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Efrain Reynaga v. Roseburg Forest Products
847 F.3d 678
9th Cir.
2017
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*1 transcripts in case that occurred after this approxi- maintained corporation and the the to the court ruled on motion equi- district in net assets and mately million $1.7 this appeal the and after judgment in amend Giganews and Livewire ty it sued when However, if filed. even we were to that was court further noted 2011. The district those grant Appellees’ request, transcripts sell or all of its ability to some Perfect 10’s our conclusion that help could the would alter property intellectual clearly err. any judgment against district court did not corporation satisfy undermine these find- Attempting it. to essentially argues that

ings, Giganews CONCLUSION it could not 10’s admission Perfect sum, district conclude the did not we it, judgment against currently pay of dismissing err in much Perfect 10’s history removing with Zada’s combined at the pleadings claim infringement direct 10 and fact that capital Perfect from granting summary nor in stage, did it err a risky under business operates Perfect 10 judgment Giganews in favor of Livew- model, ego have resulted in alter should vicarious, direct, ire on the and contributo- Giganews But for Zada. misses liability infringement further con- ry claims. We point. did not clude that the district court abuse suggests Per- in the record Nothing Appellees awarding its fees discretion undercapitalized that it fect so 10 was supplemental denying Appellees’ fee reasonably expected meet its could not request. Finally, we hold that the district debts, light particularly of Perfect refusing clearly court did err to add satisfy past ability judgments 10’s judgment against Zada to Perfect 10. it, faith. against there is no evidence of bad AFFIRMED. Indeed, not a case a sole this is where company little operated shareholder assets, this a nor is case where no stripped its assets

company was shareholder from adverse

shield its sole finally, although Giganews And

judgments.

argues the district court erred re- value of Perfect 10’sintellec- ferring to the REYNAGA, Plaintiff-Appellant, as- potential tual as evidence property satisfy sets Perfect could with which it, the fact

judgment against remains PRODUCTS, FOREST ROSEBURG has maintained Perfect regularly Defendant-Appellee. consistently its debts enough capital pay No. 14-35028 Therefore, years. regardless almost illiquidity of of Perfect alleged of the some Appeals, United States Court assets, 10’s court did not clear- district Ninth Circuit.

ly that Perfect 10 is not the holding err in Argued July and Submitted ar- corporate Appellees shell” “empty Portland, Oregon dis- gue Accordingly, we affirm the it is. declining order add Zada trict court’s Filed Perfect against judgment judicial take notice of decline to We debtor examination post-judgment

certain *5 Dugan Eugene, (argued),

Marianne G. for Oregon, Plaintiff-Appellant. Dan Montgomery (argued) and W. Jason Clark, Mountainspr- Dole Coalwell Clark P.C., Oregon, Roseburg, Mornarich ing & Defendant-Appellee. for PREGERSON, Before: HARRY OWENS, BEA, B. T. and JOHN CARLOS Judges. Circuit by Judge BEA Dissent OPINION PREGERSON, Judge: Circuit Reynaga Efrain and his son Appellant Reynaga millwrights as Richard worked (“Rose- age Forest 15. He became a States Products United citizen Efrain, his son burg”). According to he and in From 2004 to Efrain worked millwrights of de- only were the Mexican millwright Roseburg, as a at where he Roseburg. Efrain that dur- alleges scent at performed job his well posi- and received ing employment, of his he was the course son, Richard, tive evaluations. Efrain’s subjected disparate and a treatment at Roseburg years. worked for about two hostile work environment because his only Efrain and Richard were the Hispanic origin. race or national millwrights at Roseburg. developed Efrain relation- contentious claims during Efrain the course of Timothy ship millwright, with lead Bra- naugh (“Branaugh”), who ha- his allegedly Roseburg, with he was racially disparaging rassed Efrain with subjected to racially disparaging state- comments. In October and December ments treatment because of verbal com- lodged and written largely His allegations pertain race. plaints Roseburg management, alleg- millwright lead Branaugh, whom Efrain ing workplace. racial harassment very as a “physically large” describes investiga- response, initiated an “aggressive” “bully” who liked to intimi- allegations tion into Efrain’s and ultimate- date people. ly rearranged Branaugh’s work schedule so that he would be on the same shift alleges Branaugh frequently as Efrain. racially derogatory made comments and other, conduct, engaged harassing in-

On Efrain and Richard assigned cluding: to find Branaugh arrived work referred to black notifying Roseburg the same shift. After people “niggers” “rug- Arabs as they would a hostile envi- heads;” September after Efrain ronment, immediately Richard *6 hunting tags year received for the second later, days left A Efrain premises. the few row, said, in “I’m Branaugh a a true be- up and Richard showed to work but re- that we the lieve should close borders [sic] fused their complete to shift because Bra- * you keep to motherf* *ers like from com- naugh at the was also scheduled for work and elk. I ing up killing here our know one supervisor suspended same time. A then tags *er [sic] motherf* who drew back to 18, Efrain and On Richard. (3) back;” in September Branaugh Roseburg terminated Efrain and Richard’s stated, taking “Minorities are over the employment. (4) asked, “Efrain, country;” Branaugh are against Roseburg, alleg- Efrain filed suit (5) all Branaugh, Mexican women fat?” environment, ing hostile work aware that Efrain’s wife Native Ameri- treatment, and retaliation in violation of can, referred to Native women American rights state and civil laws. Richard federal (6) “nasty squaws;” Branaugh as fat belit- party litigation. was not a to the The dis- in front apprentice, tled Efrain of an stat- trict granted Roseburg’s court motion big boy” Efrain ing that was “a with a summary on all Efrain judgment counts. “little, tiny dick” all the help who “needs timely and appealed. part We reverse (7) 14, 2009, he can and on get;” October ruling. affirm in the part district court’s Efrain was an accumula- rebuilding

