Vaughn v. State of Delaware Department of Insurance

CourtDistrict Court, D. Delaware
DecidedFebruary 11, 2021
Docket1:19-cv-02314
StatusUnknown

This text of Vaughn v. State of Delaware Department of Insurance (Vaughn v. State of Delaware Department of Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vaughn v. State of Delaware Department of Insurance, (D. Del. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE JENIFER VAUGHN, ) ) Plaintiff, ) ) v. ) ) C.A. No.: 19-02314-TH STATE OF DELAWARE DEPARTMENT ) OF INSURANCE, et al., ) ) Defendants. ) )

MEMORANDUM OPINION Ronald G. Poliquin, THE POLIQUIN FIRM, LLC, Dover, DE – attorney for Plaintiff Jenifer Vaughn

Kathleen Furey McDonough, Carla M. Jones, Jennifer Penberthy Buckley, POTTER ANDERSON & CORROON LLP, Wilmington, DE – attorneys for Defendants the State of Delaware Department of Insurance, Commissioner Trinidad Navarro, and Stuart Snyder

February 11, 2021 HUGHES, UNITED STATES CIRCUIT JUDGE, SITTING BY DESIGNATION: Pending before the Court is Defendants’ Motion to Dismiss Plaintiff’s Amended Complaint (D.I. 6). For the reasons set forth below, the Court will grant-in-part and deny-in-part Defendants’ Motion.

I. BACKGROUND Plaintiff Jenifer Vaughn filed this action on December 20, 2019, against the State of Delaware Department of Insurance (DOI), Commissioner Trinidad Navarro in his official and individual capacities, Stuart Snyder in his official and individual capacities (collectively, Defendants), and Mitchell Crane1 in his individual capacity alleging sex discrimination and harassment in violation of Title VII, as well as retaliation in violation of Title VII, the First Amendment, and 42 U.S.C. § 1983.2 Ms. Vaughn has been employed by the DOI as its Controller since November 2010. D.I. 6 ¶ 7. For most of the time that Ms. Vaughn has been DOI’s Controller, she has also served as DOI’s Human Resources Director. Id. ¶ 9. Commissioner Navarro was elected in November 2016. Id.

¶ 10. In her complaint, as amended on February 13, 2020, Ms. Vaughn alleges that Commissioner Navarro favored employees he deemed loyal and—except for a group of five women seen as loyal—viewed female employees with suspicion. Id. ¶¶ 10–15. Ms. Vaughn’s complaint describes an alleged campaign of unlawful discrimination undertaken by Defendants against another employee of the DOI, Fleur McKendell. Id. ¶¶ 20–32. Ms. McKendell’s complaint alleging

1 Mitchell Crane is not represented by the attorneys who filed the present motion. 2 Ms. Vaughn filed Charges of Discrimination in July 2018 and September 2019. D.I. 6 ¶ 5. In September 2019 and January 2020, the Equal Employment Opportunity Commission issued Ms. Vaughn Right to Sue Notices regarding those Charges, which Ms. Vaughn has included as exhibits to her complaint. Id. ¶ 6. Defendants do not dispute in the present motion that Ms. Vaughn exhausted her administrative remedies prior to the filing of this action. unlawful discrimination is also before this Court in a separate case. See McKendell v. State of Del. Dep’t of Ins., et al., Case No. 1:19-cv-02063 (D. Del. 2019). As relevant here, Ms. Vaughn claims that she believed that Ms. McKendell was being singled out for unfavorable treatment and harassment by Defendants because of her race and sex.

D.I. 6 ¶¶ 23, 25. Ms. Vaughn eventually received a formal grievance from Ms. McKendell alleging discrimination, harassment, and retaliation. Id. ¶ 38. Ms. Vaughn alleges that shortly after she received Ms. McKendell’s grievance, Commissioner Navarro visited her office and demanded a copy of the grievance. Id. ¶ 42. Ms. Vaughn states that she was unsure as to whether the grievance, which alleged wrongdoing by Commissioner Navarro, id. ¶ 40, could properly be shared with Commissioner Navarro and, initially, Ms. Vaughn refused to provide a copy of the grievance until she could consult with State Human Resources. Id. ¶ 44. Ms. Vaughn alleges that Commissioner Navarro blocked her office door and refused to leave until she provided a copy of Ms. McKendell’s grievance and that she subsequently complied with his demand. Id. ¶¶ 45–48. While Ms. Vaughn did not personally conduct the DOI’s internal investigation regarding Ms. McKendell’s grievance,

