Van Orden v. Wells Fargo Home Mortgage, Inc.

443 F. Supp. 2d 1051, 2006 U.S. Dist. LEXIS 53370, 2006 WL 2138357
CourtDistrict Court, S.D. Iowa
DecidedAugust 1, 2006
Docket4:04-cv-00558-JEG
StatusPublished
Cited by2 cases

This text of 443 F. Supp. 2d 1051 (Van Orden v. Wells Fargo Home Mortgage, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Orden v. Wells Fargo Home Mortgage, Inc., 443 F. Supp. 2d 1051, 2006 U.S. Dist. LEXIS 53370, 2006 WL 2138357 (S.D. Iowa 2006).

Opinion

ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

GRITZNER, District Judge.

Before the Court is the motion for summary judgment filed by Defendants Wells Fargo Home Mortgage, Inc. (Wells Fargo), and Jody Wettach (Wettach), which Plaintiff Patricia Van Orden (Van Orden) resists. Van Orden is represented by Mark Sherinian. Defendants are represented by Lora MeCollom. The parties have not requested a hearing, and the Court finds oral argument unnecessary. Accordingly, the matter is fully submitted and ready for ruling.

This case ultimately turns on the narrow issue of whether the Plaintiff has generated a prima facie case that she engaged in protected activity by opposing employer discrimination on the basis of race and was then subjected to retaliation for her protected activity. Because Plaintiff seeks to make this showing through reference to the larger circumstances of Plaintiffs employment environment, a broader discussion of the facts will be necessary in this Order.

SUMMARY OF MATERIAL FACTS 1

Van Orden began working for Brenton Bank as a mortgage closing specialist in West Des Moines. 2 Van Orden continued to work for Wells Fargo after it acquired Brenton Bank and eventually became a closing supervisor in the mortgage department, where she was supervised by Jody Wettach (Wettach), the Production Operations Manager.

As a supervisor, Van Orden prepared audit reports and managed twelve mortgage loan closers, supervising their daily work, providing performance evaluations, and conducting salary reviews. The employees under Van Orden’s supervision were responsible for completing all the documents necessary to close a mortgage loan on a timely basis. A key function of the mortgage department was managing the “rate locks” that stayed the mortgage loan interest rates. A missed lock could lead to an expired rate, and if the rate expired, Wells Fargo could be assessed a penalty of two percent of the cost of the loan. The mortgage loan processors and closers were responsible for insuring the rates of their assigned loans were locked before they left each day. The supervisors, in turn, were responsible for insuring the rates on loans assigned to their subordinates were locked before they left work. To aid in monitoring the rate locks, the supervisors received a report listing the various rates scheduled to expire each day and were to remind their direct reports of pending expirations. A supervisor could usually extend a rate lock that was about to expire.

Van Orden claims the rate lock monitoring process described above was the procedure under normal staffing conditions, which did not exist during late 2003 and early 2004 when the alleged retaliatory actions occurred. According to Van Or-den, the mortgage department was understaffed during this time and had temporary team leaders, so if a supervisor left *1055 before the end of the business day, he or she was permitted to transfer rate lock monitoring responsibility to another supervisor.

The rate lock policy provided that employees would be disciplined for missing a rate lock, even if another employee or supervisor later caught and extended the lock. The first time an employee allowed a rate lock to expire, he or she received a written warning and no monthly bonus. A second expiration would lead to termination of employment. In her deposition, Van Orden admitted that it was common knowledge in the department that an employee could be terminated for letting a second lock expire, but she said she understood that the termination was not automatic. The “Lock Expiration Policy,” as outlined in Wettach’s June 1, 2003, e-mail, contains no reference to termination resulting from a second rate lock expiration, although the written disciplinary notice discussed below does indicate that a second expiration ivill result in termination of employment.

In late 2003, Van Orden and Wettach conflicted over Van Orden’s job duties. Van Orden experienced stress that she attributed to an overwhelming sense of responsibility brought on by Wettach’s ever-changing performance expectations. While Van Orden knew Wettach’s expectations for her as to her team, she was also required to assist in training interim team leaders and claims she was not clear as to whom she was supervising in what capacity. Van Orden discussed her frustration with Wettach, who suggested instructive reading materials and company-sponsored writing classes to remedy Van Orden’s concerns. The two continued to discuss Van Orden’s concerns at least every two weeks.

Also in late 2003, Van Orden wrote herself a warning for letting a rate lock expire. The warning, dated November 25, 2003, listed the corresponding loans and stated that her employment would be terminated if another rate lock expired. Defendants claim Wettach and Van Orden discussed the warning, Wettach signed the warning, and Van Orden understood that her employment would be terminated if she missed another rate lock. Van Orden claims Wettach placed the warning in her shred bin without signing it and told Van Orden, “I’m not going to let you do this.” Van Orden claims this effectively nullified the warning.

According to the rate lock policy, employees on written warning did not receive bonuses. 3 Van Orden received a bonus payment of $127.28 on December 15, 2003, which she considers further proof that Wells Fargo did not give any effect to the November 25 warning. Defendants deny that Wettach placed the written warning in the shred bin and assert that the bonus payment corresponded to work performed in the month of October 2003, before the written warning. Later information revealed that the rate locks for which Van Orden received a written warning never actually expired, but at the time she prepared the warning the documentation erroneously showed an expiration.

The November 25 written warning was not mentioned on Van Orden’s January 2004 performance review, and she and Wettach did not discuss it again until Van Orden’s employment was terminated on February 12, 2004.

Defendants assert that a policy violation prompted Van Orden’s employment termination because she missed another rate lock on February 9, 2004. Wettach claims *1056 Van Orden offered the explanation that she was busy working on another loan and forgot to check the rate lock. Van Orden denies knowledge of any rate lock expiration during that time and further states that she could not have provided a specific excuse because Wettach never told her which loan’s rate lock had expired. According to Defendants, Wettach consulted with the employee relations department and determined that Van Orden’s prior written warning mandated termination of employment. Van Orden claims Wettach told her she was being fired because Wet-tach needed to make an example of her.

Van Orden disputes that the missed rate lock was the reason behind her termination and asserts that the disciplinary policy was applied inconsistently. Van Or-den alleges that Amelia Ruiz (Ruiz) and Lacey Vongxay (Vongxay) were the closers responsible for the loan in question, yet they were not disciplined when the rate lock allegedly expired.

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Bluebook (online)
443 F. Supp. 2d 1051, 2006 U.S. Dist. LEXIS 53370, 2006 WL 2138357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-orden-v-wells-fargo-home-mortgage-inc-iasd-2006.