while FACTUAL BACKGROUND tor, commented, Branaugh “Boy, you’re slow,” remarked other mill- and to the Efrain Mexico and moved to was born “Man, ago just several at he around.” wrights, United States decades dinks later, Bra- days A few Richard and instances of havior. alleges Efrain several and to naugh engaged retaliation in an altercation related disparate treatment (1) 12, 2008, the Roseburg: November seniority performance particular On and drug-sniffing dogs to the police brought job. investigated al- welding Roseburg this Roseburg facility. They the lock to broke cooperated Efrain the investi- tercation. even Efrain Richard’s shared locker and complained management and gation present and offered though Richard was Branaugh. day, Roseburg’s The next anything it. did not find open police The managing personnel Branaugh met with Roseburg not break nefarious inside. did complaints. Efrain and Richard’s discuss millwright’s even lock to locker a white that he “can make They Branaugh told (2) it; after Efrain though dog alerted they “coached people uncomfortable” job, required leg broke he was leadership Branaugh on his skills.” up and the stairs go to work and down December Efrain filed a On injuries similar were al- while others with complaint Roseburg, alleging written (3) home; four stay lowed to and discrimination Bra- harassment millwrights composed one crew while other naugh. response complaint, to the composed alone a sec- Efrain and Richard Vigilant, hired company crew, ond but both crews received relations, in- specializes (4) work; Efrain and Rich- same amount of On vestigate allegations. December harder, assigned the frequently ard were 2009, Vigilant interviewed Efrain. dirtier, as dangerous jobs, more such had made racist stated room; cleaning hydraulic statements, harassing had Efrain for been file when reports repairs had to written time,” long “a and that Efrain did not to, not and he millwrights did have Branaugh. Subsequent- to work with want he length about the of time was harassed rearranged Branaugh’s ly, perform repairs while were took others so schedule that he would be on harassed; Roseburg de- similarly account, same shift Efrain. but company nied Efrain a email workers; mill after gave them to other Vigilant December contact- On about the complaint Efrain filed a written follow-up ed Efrain to conduct a interview. environment, orders hostile work partici- only stated that he would no made to Efrain longer available attorney present, if he had pate Richard, they had to consult the so *7 Roseburg’s policy attorneys did not allow do; figure job out work board what plant-level investiga- to be involved with com- Efrain filed a written after that he subsequently tions. claims Roseburg put millwrights back plaint, that he was Roseburg willing informed (from part-time), but did full-time work interviewed a time an be second without not do so Efrain and Richard. attorney, up. but never followed 2009, hostile alleged October 4, 2010, January Branaugh in the On left work environment worsened. On October printed containing room a email an 2009, break 14, Branaugh questioned after article that claimed President ethic, they Obama engaged work alien “our illegal and that borders are over verbal confrontation who needed it, like sieves.” When Efrain read he was piece machinery. on particular hostility Terry “very concerned about racial day, spoke The next Richard with Turner, days A la- superin- and harassment at work.” few Roseburg’s maintenance 2010, tendent, ter, January 9, Branaugh’s harassing be- on and Rich- shift, ard arrived at work for their and the investigation revealed “no evidence of upon discovering Branaugh that was also a pervasive severe or hostile work envi- site, they immediately premises. left the ronment,” but did reveal' “personnel some Richard notified via email about issues and [Roseburg] to ad- intended] Branaugh’s presence on the same shift and dress those issues ... but [Efrain was] stated, “We will not work in a hostile work _re- unwilling to meet ... despite report environment. We will to our shift on peated phone calls attempts to com- [ujnless Jan[.], 13, Wednesday, 2010 ... municate.” we hear otherwise.” 13, January 2010, On Efrain and Rich- PROCEDURAL BACKGROUND up ard showed to work and asked were July On Efrain filed a First Johnson, meet Dan with Roseburg’s Hu- Amended Complaint that alleged three man Resources and Safety Supervisor, to causes of action for discrimination under discuss their walking job off the on Janu- § 42 U.S.C. 1981 and Title ofVII the Civil ary 9. Johnson told Efrain and Richard Rights 1964, Act of § 42 U.S.C. 2000e “Branaugh would be off-shift ... as (“Title VH”): (1) environment; hostile work possible, much as there were disparate treatment; and retaliation. days some where Rey- and the Efrain also alleged a fourth cause of action nagas would be on the plant site at the for relief Oregon under state dispa- law for same time.” Johnson said that (O.R.S. 659A.030(l)(a)) § rate treatment had been stay away instructed to from (O.R.S. and hostile work environment Richard, Efrain and and to have “no con- esoAfisoaKb)).1 § tact with them necessity unless work emergency arose.” Johnson directed Roseburg moved for summary judg- Efrain and Richard to do the same and ment. The granted district court summary they asked if would complete their shift judgment in favor of Roseburg on all day with Branaugh on the premises. timely claims. Efrain appealed. Efrain and responded Richard they would not work Branaugh, so Johnson AND JURISDICTION STANDARD suspended “pending them the conclusion of OF REVIEW investigation.” day, That same Bra- naugh revved his engine at Efrain and jurisdiction We have under 28 they Richard as waiting park- in the 1291, § U.S.C. and we review de novo the ing lot for their shift to begin. district court’s grant summary judg ment. See Dominguez-Curry v. Nev. January

