322 F. Supp. 3d 843
M.D. Tenn.2018Background
- Plaintiff (Doe), an African-American woman, alleges repeated sexual harassment, assault, and racialized comments by her former employer's CEO, James Finchum, while employed at Matthew 25 (a federally funded nonprofit).
- Specific alleged incidents include unwanted sexual comments, phone calls, being cornered and touched, exposure and masturbation (Dec. 2016), and an April 2017 incident pressing genitals against Doe’s body; Doe reported the conduct to the board in December 2017 and filed a police complaint in January 2018.
- Matthew 25 engaged an outside investigator (HR Compass); Finchum resigned two days after Doe filed a police report; Matthew 25’s insurer later denied workers’ compensation coverage for Doe’s injuries.
- Procedural posture: Doe filed suit (Mar. 20, 2018) asserting assault/battery (Count I), THRA sexual harassment (Count II), THRA retaliation (Count III), Title IX sex-discrimination (Count IV), and § 1981 race discrimination (Count V). Finchum and Matthew 25 moved to dismiss in part; Finchum moved to stay pending potential criminal investigation.
- Court treated Complaint allegations as true for Rule 12(b)(6) purposes and resolved: Motions to Dismiss granted in part and denied in part; Motion to Stay denied without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Motion to stay civil proceedings pending criminal investigation | Doe opposes stay; wants prompt civil resolution | Finchum seeks stay due to potential criminal investigation and Fifth Amendment concerns | Denied: no evidence of an active or imminent criminal prosecution; Doe’s and public interest in prompt adjudication outweigh speculative prejudice to Finchum |
| Timeliness and workers' compensation exclusivity for assault/battery (Count I) | Doe concedes pre-March 20, 2017 acts are time-barred; presses timely claim based on April 2017 incident outside workers’ comp | Finchum/Matthew 25: pre-March 2017 acts time-barred; employer argues workers’ comp exclusivity bars common-law tort claims | Court dismissed assault claims before Mar. 20, 2017; refused to dismiss April 2017 assault against Matthew 25 because alleged sexual harassment/emotional injury plausibly falls outside workers’ comp coverage |
| THRA retaliation (Count III) | Doe alleges ostracism, reduced duties, and use of leave tied to reporting; claims adverse actions and causation | Matthew 25 argues no materially adverse action or causal connection | Denied dismissal: allegations of reduced duties plus ostracism are sufficient at pleading stage to show materially adverse action and causal link |
| § 1981 race-discrimination claim (Count V) | Doe alleges she was singled out for sexualized harassment because she is Black (harasser compared her to a Black former partner) — § 1981 covers racial harassment even if sexual in mode | Defendants say § 1981 does not reach sex-based harassment, so claim fails | Denied dismissal: § 1981 prohibits race-based discrimination and hostile work environment based on race; the sexual nature of the harassment does not defeat a race-based § 1981 claim |
Key Cases Cited
- Clinton v. Jones, 520 U.S. 681 (stay/discretion to manage docket)
- Landis v. North American Co., 299 U.S. 248 (court’s power to stay proceedings for docket control)
- F.T.C. v. E.M.A. Nationwide, Inc., 767 F.3d 611 (6th Cir. 2014) (factors for staying civil proceedings due to criminal matters)
- Burlington Northern & Santa Fe Ry. Co. v. White, 548 U.S. 53 (retaliation: materially adverse action standard)
- Meritor Savings Bank v. Vinson, 477 U.S. 57 (hostile work environment standard)
- Jackson v. Quanex Corp., 191 F.3d 647 (6th Cir. 1999) (§ 1981 hostile-work-environment/racial-harassment principles)
- Anderson v. Save-A-Lot, Ltd., 989 S.W.2d 277 (Tenn. 1999) (supervisor sexual harassment generally outside workers' compensation)