Wallace v. Granholm

District Court, District of Columbia·Decided October 31, 2025·No. Civil Action No. 2024-2906·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

KELSEY WALLACE,

Plaintiff,

Civil Action No. 24 - 2906 (SLS)

v. Judge Sparkle L. Sooknanan

CHRIS WRIGHT, Secretary of Energy, 1 Defendant.

MEMORANDUM OPINION

Kelsey Wallace is a former Foreign Affairs Specialist in the Department of Energy’s Office of Nuclear Material Removal who was terminated in May 2023. She alleges that her termination was unlawful and that it was the culmination of a pattern of discriminatory conduct she suffered because of her disability. Ms. Wallace brings this suit alleging disability discrimination under the Rehabilitation Act of 1973. The Secretary of Energy now moves to partially dismiss Ms. Wallace’s Complaint under Federal Rule of Civil Procedure 12(b)(6). For the reasons explained below, the Court grants the motion in part and denies it in part.

BACKGROUND

A. Factual Background The Court draws the facts, accepted as true, from the Plaintiff’s Complaint and attachments. Wright v. Eugene & Agnes E. Meyer Found., 68 F.4th 612, 619 (D.C. Cir. 2023).

Ms. Wallace began her employment at the Department of Energy (DOE) in June 2021 as a Program Analyst. First Am. Compl. (Compl.) ¶ 12, ECF No. 16. In August 2022, she accepted a

1 The current Secretary is substituted for his predecessor pursuant to Fed. R. Civ. P. 25(d).

new position as a Foreign Affairs Specialist. Compl. ¶ 13. In that role, she was supervised by Jessica Lillo and Tiffany Blanchard-Case. Compl. ¶¶ 27–28, 34–35.

For the first seven months of her new job, Ms. Wallace had no issues with management and performed her duties “at or in excess of the DOE’s reasonable expectations.” Compl. ¶ 14. In March 2023, however, she had to undergo neck surgery and the recovery “did not go as planned.” Compl. ¶¶ 15–16. Shortly after the surgery, Ms. Wallace began to develop intense pain and swelling at the surgical site. Compl. ¶ 17. She let Ms. Lillo and Ms. Blanchard-Case know that she “temporarily needed to telework from home” and would keep them “apprised as to her status.” Compl. ¶ 17.

Unfortunately, Ms. Wallace’s condition continued to worsen and on April 11, 2023, she was diagnosed with a “septic medical abscess.” Compl. ¶ 19. She promptly began the “first of many fluid removal procedures that she ultimately endured over the next few weeks.” Compl. ¶ 19. While receiving this treatment, Ms. Wallace required “daily monitoring” from her treatment team and was instructed by her surgeon to not go to the office or lift anything. Compl. ¶¶ 20–21. Ms. Wallace continued to work remotely, to update her supervisors daily, and to schedule her medical appointments during her lunch hour so they “would not interfere with her work.” Compl. ¶ 22.

Ms. Wallace continued to telework, at her surgeon’s direction, from April 17 until April 28, 2023, during which time she underwent an additional surgical procedure to remove the “internal medical stitch that caused the abscess to form” and to implant a medical drain in her face. Compl. ¶¶ 23–26. Ms. Wallace also continued to keep her supervisors apprised of her situation. Compl. ¶ 23. As a result of her continued need to telework, Ms. Wallace informed Ms. Lillo that she would not be able to travel with her for a previously planned work trip to South Carolina during

the week of April 24 to 28. Compl. ¶¶ 27–28. In response, “Ms. Lillo began making veiled threats about how missing work trips can result in termination of employment.” Compl. ¶ 28.

Ms. Wallace had another work-trip scheduled during the week of May 8 to 12, 2023.

Compl. ¶ 29. Following Ms. Lillo’s comments about her missing the South Carolina trip, Ms. Wallace “grew increasingly concerned” that if she missed a second work trip because of her disability she would be terminated. Compl. ¶ 29. As a result, even though her health condition was still tenuous and her surgeon was concerned about her traveling, Ms. Wallace felt she “had no other choice than to attend the . . . trip.” Compl. ¶ 30–31.

