Lori Freeman v. Dal-Tile Corporation
2014 U.S. App. LEXIS 8030
| 4th Cir. | 2014Background
- Dal-Tile acquired Marble Point, a Raleigh stone yard, and Freeman, formerly in Marble Point, joined as a Dal-Tile employee reporting to Wrenn.
- Koester, a VoStone independent sales rep, repeatedly made crude, racist, and sexual remarks toward Freeman.
- Freeman reported the harassment to Wrenn and HR; Koester continued offending over years despite some warnings.
- Freeman went on medical leave in 2009, then resigned in December 2009 due to fear of Koester encounters and resulting depression.
- Freeman filed an EEOC charge in October 2009; she then sued for racial/sexual hostile environment, constructive discharge, and obstruction of justice.
- The district court granted summary judgment for Dal-Tile on most claims; Freeman appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Freeman’s hostile environment claims were objectively severe or pervasive | Freeman argues Koester’s repeated insults created hostility | Dal-Tile argues conduct was not objectively severe/pervasive | Yes; triable issue on objective severity/pervasiveness |
| Whether Dal-Tile can be liable for Koester’s harassment as a third party | Dal-Tile knew or should have known and failed to act | Dal-Tile did not act with deliberate intent to allow harassment | Yes; Dal-Tile liable for third-party harassment under Title VII |
| Whether Freeman was constructively discharged | Deliberate intolerability of working conditions forced resignation | Freeman voluntarily resigned after returning from leave | No; no intentional intolerable conditions; summary judgment for Dal-Tile affirmed |
| Whether North Carolina obstruction of justice claim survives | Emails destroyed to hinder litigation | Destruction followed retention policy, not intent to obstruct | No viable obstruction claim; affirmed district court |
Key Cases Cited
- EEOC v. Cent. Wholesalers, Inc., 573 F.3d 167 (4th Cir. 2009) (standard for hostile environment—unwelcome, based on protected class, severe/pervasive, imputable)
- Sunbelt Rentals, Inc., 521 F.3d 306 (4th Cir. 2008) (objective severity factors for hostile environment)
- Harris v. Forklift Sys., Inc., 510 U.S. 17 (1993) (objective knowledge test for severity; non-mathematical)
- Oncale v. Sundowner Offshore Servs., Inc., 523 U.S. 75 (1998) (contextual factors in hostility assessment)
- Amirmokri v. Baltimore Gas & Elec. Co., 60 F.3d 1126 (4th Cir. 1995) (negligence standard for third-party harassment liability)
- Ocheltree v. Scollon Prods., Inc., 335 F.3d 325 (4th Cir. 2003) (employer liability for third-party harassment—no see-no-evil strategy)
- Spriggs v. Diamond Auto Glass, 242 F.3d 179 (4th Cir. 2001) (epithets and racial language as hostile environment)
- Gilliam v. S.C. Dep’t of Juvenile Justice, 474 F.3d 134 (4th Cir. 2007) (liability standards for employer knowledge of harassment)