On Efrain received a Transp. Dep’t, explaining letter 2005). “Viewing walking job terminated “for off the light most nonmoving par favorable to the January 2010, and refusing to work on ty, we must determine whether there date, 2010.” are On the same *8 any genuine disputes Efrain received a of material fact and explaining second letter that correctly he exhibited a lack whether the district court coopera- applied of “full tion” investigation with the and that relevant substantive law.” An Id. issue Roseburg was “forced to conclude in-' of fact genuine is “if the evidence is [its] such vestigation absent a follow up closing jury and that a reasonable could return a ver interview[.]” The letter also stated nonmoving that dict for the party.” Villiarimo allege 659A.030(l)(f). 1. Efrain did not a state law claim for retaliation under O.R.S. 686 dispute apply with Air, Inc., court in a Title VII 281 F.3d

v. Aloha Island (9th 2002) § action.” Manatt v. equal in a 1981 (quoting v. force Anderson 1061 Cir. (9th Am., NA, F.3d 797 Inc., 242, 248, Bank 339 477 U.S. 106 Lobby, Liberty of 2003). (1986)). any Accordingly, discussion Cir. 202 S.Ct. 91 L.Ed.2d Efrain’s Title VII claims regarding herein DISCUSSION § applies corresponding claims. the district court Efrain contends summary be- judgment granting erred in Rights Title of Civil Under VII disputes of mate- genuine cause are there for an employer Act of it is unlawful of his claims. As rial fact for each an individual with against to discriminate claim, work environment Efrain’s hostile terms, compensation, condi respect fact a reasonable trier of

we hold that tions, privileges employment or of because (1) Branaugh’s could conduct conclude of the race. U.S.C. 2000e- individual’s pervasive or to cre- sufficiently severe 2(a)(1). prohibition against includes a This (2) environment, and ate a work hostile the creation of a hostile environment. Branaugh’s miscon- Roseburg knew about Inc., Sys., See Harris v. 510 U.S. Forklift to take effective remedial duct and failed 367, 126 L.Ed.2d S.Ct. disparate Efrain’s treatment action. As to (1993) (‘When workplace permeated is claim, that Efrain has demonstrat- we hold intimidation, ridicule, discriminatory facie necessary prima case to sur- ed insult, sufficiently or and is severe judgment on summary vive based pervasive to alter the conditions of the terminating employ- Efrain’s and create an victim’s abusive (2) breaking into locker. ment Efrain’s environment, working Title isVII violat there genuine hold that is a We further (internal ed.”) marks cita quotation dispute fact as to discrimi- omitted); Graphic v. tions Woods those natory regarding challenged intent (9th Comm’ns, 1195, 1200 925 F.2d Cir. retaliatory Finally, as to actions. 1991) (“Courts long recognized that a have claim, hold we that a reason- termination hostility racial workplace per in which able fact could conclude that Rose- trier of form of vasive constitutes a discrimina burg’s terminating reason for proffered tion.”). pretextual. Efrain was A. Hostile Severe or Pervasive Work reverse and

Accordingly, we remand Environment a trial Efrain’s claims of hostile work on environment, treatment, and re- To a hostile work succeed on envi affirm the district court’s taliation. We race, the plaintiff ronment claim based grant summary judgment on certain “(1) he must was sub demonstrate: discussed below. issues jected physical to verbal or conduct of nature; ... that the conduct racial I. Environment Hostile Work unwelcome; that the conduct was sufficiently pervasive alter the argues first the district severe plaintiffs employment conditions granting summary judg- court erred create work environment.” ment on his work envi- an abusive hostile Angeles, Vasquez Cty. “First Claim for Re- Los ronment claim. This 2003). It is undisputed counts Title lief’ is divided into two under first recog- § that Efrain has met his burden VII and 42 U.S.C. 1981. We have *9 Therefore, to sum- “legal principles a two elements. survive guiding nized that the

687 mary judgment, Efrain must show the ex- the to plaintiff be relevant her to his or genuine dispute of a istence factual as to hostile work environment claim. McGinest (1) the workplace whether conditions v. Corp., 1103, GTE Serv. 360 F.3d 1117 “sufficiently (9th to pervasive 2004). severe or alter Cir. conditions of and the create plaintiff The must show the (2) working an abusive environment” and work environment was subjectively both Roseburg, once apprised