On the second day of the trip, Ms. Wallace “began feeling immense swelling and pain return to the surgical site.” Compl. ¶ 32. She scheduled an emergency appointment with her treatment team when she returned to the D.C. area and had “additional drainage protocol and compression of the abscess” from May 12 to 18, including having a “third medical drain implanted into her face.” Compl. ¶¶ 32–33.

On May 16, 2023, while Ms. Wallace was in the midst of this treatment—and “under her surgeon’s directive to remain home and continue working remotely”—Ms. Lillo and Ms. Blanchard-Case “ordered” Ms. Wallace to come into the office or “she would be immediately terminated.” Compl. ¶¶ 34–36. They issued this order despite being aware of Ms. Wallace’s condition and of her surgeon’s directive that she work from home. Compl. ¶ 35.

Ms. Wallace complied with her supervisors’ order. When she came to DOE’s office the following week to meet with Ms. Lillo, she was “told she was being fired” and that she had been made to come “into the office in-person” so she could “sign termination paperwork.” Compl. ¶ 37. Ms. Lillo informed Ms. Wallace that “she would[] not be permitted to leave Ms. Lillo’s office until

the paperwork was signed.” Comp. ¶ 38. DOE terminated Ms. Wallace on May 23, 2023. Compl. ¶ 11.

On July 6, 2023, Ms. Wallace contacted an Equal Employment Opportunity (EEO)

Counselor. Compl. ¶ 7. On October 10, 2023, she filed a formal discrimination complaint with the DOE’s EEO Office and with the Equal Employment Opportunity Commission (EEOC). Compl. ¶ 8. On July 16, 2024, the DOE’s EEO Office issued its “Final Agency Decision . . . advis[ing] [Ms. Wallace] that she had 90 days to commence an action in federal court. Compl. ¶ 10.

B. Procedural Background Ms. Wallace filed this lawsuit on October 14, 2024. ECF No. 1. On June 19, 2025, she filed an Amended Complaint, alleging that the Secretary violated the Rehabilitation Act of 1973 by discriminating against her based on disability (Count I) and subjecting her to a hostile work environment (Count II). Compl. ¶¶ 40–71, ECF No. 16. On July 3, 2025, the Secretary moved to partially dismiss Ms. Wallace’s lawsuit under Rule 12(b)(6). ECF No. 17. The motion is fully briefed and ripe for review. See Pl.’s Opp’n, ECF No. 18, Def.’s Reply, ECF No. 19.

LEGAL STANDARD

Under Rule 12(b)(6), a court will dismiss a complaint that does not “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). When reviewing a motion to dismiss under Rule 12(b)(6), courts “must construe the complaint in favor of the plaintiff, who must be granted the benefit of all inferences that can be derived from the facts alleged.” Hettinga v. United States, 677 F.3d 471, 476 (D.C. Cir. 2012) (internal quotations omitted). But courts need not accept as true “a legal conclusion couched as a factual allegation,” nor an inference unsupported by the facts set forth in the complaint. See Trudeau v. FTC, 456 F.3d 178, 193 (D.C. Cir. 2006) (quoting Papasan v. Allain, 478 U.S. 265, 286 (1986)).

DISCUSSION

The Secretary does not challenge Ms. Wallace’s ability to proceed with a disability discrimination claim premised on her termination. Mot. Dismiss at 1. He instead argues: (1) that she has failed to exhaust administrative remedies for many of her other claims; (2) that even if exhausted, her retaliation and failure to accommodate claims fail; and (3) that she has failed to plausibly state a claim for hostile work environment. The Court finds many but not all of the Secretary’s arguments persuasive and thus grants in part and denies in part the Secretary’s motion. Ms. Wallace may proceed with claims alleging discrimination and retaliation premised on her termination. The rest of her claims are dismissed.

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