC from June 16, 2016 to 23 approximately June 18, 2021. Id. ¶ 13. Although she “was a top performer and consistently 24 received positive performance reviews” during this period, Anderson allegedly “personally 25 conveyed his unhappiness with Plaintiff’s success as a litigation attorney under his supervision.” 26 Id. ¶ 14. As an example, Plaintiff alleges Anderson “periodically told [her] that the paralegals 27 were ‘afraid’ of her and criticized Plaintiff for walking around like she was still a manager.” Id. 1 known racist stereotype, often described as the ‘Angry Black Woman[ ]’” – a stereotype that 2 “promotes a false narrative about African-American women, who are performing their work in a 3 manner professionally and appropriate to the workplace and are falsely tagged by supervisors as 4 loud, angry and aggressive in performance reviews as a pretext for denial of promotions, discipline 5 and/or termination.” Id. According to Plaintiff, she later spoke to her work colleagues “and they 6 confirmed to Plaintiff that she was not doing anything that might be construed as intimidating or 7 likely to cause co-workers to be afraid of her.” Id. 8 Plaintiff alleges that on one occasion, Andersen “made a side agreement with a white, 9 male attorney, who represents plaintiffs who sue State Farm insureds, that Plaintiff would be 10 removed from a pending case and that this attorney, as counsel adverse to State Farm, would not 11 have to work with Plaintiff.” Id. She alleges that there was no cause for the agreement, which 12 was never explained, and that it “was so irregular and against State Farm’s policies that Executive 13 Manager, Kevin McGuire (Anderson’s supervisor) determined that there was cause to intervene 14 and require Anderson to apologize to Plaintiff.” Id. 15 Around June 2021, Anderson retired and Little took over his position, making her 16 Plaintiff’s managing attorney. Id. ¶ 15. Plaintiff alleges that in the two years that followed, 17 “Little, who has remained a close friend of Anderson since his retirement, oversaw a series of 18 escalating racially discriminatory actions toward Plaintiff, as herein alleged, including working 19 behind the scenes to derail job promotions for which Plaintiff was both eligible and qualified, and 20 creating a fraudulent record of performance issues that included the same racist stereotypes 21 alluded to by Anderson and now presented with even greater racial animus by Little.” Id. 22 According to Plaintiff, the racially motivated hostile work environment created an “intolerable 23 situation” that resulted in her constructive discharge in May 2023. Id. 24 Plaintiff alleges the following specific facts in support of her claim that Little created a 25 hostile work environment: 16. Little’s and State Farm’s unlawful conduct was ongoing and 26 escalating throughout 2021 and 2022. Plaintiff is informed and believes that Andersen was instructed by upper management to train 27 Plaintiff to be a managing attorney, which he never started. After 17. Further, as Plaintiff’s managing attorney, Little assigned Luke 1 Fornwald (“Fornwald”), to be Plaintiff’s new paralegal. Plaintiff is informed and believes that Little reassigned Fornwald at the request 2 of another attorney, who Little favored. Plaintiff is informed and believes that Little knew of Fornwald’s performance issues at the time 3 of the reassignment. On or about November 23, 2021, Plaintiff notified Little that Fornwald was experiencing performance issues 4 and requested that Little assign a different paralegal to Plaintiff. Plaintiff is informed and believes that Little knew that Fornwald had 5 performance issues and the potential impacts on Plaintiff’s workload. Nevertheless, Little rejected Plaintiff’s request to reassign Fornwald. 6 18. Further, in or around 2021, Plaintiff requested that Little assign 7 Plaintiff as a “Law and Motion” specialist. Little did not respond to Plaintiff’s request. In or around 2022, Plaintiff followed up on her 8 request to be assigned as a Law and Motion specialist. Little again did not respond. Little subsequently appointed another attorney in the 9 department to the Law and Motion specialist position.

10 19. As of June 2021, Plaintiff was informed and believed that she was considered a rising star at State Farm, destined for management 11 training and leadership positions.

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Kymberly Aleem Duncan v. State Farm Mutual Automobile Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kymberly-aleem-duncan-v-state-farm-mutual-automobile-insurance-company-cand-2025.