Randolph v. McMahon

District Court, D. Nevada·Decided May 28, 2020·No. 2:18-cv-00238·Unknown

Opinion

NANETTE RANDOLPH, Case No.: 2:18-cv-00238-APG-NJK

Plaintiff Order on Motions for Summary Judgment

v. [ECF Nos. 51, 52, 60]

JOVITA CARRANZA,1 Administrator, U.S. Small Business Association, Defendant

Nanette Randolph sues her former employer, the U.S. Small Business Administration (SBA), for discrimination based on age, race, and sex; for retaliation; and for failing to reasonably accommodate her disability. She moves for partial summary judgment on her failure to accommodate claim. The SBA moves for summary judgment on all of Randolph’s claims. It also moves for leave to file supplemental authority, directing me to a recent case from the Supreme Court of the United States. For the following reasons, I grant the SBA’s motion for summary judgment, I deny as moot the SBA’s motion for leave to file supplemental authority, and I deny Randolph’s motion for partial summary judgment. Randolph started working for the SBA in its Nevada District Office in Las Vegas in 1998. ECF No. 52-2 at 7. She held different positions, including a stint with the Arizona District Office before returning to Las Vegas in 2010 to work on the 8(a) program as a Business Opportunity Specialist (BOS). Id. at 8-11. The 8(a) program is a nine-year business

1 I direct the clerk of court to substitute Jovita Carranza for Linda McMahon as the respondent, Administrator of the U.S. Small Business Association, on the docket for this case. See Federal Rule of Civil Procedure 25(d). development program through which the SBA assists socially and economically disadvantaged small businesses with their business plans and provides guidance on obtaining federal contract opportunities. ECF Nos. 52-2 at 8-9; 52-3 at 3. From 2010 to May 2015, Randolph was allowed to telework two days per week, though the SBA could terminate the telework arrangement at any time. ECF Nos. 52-2 at 18-19; 51-27 at 22, 42.

In April 2014, Randolph was promoted to Lead Business Opportunity Specialist (LBOS). ECF No. 52-2 at 15. In that role, she was responsible for “providing guidance and business development assistance for a portfolio of small business firms” as well as promoting and marketing SBA programs and recruiting and training small businesses interested in receiving government contracts. ECF No. 51-3 at 2-4. Randolph was the only employee working on the 8(a) program until Barry Van Orden was hired in November 2013 as a BOS. ECF Nos. 52-3 at 2, 4; 52-2 at 11-12. As LBOS, Randolph was tasked with mentoring Van Orden, though Van Orden found working with Randolph to be difficult. ECF Nos. 52-3 at 4; 52-2 at 14, 16. He felt that she provided little support and mentorship with the 8(a) program. ECF No. 52-3 at 4.

During the times relevant to this case, Robert Holguin was the District Director of the Nevada Office and Eugene Cornelius was the Deputy Associate Administrator of the Office of Field Operations of the SBA. ECF No. 51-2 at 4. Around October 2014, Holguin interviewed and hired Daniel Lucero for the Deputy District Director role. ECF Nos. 52-2 at 17; 54-5 at 2. Lucero previously worked in the SBA’s North Carolina District Office, including on the 8(a) program. ECF No. 52-11 at 10-12. Soon after Lucero was hired, Randolph emailed Cornelius on October 14, 2014 about her concerns regarding preferential treatment in the hiring of Hispanic men in the Nevada office. ECF No. 54-5 at 2-3. Specifically, she noted that “[b]etween fiscal years 2013-2014 alone, three out of four hires have gone to Hispanic men, age 65+ and with military ([N]avy) backgrounds” and that the recent Deputy District Director position went to a Hispanic male. Id. at 2. Cornelius responded that he was “looking into it”; he later testified that he went to Human Resources (HR), investigated the hiring selection process, and found no irregularities. Id.; ECF No. 52-17 at 9-10. Lucero stated that within the first month of his employment he began having concerns

about the 8(a) program. ECF No. 52-11 at 14. Files were not kept up to date, business plans and financial reports were missing, and “just a lot of things weren’t being done.” Id. Lucero brought the problems to Holguin’s attention. Id. at 17. Holguin was concerned that the office would be receiving an internal audit soon, so in February or March 2015 he put together a “strike force” to review the program. Id. at 17; ECF No. 56-20 at 4. The group consisted of Lucero, Randolph, Van Orden, Tom Martin (a lender relations specialist), and Sabrina Abousaleh (an administrative assistant). ECF Nos. 52-11 at 18; 52-3 at 5-6. However, Randolph went on extended leave in 2015 and Van Orden focused on the day to day activities of the program, so Lucero, Martin, and Abousaleh conducted most of the review. ECF Nos. 52-3 at 6; 52-20 at 4-5, 7.

The review discovered missing required financial documents, tax returns, welcome letters, evidence of site visits, and annual review documentation. ECF No. 52-3 at 6. Further, several firms had to be removed from the program due to eligibility problems. Id. at 7. And, according to Van Orden, the hardcopy files were very disorganized. Id. Randolph stated that she had discussed issues with the 8(a) program since 2010 and that Holguin was aware that the files needed to be updated since he started working in the office in 2012. ECF No. 54-6 at 12-13. She also stated, “the goal has always been to hire someone to assist the 8(a) division to update those files.” Id. Subsequently, Van Orden was instructed in February 2015 to seek guidance from Lucero instead of Randolph so that there was no conflicting information on how to correct the 8(a) program. ECF Nos. 52-3 at 8; 54-7 at 5. The problems with the 8(a) program were reflected in Randolph’s January 2015 quarterly evaluation. See ECF No. 52-19. In years prior, Randolph received high performance ratings. See ECF No. 54-3 at 28, 35, 63, 87 (receiving between 4.6 and 5.0 out of 5.0 from 2011 to 2014).

On April 15, 2015, Randolph contacted her EEO Counselor, alleging she was discriminated against on the basis of race and sex, was subjected to a hostile work environment, and was retaliated against. ECF Nos. 54-7 at 3-4; 52-2 at 28. She alleged that since October 2014, Holguin “harassed and demanded that Randolph organize files from 2010 and put them in the file room” and that the demands started after Holguin was investigated for using government funds to interview Lucero. ECF No. 54-7 at 4. She stated that Holguin believed she had reported him, though another employee reported the conduct. Id. Examples of the alleged harassment included “minimizing the importance of [Randolph’s] job position,” blaming Randolph for the 8(a) program deficiencies in front of her peers, removing her job responsibilities by having Van

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Randolph v. McMahon, (D. Nev. 2020).

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