New v. M&T Bank Corporation

CourtDistrict Court, W.D. New York
DecidedJanuary 2, 2024
Docket1:21-cv-01186
StatusUnknown

This text of New v. M&T Bank Corporation (New v. M&T Bank Corporation) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New v. M&T Bank Corporation, (W.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NEW YORK

ISAIAH THOMAS NEW,

Plaintiff, 21-CV-1186-LJV v. DECISION & ORDER

M&T BANK CORPORATION, et al.,

Defendants.

On November 2, 2021, the pro se plaintiff, Isaiah Thomas New, commenced this action under 42 U.S.C. § 1981, the New York State Human Rights Law, and New York State common law. Docket Item 1; see Docket Item 6 (amended complaint). New, a former employee of M&T Bank Corporation (“M&T” or “M&T Bank”), alleges that the defendants—M&T, Manufacturers and Traders Trust Company, M&T Deputy Counsel Arthur H. Salman, and several John Does—discriminated against him on the basis of race and unlawfully retaliated against him when he complained about the discrimination. Id. On September 6, 2022, the defendants moved to dismiss the amended complaint, Docket Item 11; on September 28, 2022, New responded, Docket Item 17; and on October 12, 2022, the defendants replied, Docket Item 18. For the reasons that follow, the defendants’ motion to dismiss will be granted unless New files a second amended complaint correcting the deficiencies identified below. FACTUAL BACKGROUND1

From July 2017 to June 2018, New—a Black man with “a bachelor’s degree in economics from an Ivy League university,” Docket Item 6 at ¶¶ 5, 7—worked in M&T’s Finance Division as a “Management Trainee and Corporate Analyst,” id. at ¶ 10. He was “the only [B]lack employee” out of “approximately 75 staff” members on the floor where he worked, id. at ¶ 7, and “one of less than eight” Black employees “in the entire 350-person Finance Division,” id. at ¶ 8. Shortly after he started at M&T, New began to experience “daily harassment, verbal abuse[,] and racist jokes.” Id. at ¶ 17. For example, New’s manager—a white man—“yelled at [New] for various petty and insignificant things,” id. at ¶ 18, but “did not

treat other bank employees . . . in such a manner,” id. at ¶ 19. New repeatedly raised concerns about his manager’s conduct and documented those concerns in writing. Id. at ¶¶ 20-22, 25. M&T’s human resources department (“HR”) met with New and conducted an investigation but found “no evidence of misconduct or discrimination.” Id. at ¶¶ 25-26. HR assigned New to a different manager but took no other “remedial action.” Id. at ¶ 26 (emphasis omitted).

1 In deciding a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the court “accept[s] all factual allegations as true and draw[s] all reasonable inferences in favor of the plaintiff.” Trs. of Upstate N.Y. Eng’rs Pension Fund v. Ivy Asset Mgmt., 843 F.3d 561, 566 (2d Cir. 2016). The following facts are taken from the amended complaint, Docket Item 6, and the separation agreement referenced throughout the amended complaint, Docket Item 11-3; see Sira v. Morton, 380 F.3d 57, 67 (2d Cir. 2004) (noting that a complaint is deemed to include any written instrument that is incorporated by reference or “integral” to the complaint). In the following months, the harassment “increased in frequency and severity.” Id. at ¶ 28. For example, a white secretary “spread[] rumors that [New] was ‘brown- nosing’ favor and ‘sucking[ ]up to’ managers,” causing New “reputational harm.” Id. at ¶ 29. And a group of white employees “would regularly congregate in front of [New’s]

cubicle and make lewd, offensive jokes about African-Americans.” Id. at ¶ 33. New continued to report the harassment to HR. Id. at ¶¶ 31-32, 36. Eventually, he brought his concerns about the racist jokes to M&T Deputy Counsel Salman, who told New to “call [him] when it happens again” but did not take any other action to address the harassment. Id. at ¶¶ 36-37 (emphasis omitted); see id. at ¶ 14. A few months later, New requested another meeting with Salman to report “racist graffiti” that New had seen in the workplace. Id. at ¶¶ 37-38. Again, Salman took no action. Id. at ¶ 39. Then, on June 7, 2018, Salman told New that M&T was terminating New’s employment due to “performance” and “trust” issues. Id. at ¶ 46. New believed those

“issues” were pretextual because neither New’s manager nor the department head would “enumerate a single performance issue” when asked. See id. at ¶¶ 46-59, 62. And despite M&T’s policy “to provide employees with . . . escalating feedback, written warnings[,] and corrective action notices before terminating an employment relationship,” New had received no warnings regarding any performance issues prior to the termination meeting. Id. at ¶ 63. During the meeting, Salman presented New with a separation agreement that “was intended to release M&T Bank from any claims arising from [New’s] employment.” Id. at ¶ 76. It included the following language: You, for and in consideration of the promises set forth in this Agreement, hereby agree to release and discharge, and not to institute any suit or action . . . , against M&T Bank . . . , on your behalf and on behalf of any person or entity claiming by or through you, from any and all claims of any kind, known and unknown, which you may now have or have ever had against M&T Bank, including claims . . . arising from your employment with M&T Bank or the termination of your employment with M&T Bank, whether based on contract, tort, statute, local ordinance, regulation[,] or any comparable law in any jurisdiction (“Released Claims”). By way of example and not in limitation, the Age Discrimination in Employment Act of 1967. . . , Title VII of the Civil Rights Act of 1964 . . . , the Americans with Disabilities Act of 1990 . . . , the Equal Pay Act of 1963 . . . , the New York Human Rights Law, and the Family and Medical Leave Act of 1993 . . . , as well as any claims asserting wrongful termination, breach of contract, breach of the covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, . . . and any other federal, state or local law, rule, regulation, executive order[,] or guidelines relating to discrimination . . . . This Agreement covers both claims that you know about and those that you may not know about at this time. This Agreement does not waive or release any rights or claims that may arise after you sign this Agreement. Docket Item 11-3 at 4-5 (emphasis in original). It also provided that New could “revoke” the agreement “within seven [] calendar days” of signing it. Id. at 2. As New “perused” the separation agreement, he asked Salman “what he thought of the many claims” New had reported. Docket Item 6 at ¶ 76. Salman responded, “[T]hey’re all in your head.” Id. (emphasis omitted). That statement convinced New that he was “imagining the abuse and discrimination he suffered.” Id. at ¶ 77 (emphasis omitted). New’s original deadline to sign the agreement was June 15, 2018, Docket Item 11-3 at 6, but he requested and received a five-day extension, Docket Item 6 at ¶¶ 82- 83. Although New contacted multiple attorneys during that time, he was unable to find “competent counsel” to advise him. Id. Some attorneys he spoke to “were hesitant to litigate a discrimination case against M&T” and would not give New “adequate advice.” Id. at ¶ 82. Others “required prohibitive sums of money for consultation.” Id. And one “refused” to speak with New because the attorney was “an acquaintance of a former M&T Bank executive.” Id. at ¶ 83. New finally signed the separation agreement on June 22, 2018, 15 days after the

termination meeting. Docket Item 11-3 at 6; see Docket Item 6 at ¶ 76.

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New v. M&T Bank Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-v-mt-bank-corporation-nywd-2024.