whether Bra- objectively Nichols, hostile. F.3d 256 behavior, naugh’s adequate failed to take at 871-72. It is undisputed that Efrain action, and disciplinary remedial such that perceived hostile, his workplace to be as Roseburg may vicariously be liable or by repeated evidenced complaints through negligence. v. See Steiner Show- Branaugh. objective As to inqui the Co., 1459, Operating boat 25 F.3d 1462-63 ry, we whether assess the workplace (9th 1994). Cir. the perspective hostile from of a reason In assessing a work envi whether person belonging able plaintiffs the ra hostile, is sufficiently ronment the court (here, group cial or ethnic Hispanic/Mexi the “frequency examines of the discrimina can). McGinest, 360 F.3d at 1115. conduct; tory its it severity; whether The district court physically threatening humiliating, or or a stated that it was utterance; “certainly allega troubled [Reynaga’s] mere offensive whether it recognizes unreasonably tions and employ interferes with these events However, performance.” City pain.” ee’s caused suffer the Faragher [him] Raton, 775, 787-88, Boca 524 Branaugh’s U.S. 118 district court concluded that (1998) (quot S.Ct. L.Ed.2d 662 conduct pervasive severe or 367). Harris, ing U.S. at 114 S.Ct. enough to alter conditions of Efrain’s required “The level of severity serious employment. disagree. We Viewing inversely pervasive Efrain, ness varies with the light facts most favorable to or frequency ness of the Nichols conduct.” the incidents described in the are record Enters., Inc., Rest. v. Azteca 256 F.3d genuine sufficient create ma disputes 2001) (internal quotation severity terial fact as and pervasive omitted). marks citation Branaugh’s ness of conduct. “[Sjimple teasing, com in- repeated offhand Efrain’s evidence reveals ments, (unless and isolated incidents ex Branaugh allegedly stances which made serious)” tremely explicit are not sufficient cre racial and national com- origin VII, (1) an actionable Title workplace, ate claim under ments in the Bra- including: harassment so naugh people “nig- need not be severe to black referred (2) diagnosed cause psychological injury. gers” “rugheads;” as to Arabs as after Faragher, hunting tags U.S. at S.Ct. 2275 Efrain received second (internal quotation row, said, year Branaugh marks and citation “I’m true omitted); Harris, see at 510 U.S. believe we should close the bor- [sic] * 367. It is “if such motherf* from enough keep you S.Ct. hostile ders to *ers like pollutes workplace, killing conduct here and our I know coming up victim’s elk. making it tags more difficult for her to do her one *er who drew back [sic] motherf* work, job, back;” stated, to take pride in her and to to “Minorities stay Steiner, position.” country;” desire her 25 are taking over asked, “Efrain, at that such are all We have held Mexican women hostility need not directly targeted Branaugh, be fat?” aware that Efrain’s *10 nature, American, racial and Efrain de- referred to Na- conduct of a wife is Native Branaugh fat 2009 ... was “nasty as clared that “[i]n American women tive “Branaugh regularly,” left in the and Branaugh harassing and me squaws;” containing making an at printed always room a email was racist comments break phys- President Obama was stated felt article that claimed work.” Efrain also that he “our borders are illegal ically alien and that in the “I was workplace: an threatened ... Branaugh like sieves.” extremely concerned that my me or going physically to harm [was] could find that Bra- jury A reasonable dangerous son at The work involves work. alleged highly would be naugh’s conduct machinery requires and extreme putting anyone, demeaning espe- and to offensive Additionally, in Un- your trust coworkers.” cially person a from Mexico. identi- Scott testified Shop ion Steward Albertus derogatory remarks that Bra- fies several that, mill, the deposition at “there was Mexicans, specifically made naugh al- general [Branaugh] was attitude including comments about “border” people.” pick lowed to tinged Branaugh racism. that were with slurs, allegedly including racial used fa- Looking at‘the in Efrain’s evidence “nigger,” “perhaps which is the word vor, summary judgment, must on we inflammatory racial most offensive and harassing conduct interfered with English, expressive a word slur ... the extent performance Efrain’s work to McGinest, bigotry.” hatred racial and that it with Bra- resulted confrontations omitted). (citation F.3d at naugh register Efrain to verbal and led management. complaints and written Viewing favorably Additionally, Branaugh’s was so conduct Efrain, Branaugh only racially had to make sure (1) extreme hostile, derogatory: also generally Richard Branaugh and Efrain and an Branaugh belittled Efrain front of the same were not scheduled work on apprentice, stating big was “a Ultimately, shift. Richard felt “little, tiny dick” who boy” with “needs compelled workplace to leave because help get;” all the he can while Efrain present. Branaugh was accumulator, rebuilding an said, “Boy, you’re slow” commented most Viewing light the evidence in the “Man, just he dinks millwrights, the other Efrain, favorable to we hold that a reason- around;” after Bra- able of fact could conclude that trier attempted separate had Bra- naugh’s racially repeated derogatory Richard, naugh from Efrain and sufficiently se- humiliating remarks were in the engine parking at them revved or pervasive vere create a hostile instances, along lot. These with the racist environment. above, listed reflect a workplace comments Liability Employer B. for Hostile had been with insult and polluted Environment intimidation. Work Contrary employer may court’s An held liable the district conclu- be sion, a hostile demeaning creating comments that direct- work environment (i.e., acts of ly origin vicariously through national either reference race or (i.e., supervisor) through negligence “offhand comments” or “mere offen- or failing prevent discriminatory Faragher, utterancefe].” to correct sive U.S. McGinest, employee). Efrain’s evidence in- conduct 118 S.Ct. 2275. F.3d at repeated examples unwelcome cludes *11 Liability

1. Vicarious seriousness of the offense.” Ellison v. (9th Brady, 1991) 924 F.2d Cir. employer vicariously An is liable (citation omitted) (“Title VTI requires for a by hostile work environment created more than a mere request to refrain from supervisor. Univ., a Vance v. State Ball conduct.”). — discriminatory -, 2434, 2439, U.S. 133 S.Ct. (2013). A supervisor per

L.Ed.2d 565 is a record that establishes a rea The son who take tangible employment can of sonable trier fact find could that Rose- against employee, actions an including ef burg knew about Branaugh’s misconduct fecting “significant change employment and responded On status, inadequately. firing, October hiring, failing such as 14, 2009, Efrain had a promote, reassignment verbal confrontation significantly with with Branaugh, day, different a and the responsibilities, or decision next Richard causing significant spoke change Terry Turner, benefits.” with Roseburg’s (citation omitted). Id. at 2443 supervisor, maintenance Branaugh’s about harassing Then, conduct. on October court, At the district Efrain con and Branaugh engaged Richard in an Branaugh ceded that a supervisor, was not altercation seniority related to per and argues but appeal. otherwise on As a lead job. formance of welding Efrain cooper millwright, Branaugh authority had the ated in investigation of that direct of millwrights the work incident complained management tell perform them which tasks to that day. about Branaugh. Beyond this, provide Efrain does any not evidence that supervisory had The parties dispute the specific nature authority significant change to effect in the complaints, Efrain’s as well the man- employees. status of other In ner in Roseburg which conducted its inves- stead, the record shows lead mill tigation complaints. into those For exam- wrights did have hiring, not ple, Shop Union Steward Scott Albertus firing, Thus, or disciplinary authority. testified did not make a verbal genuine dispute has not raised a complaint Efrain, about a “racial issue.” issue, material fact on this hand, the other testified that he told Al- cannot be liable Branaugh’s held for con Roseburg management bertus and duct theory under a of vicarious liability. Branaugh him in a harassing racist manner. Negligence Additionally, Supervisor Maintenance grounds the absence of for im he, Terry Albertus, Turner testified that posing liability, employer vicarious and Master Mechanic Dick met Westbrook liable for a hostile environment cre October ated if plaintiffs co-worker the em response complaint. to Efrain’s verbal ployer “knew, known, or should have However, Efrain testified that Albertus prompt harassment and failed to take admitted to him that he not attend did effective remedial action.” E.E.O.C. v. Inc., Servs., meeting. Efrain also claims that Albertus Prospect Airport 621 F.3d (9th 2010). told him “repri- Cir. Westbrook had indeed Remedial action Branaugh, manded” must include some form of that Albertus was disciplinary measures, any Yamaguchi Dep’t skeptical reprimand, real remark- v. U.S. Force, ing, probably Air I know—they “How do sat 1997), together which must be “proportionate[ and drank Coca Cola.” ] measures enough. The remedial must further not provides Nichols, 256 F.3d at also be effective. See respond appropriately

