Threatt v. Sylacauga Housing Authority

CourtDistrict Court, N.D. Alabama
DecidedSeptember 28, 2022
Docket1:20-cv-00096
StatusUnknown

This text of Threatt v. Sylacauga Housing Authority (Threatt v. Sylacauga Housing Authority) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Threatt v. Sylacauga Housing Authority, (N.D. Ala. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA EASTERN DIVISION

MICHAEL C. THREATT, } } Plaintiff, } } v. } Case No.: 1:20-cv-00096-ACA } SYLACAUGA HOUSING } AUTHORITY, et al., } } Defendants. }

MEMORANDUM OPINION Plaintiff Michael Threatt is the former Executive Director of the Sylacauga Housing Authority (“SHA”). After the SHA terminated Mr. Threatt’s employment, Mr. Threatt filed this lawsuit against the SHA; SHA Commissioners James Adams, Alma Cook, Matt Hubbard, Patrick Lozito, and Phillip Morris; and Sylacauga Mayor Jim Heigl. He alleges that each of the Defendants discriminated against him and retaliated against him in violation of various constitutional and federal statutory rights. Mr. Threatt has dismissed his claims against Defendants James Adams, Alma Cook, and Jim Heigl. (Docs. 113, 115). The remaining claims are: (1) race discrimination, in violation of Title VII and 42 U.S.C. § 1981, against SHA (“Count One”); (2) retaliation, in violation of Title VII and § 1981, against SHA (“Count Two”); (3) retaliation, in violation of the Fair Housing Act, against SHA (“Count Three”); (4) retaliation, in violation of the False Claims Act, against SHA (“Count

Four”); (5) and race discrimination, in violation of the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution, via 42 U.S.C. § 1983, against Commissioners Hubbard, Lozito, and Morris in both their individual and

official capacities. (“Count Five”). Before the court is SHA and Commissioners Hubbard, Lozito, and Morris’s motion for summary judgment. (Doc. 123). The court WILL GRANT IN PART and DENY IN PART the motion for summary judgment.

The court WILL GRANT the motion for summary judgment as to Count One because Mr. Threatt has either not presented evidence to establish a prima facie case of discrimination, or he has not rebutted SHA’s legitimate, non-discriminatory

reasons for his termination. Nor has Mr. Threatt demonstrated a mosaic of circumstantial evidence from which a trier of fact could infer that SHA terminated him because of his race. The court WILL GRANT the motion for summary judgment as to Count Two

to the extent it is based on SHA’s decision to terminate Mr. Threatt’s employment because Mr. Threatt has not rebutted SHA’s legitimate, non-retaliatory reasons for his termination. The court WILL DENY the motion for summary judgment as to

Count Two to the extent it is based on SHA’s decision to place Mr. Threatt on administrative leave because the only argument SHA makes with respect to that claim does not entitle it to summary judgment.

The court WILL DENY the motion for summary judgment as to Count Three because the only argument SHA makes with respect to that count does not entitle it to summary judgment.

The court WILL GRANT the motion for summary judgment as to Count Four because Mr. Threatt has not shown that he engaged in protected activity under the False Claims Act. The court WILL GRANT the motion for summary judgment as to Count Five

to the extent it asserts claims against Commissioners Hubbard, Lozito, and Morris in their individual capacities because these defendants are entitled to qualified immunity on those claims. The court WILL DENY the motion for summary

judgment as to Count Five to the extent it asserts claims for equitable relief against Commissioners Hubbard, Lozito, and Morris because these defendants have not moved for summary judgment on the claims asserted against them in their official capacities.

I. BACKGROUND On a motion for summary judgment, the court “draw[s] all inferences and review[s] all evidence in the light most favorable to the non-moving party.” Hamilton v. Southland Christian Sch., Inc., 680 F.3d 1316, 1318 (11th Cir. 2012) (quotation marks omitted).

