Rhodes v. JPMorgan Chase & Co.

562 F. Supp. 2d 186, 2008 U.S. Dist. LEXIS 48539, 2008 WL 2502998
CourtDistrict Court, D. Massachusetts
DecidedJune 24, 2008
DocketCivil Action 06-10886-RGS
StatusPublished
Cited by2 cases

This text of 562 F. Supp. 2d 186 (Rhodes v. JPMorgan Chase & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rhodes v. JPMorgan Chase & Co., 562 F. Supp. 2d 186, 2008 U.S. Dist. LEXIS 48539, 2008 WL 2502998 (D. Mass. 2008).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

STEARNS, District Judge.

Plaintiff Dion Rhodes brought this diversity action against her former employ *189 er, JPMorgan Chase & Co. and J.P. Morgan Securities, Inc. (collectively JPMSI), and Eric Beinstein and Joseph Ghartey, two of its Managing Directors. The Complaint alleges pregnancy discrimination and retaliation under Mass. Gen. Laws ch. 151B. Rhodes alleges that she was unlawfully terminated by JPMSI six weeks after returning from maternity leave. She claims that defendants falsely told her that her position as head of research for the Equity Derivatives Strategy Group (EDG Strategy) was being eliminated when, in fact, it was being transferred to a newly-formed group headed by Beinstein. Defendants now move for summary judgment.

BACKGROUND

The material facts are taken as presented by Rhodes and supplemented by facts set out by defendants that Rhodes does not dispute. Rhodes began working in the New York City office of JPMSI in 1986. During her 19-year career at JPMSI, she served in a number of departments, including the Credit and Loans Department, the Mortgage Backed Securities Group, and the Mortgage Backed Securities Research Group, before finally taking a research position with the Equity Derivatives Group (EDG) in 1996.

By April of 2008, Rhodes had been promoted to a Vice-Presidency, and was coordinating a five-member research team within EDG known as EDG Strategy. She was earning, with discretionary bonuses, as much as $300,000 a year. After becoming involved with a Boston-area chiropractor (now her husband), Rhodes requested and received a transfer to the JPMSI office at Rowes Wharf. 1 Rhodes was the only member of the research team working out of Boston. She reported to two managing directors: Joseph Ghartey, head of training, and Adam Green, the head of marketing. Both Ghartey and Green worked in JPMSI’s New York office.

By July of 2004, all EDG Strategy employees save Rhodes had been transferred to other jobs at JPMSI. Rhodes did not consider the transfers an indication that JPMSI intended to dissolve EDG Strategy. She was, however, aware that no effort was being made to recruit new employees to her team. 2 She did not seek a transfer to any other research group within JPMSI. In the fall of 2004, Rhodes began to assist William Shelton, the New York-based Vice-President of EDG, in the writing of marketing materials. 3 Rhodes made frequent trips to New York to work with Shelton, often staying a week at a time. Shelton considered Rhodes a valued employee. 4

On November 23, 2004, Rhodes went on maternity leave. She began working three days a week on March 1, 2005, twelve weeks after the birth of her daughter. She resumed a full-time schedule on April *190 1, 2005, but was now solely occupied with work for Shelton’s New York group. 5 Principally, she wrote and edited drafts and approved the content of marketing articles.

On May 11, 2005, Shelton flew to Boston and informed Rhodes that she was “not the right fit” for his group. Two days later, on May 13, 2005, Ghartey informed Rhodes that her position was being eliminated and that JPMSI was “completely eliminating research in equity derivatives.” 6 Within the next few days, Rhodes complained to JPMSI’s Human Resources Department, which had no knowledge that she was being terminated. According to defendants, EDG Strategy, of which Rhodes was the sole remaining member, was being eliminated because it was no longer a profit center for the firm. Client demand for EDG Strategy research had significantly decreased as technology had allowed for the automation of many of the reports that EDG Strategy had previously generated.

On or about May 18, 2005, Rhodes learned from Lawrence Chan, another JPMSI employee, 7 that equity derivatives research was not being eliminated (as Rhodes had been told by Ghartey), but was instead being transferred to a group headed by Eric Beinstein in New York. 8 Rhodes telephoned Human Resources to complain about the transfer of her job. On June 3, 2005, Jocelyn Donat, a JPMSI Human Resources officer, informed Rhodes of an open position in Bernstein’s group. Donat sent Rhodes a position description and explained that there would be a restructuring of JPMSI’s research areas under Beinstein. 9 Rhodes interviewed for the position with Beinstein in New York on June 16, 2005. She received a job offer shortly thereafter.

Rhodes’s EDG Strategy position elimination/termination letter, dated June 17, 2005, had an effective date of August 15, 2005. Rhodes was offered forty-nine weeks of severance pay, career counselling services, and other benefits. Rhodes met with Beinstein again on July 11, 2005, to further discuss the offer of a job with his group. Notwithstanding the discussions, on July 20, 2005, Rhodes’s attorney sent a demand letter to JPMSI’s general counsel. A few weeks later, in an exchange of emails with Donat, Rhodes sought assurances on compensation, relocation expenses, and the formal description of the new job. Donat explained that it would be a lateral move and that Rhodes would *191 retain her Vice-President’s title. 10 She further explained that relocation assistance was included in the offer. Donat asked Rhodes to let her know whether she wanted the job by August 8, 2005. Rhodes did not respond.

On April 16, 2006, Rhodes filed this action in Suffolk Superior Court alleging sex discrimination based on pregnancy, Mass. Gen. Laws ch. 151B, § 4(1) (Count I), retaliation in violation of Mass. Gen. Laws ch. 151B, § 4(4) (Count II), interference with rights protected under Mass. Gen. Laws ch. 151B, § 4(4A) (Count III), aiding and abetting discriminatory practices in violation of Mass. Gen. Laws ch. 151B, § 4(5) (Count IV), and interference with advantageous business relations (Count V). 11 The case was removed by defendants to this court on May 19, 2006.

On October 31, 2007, defendants moved for summary judgment on all counts. On November 1, 2007, Rhodes moved for an extension of time to conduct further discovery. (The discovery deadline had expired on August 31, 2007). The court denied the motion as untimely. Rhodes filed her opposition to summary judgment on December 21, 2007. She filed thirty-eight exhibits in support of her opposition.

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Cite This Page — Counsel Stack

Bluebook (online)
562 F. Supp. 2d 186, 2008 U.S. Dist. LEXIS 48539, 2008 WL 2502998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rhodes-v-jpmorgan-chase-co-mad-2008.