Roseburg did (“When employer undertakes complaints. Master Me- 875-76 verbal remedy does remedy, deposition testified at no or where chanic Westbrook any [Branaugh] and deter fu- g[a]ve end the current harassment that he “[n]ever harassment, and that disciplinary liability action” ture attaches both kind of formal *12 any consisted with and future past his conversations the harassment as, you harassment.”). “I learn hope of such platitudes, again.” Don’t do it your mistakes. from of fact genuine dispute There is a fact, in the reveals record the evidence response was effec- Roseburg’s whether complaint Efrain’s in response in all, After Efrain declares Bra- tive. 2009, Roseburg’s managing per- October harass him even after naugh continued to Branaugh on his simply “coached sonnel meeting management with October. And and told him he “can leadership skills” it though Roseburg contends that even uncomfortable.” people make Branaugh from Efrain tried to separate dispute, Roseburg point another As Richard, assigned still and the men were that Efrain interfered with contends 9, 2010, January and to the same shift on into his written investigation December enough proximity for Bra- close refusing to be a by interviewed complaint Efrain naugh engine and rev his by walking job. off the second time Richard on Roseburg’s that he told responds genuine Because has established Dan representative, human resources disputes fact as to whether Johnson, participate he would in a remedy a racially fostered failed to attorney, an but interview without second environment, reverse hostile work we up. followed Roseburg never summary judg- grant district court’s disputes why underscore this case These ment on hostile work environment Efrain’s presents questions of material fact claim. appro- that are

credibility determinations Disparate II. Treatment only priate jury. for a Not meeting argu- with Branaugh mid-October facing liability In addition to to address ably insufficient the seriousness creating environment, by a hostile work an allegations Richard’s of dis- Efrain and Title VII and employer is liable under behavior, harassing a rea- criminatory and employee § an subjects 1981 when it fact could that it trier of also find sonable prima disparate To show facie treatment. man- meeting ineffective. After treatment, plaintiff of disparate case agement, Branaugh continued to harass “give[s] must offer rise to an Efrain, Efrain to prompting file written inference of unlawful discrimination.” Sis early December 2009. It was complaint Dist., MercedCmty. Coll. cho-Nownejad v. indepen- hired an only then 1991) (9th 1104, (quot 1110 934 Cir. company (Vigilant) investigate dent Burdine, of Cmty. v. ing Dep’t Tex. Affairs eventually to Rose- allegations, which led 253, 1089, 450 U.S. 101 S.Ct. 67 to schedule on a burg’s decision (1981)). way to L.Ed.2d 207 One establish Efrain. shift from separate by satisfy of discrimination is inference prima from McDon Roseburg may ing indicates that facie elements The record Green, 792, Douglas Corp. nell U.S. investigating promptly have acted (1973): 1817, L.Ed.2d 668 93 S.Ct. complaints, prompt action (1) plaintiff belongs protected to a is one that can only be resolved through a class, performing he was according to searching inquiry that is appro most —one employer’s legitimate expectations, priately factfinder, conducted upon action, he suffered an employment adverse a full record.” Schnidrig v. Columbia similarly situated employees were Mach., Inc., (9th 80 F.3d Cir. treated favorably, more or other 1996) (internal circum- quotation marks and cita stances surrounding the adverse employ- omitted). tion give ment action rise to an inference of bases his treat

