Nakai v. Friendship House Ass'n of Am. Indians, Inc.
Opinion
Banke, J.
*36INTRODUCTION
For over 20 years, plaintiff Orlando Nakai (Orlando1 ) was employed by Friendship House Association of American Indians, Inc. (Friendship House), a drug and alcohol rehabilitation program providing treatment services to Native Americans. His employment was terminated by the program's CEO, who also happened to be his mother-in-law, after his wife informed the CEO that Orlando had a gun and was angry at Friendship House employees and she had obtained a restraining order. Orlando then filed this action for wrongful termination, claiming discrimination on the basis of his marital status and that Friendship House had failed to conduct a reasonable investigation prior to discharging him. The trial court granted summary judgment in favor of defendants, ruling Orlando had failed to establish a prima facie case of marital status discrimination and failed to demonstrate his employer had a duty to investigate. We affirm.
*37BACKGROUND
Orlando worked in Friendship House's San Francisco office, as did Helen Waukazoo (Helen), the program's CEO and Orlando's mother-in-law. Helen had begun volunteering at Friendship House when she was 19 years old. She eventually became a paid employee and ultimately the CEO. Orlando commenced his employment with the program in 1994 and ultimately became the second-most senior manager *666and was considered a high performing employee.
In 2000, Orlando married Karen Nakai (Karen), Helen's daughter. Karen had participated in the treatment program prior to 2000, and then worked for the program as a counselor from 2009-2015.2 In March 2014, Orlando and Karen began experiencing marital difficulties. Karen stated Orlando had become distant, and she became aware he was withdrawing large sums of money from their retirement fund.
Late one evening in May 2016, Karen called Helen at home. Karen reported that Orlando had a gun, was angry with the employees of Friendship House, was dangerous, and had relapsed on drugs. The following day, Helen placed Orlando on paid administrative leave. Karen, in turn, obtained a temporary restraining order (TRO) against him and provided Helen with a copy.3 Based on the information Karen provided, Helen subsequently terminated Orlando's employment.4
Orlando sued for wrongful termination, claiming (1) his employment was wrongfully terminated in violation of the Fair Employment and Housing Act (FEHA) ( Gov. Code, § 12940, et seq. ), (2) his employment was wrongfully terminated in violation of the implied covenant of good faith and fair dealing, and (3) his employment was wrongfully terminated in violation of a duty under FEHA to conduct a reasonable investigation upon receiving *38Karen's report of an alleged threat. Thus, he alleged, among other things, that Friendship House, "acting through its Chief Executive Officer, discharged [him] in order to take sides in her daughter's divorce, ... breach[ing] the Implied Covenant of Good Faith and Fair Dealing in violation of [FEHA] ... and discharging him solely on the basis of his Marital Status." He further alleged, "the allegations made by Karen Nakai against [him] triggered a duty under the provisions of [FEHA] to conduct a reasonable investigation of the allegations," but Friendship House "failed to conduct any investigation whatsoever before making the decision to discharge [him]."
Defendants eventually moved for and were granted summary judgment.
DISCUSSION5
Analytical Framework Under FEHA
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Banke, J.
*36INTRODUCTION
For over 20 years, plaintiff Orlando Nakai (Orlando1 ) was employed by Friendship House Association of American Indians, Inc. (Friendship House), a drug and alcohol rehabilitation program providing treatment services to Native Americans. His employment was terminated by the program's CEO, who also happened to be his mother-in-law, after his wife informed the CEO that Orlando had a gun and was angry at Friendship House employees and she had obtained a restraining order. Orlando then filed this action for wrongful termination, claiming discrimination on the basis of his marital status and that Friendship House had failed to conduct a reasonable investigation prior to discharging him. The trial court granted summary judgment in favor of defendants, ruling Orlando had failed to establish a prima facie case of marital status discrimination and failed to demonstrate his employer had a duty to investigate. We affirm.
