Lloyd v. Overstock.com

CourtDistrict Court, D. Utah
DecidedNovember 23, 2021
Docket2:18-cv-00955
StatusUnknown

This text of Lloyd v. Overstock.com (Lloyd v. Overstock.com) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd v. Overstock.com, (D. Utah 2021).

Opinion

FILED 2021 NOV 23 PM 12:07 OLE RKO U.S. DISTRICT COURT UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH CENTRAL DIVISION

MARKIE LLOYD and NATALIA SHAW, MEMORANDUM DECISION AND ORDER GRANTING IN PART AND Plaintiffs. DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY v. JUDGMENT (DOC. NO. 42) OVERSTOCK.COM, INC., Case No. 2:18-cv-00955 Defendant. Magistrate Judge Daphne A. Oberg

Plaintiffs Markie Lloyd and Natalia Shaw brought this action against their former employer, Overstock.com, Inc. (“Overstock”), alleging disability discrimination and retaliation under the Americans with Disabilities Amendments Act (“ADA”), 42 U.S.C. § 12101, et seq. (See Compl. § 1, Doc. No. 2.) Plaintiffs asserted claims for failure to accommodate, disparate treatment, disparate impact, and retaliation. (Compl. Jj 92-119, Doc. No. 2.) Overstock moved for summary judgment on all claims. (Mot. for Summ. J. (““MSJ”), Doc. No. 42.) Plaintiffs opposed the motion in part, choosing not to pursue several claims. (Pls.” Mem. in Opp’n to Def.’s Mot. for Summ. J. (“Opp’n’”), Doc. No. 46.) The court held a hearing on the motion on November 1, 2021. (See Doc. No. 53.) For the reasons explained below, the motion is granted in part and denied in part. The court! grants the motion as to the claims Plaintiffs have chosen not to pursue: Ms. Lloyd’s failure-to-accommodate claim and Plaintiffs’ disparate-impact claims. The court denies the

' The parties consent to proceed before a magistrate judge in accordance with 28 U.S.C. § 636(c) and Rule 73 of the Federal Rules of Civil Procedure. (Doc. No. 12.)

motion as to all other claims: Ms. Shaw’s failure-to-accommodate claim, Plaintiffs’ disparate- treatment claims, and Plaintiffs’ retaliation claims. SUMMARY JUDGMENT STANDARD Courts grant summary judgment only where “the movant shows that there is no genuine

dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “A fact is ‘material’ if, under the governing law, it could have an effect on the outcome of the lawsuit.” Tabor v. Hilti, Inc., 703 F.3d 1206, 1215 (10th Cir. 2013) (internal quotation marks omitted). “A dispute over a material fact is ‘genuine’ if a rational jury could find in favor of the nonmoving party on the evidence presented.” Id. (internal quotation marks omitted). In evaluating a motion for summary judgment, the court views “the facts in the light most favorable to the nonmovant and draw[s] all reasonable inferences in the nonmovant’s favor.” Jones v. Norton, 809 F.3d 564, 573 (10th Cir. 2015). But, “where the non moving party will bear the burden of proof at trial on a dispositive issue that party must go beyond the pleadings and designate specific facts so as to make a showing sufficient to establish the

existence of an element essential to that party’s case in order to survive summary judgment.” McKnight v. Kimberly Clark Corp., 149 F.3d 1125, 1128 (10th Cir. 1998) (internal quotation marks omitted). RELEVANT FACTS The court considers the following facts in determining the motion for summary judgment. All facts come from the parties’ briefs and accompanying exhibits. The court draws all reasonable inferences in favor of Plaintiffs as the nonmoving parties. The Content Moderation Team Former Overstock president Stormy Simon identified the Content Moderation Team (“CMT”) as a department which could accommodate people who needed to work from home, including people with disabilities such as multiple sclerosis (“MS”). (MSJ, Background and

