Smith v. Club Exploria LLC

District Court, M.D. Pennsylvania·Decided February 20, 2024·No. 3:20-cv-00580·Unknown

Opinion

| IN THE UNITED STATES DISTRICT COURT | FOR THE MIDDLE DISTRICT OF PENNSYLVANIA |DAMON SMITH, : No. 3:20cv580 | Plaintiff : : (Judge Munley) | V. : | CLUB EXPLORIA LLC d/b/a POCONO : | MOUNTAIN VILLAS, : | Defendant :

MEMORANDUM Before the court is a motion for summary judgment (Doc. 33) filed by | Defendant Club Exploria, LLC d/b/a Pocono Mountain Villas. Having been fully

| briefed, this matter is ripe for disposition." Background This matter involves Plaintiff Damon Smith’s claims of employment | discrimination and retaliation brought pursuant to Title VII of the Civil Rights Act of 1964 (‘Title VII"), and the Pennsylvania Human Relations Act (“PHRA’). In his four-count complaint filed on April 6, 2020, Plaintiff Damon Smith alleges that he | sold timeshares at Pocono Mountain Villas (“PMV”) for thirteen months until, | within twenty-four hours, he was demoted from sales manager to sales

| 1 The Honorable Robert D. Mariani transferred this case to the undersigned on November 7, 12023.

| representative and then terminated. (Doc. 1. at J] 3, 21, 23, 37, 40, 43). Plaintiff contends that such adverse action occurred because he is African American and | he complained to his sales director about an offensive and racist meme sent by é | fellow sales manager in a group text. (Id. at JJ 20, 26-36). Plaintiff alleges he

was the only African American sales manager at PMV. (Id. at {] 40). | Plaintiff was recruited to work at PMV as a sales representative in February | 2018 by its director of sales, Matthew Merriam. Plaintiff and Merriam previously | worked together for another company and plaintiff listed Merriam as a reference

on his job application. Plaintiff reported directly to Merriam throughout his employment. In May 2018, Merriam promoted plaintiff to in-house sales

manager. That same month defendant acquired PMV. | Around Thanksgiving 2018, another PMV manager shared a meme in a | work-related group text. (Doc. 38-2, Exh. A, Dep. of D. Smith at 77:17-78:10). Per plaintiff's exhibits in opposition to summary judgment, the meme depicts Buckwheat? dressed as a chef and posing with a turkey. (Doc. 38-2, Exh. D). The | caption reads, “Happy Tanks Gibbin! O Tay/.}” (Id.) | 2 Citations to the record are provided only where plaintiff disputes defendant’s statement of material facts or the parties argue the record is subject to differing interpretations or | characterizations. All facts are construed in a light most favorable to plaintiff as the nonmoving | party. See Daniels v. Sch. Dist. of Philadelphia, 776 F.3d 181, 187 (3d Cir. 2015)(citation | omitted). | 3 Buckwheat was a character featured in the Our Gang/Little Rascals series of shorts producec | in the first-half of the Twentieth Century. Eddie Murphy also portrayed Buckwheat in Saturday |

| Plaintiff believed that the message was posted to the group but directed at

| him. (Doc. 38-2, Exh. A, 78:6-17). Shortly after, plaintiff contacted Merriam by | telephone to address its offensiveness and his unhappiness. (Id. at 77:24-78:2, | 79:3-11). Per plaintiff, Merriam said he would “take care of it.” (Id. at 78:2-3). | Plaintiff testified that he did not report the meme to the human resources | department (“HR”) or anyone else at PMV based on Merriam’s assurances. (Id.

80:14-20). Plaintiff alleges Merriam did not act following this incident and the defendant indicates that it has no record of the meme or any complaint from that | time. Merriam is no longer employed by defendant and was not deposed prior to the expiration of case management deadlines. (See Doc. 31). | In January 2019, however, plaintiff was disciplined by Merriam after a | female employee made a complaint that plaintiff said something sexually | suggestive to her as she was eating. Plaintiff admitted making a specific | statement to that employee, but stated he meant nothing inappropriate by his | comment. Plaintiff received a verbal warning, and the incident was noted in his

a | Night Live skits in the 1980s. As stated, Buckwheat is a “stereotypical black character” and “in | the context of employment discrimination law,” that use of that name as a term for a person is | “generally considered to be a racial slur or epithet.” Boyd v. State Farm Ins. Companies, 158 | F.3d 326, 329, n. 1 (5th Cir. 1998)(citations omitted); see also Edwards v. City of Chicago, No. | 04 C 3395, 2006 WL 794743, at *5 (N.D. Ill. Mar. 23, 2006). |

personnel file in an employee counseling report. (Doc. 35, Exh. A-4, | EXPLO00016). | That same month, defendant introduced a new commissions plan, changing how plaintiff was compensated. There is a factual dispute between the parties over plaintiff's reaction to the change. Plaintiff testified that he communicated frustrations with the new policy directly to Merriam, but believed ie new system was beneficial to him as “the top producer” at PMV. (Doc. 38-2, | Exh. A at 86:16-24). In the motion for summary judgment, however, defendant advances that plaintiff “sought out ways” and “workarounds to ensure that he could still earn as much as commissions as before, to the detriment of other sales managers.” (Doc. 35 at Jf 37-38). This included asking sales representatives to only list plaintiff as the sales manager on sales records so that plaintiff could be credited for all commissions earned on sales by those representatives. (Id. at J 38). Plaintiff counters that such “facts” are premised on | unsupported employee statements made through defendant’s HR witness. (Doc. 38-1 at FJ] 37-38). The parties agree that, on Sunday, March 10, 2019, plaintiff met with Merriam and two senior sales managers. The rest of what happened is disputed. Plaintiff testified that he was demoted in that meeting for “[n]o specific real

reason other than. . . the rotation’ that was not company policy.” (Doc. 38-2, Exh |A at 93:17-20). Plaintiff also testified that he complained to Merriam about | another employee being promoted to senior sales manager. (Id. at 97:15-24, | 98:17-23). Emails and HR records supplied by defendant portray a different | situation. Merriam sent an e-mail to HR the next morning regarding the meeting, indicating that he had issues with the “visible demeanor” plaintiff was displaying at work and plaintiff's “open” feelings about the new compensation plan. (Doc.

Exh. A-5, EXPLO00014). Merriam also relayed “overwhelming” information

| about plaintiff from other employees about his efforts to increase his commissions under defendant’s new compensation system. (Id.) An employee

| counseling report completed by Merriam indicates the demotion was due to plaintiff “not displaying a professional and condusive role that we expect from a leadership role and or as manager [sic].” (Doc. 35, Exh. A-6, EXPLO000162).

| Merriam indicated he would revisit plaintiff's “professionalism” and plaintiffs work

| to regain his position at the thirty-day mark. (Id.) Plaintiff testified about the

| demotion meeting as follows: Q. Did [Merriam] bring up your race in any way? | A. Other than the fact that | should be grateful of having | the opportunity, you know. | forget how he put it, where you come from, whatever. Yeah, so...

| “The rotation” is not further explained in the record supplied by the parties. |

| Q. Did you understand that comment to be related to | your race? | A. _ | thought it was. (Doc. 38-2, Exh. A at 96:4-12). | The next day, however, plaintiff was terminated by Merriam after Merriam

| consulted with Shannon Price, the HR manager. Per Price’s testimony, Merriam maintained the ability to demote plaintiff without her involvement. (Doc. 38-2, Exh. E. 71:8-18). According to Price, however, Merriam could only terminate employees with her approval. (Doc.

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