discrimination. Hawn Mgmt., v. Exec. Jet ment claim on a number of alleged instanc Inc., (9th 2010); 615 F.3d Cir. es of discriminatory actions, Wesson, Inc., Godwin v. Hunt 150 F.3d being foremost his termination. Efrain 1998) (citing McDon- alleges that his employment was terminat Douglas, nell 411 U.S. at 93 S.Ct. *13 ed because of his race or origin, national 1817). because he made complaints and/or Under Douglas McDonnell being against. discriminated The district framework, burden-shifting when the court determined that even assuming plaintiff case, prima demonstrates his facie Efrain could make out a prima facie case the burden shifts to the pro defendant to treatment based on his termi legitimate, vide a non-discriminatory rea nation, he could not establish that Rose- son for the adverse action. articulated, burg’s non-discriminatory rea Hawn, 615 F.3d at 1155. If the defendant son for the termination pretextual. was burden, meets this plaintiff then the “must disagree, We then and hold raise a triable that Efrain issue of material has fact necessary as to established the disputes whether the proffered defendant’s ma- terial reasons ... are fact to survive pretext summary judgment. mere for unlawful Roseburg discrimination.” Id. concedes that Efrain has satis- fied the first three prima elements of the However, nothing compels the case, facie but maintains that Efrain has parties to use the Douglas McDonnell similarly shown that employ- situated McGinest, framework. 360 F.3d at 1122. In ees were favorably treated more because alternative, plaintiff may a simply pro there is no evidence that non-Hispanic em- duce direct or circumstantial evidence ployees (like have job walked off the demonstrating that a discriminatory rea Efrain) and not been terminated. son likely “more than not motivated” the employer. Metoyer Chassman, 504 F.3d Roseburg is correct there is no 2007) (citation omitted); the record of similarly situated Hawn, see also (explain F.3d at 1155 employees being treated more favorably ing that plaintiff may a show an precise inference manner. But there is sufficient of discrimination “through comparison to give evidence to rise to an inference of similarly individuals, situated any discrimination non-Hispanic based on two surrounding Martin) circumstances employees the adverse (Branaugh and Mike employment action give rise to an being [that] treated favorably more than Efrain. discrimination”) (internal inference of quo The record indicates that was omitted). tation marks and (and, citation Either hardly reprimanded significantly, not way, terminated) require “very we little evidence to after several complaints were summary judgment survive behavior, a discrimi made about his hostile and Mar- case, tin, nation question because the ultimate employee, a white subjected was not remaining cir- dispute The parties intrusion as Efrain. lock-cutting the same Shop present of the hold that Efrain has cumstances search. Union therefore We that a satisfy the fourth Albertus testified evidence to Steward Scott ed sufficient case. prima drug-sniffing dog approached of his facie Because element prima locker, a point Roseburg has demonstrated facie ordered Efrain at which case, Roseburg the burden shifts the locker Rich- the lock cut and searched. non-discriminatory legitimate, during provide he present ard testified that Vasquez, the termination. See reason for to open offered the locker search and at 641. 349 F.3d him management waved key, with away and broke lock. Richard it Roseburg termi contends locker dogs testified that the alerted to the walking job for off the nated Efrain co-worker, The of a Mike Martin. white refusing for to work January record does indicate January 2010. In re as scheduled locker, and lock on Martin’s broke the sufficient evi sponse, presents that he heard that Martin’s testified genuine dispute to establish dence locker not searched. fact as material to whether pre- Precisely reasons termination the events of the claimed because unclear, full knowl search we textual. are hold behavior, Branaugh’s necessary edge disputes has of mate raised *14 at the Efrain to work same site required summary judgment. rial fact to survive See thereby (“This Branaugh. Roseburg Villiarimo, condi Court 281 F.3d willing on his employment tioned Efrain’s. explained has that under the McDonnell who framework, to work with a coworker had a degree ness Douglas requisite ‘[t]he history repeatedly persis of proven proof necessary prima of establish harassing Efrain based on race tently his facie Title does case for VII discrimination fact, origin. along national This rise of a not even need to to the level failure Roseburg’s of to ever ”) the evidence preponderance (quoting of the evidence.’ reprimand Branaugh, legitimately is suffi Co., Simplot 26 F.3d Wallis J.R. genuine dispute establish a of fact cient to (9th 1994)); Eagle see Diaz v. Cir. Roseburg’s discriminatory as to intent P’ship, Produce Ltd. F.3d the firing Accordingly, Efrain. district (9th 2008) (“As matter, general the Cir. granting summary judg court erred employment in an discrimination plaintiff in favor of on the discrim ment very produce action little evidence need inatory termination claim. motion employer’s order to overcome Chuang summary judgment.”) (quoting dispa We also hold that Efrain’s Davis, Trs., 225 v. Univ. Cal. Bd. of of treatment claim based on lock- rate the (9th 2000)). 1115, 1124 Cir. summary cutting judg incident survives Roseburg’s Viewing favorably act of ment. claims that Efrain, facie satisfy prima into Efrain and Richard’s locker he is able his breaking mill discrimina case of treatment during disparate a search of the based undisputed presented that on incident. Efrain has tory. lock-cutting It is November to a brought belongs in a narcotics sufficient evidence he (he sniffing protected and that drug dogs Hispanic), force with class task em- During performing according certain the mill. he was to his search areas of (he search, expectations per- ployer’s legitimate a lock cut off locker that job positive his formed his well and received Efrain and son shared. evaluations). He has also shown that he As to Efrain’s remaining allegations of action; suffered an adverse employment disparate treatment, the district court cor- act Roseburg’s breaking into rectly Efrain’s held that Efrain provide did not materially locker without notice affected sufficient evidence that those incidents terms, conditions, privileges constitute employment adverse actions or employment Efrain’s similarly because it employees was a situated “substantial treated favorably. Therefore, interference with more work facili- the dis- trict important ties to the court did not err in performance of granting sum- job.” mary judgment Chuang, 225 as to F.3d at 1125-26 those (holding additional alle- (cid:127) gations of disparate the forcible relocation of treatment. plaintiffs laboratory space more than qualified as an III. Retaliation action). employment adverse Finally, presented has To prima evidence that a simi- establish a facie case larly retaliation, employee situated was treated must more show “that he favorably he, undertook a protected activity than as a white under co-worker’s Title VII, employer subjected locker was not broken him into after a to an drug- adverse employment action, sniffing dog alerted to it. holding Our there is a causal link summary between judgment those two is unwarranted is also events.” Vasquez, 349 F.3d bolstered at 646. “[0]nly failure to non provide trivial legitimate, actions nondiscriminatory that would de why reason ter employees it broke Efrain reasonable complain from Richard’s lock rather ing about just than Title letting VII violations open Richard it will consti with a key. tute actionable retaliation.” City Brooks v. Mateo, San 229 F.3d The district court held that 2000). allegations were insufficient Similar treatment con- give rise to an inference of unlawful dis *15 text, if Efrain a prima establishes facie crimination they because “largely were un case, the burden then Roseburg shifts to In refusing substantiated.” to give weight legitimate, to advance a nonretaliatory rea- to Efrain and Richard’s declarations about any son for employment adverse action search, the locker room the district court Steiner, against taken Efrain. 25 at F.3d erred. “That an affidavit is selfserving burden, 1464-65. If Roseburg meets this bears on credibility, its not on cogniza- its then Efrain “has the ultimate burden of bility for purposes establishing of genu showing that [Roseburg’s] proffered rea- ine issue of material fact.” United States v. sons pretextual.” are Id. at 1465. 1093, Shumway, 199 F.3d 1999). If Efrain and Richard’s declarations alleges Efrain reta conclusions, only stated and not “such against facts liated him for complaining about evidence,” as would be admissible in then Branaugh orally in by October 2009 and the declarations would not cognizable. be complaint written in December 2009. As (citation omitted). Id. But the held, declarations the district court correctly Efrain’s do state facts of which Efrain and complaints Richard protected are personal knowledge have activity and should not Brooks, under Title VII. See be outright. Ultimately, discredited Efrain at (explaining that “[a]sserting presented has sufficient evidence to raise a rights” protected one’s civil is a activity). genuine dispute Therefore, of fact as to discriminato Efrain has satisfied the first ry intent behind lock-cutting. the element of prima the facie case. genuine dispute of material prima of the established to the second element