*37BACKGROUND
Orlando worked in Friendship House's San Francisco office, as did Helen Waukazoo (Helen), the program's CEO and Orlando's mother-in-law. Helen had begun volunteering at Friendship House when she was 19 years old. She eventually became a paid employee and ultimately the CEO. Orlando commenced his employment with the program in 1994 and ultimately became the second-most senior manager *666and was considered a high performing employee.
In 2000, Orlando married Karen Nakai (Karen), Helen's daughter. Karen had participated in the treatment program prior to 2000, and then worked for the program as a counselor from 2009-2015.2 In March 2014, Orlando and Karen began experiencing marital difficulties. Karen stated Orlando had become distant, and she became aware he was withdrawing large sums of money from their retirement fund.
Late one evening in May 2016, Karen called Helen at home. Karen reported that Orlando had a gun, was angry with the employees of Friendship House, was dangerous, and had relapsed on drugs. The following day, Helen placed Orlando on paid administrative leave. Karen, in turn, obtained a temporary restraining order (TRO) against him and provided Helen with a copy.3 Based on the information Karen provided, Helen subsequently terminated Orlando's employment.4
Orlando sued for wrongful termination, claiming (1) his employment was wrongfully terminated in violation of the Fair Employment and Housing Act (FEHA) ( Gov. Code, § 12940, et seq. ), (2) his employment was wrongfully terminated in violation of the implied covenant of good faith and fair dealing, and (3) his employment was wrongfully terminated in violation of a duty under FEHA to conduct a reasonable investigation upon receiving *38Karen's report of an alleged threat. Thus, he alleged, among other things, that Friendship House, "acting through its Chief Executive Officer, discharged [him] in order to take sides in her daughter's divorce, ... breach[ing] the Implied Covenant of Good Faith and Fair Dealing in violation of [FEHA] ... and discharging him solely on the basis of his Marital Status." He further alleged, "the allegations made by Karen Nakai against [him] triggered a duty under the provisions of [FEHA] to conduct a reasonable investigation of the allegations," but Friendship House "failed to conduct any investigation whatsoever before making the decision to discharge [him]."
Defendants eventually moved for and were granted summary judgment.
DISCUSSION5
Analytical Framework Under FEHA
"Because of the similarity between state and federal employment discrimination *667laws, California courts look to pertinent federal precedent when applying our own statutes." ( Guz v. Bechtel National, Inc. (2000)
In the context of a defense motion for summary judgment, "[a]ssuming the complaint alleges facts establishing a prima facie case that unlawful disparate treatment occurred, the initial burden rests on the employer (moving party) to produce substantial evidence (1) negating an essential element of plaintiff's case or (2) (more commonly) showing one or more legitimate, nondiscriminatory reasons for its action against the plaintiff employee.... [¶] The burden then shifts to the plaintiff employee (opposing party) to rebut defendant's showing by producing substantial evidence that raises a rational inference that discrimination occurred; i.e., that the employer's stated neutral legitimate reasons for its actions are each a 'pretext' or cover-up for unlawful discrimination, or other action contrary to law or contractual obligation." (Chin, et al., Cal. Practice Guide: Employment Litigation (The Rutter Group 2016) ¶¶ 19:728 to 19:729, p. 19-121, italics omitted.) By applying McDonnell Douglas' s shifting burdens of production in the context of a motion for summary judgment, " 'the judge [will] determine whether the litigants have created an issue of fact to be decided by the jury.' " ( Horn v. Cushman & Wakefield Western, Inc. (1999)
"[T]o avoid summary judgment, an employee claiming discrimination must offer substantial evidence that the employer's *668stated nondiscriminatory reason for the adverse action was untrue or pretextual, or evidence the employer acted with a discriminatory animus, or a combination of the two, such that a reasonable trier of fact could conclude the employer engaged in intentional discrimination." ( Hersant , supra , 57 Cal.App.4th at pp. 1004-1005,
Failure to Allege a Prima Facie Case of Marital Status Discrimination
Orlando claims Helen terminated his employment "solely because of his status as the spouse of the complaining employee and [her] son-in-law."