1. SHA’s Operational Structure SHA is a public housing authority that owns and manages properties in Sylacauga and Talladega counties. (Doc. 126-225 at ¶ 4). SHA is governed by a

Board of Commissioners (“BOC”). (Doc. 126-61 at 3). The BOC’s role is to act as policymakers for SHA and to supervise SHA’s executive director. (Doc. 126-61 at 3; doc. 126-62 at 3). The BOC does not carry out the day-to-day management of SHA. (Doc. 126-61 at 3).

SHA’s executive director is responsible for the day-to-day operations of the Authority and for supervision of other employees. (Doc. 126-61). In November 2017, SHA’s BOC unanimously voted to hire Mr. Threatt as its Executive Director.

(Doc. 126-109 at 2). At the time, the five SHA commissioners were Bill Roberts, Jr., Priscilla Cleveland, Alma Cook, Marvin Miller, and Matt Hubbard. (Id.). 2. SHA Operations Under Mr. Threatt’s Leadership After taking office, Mr. Threatt began to implement a number of changes at

SHA. First, Mr. Threatt created and filled three new executive-level positions. (Doc. 126-98 at 59–60). Mr. Threatt first created the position of Chief Financial Officer and hired Heather Mueller to fill it at an initial salary of $60,000. (Id.; see also doc.

126-80 at 9). Mr. Threatt then created the position of Chief Housing Officer and hired Daniell Womack to fill the position at an initial salary of 65,000. (Doc. 126- 145 at 7). Finally, Mr. Threatt created the position of Chief Human Resource Officer

and hired Nicole Daniels to fill the position at an initial salary of $60,000. (Doc. 126-25 at 16; doc. 126-98 at 59–60). During these employees’ first year of employment, Mr. Threatt awarded over $44,000 in pay increases for each woman.

(Doc. 126-98 at 56; doc. 126-80 at 9–10; doc. 126-25 at 16; doc. 126-145 at 8–9). Soon after being hired, Mr. Threatt’s executive team conducted an internal assessment of SHA’s finances. (Doc. 137 at ¶ 38). Based on that internal assessment, Mr. Threatt believed that SHA was mismanaging federal funds. (See id.; see also

doc. 126-98 at 5). Mr. Threatt called an executive board meeting in September 2018 to inform the BOC of the results of the internal assessment and the need to conduct a forensic audit. (Doc. 137 at ¶ 38). Mr. Threatt also informed a Housing and Urban

Development (“HUD”) special agent of these findings and his plans to procure a forensic audit. (Id. at ¶ 30). On October 30, 2018, the BOC held its regularly scheduled meeting. (Doc. 126-107). In addition to the audit, and with just days before Mr. Threatt’s one-year

employment contract was set to renew automatically, Mr. Threatt presented the BOC with proposed changes to SHA’s by-laws and a new employment contract for Mr. Threatt, as drafted by Ms. Daniels and Mr. Threatt. (Doc. 126-98 at 28, 43, 56, 58–

59; doc. 137 at ¶ 42). The proposed contract increased Mr. Threatt’s salary, car allowance, and retirement benefits. (Doc. 126-114; doc. 126-108; doc. 126-98 at 58). It also

provided for immediate retirement vesting, removed the original contract’s requirement that Mr. Threatt move to Sylacauga, and extended the term of Mr. Threatt’s contract to five years. (Doc. 126-114; doc. 126-108; doc. 126-98 at 58).

Whether the BOC executed the contract is disputed. Mr. Threatt contends that the Commissioners present at the meeting unanimously voted to approve the terms of his proposed contract. (Doc. 137 at ¶¶ 44, 45). But there is no record of a vote in the meeting minutes. (Doc. 126-119 at 43; doc. 126-178 at 25).

During this same meeting, the BOC passed a resolution agreeing to retain private accounting firms to conduct a forensic and fiscal audit of SHA’s finances based on Mr. Threatt’s belief that SHA was mismanaging federal funds.

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