ZOLLMAN v. MAGNOLIA HEALTH SYSTEMS XI, LLC

CourtDistrict Court, S.D. Indiana
DecidedSeptember 10, 2025
Docket4:24-cv-00071
StatusUnknown

This text of ZOLLMAN v. MAGNOLIA HEALTH SYSTEMS XI, LLC (ZOLLMAN v. MAGNOLIA HEALTH SYSTEMS XI, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ZOLLMAN v. MAGNOLIA HEALTH SYSTEMS XI, LLC, (S.D. Ind. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA NEW ALBANY DIVISION

DOUGLAS ZOLLMAN, ) ) Plaintiff, ) ) v. ) No. 4:24-cv-00071-SEB-KMB ) MAGNOLIA HEALTH SYSTEMS XI, LLC, ) ) Defendant. ) ) ) MAGNOLIA HEALTH SYSTEMS XI, LLC, ) ) Counter Claimant, ) ) v. ) ) DOUGLAS ZOLLMAN, ) ) Counter Defendant. )

ORDER DENYING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT Plaintiff Douglas Zollman ("Mr. Zollman") brought this employment discrimination action against his former employer, Defendant Magnolia Health Systems XI, LLC's ("Mag- nolia"), alleging that he was subjected to a hostile work environment and that he was con- structively discharged because of his sexual orientation, in violation of Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e, et seq. Now before the Court is Mag- nolia's Motion for Summary Judgment. Dkt. 31. As discussed in greater detail below, Mag- nolia's Motion for Summary Judgment is DENIED. LEGAL STANDARD Summary judgment is proper when "the movant shows that there is no genuine dis-

pute as to any material fact and that the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Material facts are those that "might affect the outcome of the suit," and a dispute of material fact is genuine when "a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). As the "put up or shut up" moment in a litigation, summary judgment requires par- ties to "show what evidence [they] ha[ve] that would convince the trier of fact to accept

[their] version of events" and to find in their favor on any disputed elements. Steen v. Mey- ers, 486 F.3d 1017, 1022 (7th Cir. 2007). Because summary judgment is not "a vehicle for resolving factual disputes," the district court need not "sift through the evidence, pondering the nuances and inconsistencies, and decide whom to believe." Waldridge v. Am. Hoechst Corp., 24 F.3d 918, 920 (7th Cir. 1994). Indeed, those tasks belong to the factfinder. Miller

v. Gonzalez, 761 F.3d 822, 827 (7th Cir. 2014). "The court has one task and one task only: to decide, based on the evidence of record, whether there is any material dispute of fact that requires a trial." Waldridge, 24 F.3d at 920 (citing Anderson, 477 U.S. at 249–50). When deciding whether a genuine dispute of material fact exists, the court construes all facts in the light most favorable to the non-moving party and draws all reasonable infer-

ences in that party's favor. Khungar v. Access Cmty. Health Network, 985 F.3d 565, 572 (7th Cir. 2021). BACKGROUND Omitted from the following factual recitation are factual assertions that have no

bearing on our determination of the legal claims before us as well as those that are unsup- ported by admissible record evidence.1 I. The Parties Magnolia is the licensed operator of Azalea Hills ("Azalea"), a residential care and assisted living facility located in Floyd Knobs, Indiana. On January 18, 2022, Magnolia hired Mr. Zollman, a gay man, as Azalea's Dietary Manager. Mr. Zollman's responsibilities

as Dietary Manager are not described to us, since neither party has explained what those duties entailed beyond indicating that he oversaw ordering food for Azalea's residents. Al- exander Decl. ¶ 10, dkt. 45-1 ("It was [Mr.] Zollman's responsibility to place food orders . . . ."). Mr. Zollman resigned from his position effective immediately on October 19, 2023. Prior to his resignation, Mr. Zollman received "a yearly raise" in his wages. Zollman Dep.

85:22–87:5, dkt. 33-2 at 32–34. During Mr. Zollman's tenure as an at-will employee, Azalea's Administrator and Mr. Zollman's direct supervisor was Cassandra McCoun ("Ms. McCoun"). Mr. Zollman's alle- gations of discrimination relate primarily to his direct and indirect interactions with Ms. McCoun.

1 For instance, we have excluded Mr. Zollman's assertions of fact supported only by reference to his unverified Complaint, see dkt. 45 at 5, 10, which comprises mere allegations and thus does not establish facts for purposes of summary judgment. Jones v. Van Lanen, 27 F.4th 1280, 1287 (7th Cir. 2022); Beal v. Beller, 847 F.3d 897, 901 (7th Cir. 2017); see S.D. Ind. L.R. 56-1(f)(2). II. Azalea's Employee Handbook While employed at Azalea, Mr. Zollman twice received a copy of the Employee

Handbook (the "Handbook"): once on January 18, 2022, and again on May 25, 2022, fol- lowing an April 2022 revision. Dkt. 33-2 at 38–39. We highlight below specific aspects of the Handbook to which the parties have cited. A. Equal Employment Opportunity & Anti-Harassment Policy According to Azalea's equal employment opportunity and anti-harassment policy, Azalea is "committed to providing a workplace free of inappropriate treatment of any em-

ployee because of an employee's" legally protected characteristic(s). Dkt. 33-2 at 48. Con- tinuing, the Handbook provides that Azalea "does not . . . condone or tolerate any harassing or otherwise inappropriate conduct based on any legally protected category" and "is com- mitted to protecting employees from inappropriate conduct . . . ." Id. at 48–49. To report behavior inconsistent with Azalea's anti-discrimination policies, employ-

ees "must immediately report [their] concern(s) to the Administrator or Director of Nurs- ing." Id. at 50. Alternatively, if employees are uncomfortable reporting thereto, they may place a call to Azalea's hotline. Id. Thereafter, "[m]anagement will investigate and take appropriate action as to all complaints." Id. B. Resident Abuse

When employees are accused of "resident abuse" (a term which neither party de- fines), "[i]t's the policy to relieve them of their duties while an investigation is performed." McCoun Dep. 22:22–25, dkt. 45-4 at 11. The mandatory investigation entails "interviewing witnesses," namely staff members. Id. at 23:1–4, dkt. 45-4 at 12. Azalea must also report allegations of resident abuse to the Indiana Department of Health. Id. at 23:5–11, dkt. 45- 4 at 12.

III. Mr. Zollman's Treatment2 In opposing summary judgment, Mr. Zollman describes the following circum- stances contributing to his belief that he was subjected to discrimination: • On an unspecified date, as Mr. Zollman and a coworker were cleaning the dining room, a news broadcast aired on a nearby television regarding the latest monkey

pox updates, including information about potential monkey pox contagion among people "in the gay community." Zollman Dep. 13:13–25, dkt. 45-3 at 8. Mr. Zollman's coworker reacted to the news, commenting, "Men with men, women with women, they're nothing but a bunch of animals." Id. When Mr. Zollman reported this comment to Ms. McCoun, she declined to take any reme-

dial or punitive action, stating to Mr. Zollman that the coworker "can say what she wants" and that, due to the coworker being "an older lady," Ms. McCoun would not "say[ ] something to her." Id. at 95:4–9, dkt. 45-3 at 53. • Alisha Collett, the business office administrator, informed Mr.

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