Before the Court is Defendants' Motion to Dismiss Individual Defendants and to Strike Immaterial, Impertinent and Scandalous Matters (Dkt. No. 17) filed August 30, 2017. Defendants' Motion is GRANTED to the extent it asserts that service of the summons and complaint on the individual defendants has not been properly effected. Plaintiff is therefore ordered to effect service on them in accordance with the Federal Rules of Civil Procedure, or file proof that such service has already occurred, within thirty days of this Order. Defendants' Motion is DENIED in all other respects for the reasons that follow.
BACKGROUND
Plaintiff Alexandra Sirois, a former Hawaii-based employee of Defendant East West Partners, Inc. ("EWP"), brings claims against EWP for hostile work environment and retaliation, in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et. seq. , and the Hawaii Employment Practices Act ("HEPA"), Hawai'i Revised Statutes ("HRS") § 378-2, et seq. Compl. ¶ 1, Dkt. No. 1. EWP, which builds, sells, and manages luxury real estate developments throughout the United States, is a for-profit corporation organized and existing under the laws of the state of Colorado with corporate headquarters in Avon, Colorado. Compl. ¶ 6. Also named as defendants are Harry H. Frampton III, EWP's CEO; Andrew Sutton, EWP's Managing Partner in Hawaii and Sirois' direct supervisor; and Nicole Greener, EWP's Director of Human Resources (collectively, "Individual Defendants"), each of whom Sirois accuses of aiding and abetting unlawful harassment and retaliation in violation of HEPA. Compl. ¶¶ 7-9. Sirois asserts an additional claim against EWP for unpaid overtime compensation, in violation of the Fair Labor Standards Act ("FLSA"),
EWP hired Sirois as an Assistant Project Manager, with an initial annual base salary of $60,000, in January 2014. Compl. ¶ 16. In less than three years, Sirois received three pay increases, bringing her base compensation to $92,500, illustrative of her value to EWP. Compl. ¶¶ 20-21. As an Assistant Project Manager, Sirois performed a variety of office and clerical tasks, "including but not limited to providing general support to Sutton; answering incoming phone calls; processing paperwork relating to home sales and change orders; preparing marketing materials and general correspondence; coordinating change orders with contractors; and planning and attending marketing events." Compl. ¶ 64.
Sirois reported directly to Defendant Sutton, and at all times material, Sirois and Sutton were EWP's only full-time employees in Hawaii.
a) requiring that [Sirois] organize and attend marketing events so that Sutton could "pimp out" his own wife, Kelsey Sutton ("Mrs. Sutton"), and her scantily clad friends, providing Mrs. Sutton with a forum to drink excessively, dance inappropriately, kiss, grope, and have sex with a wealthy, married EWP customer, Brett Dedeaux ("Dedeaux");
b) taunting [Sirois] by making offensive comments about other women in [her] workplace, including [Sirois'] own mother;
c) requiring that [Sirois] participate in a scheme to refrain from disclosing to Dedeaux's wife, Jean Dedeaux ("Mrs. Dedeaux") and Dedeaux's parents any information relating to Mrs. Sutton's and Dedeaux's illicit affair;[2 ]
d) taunting [Sirois] by putting a woman on speaker phone and deliberately speaking to her in a rude and condescending manner as a way of asserting his male dominance;
e) deliberately picking on Plaintiff, taunting and ridiculing her, and attempting to manufacture arguments with her as a way of asserting his male dominance;
f) mocking [Sirois] by asking her to give him and Mrs. Sutton private tennis lessons during her non-working hours even though [Sirois] and Sutton never socialized outside of work;
g) asking [Sirois] to hire "hot" female dancers for a marketing event;[3 ]
h) telling [Sirois] that her work attire was not feminine enough;
i) requiring that [Sirois] coordinate marketing events and schedules with Mrs. Sutton so that she could continue her illicit affair with Dedeaux;[ 4 ] and
j) following [Sirois] around with his phone and taking videos of her even after she repeatedly pleaded that he stop.[5 ]
Compl. ¶¶ 25(a)-(j). Thus, "[b]y his demeanor, words, and actions, Sutton made clear ... that he had no respect for women in a professional work environment." Compl. ¶ 26. Sirois also contends that "Sutton regularly directed hostility towards [her] because she was an openly gay female." Compl. ¶ 27.
