MEMORANDUM OPINION AND ORDER ,
In this employment discrimination case, Plaintiffs, H. Christina Chen-Oster, Lisa Parisi, Shanna Orlich, Allison Gamba, and Mary De Luis, allege that their former employer, Defendants Goldman, Sachs <& Co. and the Goldman Sachs Group, Inc. (collectively, “Goldman Sachs”), violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. (“Title VU”), and the New York City Human Rights Law, N.Y.C. Admin. Code §§ 8-101 et seq. (“NYCHRL”), by systematically disfavoring female employees and denying them equal compensation and advancement opportunities based on their gender. Defendants move to dismiss Gamba’s and De Luis’ claims for injunctive and declaratory relief. Plaintiffs move to file a supplemental complaint. For the reasons stated below, both motions to dismiss are DENIED, and Plaintiffs’ motion to file a supplemental complaint is GRANTED.
BACKGROUND
I. Relevant Procedural History
The Court assumes familiarity with facts of the case and recites only briefly the procedural history relevant to these motions. On September 16, 2010, Plaintiffs Chen-Oster, Parisi, and Orlich brought this putative 'class action alleging intentional. discrimination, disparate impact discrimination, retaliation, and pregnancy discrimination under, Title VII and the NYCHRL. ECF No. 5. On April 13, 2015, Plaintiffs Gamba, and De Luis moved to intervene, ECF No. 377, which the Honorable-James C. Francis granted on August 3, 2015, ECF No. 410. Defendants appealed Magistrate Judge Francis’ order and, on June 6, 2016, this Court affirmed the order. ECF No. 450.
Plaintiffs filed a second amended complaint on August 3, 2015, which included allegations regarding Gamba and De Luis. ECF No. 411. On September 28, 2015, Defendants moved to dismiss Gamba’s claims for injunctive and declaratory relief. ECF No. 441. By letter dated May 9, 2016, Defendants notified the Court that De Luis no longer worked for Goldman Sachs, ECF No. 446, and subsequently moved to dismiss De Luis’ claims for injunctive and declaratory relief, ECF No. 457.
On July 1, 2016, Plaintiffs filed a motion to'file a supplement to the second amended complaint pursuant to Federal Rule of Civil Procedure 15(d) to add factual allegations and causes of action related to De Luis’ departure from Goldman Sachs. ECF No. 455. Finally, on March 9, 2017, Plaintiffs requested to amend their proposed supplement to include that De Luis received a right to sue letter from the Equal Employment Opportunity Commission. ECF No. 477; see also ECF No. 477-1 (“Am. Suppl. Compl.”). Defendants oppose the initial motion to file a supplement to the second amended complaint,- ECF No. 456, but do not oppose the substitution of the new proposed supplement for the old, ECF No. 478.
II. Gamba
Gamba worked for Goldman Sachs in New York from 2001 to August 2014. Second Am. Compl. ¶16. In 2003, Gamba joined the New York Stock Exchange Equities Department. Id. ¶125. That year, she was promoted to Vice President. Id. Although she was eligible to be promoted to Managing Director in 2005, she was never promoted again. Id. ¶ 133.
III. De Luis
De Luis began working at Goldman Sachs in June 2010 as a Senior Analyst in the Investment Management Division. Id. ¶¶ 18, 137. She worked first out of Miami, Florida and then in Dallas, Texas, but regularly “travelled] to and works from the Goldman Sachs’s New York, New York office.” Id. ¶ 18. In 2012, she was promoted to the position of Associate. Id. ¶ 137. In 2014, she was made a Vice President. Id. However, De Luis alleges that she has been evaluated unfairly based on her gender, id. ¶ 139, and paid less than her male colleagues throughout her employment, id. ¶ 140.
In March 2016, De Luis requested a transfer from Goldman Sachs’ Dallas office to its Miami office, due to the relocation of her significant other. Am. Suppl. Compl. ¶ 5. Prior to her participation in the present lawsuit, De Luis “had been assured by Goldman Sachs in March 2012 and September 2014 ... that relocation to Miami in 2016 would be possible.” Id. ¶ 6. However, after requesting the transfer, De Luis was informed that she could work in Dallas or New York “or apply and be considered for an inferior position in Miami.” Id. ¶¶ 5-6. De Luis claims that Goldman Sachs denied her transfer request because “her supervisory function could not be carried out remotely,” even though coordination of her team was being done remotely “as many members of the team were located in New York or regional offices.” Id. ¶ 8. De Luis claims that Goldman Sachs denied her transfer request in retaliation for her role as a plaintiff in this case. Id. ¶¶ 9, 10. De Luis resigned on May 2, 2016. Id. ¶ 11. The amended supplemental complaint states causes of action for retaliation under Title VII and the NYCHRL. Id. ¶¶ 12-21. She seeks reinstatement. Id. ¶¶ 16, 21, 22.
