Riley v. Kohan Retail Investment Group

CourtDistrict Court, M.D. Pennsylvania
DecidedJuly 30, 2024
Docket1:23-cv-01834
StatusUnknown

This text of Riley v. Kohan Retail Investment Group (Riley v. Kohan Retail Investment Group) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riley v. Kohan Retail Investment Group, (M.D. Pa. 2024).

Opinion

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

SHAIANN RILEY, : CIVIL ACTION NO. 1:23-CV-1834 : Plaintiff : (Judge Conner) : v. : : KOHAN RETAIL INVESTMENT : GROUP d/b/a COLONIAL PARK : MALL, : : Defendant :

MEMORANDUM

Plaintiff Shaiann Riley brings this employment discrimination case against her former employer, defendant Kohan Retail Investment Group, doing business as Colonial Park Mall (“Kohan”). She seeks back pay and compensatory and punitive damages. The Clerk of Court has entered default against Kohan, and Riley now moves for default judgment pursuant to Federal Rule of Civil Procedure 55(b)(2) and for reasonable attorneys’ fees and costs. We have conducted an evidentiary hearing on the matter, and we will grant Riley’s motions and award her certain requested relief. I. Factual Background & Procedural History1 Kohan is an investment group headquartered in Great Neck, New York, that owns and operates physical retail spaces across the country. (See Doc. 1 ¶ 7). One

1 The following factual recitation is drawn from the allegations in Riley’s uncontested complaint (Doc. 1) and the testimony of Riley and her mother, Sherease Riley, adduced at an evidentiary hearing on May 8, 2024, (see Doc. 13, 5/8/24 Hr’g Tr.). of its properties is the Colonial Park Mall in Harrisburg, Pennsylvania. (See id.) In March 2020, Kohan hired Riley, an African American woman and recent college graduate, as the mall’s marketing director. (See id. ¶¶ 10-12). Kohan paid her $16

per hour. (See 5/13/24 Hr’g Tr. 12:17-19). Riley’s direct supervisor was Chris Restagno. (See id. at 5:24-6:11). Restagno, in turn, reported to the general manager, who happened to be Riley’s mother, Sherease. (See id. at 25:5-17; see also Doc. 1 ¶ 13). Sherease, who describes herself as being of mixed race, began working at Kohan in 2017. (See Doc. 1 ¶ 13; see also 5/13/24 Hr’g Tr. 28:4-19). She reported directly to Kohan’s founder and namesake, Mike Kohan. (See 5/13/24 Hr’g Tr. 28:12-17); see also Times-Republican, Mall ownership group has checkered history,

https://www.timesrepublican.com/news/todays-news/2023/11/mall-ownership-group- has-checkered-history/, archived at https://perma.cc/8E93-FPYY (last visited May 16, 2024) (noting Kohan is “led by founder Mehran Kohansieh, who goes by the name Mike Kohan”). Throughout Riley’s employment with Kohan, she observed and personally experienced numerous instances of racial discrimination. (See Doc. 1 ¶ 15). For

example, Kohan inexplicably terminated the majority of its African American employees and replaced them with less-qualified Caucasian employees. (See id. ¶ 16(i)-(iii)). The company treated African American employees differently and worse than their non-Black coworkers. (See id. ¶ 16(v)). When tenants at the mall referred to Sherease as a “black bitch,” Kohan management “did nothing to correct the situation.” (See id. ¶ 16(iv); see also 5/8/24 Hr’g Tr. 7:6-21 (identifying “Ozzie” as Kohan’s employee who made such remarks in Riley’s presence)). And Kohan paid African American employees, including Riley and her mother, less than Caucasian employees. (See Doc. 1 ¶ 16(vi); see also 5/8/24 Hr’g Tr. 30:18-33:14 (Sherease explaining that Kohan approved all raises and refused to give her or any other

Black employee a raise during her four years of employment)). Riley also was subjected to unwanted sexual advances and sexually inappropriate comments in the workplace. (See Doc. 1 ¶ 18; 5/8/24 Hr’g Tr. 9:13-25). Her coworker, D.J., repeatedly followed and attempted to hug her without her consent while she was alone. (See Doc. 1 ¶ 18; 5/8/24 Hr’g Tr. 23:12-24:7). Another coworker, Harrison Heckard, frequently directed misogynistic remarks at Riley, such as commenting on her skirt length and telling her to bend over. (See 5/8/24

