Proa v. NRT Mid Atlantic, Inc.

618 F. Supp. 2d 447, 2009 U.S. Dist. LEXIS 47717, 2009 WL 1472919
District Court, D. Maryland·Decided May 27, 2009·No. Civil Action AMD 05-2157·Published·Cited by 17 cases

Opinion

MEMORANDUM OPINION

ANDRE M. DAVIS, District Judge.

Plaintiffs, Sean Proa, Margaret Jordan, and Gary Schiff, three licensed real estate agents, seek damages and injunctive and declaratory relief on theories, inter alia, of racial and religious discrimination in respect to the operation of a Chestertown, Maryland, real estate brokerage with which they were affiliated. Defendants are: (1) NRT Mid Atlantic, Inc., apparently a Maryland corporation, which owned and operated the Chestertown Coldwell Banker real estate brokerage; (2) NRT, Inc., a Delaware corporation and the parent of NRT Mid Atlantic, Inc.; (3) Angela Shearer (now Othoson), the former branch manager of the Chestertown brokerage; and (4) Sarah Sinnickson, a Regional Vice President of the corporate parties and Shearer’s immediate superior.

Plaintiffs insist, despite the absence of any probative evidence to support the assertion, that they were “employees” of the brokerage and not independent contractors. In any event, they allege that they suffered serious pecuniary and non-pecuniary injuries because the branch manager of the brokerage, defendant Shearer, systematically undermined any realtor in the office who was not Caucasian and Christian, and that Sinnickson tolerated, if she did not condone, Shearer’s discriminatory acts and omissions.

Some of the claims originally asserted by plaintiffs have been dismissed or abandoned. See Proa v. NRT Mid Atlantic, Inc., 477 F.Supp.2d 677 (D.Md.2007). Now, after a prolonged and contentious period of discovery, see Proa v. NRT Mid Atlantic Inc., 608 F.Supp.2d 690 (D.Md. 2009), before the court are defendants’ renewed motions for summary judgment on all remaining claims. No hearing is needed. For the reasons stated within, defendants’ motions shall be granted as to plaintiffs’ federal law claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-16 et seq., and the Civil Rights Act of 1866, as amended, 42 U.S.C. § 1981. The court declines to exercise supplemental jurisdiction over the state law claims; accordingly, the remaining state law claims for breach of contract shall be dismissed without prejudice for lack of jurisdiction.

I.

Summary judgment is appropriate where “the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). An issue is genuine if, considering all the evidence, no reasonable jury could return a verdict for the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A fact is material *452 if it may affect the outcome of the case. Id.

“[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the moving party has met this initial burden, the non-moving party must set out specific facts showing a genuine issue for trial to avoid summary judgment. Fed.R.Civ.P. 56(e)(2).

II.

The cardinal facts shall be, set forth in the light most favorable to plaintiffs, but only to the extent that plaintiffs’ allegations have more than a scintilla of evidentiary support.

A.

Proa is an African-American man who was affiliated with the brokerage, as relevant to this case, from September 2002 through January 2004. Jordan is a Caucasian woman whose husband is African-American. Jordan was affiliated with the brokerage from April 2003 until March 2004. Schiff is a Jewish man who began working at a predecessor brokerage in 1999 where Shearer was the branch manager. Schiff remained affiliated with the brokerage through subsequent mergers until 2006. In keeping with the practice of the parties, I shall refer to the Chester-town Coldwell Banker brokerage as “CBRB.”

A summary of the contractual arrangements relevant to this case will be useful. As licensed real estate sales associates, in becoming affiliated with CBRB, Proa, Jordan, and Schiff all signed Coldwell Banker Broker-Salesman Independent Contractor Agreements (“CB Contract”). (Schiff later signed a slightly modified contract.) The CB Contract plainly contemplates that a typical associate affiliated with CBRB maintains a high level of autonomy. Sales associates were, of course, required to follow all applicable ordinances, law, rules, and regulations at all times while discharging their duties under the agreements. (CB Contract § A.)

Associates are exclusively paid based on the commissions that they earn by completing purchase, sale, and lease transactions; CBRB provides no employee benefits such as health, disability, or retirement benefits. (Id. § 5h.) Moreover, the CB Contract explicitly states that the associates were not treated as employees for purposes of workers’ compensation or unemployment compensation insurance programs required by state and federal law. (Id.)

To be sure, the branch manager exercises significant authority in certain business-related areas, and indeed, is required by state law to do so. See Md.Code, Bus. Occ. & Prof., § 17-518. Under Maryland’s regulatory framework, CBRB was required to provide the very type of supervisory oversight that plaintiffs cite as grounds for their complaints. Real estate brokerages are required to “exercise reasonable and adequate supervision over ... associate brokers.” Md.Code Regs. 09.11.05.02. Supervision is defined as including the following: training sessions, the availability of experienced supervisory personnel to review and discuss brokerage agreement provisions and advertising, and evidence “records of attendance at sales meetings” and “review by the broker, branch officer manager ... of advertisements to be placed by licensees affiliated with the broker.” Id. 09.11.05.03.

*453 Accordingly, Shearer was permitted and, indeed, required to “supervise” sales associates, particularly newly-licensed, inexperienced sales associates such as Proa and Jordan. For example, associates must file new listings and buyer agency agreements with the brokerage in a timely manner. (CB Contract § 7a.) Additionally, the branch manager and associate jointly approve all correspondence from the associate pertaining to real estate transactions, including the forms and contracts for the purchase of property, and all documents become the property of the brokerage. (Id.

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Proa v. NRT Mid Atlantic, Inc., 618 F. Supp. 2d 447, 2009 U.S. Dist. LEXIS 47717, 2009 WL 1472919 (D. Md. 2009).

618 F. Supp. 2d 447 (Proa v. NRT Mid Atlantic, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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