PATEL v. CF FRESH LLC

CourtDistrict Court, E.D. Pennsylvania
DecidedNovember 7, 2022
Docket2:22-cv-01010
StatusUnknown

This text of PATEL v. CF FRESH LLC (PATEL v. CF FRESH LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PATEL v. CF FRESH LLC, (E.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

SUKETU PATEL : CIVIL ACTION : v. : NO. 22-1010 : CF FRESH LLC :

MEMORANDUM KEARNEY, J. November 7, 2022 Business executives working for years in an office culture set by the company’s owner must recognize the company’s new owner may enforce different disclosed expectations and rules. We today study a company’s new owner’s decision to fire an Asian man of Indian ancestry along with his Caucasian team member within ten months of buying the company. The employees faced a new environment when their employer’s new owner enforced rules confirmed in a policy signed by the employees. There is no dispute the employees lied to their boss about their whereabouts on a workday and the new owner enforced its policies with all employees. The employees could not then, and cannot today, explain why they lied to the boss. The new owner decided to fire the two employees within days of the demonstrated lie. The Asian man now sues claiming the new owner fired him because of his race and ancestry or because he complained to his boss ten weeks earlier about reprehensible racist comments by former company executives. The parties engaged in extensive discovery. The employer now moves for summary judgment. We find no genuine issue of material fact requiring a jury’s review on whether the employer violated federal law in firing the Asian man. The employee failed to adduce evidence his employer fired him because of race or ancestry discrimination or retaliation. He also chose not to adduce evidence supporting a breach of his employment agreement claim. We grant the employer’s motion for summary judgment on the former employee’s discrimination, retaliation, and breach of contract claims. I. Undisputed Facts1 Suketu Patel is an Asian man of Indian ancestry. He began working as the Chief Financial Officer for Country Fresh Mushroom Company on November 2, 2015 under by a written employment agreement.2 He agreed to a one year term of employment automatically renewed for

one year terms unless Mr. Patel or Country Fresh gave written notice of non-renewal two months before the term expired.3 Either party could also terminate the employment with or without reason on forty-five days written notice.4 CF Fresh would not pay a severance unless the parties terminated the agreement outside of the two-month non-renewal option.5 Mr. Patel reported directly to Country Fresh’s Chief Executive Officer Edward Leo from his start in November 2015 until Country Fresh’s owners sold the company on January 31, 2019.6 Laura Matar served as Country Fresh’s President at the same time.7 Country Fresh’s Accounting Manager Nick Stalloni (a white man) reported directly to Mr. Patel.8 Mr. Patel worked remotely if he needed to “take some time” and could do so “as long as [he] got his work done.”9 Country Fresh, through CEO Leo and President Matar, approved reimbursing Mr. Patel for meals when he

and Mr. Stalloni worked long hours or worked through lunch or dinner.10 Country Fresh never increased Mr. Patel’s compensation.11 CEO Leo and others routinely used racially disparaging language about minority groups. Mr. Patel witnessed Mr. Leo make racist and derogatory comments and jokes about minority groups, including Hispanics, African–Americans, and Jews, disparaging remarks about the Trayvon Martin shooting, jokes about shooting then-President Obama, referring to Jewish individuals as “members of the tribe” and remarks about “opening fire” on Jews, and referring to a Mexican employee as the “HMIC” meaning “Head Mexican In Charge.”12 Mr. Patel also believes Mr. Leo routinely engaged in racist and discriminatory comments with an outside consultant Rich Ogorek hired by Country Fresh in 2018 to assist in trying to sell the company.13 New rules once Giorgi buys Country Fresh in January 2019. Giorgi Global Holdings, Inc. acquired Country Fresh on January 31, 2019 and renamed the company CF Fresh LLC.14 Mr. Patel then began reporting to Giorgi’s Chief Financial Officer

Michael Sobota.15 Georgi assumed Mr. Patel’s Employment Agreement with Country Fresh (now renamed CF Fresh) subject to annual renewal in November 2019.16 Mr. Patel signed Giorgi’s Travel, Meals, and Entertainment Policy.17 Giorgi’s Policy permitted “personal meals” “commensurate with the employee’s normal eating practices” with conditions including the policy “is not intended to reimburse employees beyond reasonable limits” And allowed for reimbursement for “reasonable expenses of entertaining individuals not in the employ of the Company” “[w]here a bona fide business purpose has been served.”18 Mr. Patel swore he understood Giorgi’s Policy to allow the expensing of meals with co- workers if “that is worked out with your supervisor”; his “boss [CFO Sobota] told [him] he could

do it”; the expensing of meals with co-workers were “practices … in place right from the get-go from [20]16, [20]17, onward”; no one ever told him he could not expense meals; and he “got express permission to do it.”19 May 2019 presentation by Mr. Patel to Joe Caldwell, President of a CF Fresh affiliate. Mr. Patel prepared a presentation for CFO Sobota and Joe Caldwell, President of a CF Fresh affiliate in May 2019. Mr. Caldwell told Mr. Patel before the presentation: “I’m not a nice guy. I’m not. I’m only nice to people to get information. Why do you think I have been so nice to [President] Matar? I can make life very difficult for people like you.”20 Mr. Patel wants a pay raise and mentions disparate treatment and discrimination while CF Fresh decides to not renew the contract.

Mr. Patel repeatedly discussed a pay raise with CFO Sobota.21 The parties specifically identify Mr. Patel’s pay request in August 2019 when he met with CFO Sobota to discuss Mr. Patel’s compensation going forward as Mr. Patel transitioned into a sales-focused role.22 Mr. Patel and the CF Fresh witnesses dispute the cause for their August meetings, but this dispute is immaterial to present claims and defenses. But the parties do not dispute Giorgi’s General Counsel and Chief Compliance Officer Michael Rettig emailed CFO Sobota and Chief Human Resources Officer DeLillo a draft notice of non-renewal of Mr. Patel’s employment agreement on August 27, 2019 – three days before an August 30, 2019 meeting to address Mr. Patel’s pay issues.23 Mr. Patel and CFO Sobota met on August 30, 2019. CF Fresh asserts the two met to discuss compensation benchmarking and to communicate CF Fresh’s decision not to renew Mr. Patel’s employment agreement.24 Mr. Patel denies this assertion, contending his August 30 meeting with CFO Sobota discussed only his transition to a sales-focused role and the commensurate compensation.25 But Mr. Patel’s assertion is contradicted by his sworn admission CFO Sobota told him CF Fresh would not renew his employment agreement at the August 30, 2019 meeting.26 Mr. Patel testified CFO Sobota “was not receptive” at their August 30 meeting to requests for increased pay and told Mr. Patel he “made enough.”27 Mr. Patel asserts he became “very uncomfortable” by CFO Sobota’s comments and expressed concern CF Fresh did not treat him “on a level playing field” as his white counterparts.28 Mr. Patel does not adduce evidence of pay

disparities between him and his white counterparts or evidence suggesting CF Fresh treated him differently than his white counterparts. Mr. Patel also told CFO Sobota about Mr. Leo’s comments which he thought created a hostile and racist culture causing Mr. Patel “significant discomfort.”29 Mr. Patel also reported Mr. Caldwell’s May 19, 2019 “people like you” comment and expressed feeling threatened by the comment.30 Mr. Patel admits the first and only time he raised a concern about discrimination during his employment with CF Fresh occurred during the August 30, 2019 meeting with CFO Sobota.31 Mr.

Patel concedes Mr.

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PATEL v. CF FRESH LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patel-v-cf-fresh-llc-paed-2022.