Teague v. Quad Cities Retail

District Court, C.D. Illinois·Decided July 10, 2023·No. 4:21-cv-04097·Unknown

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS ROCK ISLAND DIVISION

TASHIMIA C. TEAGUE, ) ) Plaintiff, ) ) v. ) Case No. 4:21-cv-04097-SLD-JEH ) 7-ELEVEN, INC.,1 ) ) Defendant. )

ORDER

Before the Court is Defendant 7-Eleven, Inc.’s (“7-Eleven”) Motion for Summary Judgment, ECF No. 24. For the following reasons, the motion is GRANTED. BACKGROUND Plaintiff Tashimia C. Teague, proceeding pro se, filed a complaint against 7-Eleven on June 2, 2021. See Compl., ECF No. 1. She brings a claim for employment discrimination pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e–e-17, due to actions allegedly taken by the “owner” of the 7-Eleven stores at which she worked, “Greg,” and two district managers. Id. at 2, 4–5.2 She listed 7-Eleven’s address as 2702 Avenue of the Cities, Moline, IL 61265, id. at 1, and because she was proceeding in forma pauperis, the Court first directed the Clerk to send requests to waive service of summons and then ordered service by the U.S. Marshal at that address, see Nov. 9, 2021 Order 1, 4, ECF No. 6; Apr. 19, 2022 Text Order. In response, the Court received two letters from Timothy Feeney, an “attorney that represents a party that operates a business at 2702 Avenue of the Cities, Moline, IL 61265,” specifying that

1 Plaintiff Tashimia C. Teague spells Defendant’s name as “7 Eleven,” Compl. 1, ECF No. 1, but Defendant indicates that its name is actually “7-Eleven, Inc.,” see Mot. Summ. J. 1, ECF No. 24. 2 Because the complaint is not consistently paginated, the Court uses the page numbers generated by CM/ECF. his client was not 7-Eleven and, as such, could not accept service on its behalf. First Feeney Letter, ECF No. 8; Second Feeney Letter, ECF No. 12. Feeney provided the address of 7- Eleven’s registered agent, Second Feeney Letter, and the Court directed service of 7-Eleven at that address, May 18, 2022 Text Order. 7-Eleven was served on June 6, 2022. Summons Returned Executed, ECF No. 15.

On June 27, 2022, 7-Eleven filed a motion to dismiss the complaint, asserting that it was merely the franchisor of Plaintiff’s actual employer, Quad Cities Retail Group LLC (“Quad Cities”), a 7-Eleven franchise owned by a Gregory Evans, and therefore it was not Plaintiff’s employer for purposes of Title VII. Mem. Supp. Mot. Dismiss 1, 5, ECF No. 18. The Court determined that it could not come to that conclusion at the motion to dismiss stage and accordingly denied the motion but, pursuant to Federal Rule of Civil Procedure 56(f)(3), identified the issue as one that could be resolved by summary judgment. Feb. 16, 2023 Order 7, ECF No. 21. Accordingly, it granted 7-Eleven 21 days to submit a brief on whether the Court should enter summary judgment in its favor on the employer issue. Id. at 7–8. On March 9,

2023, 7-Eleven filed the instant motion for summary judgment, again arguing that it cannot be held liable as Plaintiff’s employer under Title VII. Mem. Supp. Mot. Summ. J. 1, ECF No. 25. Plaintiff disagrees and insists that she was employed by 7-Eleven. See Aff. 1–2, ECF No. 27. DISCUSSION

I. Legal Standard Summary judgment is warranted when there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). Where one party has properly moved for summary judgment, the nonmoving party must respond “by identifying specific, admissible evidence showing that there is a genuine dispute of material fact for trial.” Grant v. Trs. of Ind. Univ., 870 F.3d 562, 568 (7th Cir. 2017). “The mere existence of a scintilla of evidence in support of the [nonmovant’s] position will be insufficient; there must be evidence on which the jury could reasonably find for the [nonmovant].” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252 (1986). The court must construe the record in the light most favorable to the nonmovant, Payne v. Pauley, 337 F.3d 767, 770 (7th Cir. 2003), “resolving all

factual disputes and drawing all reasonable inferences in favor of [that party],” Grant, 870 F.3d at 568. However, the nonmovant “is not entitled to the benefit of inferences that are supported by only speculation or conjecture.” Nichols v. Mich. City Plant Plan. Dep’t, 755 F.3d 594, 599 (7th Cir. 2014) (quotation marks omitted). II. Analysis Title VII forbids an “employer” from “discriminat[ing] against any individual . . . because of such individual’s race, color, religion, sex, or national origin.” 42 U.S.C. § 2000e- 2(a)(1). “The starting point of any Title VII claim is the existence of an employer-employee relationship,” Budzyn v. KFC Corp., Case No. 21 C 4152, 2022 WL 952746, at *2 (N.D. Ill. Mar.

30, 2022); to bring a Title VII claim against an entity, a plaintiff must prove that the entity is actually her employer, see Love v. JP Cullen & Sons, Inc., 779 F.3d 697, 701 (7th Cir. 2015) (quotation marks omitted). “[A] plaintiff may have multiple employers for the purpose of Title VII liability.” Id. She may bring suit against the entity that directly employs her (a “direct employer”) and may also sue an entity that is not her direct employer but nonetheless fits certain criteria established by the Seventh Circuit (an “indirect employer”). See id. at 701–02. Whether an entity is an indirect employer for Title VII purposes is a fact-specific inquiry hinging on the “economic realities of the employment relationship.” See id. at 702 (quotation marks omitted). To evaluate this, courts use a five-factor balancing test, looking to “(1) the extent of the employer’s control and supervision over the employee; (2) the kind of occupation and nature of skill required . . . ; (3) the employer’s responsibility for the costs of operation; (4) the method and form of payment and benefits; and (5) the length of the job commitment.” Id. (citing Knight v. United Farm Bureau Mut. Ins. Co., 950 F.2d 377, 378–79 (7th Cir. 1991)). “A plaintiff need not establish that every Knight factor falls in her favor in order to prevail.” Frey v.

Coleman, 903 F.3d 671, 681 (7th Cir. 2018). “Of these factors, the employer’s right to control is the most important, and a court must give it the most weight.” Id. at 676. (quotation marks omitted). A franchisor, then, could be considered an indirect employer of a franchisee’s employee depending on how these factors are weighed. Cf. Budzyn, 2022 WL 952746, at *2 (applying the Knight test at the motion to dismiss stage to determine whether KFC Corp., a franchisor, was liable as an employer for the franchisee’s employee’s Title VII claim). In its motion for summary judgment, 7-Eleven argues that there is no genuine dispute of material fact that 7-Eleven was not Plaintiff’s employer for purposes of Title VII. See Mem. Supp. Mot. Summ. J. 5–8. In support, it attaches a declaration from Jessica McKay, a former

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