Russell v. Kronos Incorporated

District Court, N.D. California·Decided December 11, 2019·No. 3:18-cv-04525·Unknown

Opinion

TALA RUSSELL, Case No. 18-cv-04525-EMC

Plaintiff, ORDER GRANTING DEFENDANT’S v. MOTION FOR SUMMARY JUDGMENT Docket No. 55 Defendant.

Plaintiff Tala Russell has filed an employment discrimination case against her former employer Kronos Inc. The specific claims she has asserted are as follows: • Sex discrimination in violation of FEHA and Title VII (claims 1 and 7). • National origin discrimination in violation of FEHA and Title VII (claims 2 and 8). • Race discrimination in violation of FEHA and Title VII (claims 3 and 9).1 • Retaliation in violation of FEHA and Title VII (claims 4 and 10). • Failure to prevent discrimination and harassment in violation of FEHA (claim 5). • Wrongful discharge in violation of public policy (claim 6). Currently pending before the Court is Kronos’s motion for summary judgment. Kronos asks for summary judgment on all causes of action. The evidence submitted by the parties reflects as follows. (Where there are disputes of fact, or evidentiary objections in need of ruling, they are so noted.)

1 Ms. Russell has asserted only discrete claims for sex discrimination, national origin Ms. Russell is a Hispanic woman. See Burton Decl., Ex. 211 (Russell Depo. at 18). She worked for Kronos from approximately September 2013 to July 2017 (almost four fiscal years2) as a Senior Sales Executive. Kronos terminated Ms. Russell purportedly because of poor performance. The decision to terminate was made by her direct supervisor, Chris Lipscomb, with the approval of Human Resources and Mr. Lipscomb’s superiors (Tony Lombardi and Robert Kennedy). See Cullen Decl. ¶ 9. For Ms. Russell’s first year of employment with Kronos (FY2014), there is no evidence in the record about her performance.3 For Ms. Russell’s second year of employment (FY2015), it appears that she achieved 66% of her annual quota. See Cullen Decl., Ex. 178 (draft LOC). Her direct supervisor at the time, Mike Solomon gave her a performance review that included some positives but also included some criticisms. His overall rating for her performance was “Inconsistent.” Hudson Decl., Ex. 63 (Performance Review at 10). For Ms. Russell’s third year of employment (FY2016), Ms. Russell achieved 95% of her quota. See Russell Decl. Ex. 194 (FY2016 Worldwide Sales Rankings). Kronos maintains, however, that quota attainment is not the only metric on which a sales executive’s performance is measured. See Cullen Decl. ¶ 8; Lipscomb Decl. ¶ 28. Kronos also asserts that the 95% quota attainment for FY2016 is misleading because it includes split commissions. According to Kronos, if two deals (with DirecTV and U.K. Celesio) are excluded because they involved split commissions, then Ms. Russell’s quota attainment for FY2016 is actually 32%. See Lipscomb Decl., Ex. 164 (Mr. Lipscomb’s notes); Cullen Decl. ¶ 7 & Ex. 170 (email). Kronos adds that, even if only the U.K. Celesio deal is excluded (i.e., Ms. Russell disputes that the DirecTV deal involved a split commission), her quota attainment is only about 63%. See Cullen Decl., Ex. 178 2 Kronos operates on a fiscal year that begins on October 1 and ends on September 30. See Lipscomb Decl. ¶¶ 3, 5.

