PHILLIPS v. STARBUCKS CORPORATION

CourtDistrict Court, D. New Jersey
DecidedAugust 31, 2022
Docket1:19-cv-19432
StatusUnknown

This text of PHILLIPS v. STARBUCKS CORPORATION (PHILLIPS v. STARBUCKS CORPORATION) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PHILLIPS v. STARBUCKS CORPORATION, (D.N.J. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY SHANNON PHILLIPS, Plaintiff, CIVIL ACTION v. NO. 19-19432 STARBUCKS CORPORATION d/b/a STARBUCKS COFFEE COMPANY, Defendant. OPINION Slomsky, J. August 31, 2022 I. INTRODUCTION This case focuses on the employment decisions made by a company after a store employee called the police to remove from the premises two African American men which caused their wrongful arrest. This incident occurred on April 12, 2018. Plaintiff Shannon Phillips (“Plaintiff” or “Ms. Phillips”) brings this suit against her former employer, Defendant Starbucks Corporation, doing business as Starbucks Coffee Company (“Defendant” or “Starbucks”), alleging that she was terminated because of her Caucasian race in the aftermath of the incident. Prior to her termination, Plaintiff oversaw the Philadelphia market as the Regional Director of Operations. Ms. Phillips avers in this case that she was subjected to: (1) “reverse” race discrimination, in violation of Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. § 2000e et seq; 42 U.S.C. § 1981 (“Section 1981”); and the New Jersey Law Against Discrimination (“NJLAD”), N.J.S.A. 10:5–1 et seq; and (2) retaliation in violation of Title VII and the NJLAD. In essence, Plaintiff argues that Starbucks discriminated against her and other Caucasian employees to rectify its public image after the incident garnered significant attention in the national news media. Before the Court is a Motion for Summary Judgment filed by Defendant Starbucks. In the Motion, Defendant argues that summary judgment should be granted in its favor on the entirety of Plaintiff’s Second Amended Complaint because a reasonable jury could not find that Plaintiff was the target of racial discrimination or retaliation in violation of the anti-discrimination statutes. Instead, Defendant proffers that Plaintiff was terminated because of her failure to lead her fellow

employees in a positive manner after the April 2018 incident, rather than because of any discriminatory animus. For reasons stated infra, Defendant’s Motion for Summary Judgment will be granted in part and denied in part. II. BACKGROUND A. Factual Background On December 12, 2005, Plaintiff Shannon Phillips, who is a Caucasian female, began her employment with Defendant Starbucks Corporation. (See Doc. No. 79-5, Pl. Ex. 2, Phillips Dep. 134:15–16.) She started at the company as a District Manager and was promoted in 2011 to Regional Director of Operations for “Area 71,” which includes all stores in Philadelphia and several suburbs near the city. (Doc. Nos. 70-2 ¶ 6, 79-3 at 3.) As Regional Director, Plaintiff

oversaw several District Managers, including District Managers Paul Sykes (“Mr. Sykes”), who is African American, and Benjamin Trinsey (“Mr. Trinsey”), who is Caucasian. At the time of the April 12, 2018 incident, Mr. Sykes was the District Manager responsible for the Starbucks store located at 18th and Spruce Streets in Philadelphia, Pennsylvania (the “18th and Spruce Store”), and Holly Hylton (“Ms. Hylton”) worked directly below Mr. Sykes as manager of the 18th and Spruce Store. (Doc. Nos. 70-2 ¶ 8–9, 79-3 at 3–4.) On April 12, 2018, two African American men—Rashon Nelson and Donte Robinson— entered the 18th and Spruce Store to conduct a business meeting there. (Doc. No. 79-5, Pl. Ex. 2, Phillips Dep. 22:1–7.) Shortly after their arrival, store manager Holly Hylton, who is Caucasian, called the police because the two men remained in the store while not making a purchase. (Id. at 34:21–38:2.) When the police arrived, Mr. Nelson and Mr. Robinson were arrested. (Id. at 18:22– 19:19.) The incident garnered significant attention in the national news media. The event also sparked protests at the 18th and Spruce Store and throughout the Philadelphia area. Altogether, the public response to the incident was of general concern because of the appearance that an

