Shawna Lemon v. Myers Bigel, P.A.
19-1380
4th Cir.Jan 19, 2021Background
- Lemon joined Myers Bigel (MB) as an associate in 2001 and became an equity partner in 2007 by purchasing equal shares; compensation was tied to firm profits and she had equal voting power on the Board.
- As a partner she served on the Management Committee and held officer positions (Vice President and Secretary); the Board later removed references to shareholders as "employees" from the shareholder agreement.
- In 2016 MB commissioned an outside investigation into gender discrimination; Lemon sought access to the investigatory memorandum, retained counsel, and relations with other partners deteriorated (including an alleged comment that she “played the black card too much”).
- Lemon requested short-term leave (she did not plead medical specifics); the full Board voted 17–3 to deny the request, a process she alleges differed from how white partners’ leave was handled.
- Lemon resigned and sued under Title VII (race and gender discrimination and retaliation) and 42 U.S.C. § 1981 (race discrimination). The district court dismissed the Title VII claim for failure to plead employee status and the § 1981 claim for failure to plead a plausible inference of race-based but-for causation; the Fourth Circuit affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an equity partner is an "employee" under Title VII | Lemon: despite partner status she alleged employment-like relations and sought Title VII protections; urged the law accommodate novel circumstances | MB: Lemon was a co-equal owner with voting power, profit/loss share, and governance rights—Clackamas control factors show she is not an employee | Court: Held Lemon is a partner/co-owner, not an employee; Title VII does not cover her claim |
| Whether Lemon pleaded a plausible § 1981 claim for racial discrimination in denial of leave | Lemon: board process, differential treatment compared to white partners, and the "black card" remark support inference of race-based denial | MB: pleadings lack factual detail on eligibility and fail to show race was the but-for cause of the denial | Court: Dismissed § 1981 claim for failure to plead eligibility and Comcast but-for causation plausibly |
Key Cases Cited
- Clackamas Gastroenterology Assocs., P.C. v. Wells, 538 U.S. 440 (2003) (adopts common-law control test and non‑exhaustive factors for employee status under Title VII)
- Nationwide Mut. Ins. Co. v. Darden, 503 U.S. 318 (1992) (statutory definition of "employee" analyzed by reference to agency/master‑servant concepts)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must be plausible to survive 12(b)(6))
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (applies plausibility standard and requires more than conclusory allegations)
- Comcast Corp. v. Nat’l Ass’n of African Am.-Owned Media, 140 S. Ct. 1009 (2020) (discrimination plaintiff must plead that protected trait was the but‑for cause of the harm)
- Thomas v. Potomac Elec. Power Co., 312 F.3d 645 (4th Cir. 2002) (elements for discriminatory denial of employment benefits under § 1981)
