Miller v. Wachovia Bank, N.A.

541 F. Supp. 2d 858, 2008 U.S. Dist. LEXIS 18132, 2008 WL 657391
CourtDistrict Court, N.D. Texas
DecidedMarch 7, 2008
DocketCivil Action 3:07-CV-1269-D
StatusPublished
Cited by12 cases

This text of 541 F. Supp. 2d 858 (Miller v. Wachovia Bank, N.A.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Wachovia Bank, N.A., 541 F. Supp. 2d 858, 2008 U.S. Dist. LEXIS 18132, 2008 WL 657391 (N.D. Tex. 2008).

Opinion

*859 MEMORANDUM OPINION AND ORDER

SIDNEY A. FITZWATER, Chief Judge.

Defendant Carla Jones’s (“Jones’s”) motion to dismiss requires the court to decide whether an employee who has not exercised supervisory authority over a coworker can be held individually liable to the coworker for intentional race discrimination or retaliation under 42 U.S.C. § 1981. Concluding that she cannot and that plaintiff Naomi Miller (“Miller”) has failed to state a cognizable § 1981 claim against Jones, the court grants Jones’s motion and dismisses the § 1981 claim against her.

I

In 2006 Miller, who is Caucasian, began working as a mortgage loan underwriter for defendant Wachovia Mortgage Corp. (“WMC”) under the supervision of defendant Martha Hester (“Hester”), who is African-American. 1 Miller’s work required her to interact with Jones, another African-American WMC employee, who was a mortgage loan closer. From the beginning of her employment, Jones berated Miller with racial epithets, even in the presence of other WMC employees. While Jones was in the process of applying for an underwriter position within WMC, Jones repeatedly threatened to get Miller fired. Jones also made numerous threatening gestures and remarks to Miller in the hallway, parking lot, and other closed areas, causing Miller to change her routes when moving about the office to avoid Jones.

Within a few weeks after Miller commenced her employment, Jones falsely accused Miller of committing an error in underwriting one of the loans. The incident culminated in Jones’s throwing a fist in Miller’s face while Jones screamed in a threatening manner. Miller reported this incident, as well as Jones’s prior harassment, to Judy Whitaker (“Whitaker”), a WMC human resources representative, explaining to Whitaker that she believed she was being discriminated against based on her race. Miller also expressed her fear of retaliation for reporting the discrimination. When Hester discovered that Miller had complained to Whitaker about racial discrimination, Hester told Miller that she betrayed Hester by complaining directly to a human resources representative. Hester directed Miller to report discriminatory conduct to her or to Hester’s immediate supervisor, Mary Rzucidlo (“Rzucidlo”). During this conversation between Hester and Miller, Jones entered and made multiple derogatory remarks to Miller, without remonstrance by Hester. Thereafter, Rzucidlo required Miller to prepare a written statement about the discrimination she had reported to Whitaker. In this statement, Miller reiterated her fear of retaliation.

Following Miller’s complaints, Hester began to make unsubstantiated criticisms of Miller for various aspects of Miller’s duties as an underwriter. Miller reported this criticism to Whitaker. Jones continued to direct discriminatory and threatening remarks to Miller, which Miller reported to Rzucidlo, but Jones’s conduct did not stop. Jones subjected other Caucasian employees at WMC to similar treatment. Although these other Caucasian employees also complained of Jones’s conduct to Rzu-cidlo, Jones was never corrected.

*860 Miller was later assigned to underwrite a mortgage loan for which she did not have underwriting authority. Hester insisted that Miller underwrite the mortgage and later disciplined Miller for insubordination in refusing to underwrite the mortgage. In connection with the discipline, Hester required that Miller attend a meeting with her and another WMC manager that lasted for several hours. Miller was not allowed to leave the meeting and was compelled to sign a false statement concerning the underwriting of the mortgage or face immediate termination.

Psychologically and physically shaken by her treatment at WMC, Miller took a leave of absence to recover her health. While on leave, Miller, with the help of Whitaker and another WMC employee, filed a charge of race discrimination with the Equal Employment Opportunity Commission. Six days after WMC received notice of the filing, WMC terminated Miller’s employment. WMC contended that Miller was a probationary employee who was not entitled to leave, and that WMC needed to fill Miller’s underwriting position. Jones, however, who was in a comparable position, was allowed to take medical leave.

Miller later filed the instant suit against WMC, Wachovia Bank, N.A. (“Wachovia Bank”), Hester, and Jones for, inter alia, unlawful discrimination and retaliation, in violation of 42 U.S.C. § 1981. Miller also asserted a fraud claim against Wachovia Bank and WMC, contending that they falsely represented to her that she would be entitled to certain bonuses, which she never received, for her work as an underwriter.

Wachovia Bank and WMC moved to dismiss Miller’s fraud claim under Fed. R.Civ.P. 12(b)(6), contending that the complaint failed to plead fraud with particularity, as required by Rule 9(b). Jones also moved to dismiss Miller’s § 1981 claim against her under Rule 12(b)(6) on the ground that § 1981 does not permit recovery against a non-supervisor coworker. A day after responding to Wachovia Bank and WMC’s motion to dismiss, Miller filed an amended complaint in which she attempted to plead her fraud claim with greater particularity. Jones then refiled her motion to dismiss directing the same arguments contained in her initial motion to dismiss to Miller’s first amended complaint. Wachovia Bank and WMC have not moved to dismiss the first amended complaint. Because Wachovia Bank and WMC did not renew their motion to dismiss after Miller filed her first amended complaint, their September 6, 2007 motion to dismiss is moot, and the court denies it without prejudice. The court also denies as moot Jones’s September 6, 2007 motion to dismiss. The court therefore need only address Jones’s October 3, 2007 motion to dismiss.

II

In her Rule 12(b)(6) motion, Jones contends that § 1981 does not support a cause of action against a non-supervisor employee. Miller responds that the Fifth Circuit has recognized third-party liability under § 1981 and has never defined the outer boundaries of such liability. Jones concedes these points, but she insists that no court has ever recognized third-party liability of a mere coworker, and that the Fifth Circuit’s statements concerning third-party liability under § 1981 suggest that it is only available against supervisors or those who have exercised managerial authority.

A

In deciding Jones’s motion, “[t]he ‘court accepts all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff.’ ” In re Katrina Canal Breaches Litig., 495 F.3d 191, 205 (5th Cir.2007) *861 (internal quotations omitted) (quoting Martin K. Eby Constr. Co. v. Dallas Area Rapid Transit, 369 F.3d 464

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541 F. Supp. 2d 858, 2008 U.S. Dist. LEXIS 18132, 2008 WL 657391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-wachovia-bank-na-txnd-2008.