Robinson v. Cavalry Portfolio Services, LLC

365 F. App'x 104
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 10, 2010
Docket08-5020, 08-5022
StatusUnpublished
Cited by19 cases

This text of 365 F. App'x 104 (Robinson v. Cavalry Portfolio Services, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson v. Cavalry Portfolio Services, LLC, 365 F. App'x 104 (10th Cir. 2010).

Opinion

ORDER AND JUDGMENT *

TERRENCE L. O’BRIEN, Circuit Judge.

KaRon Robinson (KaRon) filed a Title VII suit claiming her employer, Cavalry Portfolio Services, L.L.C. (Cavalry), discriminated against her because she is a white woman married to a black man, Orlando Robinson (Orlando). 1 KaRon represented herself at trial. The jury returned a verdict in her favor on claims of disparate treatment, retaliation and hostile work environment. Cavalry appeals from the district court’s denial of its motion for a directed verdict on KaRon’s claims and, in the alternative, the denial of Cavalry’s post-trial request for a new trial based on KaRon’s conduct during her self-representation. KaRon cross-appeals from the district court’s grant of a directed verdict to Cavalry on her constructive discharge and punitive damages claims. We reverse and remand for the district court to enter a directed verdict for Cavalry on KaRon’s discrimination, retaliation and hostile work environment claims.

I. FACTUAL BACKGROUND 2

Orlando and KaRon both worked at the Cavalry office in Tulsa, Oklahoma. Orlando began working at Cavalry in December, 2003. He recruited his wife to apply for a job and she began her employment with Cavalry on July 26, 2004.

A. Cavalry’s Business Operations and Payment Structure.

Cavalry is a debt collection service agency. Its home office is located in Phoenix, Arizona, with satellite offices in St. Paul, Minnesota and Tulsa, Oklahoma. Collection specialists (specialists) such as KaRon are assigned delinquent accounts to try to collect. The original distribution of accounts is automatically sent to the individual specialist’s queue by the portfolio managers in the Phoenix office, usually within the first ten days of the month. 3 On the collection floor, specialists are placed in “teams” under one manager who, in turn, reports to a manager/director. If a specialist does not receive an adequate amount of accounts, it is the manager’s responsibility to go to a director to ask that Phoenix be notified of the situation. Managers do not work individual accounts, but receive commissions based on the collections of the people on their team. Some specialists who work “manual” accounts (meaning the specialist manually dials the phone rather than having a computer automatically dial their next account) have access to a computer program, called “skip tools,” to research and correct debtors’ invalid telephone numbers or addresses.

Collection accounts differed in the amount owed and in the difficulty in successfully negotiating repayment. During a new employee’s training, Cavalry “[gjener *107 ally ... focused on the newer people working smaller balanced accounts [approximately $500.00] ... [because] the [training specialists] didn’t have skip tools.” (Vol. II at 652.) Specialists could accept several forms of payment from the debtors. One form was post-dated checks. Another was an Automatic Clearinghouse payment (an ACH). This is an agreement from a customer to automatically pay monthly from his or her bank account. The advantage for the customer is he or she pays no interest. The benefit for the collection specialist is the monthly payment goes toward his or her commission every month without having to follow up with the customer.

Specialists could also “exhaust” an account because it was uncollectible. The specialist’s computer screen allowed them to designate one of three different reasons to exhaust: unable to locate a customer after a diligent search; customer unable to pay; and the customer’s absolute refusal to pay. When an account is exhausted, the collector presses a button on the computer and the account is forwarded to the collector’s manager’s queue to either be sent on as uncollectible or, if the specialist is exhausting too many accounts, sent back to the specialist for them to try contacting the debtor again.

A major potential source of income for a collections specialist is the commission received on paying accounts. The commission percentage is based on a scoring formula derived from different factors relating to a debtor’s propensity to pay on the account and the availability of state laws to enforce collections. The Phoenix office assigns a higher commission rate on more difficult accounts. For example, if the debtor was located in a state where the laws were not favorable to suit, the commission rate would be higher. If the specialist discovered the current address of the debtor had changed to a different state with a lower rating factor, the commission would be changed as well. The commission for each payment was applied to the specialist’s monthly goal — an amount calculated from the specialist’s pay rate and the number of hours worked each month. As a specialist’s negotiated payments reached incremental levels approaching her goal, such as 50%, 75% and 100%, she would receive increasing bonus payments.

B. KaRon Robinson’s Employment

1. Academy Bay

At the time KaRon was employed, all new employees were assigned to work in the training unit known as Academy Bay, an experimental training program initiated in May or June 2004. Upon completion of certain criteria, an employee would “graduate” to the floor and receive an assignment to a collection team. Rhonda Be-more was the manager of Academy Bay and the direct supervisor of approximately twenty new employees. Bemore’s supervisors were Andrew Brown, Vice-President of Tulsa operations, Mickey Warren (title unknown) and Mike Madewell, Site Manager and “for a period of time,” Academy Bay Director. (Vol. II at 769.) Madewell determined who would graduate to the floor with input from Brown and Bemore. While in Academy Bay, KaRon complained to Brown about Bemore’s supervision claiming “she was a little more strict or a little more harsh than she should be, that she didn’t get [KaRon’s] letters done very efficiently, [and] that she didn’t answer [KaRon’s] questions in a professional manner.” (Id. at 688.)

2. Racial Incident

On October 21, 2004, Kim Cooper, a Cavalry employee in Academy Bay, approached Bemore to report an incident in *108 the lunch room regarding race. Bemore asked who was involved and Cooper named KaRon and Mark Torres. Bemore relayed the report to Madewell who summoned KaRon and Torres for interviews and to give written statements. Madewell spoke with KaRon first. She wrote the following statement:

Mark and I were having lunch and Mark politely asked me if I only dated black guys like Mariza did. I told him no I was attracted to both I just happened to end up [with] one of a different race. He responded [with] the fact that he would never date someone of another race, he just couldn’t stand having to listen to them complain about the whole slavery topics. He thought they used it as a crutch. Mark continued to express that he’s not a racist that he just didn’t really like blacks until he got to know them. Which is fine however there were several times he used the word “Nigger” while referring to them.

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365 F. App'x 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-v-cavalry-portfolio-services-llc-ca10-2010.