*40Thus, the motivation for his discharge, Orlando contends, was marital status discrimination, which is prohibited by FEHA. ( Gov. Code, § 12940, subd. (a) ["It is an unlawful employment practice ... [¶] [f]or an employer, because of ... marital status ... to bar or to discharge the person from employment."].)
Illustrative examples of marital discrimination include refusing "to hire unwed mothers because they were unwed, a refusal to hire single people because they were single, or the granting of maternity leave to married teachers only." ( Chen v. County of Orange (2002)
While laws prohibiting marital status discrimination are " 'to prevent discrimination against classes of people,' " they do not extend to " ' "the status of being married to a particular person." ' " ( Chen , supra , 96 Cal.App.4th at p. 944,
Orlando's allegations are those of a "conduit case," as his claim is predicated not on alleged animus towards the married state, itself, but on supposed particulars about his spouse. For example, Orlando asserts he was "treated in a disparate fashion from other employees of Respondent solely because of his status as the spouse of the complaining employee and son-in-law of Respondent's CEO." In other words, he claims he was treated differently not because he was married, but because he happened to be married to the CEO's daughter-a political problem, not a marital discrimination problem. He similarly asserts that in terminating his employment, *669the CEO "was attempting to influence and effect a Custody dispute involving her granddaughter." This is simply an assertion the CEO sided with her daughter on a child custody issue-a family dynamics problem, not a marital discrimination problem. Indeed, as the trial court observed, Orlando was married to the CEO's daughter for 14 years. Thus, "[i]f marital status were an issue, [Orlando] would have been terminated earlier. It was the identity of Ms. Nakai-not the marital status-that led to the discharge." *41In short, while Orlando may have alleged that he was unfairly discharged on the basis of groundless or overblown accusations by his wife, he failed to allege a prima facie case of martial status discrimination.
Failure to Raise a Triable Issue of Pretext and Marital Status Discrimination
Even assuming Orlando alleged a prima facie case of marital status discrimination, which he did not, defendants made a sufficient showing in their motion for summary judgment to shift the burden back to him to produce evidence the stated reasons for his discharge were pretextual and raising a triable issue of marital status discrimination.
When an employee satisfies his or her initial burden to make a prima facie case, "the burden then shifts to the employer to show that its action was motivated by legitimate, nondiscriminatory reasons. [Citation.] A reason is ' "legitimate" ' if it is 'facially unrelated to prohibited bias, and which if true, would thus preclude a finding of discrimination.' [Citation.] If the employer meets this burden, the employee then must show that the employer's reasons are pretexts for discrimination, or produce other evidence of intentional discrimination." ( Reid , supra , 50 Cal.4th at p. 520, fn. 2,
In support of their motion, defendants first pointed to Orlando's own allegations-that his wife had called the CEO and told her Orlando "had a gun, was angry at all of the employees of Friendship House and that he relapsed to using drugs and/or alcohol." He further alleged his wife had obtained a TRO against him. Taking these allegations at face value, they show a non-discriminatory basis for the termination of his employment, and as we have discussed above, they do not raise any issue of marital status discrimination. Defendants also pointed to Helen's deposition testimony that Karen had said she was afraid Orlando would shoot her. In Helen's view, this triggered a workplace concern because Karen claimed "what was being said was threatening to her," and Friendship House "policy does state that whether staff is off duty or on duty, there's a threat against them, that that is against [Friendship House's] policy." Indeed, given the number of reported workplace shootings in our day and age, this was an entirely reasonable perspective.
*670*42Orlando, in turn, failed to present any substantial evidence that the CEO's stated reasons for his discharge were pretextual, raising a triable issue of marital status discrimination. As we have discussed, Orlando's own allegations, which were unsupported by any evidence, were not allegations of marital status discrimination. In short, he failed to present any evidence raising a triable issue that the stated reason for his discharge was pretextual and, in fact, his discharge was motivated by marital status discrimination.
