Wright v. Eugene & Agnes E. Meyer Foundation

District Court, District of Columbia·Decided December 29, 2021·No. Civil Action No. 2020-2471·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

TERRI D. WRIGHT Plaintiff,

v. Civil Action No. 20-2471 (FYP)

EUGENE & AGNES E. MEYER FOUNDATION, et al.,

Defendants.

MEMORANDUM OPINION

Plaintiff Terri D. Wright brings this lawsuit against her former employer, the Eugene and

Agnes E. Meyer Foundation (the “Foundation”), and Nicola O. Goren, the President and Chief Executive Officer of the Foundation, alleging (1) racial discrimination, in violation of 42 U.S.C. § 1981 (“Section 1981”), as to both Defendants; (2) defamation, as to Ms. Goren; and (3) breach of contract, apparently as to both Defendants. See generally ECF No. 1-3 (Complaint). Plaintiff’s claims arise from the alleged violation of a Severance Agreement that she and the Foundation entered upon the termination of Plaintiff’s employment. Dr. Wright alleges that the Foundation and Ms. Goren breached the Mutual Non-Disparagement Clause contained in the Severance Agreement, when Ms. Goren made negative statements about Dr. Wright that were racially motivated. On September 10, 2020, the Defendants filed their Motion to Dismiss, see ECF No. 4 (Defendants’ Motion), alleging that Plaintiff fails to state a claim. 1 For the following reasons, the Court will grant Defendants’ Motion.

1 Dr. Wright filed an Opposition on September 24, 2020, see ECF No. 7 (Plaintiff’s Opposition), and the Defendants filed a reply on October 6, 2020, see ECF No. 9 (Defendant’s Reply).

BACKGROUND

Established in 1944, the Foundation is a philanthropic organization that provides “grants aimed at advancing charitable and educational initiatives within the District of Columbia metropolitan region.” See Compl. at 1. In recent years, the Foundation has increased its efforts to support projects aimed at addressing issues of racial inequity. Id.

Dr. Wright has dedicated her career to “advancing racial and social equity,” and has held various leadership positions at governmental, private, and public institutions. Id., ¶ 10. The Foundation hired Dr. Wright as the Vice President of Program and Community in February 2018. Id., ¶¶ 12, 14. In that role, Dr. Wright was “responsible for overseeing the Foundation’s programs and community engagement efforts,” which included “grant making, capacity building, collective action and advocacy across the region.” Id., ¶ 17. At the end of 2018, Dr. Wright received a favorable performance evaluation, and Ms. Goren awarded her a raise. Id., ¶ 24.

Nevertheless, Dr. Wright alleges that Ms. Goren soon began to raise “subjective and false criticism aimed at [Wright’s] interpersonal skills and communication issues that no one in the organization had raised previously.” Id., ¶ 25. Dr. Wright alleges that this criticism was a pretext to mask discriminatory animus. Id., ¶ 26. On October 1, 2019, without any notice or warning, Ms. Goren terminated Dr. Wright for alleged ongoing interpersonal and communication problems. Id., ¶ 31. Dr. Wright alleges that the reasons for her termination were pretextual, and that Ms. Goren discriminatorily refused to provide any specific examples of how Wright was deficient. Id. But notably, Plaintiff’s claim of racial discrimination, as pled in Count I, does not rely on any allegations about Defendants’ conduct while she was employed at the Foundation.

Seeking to avoid litigation, the Foundation and Dr. Wright negotiated and entered into a Severance Agreement in October 2019. Id., ¶ 33. The agreement contained a Mutual Non- Disparagement Clause, which provides:

You agree that you have not made, and will not make, any false, disparaging or derogatory statements to any person or entity, including any media outlet, industry group or financial institution, regarding the Foundation or any of the other Releasees, or about the Foundation’s business affairs and/or financial conditions; provided, however, that nothing herein prevents you from making truthful disclosures to any governmental entity or in any litigation or arbitration. Likewise, the Foundation will direct those officers, directors, and employees with direct knowledge of this revised letter agreement not to make any false, disparaging or derogatory statements to any person or entity regarding you.

See id., ¶ 34; see also ECF No. 4-2 (Severance Agreement), ¶ 6 (emphasis in original). 2 In November 2019, Ms. Goren, who was also the Chair of the Board of Directors for the Washington Regional Association of Grantmakers (“WRAG”), met with Dr. Madye Henson, who was then the President and CEO of WRAG. See Compl., ¶ 35. During the meeting, Ms. Goren allegedly complained that she was facing community backlash for terminating Dr. Wright. Id., ¶ 36. Dr. Henson responded that many leaders in the community were questioning whether the decision to terminate Dr. Wright was discriminatory. Id. Ms. Goren acknowledged this perception but clarified that she terminated Dr. Wright because she was “toxic” and fostered a “negative climate” at the Foundation. Id., at 3, ¶ 37. Dr. Wright learned of this alleged conversation by reading a complaint that Dr. Henson filed in a separate lawsuit against WRAG and Ms. Goren. See Compl. at 3; see also ECF No. 4-3 (Amended Complaint in Case 20-cv- 2943, Madye Henson v. WRAG (“Henson Complaint”)), ¶ 48.

2 The Severance Agreement also includes a Release of Claims, which states that Defendants are released from “any and all claims arising out of . . . [Plaintiff’s] employment with and/or separation from the Foundation, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964,” as well as “all common law claims including, but not limited to, actions in defamation . . . and breach of contract.” See Severance Agreement, ¶ 3. The Release makes clear that Plaintiff waived “not only claims presently known to [her], but also all unknown or unanticipated claims,” as well as claims based on “discover[ed] facts different from what [she then] believe[d] to be true, which if known, could have materially affected this release.” Id.

Plaintiff then filed the instant case, alleging (1) race discrimination, in violation of 42 U.S.C. § 1981; (2) defamation; and (3) breach of contract. See generally Compl. Plaintiff seeks an order declaring that Defendants “intentionally and willfully denied plaintiff equal rights in the making and enforcing of the Severance Contract;” and that Defendants breached the Severance Agreement by making false, derogatory statements about Plaintiff. See id. at 16–17. Plaintiff also seeks compensatory, punitive, and liquidated damages. Id.

LEGAL STANDARD

To survive a motion to dismiss under Fed. R. Civ. P. 12(b)(6), a complaint must “state a claim upon which relief can be granted.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 552 (2007). Although “detailed factual allegations” are not necessary to withstand a Rule 12(b)(6) motion, id. at 555, “a complaint must 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 Twombly, 550 U.S. at 570).

When considering a motion to dismiss, a court must construe a complaint liberally in the plaintiff's favor, “treat[ing] the complaint’s factual allegations as true” and granting “plaintiff the benefit of all inferences that can be derived from the facts alleged.” Sparrow v. United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C. Cir. 2000) (internal citations and quotation marks omitted); accord Kowal v. MCI Commc’ns Corp., 16 F.3d 1271, 1276 (D.C. Cir. 1994). Although a plaintiff may survive a Rule 12(b)(6) motion even if “‘recovery is very remote and unlikely,’” the facts alleged in the complaint “must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555–56 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974)).

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