Sahs v. Amarillo Equity Investors, Inc.

702 F. Supp. 256, 1988 U.S. Dist. LEXIS 14046, 48 Fair Empl. Prac. Cas. (BNA) 927, 1988 WL 134727
CourtDistrict Court, D. Colorado
DecidedDecember 14, 1988
Docket87-B-1785
StatusPublished
Cited by4 cases

This text of 702 F. Supp. 256 (Sahs v. Amarillo Equity Investors, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sahs v. Amarillo Equity Investors, Inc., 702 F. Supp. 256, 1988 U.S. Dist. LEXIS 14046, 48 Fair Empl. Prac. Cas. (BNA) 927, 1988 WL 134727 (D. Colo. 1988).

Opinion

MEMORANDUM OPINION AND ORDER

BABCOCK, District Judge.

Plaintiff, Nancy Sahs (Sahs), commenced this action alleging sexual harassment and retaliatory firing in violation of Title VII of the 1964 Civil Rights Act, as amended, 42 U.S.C. § 2000e, et seq. Jurisdiction is based on 42 U.S.C. § 2000e et seq. (Civil Rights Act, as amended), 28 U.S.C. §§ 1331 (federal question), 1332 (diversity) and 1342 (civil rights). Upon the following findings of fact and conclusions of law the Court determines that although Sahs has met her burden of proving both claims, her sexual harassment claim is now moot.

FINDINGS OF FACT

Sahs is a citizen of the State of Colorado. She is a member of a class of persons protected by Title VII of the Civil Rights Act of 1964.

In January 1985, Sahs was employed by Paragon Management Company (Paragon) to work at the Creekside Condominiums in Beaver Creek, Colorado (Creekside) as night and weekend desk clerk. She performed this job until she quit on April 15, 1985.

In October 1985, Sahs was hired by Amarillo Equity Investors, Inc. (AEI) as a chambermaid and front desk clerk at Creekside. Her pay was $6.00 per hour. On January 25, 1986, Sahs’ pay was increased to $7.69 per hour.

AEI is a real estate management firm headquartered in Texas. It is an employer under the provisions of Title VII. Dean Lively (Lively) is the chairman of the board of AEI and the chief executive officer (CEO) of the corporation. He currently resides in Texas.

Paragon employed Matthew Keppinger (Keppinger) as resident manager of Creek-side. In October 1985, AEI assumed Paragon’s contract to perform management services at Creekside. When AEI assumed Paragon’s management contract, Keppinger became an AEI employee. As the resident manager, Keppinger was Sahs’ supervisor. Keppinger presently lives in Louisiana.

Bill Chudej (Chudej) was AEI’s vice president for property management from October 1985 until April 1, 1986. Before October 1985, Chudej was a principal in Paragon. In both positions, Chudej was Kep-pinger’s direct supervisor.

Other women who worked at Creekside at relevant times include April Wood Hancock (Wood), the executive housekeeper, Wendy Wotring Boomhower (Wotring), Dede Bose (Bose), and Eileen Coy (Coy), housekeepers. The Creekside staff was never informed of AEI’s supervisory structure.

Neither Paragon nor AEI had promulgated any policies prohibiting sexual harassment of employees by supervisory personnel or established any complaint procedure for sexual harassment claims.

*258 In October 1985, Coy called Lively at AEI headquarters. She told him that she was resigning due to her being “manhandled” by Keppinger. In late December 1985 or early January 1986, Sahs and Wood initiated a complaint about Keppinger’s sexual harassment of themselves and other female workers at Creekside. Because they were unaware of AEI’s proper chain of command, Sahs and Wood consulted Creekside’s resident broker, Ed Swinford. Gordon Williams (Williams), the project developer and president of the Creekside Homeowners Association also was contacted.

In late January 1986, Williams informed Chudej about the women’s complaints. Chudej did not travel to Creekside in January 1986 because of his scheduled back surgery. Rather, William’s accountant, Bill Johnson went to Creekside to conduct .an audit.

On February 14, 1986, Chudej and his assistant, Cruse Messer (Messer), went to Creekside to investigate the staff’s complaints. These complaints were that Kep-pinger was intoxicated while on the job, required the staff to work more than 40 hours per week without paying overtime, stole property from condominium units, improperly managed homeowner trust accounts, improperly diverted company funds for personal use, and sexually harassed the female staff.

Chudej was onsite at Creekside for three days. Among other activities, Chudej conducted individual interviews of each staff member, interviews with some homeowners, and a group interview with the entire staff.

During the investigation, the female staff had lunch with Messer. They told her about Keppinger’s sexual harassment of them.

Chudej had the female employees confront Keppinger directly with their specific charges of sexual harassment, despite their Concern that Keppinger would retaliate against them. Although Chudej went to Creekside thinking it probable that he would fire Keppinger, and although he tended to believe the women’s complaints, Chudej claimed that he did not terminate Keppinger because it was their word against Keppinger’s and there was no other “proof.”

Although Chudej verbally reprimanded Keppinger, he took no meaningful action to prevent Keppinger from retaliating against the women.

The women did not report any specific incidents of sexual harassment after Chu-dej left Creekside. However, Keppinger’s hostility toward them continued. During this time, Keppinger told the housekeepers to watch Sahs and that he intended to get rid of her.

When Chudej was at Creekside in mid-February 1986, Lively was staying at a Creekside condominium. Chudej and Lively spoke then but deny discussing Chudej’s investigation.

On March 4, 1986, Lively and his wife, Tudi, were moving into their condominium unit at Creekside. Before March 4, 1986, Lively had little, if any, contact with Plaintiff. He had received no complaints regarding her work. However, on March 4, 1986, Lively told Sahs that her attitude was poor and that she had been rude to his wife. Sahs has denied this.

Later that day, Lively went to Creek-side’s front lobby looking for Keppinger. When Lively asked Sahs if she knew of Keppinger’s whereabouts, Sahs responded that he was at the Hole in the Wall Saloon. Shortly thereafter, Keppinger entered the lobby carrying supplies. Lively then fired Sahs after conferring with Keppinger and Chudej. Lively’s stated reason for Sahs’ firing was that her attitude was poor and it was inappropriate for her to tell a Creek-side homeowner that another employee was at a saloon during work. Sahs was given one week of severance pay. Wood was also fired by Keppinger on March 4, 1986.

Lively and Chudej deny having discussed Sahs’ complaints of sexual harassment. However, Chudej’s actions in this regard were inconsistent with his investigation of Keppinger in that: 1) he concurred immediately with Lively’s recommendation that Sahs be fired; 2) he did not ask Sahs for *259 her version of the events about which Lively complained; 3) he required no other “proof” of Lively’s allegations; and 4) Lively’s complaint about Sahs was minor compared with those against Keppinger.

After her termination from Creekside, Sahs actively sought employment. In May 1988, she began a full time job as an insurance salesperson with J.C. Penney, Co.

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702 F. Supp. 256, 1988 U.S. Dist. LEXIS 14046, 48 Fair Empl. Prac. Cas. (BNA) 927, 1988 WL 134727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sahs-v-amarillo-equity-investors-inc-cod-1988.