instance of racial discrimination had occurred at the 18th and Spruce Store. (Doc. Nos. 70-2 ¶ 12– 13, 79-3 at 3.) On May 2, 2018, after Starbucks reached a settlement with Mr. Nelson and Mr. Robinson, Defendant issued a public statement that “Starbucks will continue to take actions that stem from this incident to repair and reaffirm our values and vision for the kind of company that we want to be.” (Doc. No. 79-3 at 39.) These actions included meeting with civic leaders, investigating the incident at the 18th and Spruce Store, revising Starbucks’ “Safe and Welcoming Policy” that was originally created to handle non-customers at Defendant’s stores, working with consultants, conducting roundtable discussions in Philadelphia from April 23, 2018 to May 5, 2018 with

Starbucks leaders, and closing all Starbucks locations on May 29, 2018 to conduct racial bias training. (Doc. Nos. 70-2 ¶ 14–18, 79-3 at 5–8, 37; see also Doc. No. 79-5, Pl. Ex. 2, Phillips Dep. 21:10–17.) Further, Defendant fired Ms. Hylton, the Store Manager at the 18th and Spruce Store who had called the police to arrest the two men. (Doc. Nos. 70-2 ¶ 19, 79-3 at 8.) Although it is undisputed that Plaintiff was not directly involved in the events that unfolded on April 12, 2018, her actions in the wake of the incident remain in dispute. Because she was the Regional Director of Operations for the area which included the 18th and Spruce Store, Plaintiff was called upon by Starbucks leadership to support and implement their post-incident efforts. (Doc. Nos. 70-2 ¶ 21, 79-3 at 8–9.) According to Starbucks, however, Plaintiff displayed poor leadership and “failed to perform the essential functions of her role as Regional Director” after the April 2018 incident. (Doc. No. 70-1 at 21.) In support of this notion, Defendant points to deposition testimony of several of Ms. Phillips’ supervisors: Camille Hymes (“Ms. Hymes”), the Regional Vice President for Mid-Atlantic Retail Operations; Paul Pinto (“Mr. Pinto”), Vice President of Partner Resources; and Zeta Smith (“Ms. Smith”), Divisional Senior Vice President.

(See Doc. No. 70-2 ¶ 22–36.) Specifically, Defendant notes that these supervisors testified that Plaintiff, inter alia, was “physically and mentally absent from meetings,” “appeared overwhelmed,” and “lacked awareness of how critical the situation was for Starbucks and its partners.” (Doc. No. 70-1 at 9.) By contrast, according to Plaintiff, the record reflects that Ms. Phillips exhibited positive leadership after the April 2018 incident. To support this, Plaintiff points to deposition testimony of her supervisor Ms. Hymes, as well as testimony from the two District Managers she supervised at the time, Mr. Sykes and Mr. Trinsey. (See Doc. No. 79-3 at 9–14.) As previously noted, Mr. Sykes was the District Manager who directly supervised the 18th and Spruce Store, and Mr.

Trinsey was another District Manager in Area 71. For purposes of the Motion for Summary Judgment, it is important to note that Mr. Sykes is African American, and Mr. Trinsey is Caucasian. (See Doc. Nos. 70-2 ¶ 7, 79-3 at 3.) Sometime in May of 2018, an African American employee at a location supervised by Mr. Trinsey brought a complaint about pay disparity to Ebony Johnson (“Ms. Johnson”), a Partner Resources Manager at Starbucks. Upon receiving the complaint, Starbucks began an investigation of Mr. Trinsey and, thereafter, Starbucks leadership decided to place him on suspension. (Doc. No. 70-4, Def. Ex. H, Pinto Dep. at 169:10–24.) In addition, several complaints by store employees were lodged against Mr. Sykes regarding issues with his leadership style. (Doc. No. 79 at 15; see also Doc. No. 70-4, Def. Ex. H, Pinto Dep. at 150:22–151:4; Def. Ex. E, Sykes Dep.

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Bluebook (online)
PHILLIPS v. STARBUCKS CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-starbucks-corporation-njd-2022.