Hr’g Tr. 24:8-25:4). Sherease eventually terminated Heckard because of his inappropriate behavior. (See id. at 30:1-7). But apart from that rare example of discipline, Kohan’s response to the discrimination and harassment was nonexistent. (See id. at 9:7-9, 10:7-12). The ongoing and systemic issues at Kohan led Sherease to resign in October 2021. (See id. at 33:8-34:4). Shortly thereafter, Riley took a more active role in

raising her concerns with Kohan’s management. (See Doc. 1 ¶ 17; 5/8/24 Hr’g Tr. 7:23-8:18). She called Veronica Kohan, a member of Kohan’s management team, and informed her about the ongoing racial discrimination and sexual harassment. (See 5/8/24 Hr’g Tr. 7:23-10:12, 25:18-26:10; see also id. at 32:1-4 (Sherease explaining that Veronica is a regional manager located in Texas)). Riley’s complaint was met with indifference; Veronica callously responded that Kohan is “an equal opportunity employer.” (See Doc. 1 ¶ 19; see also 5/8/24 Hr’g Tr. 25:22-26:16). No one at Kohan ever investigated Riley’s complaints or followed-up with her. (See Doc. 1 ¶¶ 19, 26, 32; 5/8/24 Hr’g Tr. 26:1-16). Instead, Kohan terminated Riley a few days later, on November 3, 2021. (See Doc. 1 ¶¶ 14, 20; 5/8/24 Hr’g Tr. 10:1-15, 26:11-

16). There is no evidence that Kohan had a non-retaliatory reason to terminate Riley. (See Doc. 1 ¶¶ 21-23; 5/8/24 Hr’g Tr. 11:5-12:16, 34:13-20). Riley’s abrupt termination significantly disrupted her life, as her emotional testimony and earnest demeanor at the hearing in this matter plainly demonstrated. (See, e.g., 5/8/24 Hr’g Tr. 22:12-14). In an instant, she went from earning an annual salary of $33,280 to nothing. (See id. at 12:17-24).2 Although Riley immediately began cold-calling potential employers and submitting hundreds of job applications

via Indeed and directly through company websites, she was unable to secure employment for over two months. (See id. at 12:25-14:24 (referencing Ex. 2)). When she did eventually find a job with David’s Bridal in January 2022, the salary was not enough for her to continue paying her living expenses in Harrisburg. (See id. at 22:1-23:5; see also id. at 15:6-8, 38:16-39:15). Riley’s financial challenges forced her to leave Harrisburg and move in with her mother in Baltimore. (See id. at 15:6-19).

The rejections and lack of progress has taken a significant toll on Riley. (See id. at 22:1-23:5). She has suffered from stress, anxiety, humiliation, and embarrassment ever since her termination. (See Doc. 1 at 7; 5/8/24 Hr’g Tr. 22:1- 23:5). Her initial diagnosis of depression was upgraded to major depressive

2 Riley earned $16 per hour and worked 40 hours per week, resulting in a weekly wage of $640. (See 5/8/24 Hr’g Tr. 12:17-22). This amounts to $33,280 over the course of 52 weeks. disorder. (See id. at 22:1-23:5). At her lowest point, she contemplated suicide. (See id.; see also id. at 34:21-35:20). But Riley’s persistence and determination eventually paid off. After moving to Baltimore in 2022, she secured employment with Bella’s

Bridesmaids. (See id. at 15:18-16:8). She earned a total of $1,954 that year. (See Doc. 10-4 at 1). In 2023, she joined Kipp Baltimore, Inc., earning a total of $14,154.66. (See 5/8/24 Hr’g Tr. 17:24-18:1; Doc. 10-5 at 1). And in January 2024, Penn State Health hired Riley and offered her a higher salary than what she made at Kohan. (See 5/8/24 Hr’g Tr. 18:19-19:1, 20:2-8; Doc. 10-6). Riley filed her complaint against Kohan on November 3, 2023. Kohan failed to answer or otherwise respond to the complaint. As a result, the Clerk of Court

entered default against Kohan on January 23, 2024. Riley filed a motion for default judgment and the court held an evidentiary hearing to assess damages on May 8, 2024. Kohan did not respond to the motion or appear at the hearing. The motion is ripe for disposition. II. Discussion

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Riley v. Kohan Retail Investment Group, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-kohan-retail-investment-group-pamd-2024.