NEW V. THERMO FISHER SCIENTIFIC, INC.

CourtDistrict Court, M.D. North Carolina
DecidedMarch 15, 2022
Docket1:19-cv-00807
StatusUnknown

This text of NEW V. THERMO FISHER SCIENTIFIC, INC. (NEW V. THERMO FISHER SCIENTIFIC, INC.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NEW V. THERMO FISHER SCIENTIFIC, INC., (M.D.N.C. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA

REBECCA HOLLAND NEW, ) ) Plaintiff, ) ) v. ) 1:19cv807 ) THERMO FISHER SCIENTIFIC, ) INC., a corporation, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

THOMAS D. SCHROEDER, Chief District Judge. Plaintiff Rebecca Holland New brings this action against Defendant Thermo Fisher Scientific, Inc. (“Thermo”) alleging breach of contract, sex discrimination, and other claims arising from her employment and resignation. Before the court is Thermo’s motion for summary judgment. (Doc. 73.) The motion is fully briefed (Docs. 86, 87, 90) and the court heard argument on it on February 3, 2022. For the reasons set forth below, the motion will be granted and the action will be dismissed. I. BACKGROUND A. Facts The facts, either not in dispute or viewed in the light most favorable to New as the non-moving party, establish the following: 1. Employment Agreement with Thermo On August 15, 2011, New was employed by Patheon Pharmaceuticals Services, Inc. (“Patheon”) as a Senior Vice President, Human Resources. (Doc. 1-1 at 2.)1 Over time, she transitioned to the head of Patheon’s newly-established Global Business Management function, “designed to deliver a better

customer experience and improve coordination across our business units,” as Executive Vice President, Enterprise-Wide Operations. (Docs. 86-5 at 2-3; 86-6 at 3.) In this role, New ceased reporting directly to Chief Executive Officer (“CEO”) Jim Mullen and reported to an intermediary, Michel Lagarde, President and Chief Operating Officer. (Docs. 86-5 at 3; 86-7 at 2.) Lagarde selected New to oversee business management because she was “significantly talented” and “an excellent candidate” to become an “effective . . . business leader.” (Doc. 87-63 at 14:9-15:6.) On August 29, 2017, Defendant Thermo acquired Patheon N.V., Patheon’s parent company, and New became employed by Thermo. (Doc. 87-3 ¶ 2.) Rather than exercise her options under a change-in-

control provision in her employment contract, which would have entitled her to depart with substantial severance, bonuses, and other benefits, New accepted Thermo’s offer to stay on as a Group Vice President, Enterprise-Wide Operations for Thermo’s Pharma Services Group (“PSG”).2 (Id.; Doc. 1-1 at 23.) According to New,

1 All citations to the record are to the paragraph number or ECF docket page except for testimony, which is cited to the deposition transcript page and line number.

2 PSG is a division of, or affiliate operation owned and operated by, Thermo. New claims she accepted employment with Thermo, at least in Martin Van Walsum, Thermo’s Vice President of Executive Compensation, told her that she would be “banded” at a compensation level of 13 under Thermo’s structure.3 (Docs. 87-59 at 23:23-24:7;

87-66 at 172:21-173:10.) New’s offer letter from Thermo provided for an annual base salary of $405,000 and noted she would continue to report to Lagarde, who would be Thermo’s Senior Vice President and President, Contract Development and Manufacturing. (Doc. 1-1 at 23.) Upon starting with Thermo, New continued to oversee Global Business Management (described as managing contracts, client relations, demand planning, and expansion of business/upsell for over 850 company clients), which took up at least 80% of her responsibilities.4 (Docs. 86-6 at 3; 86-16; 87-3 ¶ 6; 87-14 at 10; 87-66 at 60:22-61:2.) New coordinated the business management function across PSG’s five business units. (Docs. 86-46 at 32:16-

part, based on Lagarde’s representations that her “position would not be eliminated,” “would not change,” and she “was very much needed in the new organization.” (Doc. 87-3 ¶ 2.) She also says that Lagarde stated that, although Thermo had a team for carve-outs and mergers and acquisitions, he still needed his “own internal deal team” to “evaluate some deals” before presenting them to Thermo’s corporate M&A team. (Doc. 87-66 at 61:7-18.) Her only fraud claim, however, was dismissed without prejudice (Doc. 13) and has not been repleaded.