DISCUSSION
I. Legal Principles
Defendants have moved to dismiss Gam-ba’s and De Luis’ claims for injunctive and declaratory relief pursuant to Federal Rule of Civil Procedure 12(b)(1). Before turning to each motion, the Court addresses certain legal issues raised in both motions.
A. 12(b)(1) Motion
In resolving a motion to dismiss for lack of subject matter jurisdiction, “the district court must take all uncontroverted facts in the complaint ... as true, and draw all reasonable inferences in favor of
B. Standing
A central issue to both motions to dismiss is an opinion issued by the Honorable Leonard B. Sand, dated July 12, 2012. Chen-Oster v. Goldman, Sachs & Co.,
The law of the case doctrine instructs “ ‘that when a court has ruled on an issue, that decision should generally be adhered to by that court in subsequent stages in the same case’ unless ‘cogent’ and ‘compelling’ reasons militate otherwise,” Id. (citation omitted) (first quoting United States v. Uccio,
With “significant- reservations” and “misgivings,” Judge'Sand held, as a matter of “first impression in this circuit,” that Dukes serves as a “blanket denial of standing to ex-employees.” Chen-Oster,
At issue in Dukes, a gender discrimination class action brought by current and former Wal-Mart employees who sought backpay as well as injunctive and declaratory relief, -was the applicability of Rule 23(b)(2) and (b)(3) to plaintiffs’ backpay
The Dukes plaintiffs argued for the application of the Ninth Circuit’s “predominance test,” which finds that a Rule 23(b)(2) class is appropriate for backpay claims as long as the money damages claims “do not ‘predominate’.over [plaintiffs’] requests for injunctive and declaratory relief.” Id. In rejecting this predominance test, the Supreme Court stated:
The predominance test would also require the District Court to reevaluate the roster of class members continually. The Ninth Circuit recognized the necessity for this when it concluded that those plaintiffs no longer employed by Wal-Mart lack standing to seek injunctive or declaratory relief against its employment practices. The Court of Appeals! response to that difficulty, however, was not to eliminate all former employees from the certified class, but to eliminate only those who had left the company’s employ by the date.the complaint was filed. That solution has no logical connection to the problem, since those who have left their Wal-Mart jobs since the complaint was filed have no more need for prospective relief than those who left beforehand. As a consequence, even though the validity of a (b)(2) class depends on whether “final injunctive relief or corresponding declaratory relief is appropriate respecting the -class as a whole” Rule 23(b)(2) (emphasis added), about half the members of the class approved by the Ninth Circuit have no claim for injunctive or declaratory relief at all. Of course, the alternative (and logical) solution of excising plaintiffs from the class as they leave their employment may have struck the Court of Appeals as wasteful of. the District Court’s time. Which indeed it is, since if a backpay action were properly certified for class treatment, under (b)(3), the ability to litigate a plaintiffs backpay claim as part of the class would not turn on the irrelevant question whether she' is still employed at Wal-Mart. What follows from this, however, is not that some arbitrary limitation on class membership should be imposed but that the backpay claims should not be certified under Rule 23(b)(2) at all. -
Id. at 364-65,
Judge Sand, interpreting this paragraph, concluded that the Supreme Court created a blanket prohibition of former employees seeking injunctive and declaratory relief under Rule 23(b)(2). Chen-Oster,
Judge Sand read Dukes too broadly. The Supreme Court did not itself reach the conclusion that the former employees lacked standing—agreeing, instead, with
Although Judge Sand found that “the Supreme Court’s analysis of this issue, and its blanket denial of standing to ex-employees, is not dictum,” Chen-Oster,
Other judges in this district have similarly disagreed with Judge Sand’s conclusion. See, e.g., Robinson v. Blank, No. 11 Civ. 2849, 2013 U.S. Dist. Lexis 72068, at *17 n.3 (S.D.N.Y. Feb. 22, 2013) (“Despite Chen-Oster’s reading of Dukes as precluding injunctive relief for any former employees (even those seeking reinstatement), this Court does not agree that Dukes reached so far.”), adopted by 2013 U.S. Dist. Lexis 71471, at *3 (S.D.N.Y. May 20, 2013); Kubicek v. Westchester Cty., No. 08 Civ. 372,
One need not engage in freewheeling “slippery slope” analyses to foresee some potential consequences of the Court’s new rule. Plaintiffs who wish to certify a class under 23(b)(2) will be forced to remain employed, sometimes under very difficult conditions, to ensure standing. Employers who wish to forestall employees from certifying a class under the otherwise defendant-unfriendly Rule 23(b)(2), see Dukes,131 S.Ct. at 2558 , will be encouraged to terminate them. Neither outcome is desirable.