As pretext. of fact as to case, five instances alleges Efrain facie (1) action: retaliatory employment adverse Supreme Douglas, the McDonnell 2009, and Richard Efrain In November pretext of explained that evidence Court powerhouse the required to work at were 804-05, many at can take forms. U.S. a bet- millwrights white worked while five For the manner in example, 93 S.Ct. (2) 30, 2009, Rose- job; on December ter by his em- plaintiff the treated which part- from millwrights burg converted may be during his rele- ployer so for full-time but did not do time to Addition- showing pretext. to a of Id. vant Richard; January fact outside the ally, persons the no available longer made work orders treated protected class were bet- plaintiffs Richard, they had Efrain and so comparable of seriousness ter for offenses what figure out consult the work board Id. help pretext. could also demonstrate do; job and four also ex- The Court 93 S.Ct. 1817. crew, re- one millwrights, composed who Plumbing in Reeves v. Sanderson plained equivalent level ceived an of. Prods., summary judg- Inc. that whether Richard, composed a who alone on a appropriate depends is number ment crew; on second factors, including strength Efrain was terminated. proba- prima case and “the plaintiffs facie proof employer’s of the that the tive value held that correctly court The district false,” 133, 148-49, explanation 530 U.S. four of re alleged Efrain’s first instances (2000). 147 L.Ed.2d 105 120 S.Ct. satisfy prima facie bur taliation do alleged are either because the actions den Here, court erred focus district not established trivial or has too reliance ing unspecified on “Plaintiffs al necessary causal link between allegations treatment.” prior and his The dis complaints. actions leged unspecified rely Efrain did more than however, held, correctly court also trict genuine dis allegations demonstrate retaliatory to the termination that as one, pretext. fact as to For pute of claim, bur prima Efrain has met his facie particularly case is prima strong, facie his prima Efrain has met den. Because of the termination. light timing retaliatory termi for the facie burden Efrain had worked at more claim, Rose- shifts to nation burden years, yet barely fired than five he was nonretaliatory “legitimate, provide burg making month after a formal written one *16 Steiner, termination. 2 for reasons” Proof of link complaint. a causal between to do Roseburg 1464-65. If is able F.3d at complaint termination —as Efrain’s and his so, Roseburg’s must then Efrain show that by témporal proximity cer evidenced —is Id. pretextual. reasons are proffered pretext. tainly relevant to an evaluation 1465. Int'l, Dawson v. Entek See 2011) (“In cases, tempo some district noted The court can proximity by ral itself constitute suffi nonretaliatory rea Roseburg offered two circumstantial evidence of retaliation cient walked for the termination —Efrain sons facie purposes prima of both the case for job January and refused off the showing of pretext.”). and the as to work scheduled on Second, Efrain presents Efrain failed to also evidence district court held that The favorably than pretextual. that he was treated less that those reasons were show protected employees Efrain has outside of disagree, and hold that We example, class. For the record indicates state law claims for hostile work envi- subjected Branaugh Efrain to a hos- ronment and disparate treatment as con- environment, yet tile work Branaugh, a sistent analysis with the in the federal man, seriously punished. white was not context. We AFFIRM the district court’s Roseburg’s benign contrast to grant treatment of of Roseburg’s motion for summary Branaugh, Efrain was terminated issues, for miss- judgment remaining on the as dis- ing just day’s half one and a work. Nota- cussed above. Costs shall be taxed against bly, days those were Roseburg. refused to work specifically because was on BEA, Circuit Judge, dissenting part:

the same shift. Efrain Reynaga appeals as the district to how he was grant summary judgment court’s employment, treated in fa- during his the timing vor Roseburg of defendant being of his Forest termination one month Prod- after ucts (“Roseburg”) his for his hostile complaint, written and the work disparity environment, treatment, punishment disparate Efrain and and re- between taliation claims in violation of 42 are sufficient to genuine establish a U.S.C. dis- (“Title § VII”), § 2000e pute of fact U.S.C. as to whether prof- Oregon state The leading fered reason law. events terminating for Efrain’s em- to this lawsuit occurred when ployment Therefore, Appellant pretextual. (of descent) Reynaga Mexican district worked granting court erred summary a millwright for judgment in between 2004 favor of on Efrain’s during time claim which he claims to retaliatory termination. subject racially have been disparaging IY. State Law Claims statements disparate treatment be- cause of his race lead millwright Tim-