Although she complained to Greener about the hostile environment Sutton had created, Sirois states that Greener consistently failed to investigate her concerns and did not take any remedial action to address Sirois' complaints. Compl. ¶¶ 28-30, 43-44, 51-52. As such, Sirois "asked to speak directly with EWP CEO, Frampton." Compl. ¶¶ 54-55. According to Sirois, however, Frampton too gave no credence to her complaints. Instead, he "abruptly terminated [her] employment, stating that it was clear to him that [Sirois] could no longer work together with Sutton," but he also offered her a few weeks of severance pay for being a "nice lady." Compl. ¶¶ 56-57. Sirois later received a termination letter from EWP dated September 28, 2016,
Procedural History
On August 3, 2017, after exhausting her administrative remedies with the Federal Equal Employment Opportunity Commission ("EEOC") (Compl. ¶ 62), Sirois initiated the instant action. The Complaint asserts five counts against EWP-Retaliation in violation of both Title VII,
On August 30, 2017, the Individual Defendants filed the instant Motion to Dismiss. MTD, Dkt. No. 17.
Sirois filed her opposition to the MTD (Dkt. No. 44) on October 19, 2017, and Defendants filed a Consolidated Reply Memorandum in Support of the MTD (Dkt. No. 45) on October 26, 2017. Following a hearing on November 9, 2017, the Court took matters under advisement. The instant disposition follows.
STANDARD OF REVIEW
Rule 12(f) Motion to Strike
Federal Rule of Civil Procedure ("FRCP") 12(f) provides that the "court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." "[T]he function of a Rule 12(f) motion is to avoid the waste of time and money spent on litigating spurious issues by dispensing with those issues before trial ...." Fantasy, Inc. v. Fogerty ,
Ultimately, whether to grant a motion to strike under Rule 12(f) lies within the sound discretion of the district court. Fantasy ,
Motion to Dismiss Pursuant to FRCP 12(b)(6)
A motion to dismiss under Rule 12(b)(6) of the FRCP challenges a complaint's compliance with the pleading requirements of the Federal Rules. The Court may dismiss a complaint pursuant to FRCP 12(b)(6) for "failure to state a claim upon which relief can be granted" when there is a "lack of a cognizable legal theory or the absence of sufficient facts alleged." UMG Recordings, Inc. v. Shelter Capital Partners, LLC ,
For purposes of ruling on a Rule 12(b)(6) motion, the court "accept[s] factual allegations in the complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving party." Manzarek v. St. Paul Fire & Marine Ins. Co. ,
Motion to Dismiss Pursuant to FRCP 12(b)(2)
"Where a defendant moves to dismiss a complaint for lack of personal jurisdiction,
Leave to Amend
If a court dismisses the complaint or portions thereof, it must consider whether to grant leave to amend. Lopez v. Smith ,
DISCUSSION
I. THE RULE 12(F) MOTION TO STRIKE IS DENIED.
Defendants ask the Court to strike paragraphs 25(a), 25(c), 25(i), 32-40, 46, and 57 from the Complaint under FRCP 12(f) due to the "immaterial, impertinent and scandalous" nature of their contents. Mem. in Supp. at 2, Dkt. No. 17-1. The challenged paragraphs refer to Defendant Sutton's alleged act of "pimp[ing] out" his spouse (e.g. , Compl. ¶¶ 25(a), 32, 37); they identify Sutton's spouse and a married EWP client and label their alleged relationship as an "illicit affair" (Compl. ¶¶ 25(c), 25(i), 38), an "illicit sexual relationship" (Compl. ¶ 34), an "adulterous affair" (Compl. ¶ 40), and an "infidelity" (Compl. ¶ 39); and they adjudge the alleged couple's various actions as "inappropriate" (e.g. , Compl. ¶¶ 34, 36, 46). The challenged paragraphs also describe the EWP client with whom Sutton's wife was allegedly having an affair and the client's friends as "wealthy" (Compl. ¶¶ 33, 35), Sutton's wife's friends as "young" and "scantily clad" (Compl. ¶ 35), and claim that the EWP client's own spouse "was not fully aware of" her husband's alleged "infidelity" with Sutton's wife (Compl. ¶ 39). Finally, Defendants request that the Court strike the paragraph labeling Frampton a "misogynist." See Compl. ¶ 57 ("A true misogynist, Frampton also said that Plaintiff would receive a few weeks of severance pay because she was a 'nice lady.' "). While these allegations are, in some ways, sensational and salacious, and it is understandable that Defendants wish to keep the details hidden, the challenged paragraphs are directly related to Sirois' claims for hostile work environment and retaliation. Accordingly, the Rule 12(f) Motion to Strike is DENIED.
