Vuona v. Merrill Lynch & Co.

919 F. Supp. 2d 359, 2013 WL 271745, 2013 U.S. Dist. LEXIS 9690
CourtDistrict Court, S.D. New York
DecidedJanuary 24, 2013
DocketNo. 10 Civ. 6529(PAE)
StatusPublished
Cited by33 cases

This text of 919 F. Supp. 2d 359 (Vuona v. Merrill Lynch & Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vuona v. Merrill Lynch & Co., 919 F. Supp. 2d 359, 2013 WL 271745, 2013 U.S. Dist. LEXIS 9690 (S.D.N.Y. 2013).

Opinion

OPINION & ORDER

PAUL A. ENGELMAYER, District Judge.

Plaintiffs Jennifer Vuona, Sara Hudson, Julia Kuo, and Catherine Wharton (collectively, “Plaintiffs”) bring suit against defendants Merrill Lynch & Co., Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., and Bank of America Corporation (collectively, “ML”), alleging that their employment was unlawfully terminated on the basis of gender, in violation of Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. §§ 2000e et seq.; the New York State Human Rights Law (“NYSHRL”), N.Y. Exec. L. §§ 290 et seq.; and the New York City Human Rights- Law (“NYCHRL”), N.Y. City Admin. Code §§ 8-101 et seq. Vuona also claims that she was unlawfully retaliated against for opposing discrimination proscribed by these laws. ML moves for summary judgment on all claims. For the following reasons, ML’s motion is granted as to Plaintiffs’ Title VII and NYSHRL claims, and the Court declines to exercise supplemental jurisdiction as to Plaintiffs’ NYCHRL claims.

I. Background and Undisputed Facts1

In late 2008 and early 2009, Plaintiffs were all enrolled in one of two Financial [364]*364Advisor (“FA”) trainee programs at ML’s Fifth Avenue branch in Manhattan. One program, the “Paths of Achievement” (“POA”) program, covered all FA trainees enrolled before February 1, 2008, including Wharton. Pl. 56.1 ¶¶ 323, 348; Def. 56.1 ¶¶ 16, 49. The other, the “Practice Management Development” (“PMD”) Program, covered all FA trainees enrolled after February 1, 2008, including Vuona, Hudson, and Kuo. Pl. 56.1 ¶¶ 324, 339.

A. The Training Programs

The PMD program was divided into three phases. Def. 56.1 ¶ 18; Pl. 56.1 ¶ 327. The first was the Trainee phase, during which FA trainees underwent initial testing and received relevant licenses if they did not already hold them. Def. 56.1 ¶ 19; Pl. 56.1 ¶ 328. At the end of this phase, the FA trainees received a “production number” which permitted them to begin bringing in business, triggering the start of Stage I of their program. Def. 56.1 ¶ 20; Pl. 56.1 ¶¶ 329, 331. During Stage I, which lasted three months in the PMD program, the FA trainees underwent further training programs while undertaking to find and serve wealth management clients. Def. 56.1 ¶¶ 21-22; Pl. 56.1 ¶ 331. The time which trainees had spent in service to ML was measured in “Length of Service” (“LOS”) months; but during the three months of Stage I, the trainees remained at all times in LOS month zero. Pl. 56.1 ¶ 331. At the end of Stage I, the FA trainees entered Stage II, which lasted 36 months. Def. 56.1 ¶ 22; Pl. 56.1 ¶ 332.

During Stages I and II, the FA trainees’ performance was measured against performance “hurdles” or “targets” which varied depending on the salary range assigned to the trainee when he or she was hired. Def. 56.1 ¶ 24; Pl. 56.1 ¶ 334. The three primary hurdles were “production credits” (“PCs”), defined as the revenue generated by the products clients purchased; “new annuitized assets,” defined as the sum of assets generating a recurring stream of revenue; and the number of new client relationships formed with households having a net worth above $250,000. Def. 56.1 ¶ 24; Pl. 56.1 ¶¶ 334-335. The FA trainees were tracked monthly and reviewed on a quarterly basis, with each trainee receiving a grade of “Met Requirements” or “Does Not Meet.” Def. 56.1 ¶ 26; Pl. 56.1 ¶ 337. During Stage I and the first 12 months of Stage II of the PMD program, the FA trainees were salaried; thereafter, they were transitioned to a reduced salary, but were eligible for incentive compensation and performance-based bonuses. Def. 56.1 1131; Pl. 56.1 ¶ 338.