This court has held the substantive othy Branaugh. I panel concur analysis § for Title VII and 1981 claims majority’s opinion reversing the district applies to discrimination claims under grant summary court’s judgment for (b). 659A.030(l)(a), §§ Dawson, O.R.S. defendant Reynaga’s retaliatory termi- Therefore, pursuant F.3d at 934-35. to the However, nation claim. because Roseburg II, analysis in supra, Parts I and the dis- took prompt and effective action to recti- trict court granting Roseburg’s erred in fy the hostile experi- work environment summary judgment motion for on Efrain’s by Reynaga Rey- enced and terminated state law claims. naga only repeatedly after he refused to shifts, assigned the district CONCLUSION court concluded properly his hostile reasons, For foregoing we RE- work environment and treat- grant VERSE the district court’s of Rose- ment claims should fail as matter of burg’s summary motion judgment law. REMAND proceedings for further on the *17 (1) following hostile work claims: environ- I. ment, including employer liability through (2) negligence; disparate Reynaga treatment of proving with has the burden that regard breaking Branaugh’s “sufficiently to the of Efrain’s lock and conduct was se- employment; pervasive termination Efrain’s vere or of to alter conditions of (3) regard retaliation ... Roseburg’s with and create an abu- [his] employment; termination Vasquez Cnty. of and sive work environment.” v. (9th 634, Vigilant’s investigation, of Rose- F.3d Cir. the course Angeles, Los of 2003). Furthermore, Reynaga burg Branaugh’s altered schedule must estab Branaugh’s Reynaga apart and as keep Branaugh is liable for Roseburg lish that conduct, vicariously possible. on much as either or based Corp., v. negligence. GTE Serv. McGinest Roseburg’s only not intervention was 2004). (9th 1103, 1119 Cir. Reynaga does prompt, also effective. identify derogatory statement single that Bra- not The district court concluded by after com- Branaugh Vigilant suffi- made racist were not naugh’s statements its fact that investigation.1 menced The to alter the conditions ciently severe so as Reynaga at the Roseburg scheduled to be The court also Reynaga’s employment. (1) facility day Branaugh as alone held, Roseburg was on same alternatively, that con- juror con- not allow a reasonable vicariously Branaugh’s would liable Roseburg’s that intervention was not Branaugh supervi- was not a clude duct because effective, (2) Roseburg sor, Roseburg negli- such that could be held and that was not effectively negligent. duty as was promptly it and liable gent because eliminating Reyna- care in agree I take reasonable Branaugh’s remedied misconduct. hostile, Branaugh’s racist panel majority Roseburg ga’s exposure to with the statements, and Branaugh con- not ensure Branaugh’s cannot be held liable for in theory liability. Reynaga working were never the same duct under of vicarious Thus, facility. Reynaga’s mis- as far as assuming Branaugh’s But even shows, racist sufficiently Branaugh’s so as to statements conduct severe by employer the time that the acted Reynaga’s employment, ceased alter terms Reynaga’s complaint. Reynaga has Rose- cannot Reynaga not established that on fact effectively failed to raise a triable issue of as to whether burg promptly workplace following hostile Rose- remedy Branaugh’s misconduct. such, burg’s Reynaga’s intervention. As remedy Roseburg prompt action to took workplace hostile claim should fail. son alleged Reynaga’s misconduct. employee spoke Roseburg with another II. Branaugh’s behavior October 2009, Roseburg to conduct an To establish that he suffered which led investigation Reynaga participat- in which treatment violation Title VII 1981, “may § Appellant complaint Reynaga But a written ... [use] ed. filed framework, alter- specifically Douglas identified McDonnell natively, may cir- Branaugh simply produce and referred to “acts of discrim- direct or that a demonstrating ination” and a “hostile work environment” cumstantial evidence discriminatory only likely 2009. hired more than not December reason receiving Rey- Metoyer within week of motivated” the defendant. Vigilant one Chassman, naga’s complaint, represen- written 504 F.3d 2007). Reynaga Douglas from Under Vigilant tative interviewed McDonnell “(1) framework, Reynaga 2009. inter- must show that: Vigilant on December class, During belongs protected to a employees [he] viewed well. [he] sieves;” Reynaga only by Bra- Jan. identified two acts engine Reynaga’s naugh occurring after 2009: revved his automobile's December sufficiently presence. acts are Jan. left an email in the These two Reynaga’s purporting quote Lee so as alter the breakroom a book severe terms employment. Vasquez, "our are like 349 F.3d at 642. Iacocca said borders

697 according Accordingly, to framework. performing employ- [his] no reasonable legitimate expectations, suf- jury [he] er’s could Roseburg subjected find that action, fered adverse and Reynaga racially disparate to treatment employees qualifications other when it refusing fired him for to on to own were treated more [his] similar January 13. The district court should thus Wesson, favorably.” Inc., Godwin v. Hunt be affirmed on point.2 this 1998) (citing I respectfully dissent. Green, Douglas Corp. v. McDonnell 36 L.Ed.2d U.S. S.Ct. (1973)). Roseburg,

According Reynaga it fired January 18, Reynaga

on 2010 because job January off the on 9 and re-

walked

fused work his scheduled shift on Janu- It

ary undisputed Reynaga 13. job January off walked 9 and re- SANDOVAL, Leonel AKA Lione January fused work the 13 shift. These Sandoval, Petitioner, legitimate, non-discriminatory are reasons panel Reynaga. majority to terminate The Sally Q. YATES,* Acting requiring Attorney

asserts that Roseburg Reynaga January General, Respondent. to work 13 at same time as decision not to No. 13-71784 discipline Branaugh immediately offered disparate potential evidence of treatment. Appeals, United States Court of However, above, as Reynaga mentioned Circuit. Ninth right not have a insist that did Rose- Argued and Submitted November burg fire Branaugh or never schedule Bra- 8, 2016, Portland, Oregon naugh at the same that Reynaga time hostile, working. Branaugh’s racist state- Filed Vigilant began ments ceased after investi-

gating Branaugh in 2009. December That

Roseburg did discipline Branaugh be- Vigilant completed investigation

fore its job Reynaga similarly walked off dispa-

cannot be construed as evidence of reasons, Reyna-

rate treatment. these For did not

ga provide direct circumstantial suggest discriminatory moti- He

vation termination. also failed to

offer evidence that workers had they terminated

been when walked off the

job so as to burden satisfy shifting * Q. agree majority Sally I panel Reyna- predeces- with the Yates for her is substituted sor, ga did raise a triable of material Acting Attorney issue fact as Lynch, Loretta Gen- E. cutting States, treatment for the lock pursuant eral R. United to Fed. McDonnell-Douglas incident under the frame- 42(c)(2). App. P. work.

Case Details

Case Name: Efrain Reynaga v. Roseburg Forest Products
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Jan 26, 2017
Citation: 847 F.3d 678
Docket Number: 14-35028
Court Abbreviation: 9th Cir.
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