Id. at 122.
Accordingly, the Court now finds that Judge Sand’s determination that Dukes categorically foreclosed former employees from seeking injunctive and declaratory relief is clearly erroneous, and that cogent and compelling reasons exist that require this Court' to exercise its discretionary power to revisit Judge Sand’s ruling. See Quintieri,
Standing is generally determined when the complaint is filed. See Friends of the Earth, Inc. v. Laidlaw Environmental Services (TOC), Inc.,
The Court rejects Plaintiffs’ argument that the intervenors’ standing should be evaluated at the time of the filing of the original complaint, when Gamba and De Luis worked at Goldman Sachs, under the
C.. Mootness
“While the standing doctrine evaluates a litigant’s personal stake at the onset of a case, ‘the mootness doctrine ensures that the litigant’s interest in the outcome continues throughout the life of the' lawsuit.’” Comer,
D. Reinstatement
The Second Circuit has long expressed its “overarching preference in employment discrimination cases for reinstatement” as a remedy for Title VII violations. Reiter v. MTA N.Y.C. Transit Auth.,
“Reinstatement, however, may not always be possible.” Whittlesey v. Union Carbide Corp.,
Defendants argue that allegations of unlawful discharge are required for a plaintiff to be eligible for reinstatement. The Court cannot identify any such requirement. Reinstatement is, of course, most commonly employed to remedy unlawful discharge. However, courts in this circuit have granted reinstatement in a variety of other circumstances. See e.g., Muller v. Costello,
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With these legal principles in mind, the Court now turns to the parties’ motions.
II. De Luis
A. Defendants’ Motion to Dismiss
Defendants have moved to dismiss De Luis’ claims for injunctive and declaratory relief. De Luis intervened in April 2015, EOF No. 377, and her last day of employment at Goldman Sachs was May 13, 2016, EOF No. 446. As a current employee at the time of her intervention, De Luis had standing to seek injunctive and declaratory relief. See Comer,
First, in the second amended complaint, De Luis plausibly pleaded unlawful discrimination sufficient to support a request for reinstatement. To prove that De Luis’ claim is moot, Defendants must satisfy a “heavy” burden, which they have not, to show that it would be “impossible” to grant De Luis reinstatement. Kassman v. KPMG LLP, No. 11 Civ. 3743,
Second, De Luis’ proposed supplemental complaint, which addresses her departure from Goldman Sachs, also supports a potential remedy of reinstatement. De Luis states that she was “assured” that relocation to Miami would be possible in both March 2012 and September 2014, prior to her participation in the lawsuit. Am. Suppl. Compl. ¶ 6. De Luis claims that “[coordination of [her] team ,.. was already being done remotely, as many members of the team were located in New York or regional offices,” id. ¶ 8, and that “Goldman Sachs’s reason for denying [her] transfer is pretext for its retaliatory conduct,” id. ¶9. Thus, De Luis resigned from Goldman Sachs “due to the consistent and systematic discrimination she had suffered over her nearly six years at Goldman Sachs, and faced with the choice of being separated from her significant other or sidelining her own career.” Id. ¶ 11. On that basis, De Luis seeks reinstatement to her rightful position at Goldman Sachs, id. ¶¶ 16, 21, 22, for which she may be entitled. Therefore, if the Court grants Plaintiffs’ motion to file a supplemental complaint, then De Luis would have an additional basis to
B. Plaintiffs’ Motion to Supplement
Federal Rule of Civil Procedure 15(d) “permit[s] a party to serve a supplemental pleading setting out any transaction, occurrence, or event that happened after the date of the pleading to be supplemented.” A district court may grant a motion to file a supplemental pleading “in the exercise of its discretion, upon reasonable notice and upon such terms as may be just.” Quaratino v. Tiffany & Co.,
Defendants first argue that .De Luis has failed to state a claim for retaliation under Title VII. To establish a prima facie case of retaliation under Title VII, a plaintiff must show “(1) participation in a protected activity, (2) that the defendant knew of the protected activity; (3) an adverse employment action; and (4) a causal connection between the protected activity and the adverse employment action.” Hicks v. Baines,