Friendship House Was Not Required to Conduct an Investigation Under Either the Implied Covenant of Good Faith and Fair Dealing or FEHA
Orlando has never disputed that he was an at-will employee. Instead, he pointed out that regardless of whether an employee is at-will, an employer cannot violate the anti-discrimination provisions of FEHA. While that is correct, that does not mean FEHA imbues at-will employees with any contractual due process rights in connection with their employment.
At-will employment "establishes the presumption that an employer may terminate its employees at will, for any or no reason." ( Guz , supra , 24 Cal.4th at p. 350,
In asserting Friendship House was required to conduct an investigation before discharging him, Orlando relies on Cotran v. Rollins Hudig Hall Internat., Inc. (1998)
In Halvorsen , an employee was fired after he blamed his supervisor for a poor business decision in front of a high-ranking manager. ( Halvorsen , supra , 65 Cal.App.4th at p. 1387,
In Cotran , two employees accused a high-level executive of sexual harassment. After an extensive investigation, the employer decided the accusations appeared *671credible and terminated the plaintiff's employment. ( Cotran , supra , 17 Cal.4th at pp. 97-98,
The trial court correctly recognized that the instant case is comparable to Halvorsen , not to Cotran . Orlando, like the plaintiff in Halvorsen , was indisputably hired as an at-will employee, whereas the plaintiff in Cotran was not and, instead, could only be dismissed for "good cause." And Orlando, like the plaintiff in Halvorsen , claims the implied covenant of good faith and fair dealing created a duty on the part of his employer to conduct "a reasonable investigation before terminating him." ( Halvorsen, supra , 65 Cal.App.4th at p. 1391,
Orlando nevertheless maintains "[t]he allegations against [him] clearly triggered obligations of an Employer under California Law" to conduct "an adequate investigation" to ensure compliance with FEHA's mandate to provide a "Safe Work Environment."6 To begin with, FEHA's investigation process pertains to *672complaints of workplace discrimination or harassment prohibited by FEHA. (See Gov. Code, § 12940, subd. (j)(1) ["Harassment of an employee ... shall be unlawful if the entity, or its agents or supervisors, knows or should have known of this conduct and fails to take immediate and appropriate corrective action."].) As we have discussed, Orlando did not allege a prima facie case of marital status discrimination or harassment under FEHA.
Furthermore, this claim is predicated on the notion FEHA's investigation process exists for the benefit of the alleged perpetrator, as well as the alleged victim of prohibited discrimination. California courts have applied federal precedent holding that when an employer receives a complaint of unlawful conduct, "the 'most significant immediate measure an employer can take in response to a ... complaint is to launch a prompt investigation to determine whether the complaint is justified.' " ( Bradley v. Department of Corrections & Rehabilitation (2008)
Orlando cites Franklin v. The Monadnock Co. (2007)
Orlando also maintains Friendship House had "written [p]olicies" obligating it "to conduct a Cotran like" investigation "of the claimed threat of workplace violence" that allegedly implicated FEHA. He additionally asserts these policies required the CEO, because she was Orlando's mother-in-law, "to recuse herself from the matter," which she failed to do. But again, Orlando's assertions fail at the starting gate because he has failed to state even a prima facie case of marital status discrimination under FEHA, making any provisions of FEHA inapplicable. (See Dickson v. Burke Williams, Inc. (2015)
In sum, there is no basis for Orlando's attempts to bring himself within the ambit of FEHA or Cotran .
*46DISPOSITION
The summary judgment is affirmed. Respondents to recover costs on appeal.
We concur:
Humes, P.J.
Margulies, J.
Footnotes
222 Cal. Rptr. 3d 662 (Nakai v. Friendship House Ass'n of Am. Indians, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.