she alleges in her complaint that she protested the involvement of Deputy Attorney General Jessica Wiley in the processing of the grievance because Ms. McKendell had named Ms. Wiley as a subject of her grievance. Id. ¶¶ 49–50. Ms. Vaughn also claims that in May 2017, she was called into Commissioner Navarro’s office to discuss Ms. McKendell’s grievance. Id. ¶ 73. At that meeting, Ms. Vaughn alleges that Commissioner Navarro asked her: “What side are you on[?] Was [Ms. Vaughn] on his side or [Ms. McKendell]’s side?” Id. ¶ 76. Ms. Vaughn states in her complaint that she replied to the effect that she was not taking sides and was promptly excused from the meeting and thereafter forbidden from participating in any other conversations regarding Ms. McKendell. Id. ¶¶ 78–79. Ms. Vaughn additionally claims that she had a social lunch with Ms. McKendell and that afterwards, Mr. Snyder, Commissioner Navarro’s Chief of Staff, warned her that the lunch could be a liability. Id. ¶¶ 82–85. Finally, Ms. Vaughn alleges that in 2018, Mr. Snyder demanded a copy of Ms. McKendell’s file. Id. ¶ 107. Again, Ms. Vaughn states in her complaint that she initially

refused to provide the file, believing that it was improper since Mr. Snyder was named in Ms. McKendell’s grievance, but eventually complied under protest after Mr. Snyder threatened her with disciplinary action. Id. ¶¶ 108–09. The complaint alleges that on January 2, 2018, Ms. Vaughn was called into Mr. Snyder’s office to discuss her role as Human Resources Director. D.I. 6 ¶¶ 87–88. Mr. Snyder informed her that the roles of Controller and Human Resources Director were to be divided into separate positions. Id. ¶ 90. Mr. Snyder explained that the decision to divide the roles had been made because the Human Resources Director role was to assume more responsibilities and that Ms. Vaughn would be unable to fulfill both roles adequately. Id. ¶¶ 91, 94. However, Ms. Vaughn claims that the additional duties Mr. Snyder described were duties that she was already performing

and that the duties of the Human Resources Director have remained unchanged. Id. ¶ 92. Ms. Vaughn alleges that Mr. Snyder told her that the position would soon be posted and that she was welcome to apply for the new position. Id. ¶ 95. However, the new position was assigned a lower paygrade than Ms. Vaughn’s current position as Controller, and Ms. Vaughn claims that Defendants were aware that she could not accept reduced pay because she had just purchased a home. Id. ¶¶ 96–97. On August 13, 2018, Mr. Snyder informed Ms. Vaughn that she was suspended pending the results of an investigation into a claim that she had improperly shared her password to a State financial computer program with another DOI employee, Alice Cabana. Id. ¶¶ 119–28. Ms. Cabana’s complaint alleging retaliation is also before this court in a separate case. Cabana v. State of Del. Dep’t of Ins., et al., Case No. 1:20-cv-01138 (D. Del. 2020). Ms. Vaughn remains suspended and claims that she has been unable to obtain employment with other state agencies as a consequence of the pending investigation. Id. ¶¶ 134–35.

II. LEGAL STANDARD When presented with a motion to dismiss for failure to state a claim pursuant to Rule 12(b)(6), district courts conduct a two-part analysis. See Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). First, the court separates the factual and legal elements of a claim, accepting “all of the complaint’s well-pleaded facts as true, but [disregarding] any legal conclusions.” Id. at 210–11. During this step, the court must draw all reasonable inferences in favor of the non-moving party but is not required to accept as true “unsupported conclusions and unwarranted inferences.” Schuylkill Energy Res., Inc. v. Pa.

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Vaughn v. State of Delaware Department of Insurance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaughn-v-state-of-delaware-department-of-insurance-ded-2021.