3 In her opposition, Ms. Russell claims that she achieved 121% of her annual quota for FY2014, see Opp’n at 2, but she does not cite to any evidence in support. See Carmen v. S.F. Unified Sch. Dist., 237 F.3d 1026, 1031 (9th Cir. 2001) (stating that “[t]he district court need not examine the (draft LOC). In response, Ms. Russell argues that “there is no written requirement that a sales executive must complete the deals alone to be successful.” Opp’n at 2. In or about October 2016, i.e., following the close of FY2016, Ms. Russell’s direct supervisor at the time, Mr. Solomon, drafted a Letter of Concern (“LOC”) regarding Ms. Russell’s performance. See Cullen Decl., Ex. 178 (LOC); Cullen Decl., Ex. 177 (email). In the draft LOC, Mr. Solomon questioned her sales productivity (based on her quota attainments for the prior two years) and also her “pipeline” development (i.e., possible deals). The LOC was never issued because Mr. Solomon resigned thereafter and “it was felt the matter should wait for plaintiff’s new supervisor to assume his or her post.” Cullen Decl. ¶ 6. In addition, in or about October 2016, Kronos reorganized the “vertical” (i.e., line of business) in which Ms. Russell worked. More specifically, Kronos created a new subvertical, “targeting larger accounts with an international footprint,” and “[s]everal sales executives, including Tommy Chacko, were promoted to a Global Account Manager at that time.” Lombardi Decl. ¶ 5. The restructuring resulted in the transfer of three of Ms. Russell’s accounts to Mr. Chacko. The three accounts were McKesson, Microsoft, and Teletech. 4 See Lombardi Decl. ¶ 5. According to Ms. Russell, the transfer of the three accounts was a major factor in her sales numbers going down. However, she testified at her deposition that she did not have any reason to believe that the transfer of the accounts had anything to do with her sex or ethnicity.5 See Hudson Decl., Ex. 190 (Russell Depo. at 41-42). For the McKesson account, Ms. Russell continued to do work even after the transfer of the account to Mr. Chacko – through approximately March 2017. See Russell Decl., Ex. 207 (emails). Ms. Russell’s direct supervisor at the time (Mr. Lombardi) told Ms. Russell that she would be entitled to split commissions with Mr. Chacko for the first three quarters of FY2017. See 4 At the hearing, Ms. Russell asserted that Mr. Chacko was a Global Account Manager for one year only and then reverted back to his prior position as a Sales Executive, keeping the McKesson account with him. Although there is evidence that Mr. Chacko was only a Global Account Manager for one year, see Chacko Reply Decl. ¶ 1, there is no evidence about what happened with the McKesson account after he was no longer a Global Account Manager. Lombardi Decl. ¶¶ 6-7. Ms. Russell was ultimately fired at the end of 3Q FY2017 before any McKesson deals actually closed and thus she never received any split commissions. See Russell Decl., Ex. 207 (emails). According to Ms. Russell, Mr. Chacko deliberately delayed in closing the McKesson deals in order to deprive her of the split commissions. Mr. Chacko, however, denies such. See, e.g., Chacko Reply Decl. ¶ 3 (testifying that “[t]he notion that I would deliberately delay . . . in order to avoid sharing a commission is absurd” because, “[a]s anyone involve[d] in sales understands, securing the customer’s signature on a contract is the only effective assurance that a sale will occur”); Chacko Reply Decl. ¶ 5 (testifying about the “[m]any factors caus[ing] the closing of the McKesson contract to be delayed”). Mr. Chacko is not a named defendant and he is not alleged to be a decisionmaker here. Mr. Lipscomb became Ms. Russell’s direct supervisor in or about February 2017. See Lombardi Decl. ¶ 10. Approximately a month later, in March 2017, Mr. Lipscomb told Ms. Russell that she “would be more suited to take a customer service role.” Hudson Decl., Ex. 46 (Ms. Russell’s notes). In April 2017, Mr. Lipscomb began to work with Human Resources on a LOC regarding Ms. Russell’s performance. See Lipscomb Decl. ¶ 13. According to Mr. Lipscomb, there were several considerations that led to his conclusion that a LOC was necessary. For example, Ms. Russell’s quota attainment at the time was below 12% (2Q FY2017 had just closed). See Lipscomb Decl. ¶ 4. Also, Ms. Russell’s opportunities in the pipeline were not qualified and were not progressing through sales stages. See Lipscomb Decl. ¶ 6; see also Lombardi Decl. ¶ 9 (testifying that a qualified opportunity is “an opportunity where a prospect has an actual need for a product or service offered by Kronos, and there is a reasonable probability that that prospect will actually purchase from Kronos”). Sales productivity and pipeline development were issues that had al

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