On what constitutes an adverse employment action, the Second Circuit has explained:
The Supreme Court has held that in the context of a Title VII retaliation claim, an adverse employment action is any action that “could well dissuade a reasonable worker from making or supporting a charge of discrimination.” Thisdefinition covers a broader range of conduct than does the adverse-action standard for claims of discrimination under Title VII: “[T]he antiretaliation provision, unlike the substantive [discrimination] provision, is not limited to discriminatory actions that affect the terms and conditions of employment.” ■ •
Vega v. Hempstead Union Free Sch. Dist.,
As to causation, on a motion to dismiss, a plaintiff need only “suggest[ ] a plausible causal connection between two events.” Perry v. NYSARC, Inc.,
Finally, Defendants contend that De Luis cannot state a claim for retaliation under the NYCHRL because she neither works in New York City nor allege es that the discriminatory conduct impacted her in New York City. See Hoffman v. Parade Publ'ns,
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For the reasons stated above, Plaintiffs’ motion to file a supplemental complaint, as amended, is GRANTED, and Defendants’ motion to dismiss De Luis’ claims for in-junctive and declaratory relief is DENIED.
III. Gamba
Defendants, relying on Judge Sand’s opinion, move to dismiss Gamba’s claims for injunctive and .declaratory relief on the ground that Gamba does not have standing to bring a claim for injunctive and declaratory relief as a former employee. Gamba was employed at Goldman Sachs until August 2014, Second Am. Compl. ¶ 16, and her motion to intervene was filed in April 2015, ECF No. 377. Because Gamba was no longer employed by Goldman Sachs at . the time her motion to intervene was filed, the Court turns to whether Gamba had standing under the reinstatement exception described above. See Kassman,
Defendants argue that reinstatement is not feasible because Gamba’s division, where she currently works, is no longer a part of Goldman Sachs. However, Gamba seeks reinstatement to her “rightful position[]” at Goldman Sachs. Second Am. Compl. ¶ 205(j). Gamba claims that Goldman Sachs’ discriminatory policies included denying women opportunities to lateral into other areas of the firm, id, ¶ 56, disfavoring women in the distribution of business opportunities, id. ¶¶ 156, 172, and providing women with less training and mentorship, id. ¶ 59. It is “the responsibility of a court that finds a [Title VII] violation ... to fashion equitable relief to make the claimant whole.” Reiter,
Accordingly, Defendants’,motion to dismiss Gamba’s claims for, injunctive and declaratory relief is DENIED.
CONCLUSION
For the reasons stated above, Plaintiffs’ motion seeking to file a supplemental complaint is GRANTED, and Defendants’ motions to dismiss Gamba’s and De Luis’ injunctive and declaratory relief are DENIED.
By April 26, 2017, the parties shall jointly write to the Court with a proposal on how to proceed regarding Judge Francis’ memorandum and order on the parties’ Daubert motions, and regarding Judge Francis’ report and. recommendation on Plaintiffs’ motion for class certification, both dated March 10, 2015. ECF Nos, 363, 364.
The Clerk of Court is directed to terminate the motions at ECF Nos. 441 and 457.
SO ORDERED.
Notes
. Rule 23(b)(2) allows certification of a class when "the party opposing the class has acted or refused to act on grounds that apply generally to the class, so that final injunctive relief or corresponding declaratory relief is appropriate respecting the class as a whole.” Rule 23(b)(3) allows certification of a class “when the court finds that the questions of law or fact common to class members predominate over any questions affecting only individual members, and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy.”
. The Honorable Colleen McMahon’s opinion in Oakley v. Verizon Communications Inc. is not to the contrary. No. 09 Civ. 9175,
. McPartland cites only out-of-district case law for this proposition and, indeed, this McPartland opinion does not appear to have ever been cited by any court since being issued nearly thirty years ago.