[365]*365The POA program, in which Wharton was enrolled, was broadly similar to the PMD program, although the parties dispute the precise extent of the programs’ similarity. Compare Def. 56.1 ¶ 16, with Pl. 56.1 ¶¶ 16, 341. The POA program consisted of two phases, not three: POA trainee, and then POA FA. Pl. 56.1 ¶ 342. The POA trainee stage was the equivalent of the PMD trainee stage. Id. at ¶ 343. The POA FA stage lasted up to 24 months, rather than the 36 months in the PMD program; the POA FA stage ended, however, as soon as the trainee met his or her performance requirements. Def. 56.1 ¶ 22; Pl. 56.1 ¶ 344. The POA trainees were salaried until they graduated from the program, and then were .compensated solely by commission, rather than the mix of salary and incentive compensation given to PMD trainees beginning in the 13th month of Stage II. Pl. 56.1 ¶¶347, 338. The performance of POA trainees, like that of PMD trainees, was measured on a quarterly basis. Id. at ¶ 345. However, POA trainees’ performance was measured by (1) the better of cumulative production credits or annuitized assets less liabilities; (2) total assets less liabilities; and (3) wealth management points for completion of training courses and evaluations. Id.

B. The Plaintiffs

The four Plaintiffs all had experience in business before joining ML’s FA trainee program.

Wharton, who joined the POA program in October 2006, had been, inter alia, a business analyst at Deloitte Consulting before joining the FA trainee program. Pl. 56.1 ¶ 419. Wharton received her production number in May 2007. She had been scheduled to graduate from the POA program in May 2009. Id. at ¶ 421.

Kuo had spent more than a decade as a business analyst at financial firms including UBS and Merrill Lynch. Id. at ¶ 432. In November 2006, Kuo joined a FA trainee program at UBS. Def. 56.1 ¶ 111; Pl. 56.1 ¶ 433. In March 2008, Kuo moved to ML’s FA trainee program, Def. 56.1 ¶ 112; Pl. 56.1 ¶ 437; in July 2008, she entered Stage II of the PMD program. Pl. 56.1 ¶ 437.

Vuona had professional experience including as a fraud analyst for the United States Attorney’s Office for the Southern District of New York. Pl. 56.1 ¶ 448. Before joining the PMD program at ML, Vuona had been enrolled in an analogous program at Citigroup Smith Barney for approximately one year. Def. 56.1 ¶ 76; Pl. 56.1 ¶ 448. In April 2008, Vuona joined the PMD program, Def. 56.1 ¶ 77; Pl. 56.1 ¶ 450; in August 2008, she entered Stage II of the program, Pl. 56.1 ¶ 450.

Hudson had worked in the financial services industry since the 1980s, holding positions at Chemical Bank and Manufacturers Hanover Trust. Pl. 56.1 ¶ 455. Between 1994 and 2003, Hudson was a vice president at Bank of New York, where her role included generating investment management business for the bank. Id. at ¶456. Hudson, like Vuona and Kuo, had been enrolled in the FA trainee program of another bank — Morgan Stanley — before choosing to enroll in the PMD program at ML. Def.' 56.1 ¶ 141; Pl. 56.1 ¶458. In July 2008, Hudson joined the PMD program, Def. 56.1 ¶ 143; Pl. 56.1 ¶ 461; in November 2008, she entered Stage II of the program, Pl. 56.1 ¶ 461.

C. Perceived Incidents of Gender Bias During Plaintiffs’ Employment at ML

Plaintiffs complain of a number of perceived incidents of gender bias during their tenure at ML. These incidents, they contend, support the inference that their [366]*366ultimate termination was motivated by unlawful discriminatory animus.

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Bluebook (online)
919 F. Supp. 2d 359, 2013 WL 271745, 2013 U.S. Dist. LEXIS 9690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vuona-v-merrill-lynch-co-nysd-2013.