Under FRCP 12(f), the "court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." In this context, redundant allegations are "those that are needlessly repetitive or wholly foreign to the issues involved in the action." Alco Pac. ,
Here, Sirois' principal claim is that Sutton, her direct supervisor, ordered her to set up client parties with a sexual overtone in order to, among other things, promote his spouse's carousing with the firm's clients, and specifically with Mr. Dedeaux. Compl. ¶¶ 25(a), 25(i), 38. In other words, Sutton directed Sirois to facilitate a sexual relationship for his benefit and for the benefit of EWP. The implication is that Sutton's decision to use his spouse in this manner was part of his business development plan. Moreover, Sirois alleges that she was required to do this on multiple occasions as part of her job duties. Compl. ¶¶ 25(a), 25(i), 31, 38-41, 47, 52. And she states that her involvement in these events became common knowledge within the Kauai real estate community in which she worked. Compl. ¶¶ 36-37. This, Sirois contends, is what created the problematic sexual environment in EWP's two-person Hawaii office. As such, the Individual Defendants' argument that "such scandalous allegations" cannot "plausibly be necessary and material to the issues" is unconvincing. See Mem. in Supp. at 9 (citing Fantasy ,
Further, sexual harassment includes "[u]nwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature," Meritor Sav. Bank, FSB v. Vinson ,
Moreover, where there are allegations against an employer regarding the employer's own sexual comments, advances, and actions demonstrating favoritism, among other things, an employee has a claim for hostile environment merely for being exposed to that atmosphere-even where the advances and comments were simply viewed and/or overheard. See, e.g. , Woods v. Graphic Commc'ns ,
Here, Sirois alleges that Sutton "direct[ed] her to plan and attend events intended to have a sexually charged environment that included 'pimping out' his wife to Dedeaux." Opp'n at 15-16, Dkt. No. 44. Such an allegation is directly related to the hostile work environment that Sutton allegedly created. See Patane ,
Therefore, the Court declines to strike any of the specified paragraphs.
II. SIROIS PLEADS A VALID HRS § 378-2 CLAIM AGAINST THE INDIVIDUAL DEFENDANTS FOR PURPOSES OF FRCP 12(b)(6).
Defendants argue that Sirois has failed to plead sufficient facts to sustain her claim for Unlawful Discriminatory Practices, in violation of HRS § 378-2(a). With respect to Sutton specifically, Defendants urge the Court to dismiss the aiding-and-abetting-harassment claim because the allegations underlying Count V merely assert "that multiple persons were involved in alleged discrimination" without "identify[ing] any allegation against Sutton involving another individual, ignoring the well-settled rule that he cannot be sued for abetting himself." Reply at 8-9 (citing Mem. in Supp. at 7-8 (collecting cases in support) ). Noting that "Greener is alleged to have failed to investigate or address Sirois' complaints about Sutton," and that "Frampton allegedly fired [Sirois] in a phone call" (Mem. in Supp. at 6), Defendants also argue that Sirois' allegations of "mere inaction or joint participation in a termination alleged to be unlawful" are insufficient to impose liability on Frampton and Greener for aiding-and-abetting (Reply at 9). None of these assertions has merit.
Section 378-2(a)(3) of the HRS renders it "an unlawful discriminatory practice ... [f]or any person, whether an employer, employee, or not, to aid, abet, incite, compel, or coerce the doing of any of the discriminatory practices forbidden by this part, or to attempt to do so[.]" To plead a valid claim under
Sirois' allegations have little trouble meeting these standards. Sirois has pled that each of the three "Individual Defendants aided and abetted EWP and each other in discriminating against Plaintiff in the terms and conditions of her employment ... by subjecting [her] to a sexually hostile work environment as well as harassment based on her sex and/or sexual orientation." Compl. ¶ 99. Suggesting that the three individuals worked together, Sirois argues that "Sutton did not torment Plaintiff without help" because "Greener and Frampton ignored Plaintiff's repeated complaints about Sutton's abusive conduct, thereby allowing Sutton's abuse of Plaintiff to continue unabated."
Defendants also challenge Sirois' retaliation-based HRS § 378-2(a) claim-that "Frampton and Greener aided and abetted EWP and each other in retaliating against Plaintiff by terminating her employment because she engaged in activity protected by the HEPA" (Compl. ¶ 100)-as conclusory, stating that "it is insufficient to merely assert that multiple persons were involved in alleged discrimination" (Mem. in Supp. at 6-8 (citing Park ,
III. GREENER IS SUBJECT TO PERSONAL JURISDICTION.
Defendants assert that Greener should be dismissed under FRCP 12(b)(2) for lack of personal jurisdiction. Greener has not, they argue, " 'purposefully avail[ed]' herself of the privilege of conducting activities in Hawaii, thereby invoking its benefits and protections," because she is not based in Hawaii, does not conduct business in Hawaii, and Sirois does not allege that Greener has affirmatively acted in some way that was "aimed at" EWP's office in Hawaii. Mem. in Supp. at 12-13, Dkt. No. 17-1 (citations omitted). The Court disagrees.
