Mitchell v. Wachovia Corp.

556 F. Supp. 2d 336, 2008 U.S. Dist. LEXIS 36123, 91 Empl. Prac. Dec. (CCH) 43,193, 2008 WL 1985236
CourtDistrict Court, D. Delaware
DecidedMay 5, 2008
DocketCivil Action 06-725 GMS
StatusPublished
Cited by5 cases

This text of 556 F. Supp. 2d 336 (Mitchell v. Wachovia Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. Wachovia Corp., 556 F. Supp. 2d 336, 2008 U.S. Dist. LEXIS 36123, 91 Empl. Prac. Dec. (CCH) 43,193, 2008 WL 1985236 (D. Del. 2008).

Opinion

MEMORANDUM

GREGORY M. SLEET, Chief Judge.

I. INTRODUCTION

On December 1, 2006, the plaintiff, Kenneth S. Mitchell (“Mitchell”), filed the present lawsuit against the Wachovia Cor *341 poration, trading as Wachovia Securities; Wachovia Securities, L.L.C.; Wachovia Securities, Inc. (collectively, “Wachovia Securities”); Wachovia Bank of Delaware, N.A. (“Wachovia Bank”); Todd D. Gauthier (“Gauthier”); Lynn G. Meyer (“Meyer”); Carolyn J. Beam (“Beam”); and Dorothy A. DiFebo (“DiFebo”) (collectively, the “defendants”), alleging that the defendants discriminated against him on based on his race and gender in violation of Title VII of the Civil Rights Act, 42 U.S.C. §§ 2000e et seq. (“Title VII”), and the Delaware State Discrimination Act (the “DDA”), 19 Del. C. §§ 710 et seq. Mitchell, an African-American male, further alleges that the defendants’ actions deprived him of equal rights under the law in violation of 42 U.S.C. § 1981, and that those acts together constituted a conspiracy in violation of 42 U.S.C. §§ 1985 and 1986. Mitchell also brings fraud, deceit, prima facie tort, and conspiracy claims under Delaware law.

Now before the court is the defendants’ motion for summary judgment on all claims. For the reasons that follow, the court will grant the motion.

II. BACKGROUND

The record presents the following facts, viewed in the light most favorable to Mitchell. In August 2002, Gauthier recruited Mitchell to join Wachovia Securities from Merrill Lynch, where Mitchell then worked as a financial investment ad-visor. Gauthier, who is Caucasian and male, hired Mitchell as a Vice President and Financial Advisor and assigned him to two Wachovia Bank branch offices (“branches”), Capitol Trail and Prices Corner, located less than a mile apart. 1 Prices Corner, the larger branch, had a deposit base of approximately $57 million, more than twice the approximately $27 million deposit base at Capitol Trail. Mitchell replaced Ed Duffy, a Caucasian male, as the Financial Advisor at both branches. While assigned to both, Mitchell had an office only at the Capitol Trail office due to a space shortage at Prices Corner. Mitchell drove the mile to Prices Corner when necessary to meet with clients of that branch.

Both Capitol Trail and Prices Corner were typical Wachovia Bank branches, in that they comprised various employees of Wachovia Bank — a Financial Center Manager responsible for customer services at the branch, various bank tellers supervised by a teller manager, and a Financial Specialist — along with one employee of Wa-chovia Securities, a Financial Advisor. The Financial Advisor assigned to a branch collaborates with the branch’s employees, particularly a branch’s Financial Specialist, to provide investment advice and market products to clients of the branch. This “team brokerage” relationship between the Financial Advisor and the Financial Specialist involves working together to set up trades for clients as well as generating new business. Because a Financial Advisor has more securities licenses and generally knows more about securities, he or she often mentors the Financial Specialist regarding such financial instruments and business generation. Wachovia policy also provides for sharing compensation. For example, Ladan Amini (“Amini”), the Financial Specialist at Prices Corner, could jointly enter a trade, and both she and Mitchell, the Financial Advisor assigned to Prices Corner, would receive compensation credit. A Financial Specialist could also earn compensation for referring new clients and business to the Financial Advisor. The relationship was *342 exclusive: a branch’s Financial Specialist could refer trades or new business only to the Financial Advisor assigned to that branch.

There were three separate hierarchies at the branches in question. The first was the Wachovia Securities hierarchy. Mitchell, as a Financial Advisor employed by Wachovia Securities, reported to Gauthier, a Wachovia Securities Regional Sales Manager, who in turn reported to Frank Con-salo (“Consalo”), a Wachovia Securities Regional President. The second was the Financial Specialist hierarchy. Both branches’ Financial Specialists, Amini at Prices Corner and Lynn Montgomery (“Montgomery”) at Capitol Trail, were employed by Wachovia Bank and reported to Beam, a Wachovia Bank Financial Sales Leader. Beam answered to a Wachovia Bank Regional Bank Director, first Meyer and then, after Meyer left Wachovia Bank, Sandy McAnally (“McAnally”). The third hierarchy was that of the individual branch, where the branch’s Financial Center Manager — DiFebo at Prices Corner, and Gloria Sharp (“Sharp”) at Capitol Trail — managed the remaining employees, such as tellers, and other aspects of the branch.

In this way Mitchell, as a Financial Ad-visor, did not have direct authority over the Financial Specialists Amini and Montgomery. But Financial Advisors do exercise authority over trades submitted by Financial Specialists. Generally speaking, a Financial Advisor reviews those trades and must approve them before their execution. Absent such approval, the trades are referred to Wachovia Securities’ Compliance Department (the “compliance department”), which notifies the Financial Specialist’s supervisor of the referral, reviews the trades, and determines whether the trades comply with applicable rules. Thus, Mitchell had the authority to review those trades submitted by Amini and Montgomery.

The conflicts at issue in this case center on the Prices Corner branch, where Amini and DiFebo worked. DiFebo, like Beam, is a Caucasian woman. Amini is a woman of Iranian heritage. Because he lacked an office at Prices Corner, Mitchell went to the branch only for joint appointments with a customer and Amini. At first, according to Mitchell, he developed a positive working relationship with Amini by, for example, letting Amini receive full credit for certain trades for which he could have claimed partial credit.

In June 2003, however, Mitchell’s and Amini’s working relationship began to deteriorate. One conflict involved a client’s objection to a $6.00 fee resulting from his deposit of $50,000 into a Wachovia mutual fund account. The client requested the fee be waived. Mitchell agreed and instructed Amini to waive the fee. Amini declined because she did not have the authority to do so. Mitchell then offered to pay the client $6.00 in cash from his own pocket to resolve the dispute, which the client refused. As Amini knew, Mitchell’s offer of cash violated various NASD and Wachovia Securities compliance rules. Mitchell eventually succeeded in having the fee deleted from the customer’s account through an administrative process, much to the customer’s satisfaction. But the way that Mitchell had handled the matter with her upset Amini, who reported it to DiFebo.

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556 F. Supp. 2d 336, 2008 U.S. Dist. LEXIS 36123, 91 Empl. Prac. Dec. (CCH) 43,193, 2008 WL 1985236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-wachovia-corp-ded-2008.