3 “Band” levels were Thermo’s method of assigning special benefits to various executive positions and employees – the greater the band, the greater the benefits. (See Doc. 87-66 at 173:4-16.) In her deposition, New testified that “there was not clarity in terms of . . . the benefits [between band] levels.” (Id. at 172:16-20.)

4 According to Lagarde, “98% of [New’s] responsibilities was Global Business Management.” (Docs. 87-14 at 8; 86-43 at 48:15-49:1.) 20; 87-3 ¶ 6.) She also maintained other responsibilities, including “Shared Services” (managing the vendor relationship with Cognizant, a company that provided back office support

operations); the “Project Management Office” (supporting Mergers & Acquisitions (“M&A”), Carve Outs, Integrations, and Strategic Projects); “OneSource” (managing integrated business sales and project management support for small clients); and “Client Experience Management” (remediation planning and improved training and communication tools to help improve client relationship management). (Docs. 87-3 ¶ 6; 86-46 at 33:25-34:9, 34:25-35:6.) Additionally, Thermo asked her to remain on PSG’s Global Leadership Team (“GLT”). (Docs. 86-17; 87-62 at 187:8-13.) New was also one of only four PSG executives selected by Thermo to participate in the Global Leadership Program, a selective leadership development program. (Docs. 86-19; 86-20.)

Following the acquisition, New heard rumors of plans to “layer” her position and add a reporting level between her and Lagarde, which Lagarde denied. (Doc. 86-46 at 50:12-25.) However, in December 2017, Lagarde made an organizational change by adding the position of President of Commercial Operations. (Doc. 86-16.) As a result, New, as the head of Global Business Management, and other executives began reporting to Franco Negron, the new President of Commercial Operations, who then reported to Lagarde effective January 2018. (Id.; Docs. 86-43 at 28:21-29:4, 31:1-3; 86-46 at 51:3-7.) While there were other reporting changes, New was the only one of Lagarde’s direct reports whose reporting relationship was changed. (Doc. 87-63 at 30:3-8.) 2. New’s Employment Agreement

The terms of New’s employment were set out in three different documents which, taken together, establish the contractual relationship between her and Thermo. (Doc. 87-3 ¶ 5.) In an August 17, 2017 letter agreement, signed by New on August 28, 2017 (Doc. 1-1 at 23-25), the parties agreed that New’s initial employment agreement with Patheon (Doc. 1-1 at 1-22) would “remain largely in effect.” (Doc. 1-1 at 23.) Any aspects of her employment that were “inconsistent with specific terms” of her initial employment agreement with Patheon would be “governed by the terms of [the signed August 2017 letter agreement.]” (Id.) Her Employment Agreement was further modified through a memorandum

entitled “Outstanding Patheon Long-Term Incentive Awards for Rebecca Holland New.” (Id. at 26.) Viewed in the light most favorable to New, therefore, these documents show that her contractual relationship with Thermo was defined by (1) her initial employment agreement with Patheon (Doc. 1-1 at 1-22), (2) the signed August 2017 letter agreement (Doc. 1-1 at 23-25), and (3) the long-term incentive awards memorandum (Doc. 1-1 at 26), (collectively, New’s “Employment Agreement”). (Doc. 13 at 3.) New’s unvested Patheon stock options and restricted stock units (“RSUs”) that were to vest upon the change in control (resulting from Thermo’s purchase of Patheon) were converted to unvested Thermo stock options and RSUs “subject to substantially

the same terms and conditions (including vesting schedule)” of her Employment Agreement.5 (Doc.

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NEW V. THERMO FISHER SCIENTIFIC, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-v-thermo-fisher-scientific-inc-ncmd-2022.