Context Facts ¶¶ 2, 4, Doc. No. 42; Opp’n, Pls.’ Statement of Add’l Undisputed Material Facts (“SAUMF”) ¶ 1, Doc. No. 46.) Because website reviews were submitted all day and required constant moderation, content moderators could work from home with no set schedule and flexible hours. (SAUMF ¶¶ 1–2.) Beginning around 2012, Ms. Simon worked with the local MS society to identify and recruit potential employees with MS to work on the CMT. (Id. ¶ 4.) Ms. Simon took a leave of absence in June 2016, and she resigned as president of Overstock in July 2016. (Id. ¶ 19.) Ms. Simon testified she was concerned that after she left, Overstock would undo what she had created. (Ex. 3 to Opp’n, Dep. of Stormy Simon (“Simon Dep.”) 83:11–25, Doc. No. 46-4.) On June 24, 2016, Nariman Noursalehi, Senior Vice President of Marketing, emailed all

CMT employees to announce he was ending the CMT’s work-from-home program. (MSJ, Statement of Undisputed Material Facts (“SUMF”) ¶ 19, Doc. No. 42; Ex. K to MSJ, Noursalehi Email (June 24, 2016), Doc. No. 42-12.) The email stated Mr. Noursalehi had decided to “cease the practice of working from home in a permanent/indefinite role,” and “all full-time employees will need to complete their scheduled work week in the office beginning Tuesday July 5th.” (Noursalehi Email, Doc. No. 42-12.) The email provided, “We can still be flexible at times, but any work performed outside the office and/or normal working hours will need prior approval from your direct supervisor, and will be handled on a case by case basis.” (Id.) Ms. Shaw Ms. Shaw, who has MS, was recruited by Ms. Simon through the MS society and began working for Overstock as a content moderator in December 2012. (SUMF ¶¶ 1–2, Doc. No. 42; Opp’n, Response to Statement of Undisputed Material Facts (“RSUMF”) ¶ 2, Doc. No. 46.) Ms.

Shaw was supervised by Jardy Stokes, her direct supervisor, and Neal Lutz, the CMT manager. (See SUMF ¶ 6(a), (e), Doc. No. 42.) Mr. Stokes understood Ms. Shaw worked from home because she had MS. (Ex. 5 to Opp’n, Dep. of Jardy Stokes (“Stokes Dep.”) 82:5–9, Doc. No. 46-6.) Mr. Lutz was aware Ms. Shaw worked from home “because of a disability or medical condition” and sometimes couldn’t drive because of it. (Ex. 14 to Opp’n, Dep. of Neal Lutz (“Lutz Dep.”) 52:24–54:13, Doc. No. 46-15.) According to Mr. Lutz, Ms. Shaw’s productivity was low, and she “didn’t let [Mr. Stokes] know her hours very much, even though he requested that she do so and check in every day.” (Id. at 41:16–18, 85:17–19.) On June 15, 2016, Mr. Lutz and Mr. Stokes discussed going through the disciplinary process to begin the “formalities” of terminating Ms. Shaw and another

employee but, instead, sought approval from their supervisors to end the work-from-home policy. (Ex. 21 to Opp’n, Lutz Email to Killinger (June 15, 2016), Doc. No. 46-22 at 3–4.) Mr. Lutz emailed his supervisors that he and Mr. Stokes believed ending the work-from-home policy “might be the best solution for everyone, including them [(the employees in question)].” (Id.) He stated, “We feel very strongly that neither of them will make the choice to come in to the office and work, and thus it solves that problem.” (Id.) Mr. Lutz drafted the email announcing the end of the work-from-home policy—the same email Mr. Noursalehi ultimately sent to all CMT employees on June 24. (Ex. 21 to Opp’n, Lutz Email to Noursalehi (June 20, 2016), Doc. No. 46-22 at 2.) After drafting the email, Mr. Lutz told Mr. Noursalehi that “[t]his week feels like a perpetual Christmas Eve for [Mr. Stokes] and I as we await the joy (or lack thereof) that will come to individuals upon receiving it.” (Ex.

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Lloyd v. Overstock.com, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lloyd-v-overstockcom-utd-2021.