"Jurisdiction can be exercised over a nonresident defendant without violating notions of due process only when the defendant has 'certain minimum contacts with [the state] such that the maintenance of the suit does not offend the traditional notions of fair play and substantial justice.' " Spring Patents, Inc. v. Avon Rubber & Plastics, Inc. ,
"Physical contacts with the forum state are not necessary to establish purposeful availment." Spring Patents ,
Sirois' claims must also "arise out of or result from" Greener's Hawaii-related activities. Bancroft & Masters ,
Finally, exerting specific jurisdiction over Greener is reasonable. Defendants argue that it would be unfair to burden the Colorado-based Greener with defending this lawsuit in Hawaii on account of "passive and/or administrative conduct related to [Greener's] duties" as EWP's Human Resources Director. Mem. in Supp. at 13 (citing Walden v. Fiore , --- U.S. ----,
However, there is nothing unreasonable or unfair about hailing a non-resident defendant into federal court in Hawaii under the circumstances presented here. Greener affirmatively acted in the manner described in the Complaint to affect the employment rights and employment environment of a Hawaii-based employee. She did so knowingly. In other words, she was not duped or somehow confused into believing that Sirois was located somewhere other than where Sirois was. Moreover, as Sirois has accurately noted (Opp'n at 23), declining to exercise jurisdiction over Greener could force Sirois to file a separate action, arising out of the identical facts as the claims herein, in another forum, resulting in piecemeal litigation and unreasonably risking inconsistent results. Thus, although some factors weigh slightly against the exercise of personal jurisdiction here-e.g. , those regarding inconvenience to the proposed defendant-the exercise of personal jurisdiction over Greener is reasonable on balance in consideration of the above-described factors and, in particular, because of the "presumption of reasonableness on the present record, given [Greener]'s alleged contacts with Hawaii." Spring Patents ,
IV. SIROIS MUST EFFECT AND/OR PROVIDE EVIDENCE OF PROPER SERVICE ON THE INDIVIDUAL DEFENDANTS WITHIN THIRTY DAYS.
Sirois served the Summons and Complaint in the instant matter on EWP's Vice-President in Colorado (Jean Shearon) on behalf of Sutton, Frampton, and Greener (see Dkt Nos. 13, 14, 15). She defends the propriety of this service exclusively based on Colorado Rule of Civil Procedure ("CRCP") 4(e)(3). See Opp'n at 9. The Court finds that proper service is not evident on the record before it.
Under Rule 4(e) of the FRCP, an individual may be served within a judicial district of the United States by: "(1) following state law for serving a summons in an action brought in courts of general jurisdiction in the state where the district court is located or where service is made," or by "(2) doing any of the following: (A) delivering a copy of the summons and the complaint to the individual personally; (B) leaving a copy of each at the individual's dwelling or usual place of abode with someone of suitable age who resides there; or (C) delivering a copy of each to an agent authorized by appointment or by law to receive service of process." Sirois claims to have followed the rules of the state where service was made-Colorado. Sirois asserts that CRCP 4(e)(3)"authorize[s] service of process on an individual by leaving a copy of the summons and complaint at the person's usual place of business with the person's secretary, bookkeeper, manager, or chief clerk." Opp'n at 9 (quoting Guarneros v. Deutsche Bank Tr. Co. Americas ,
Defendants argue that service was improper because "there is no evidence that Sutton's 'usual place of business' is in Colorado," and "there are no facts or evidence to suggest Shearon is any individual's secretary, bookkeeper, manager or chief clerk[.]" Reply at 10. Defendants are correct. Defendant Sutton worked in Hawaii, not Colorado. See Compl. ¶¶ 8, 23. Because Colorado was not Sutton's "usual place of business," service on any person in Colorado on Sutton's behalf could not have been proper under CRCP 4(e)(3). Further, although Greener and Frampton are both Colorado-based and service was allegedly attempted in Colorado, see
Plaintiff is directed to either properly serve the Summons and Complaint on Sutton, Frampton and Greener within the meaning of FRCP Rule 4, and/or to file proof with the Court that she has already done so, within thirty days of this Order.
CONCLUSION
For the foregoing reasons, and except with respect to personal service of the Summons and Complaint, as described above, the Motion to Dismiss Individual Defendants and to Strike Immaterial, Impertinent and Scandalous Matters, filed on August 30, 2017, is DENIED.
IT IS SO ORDERED.
Notes
Sirois claims that, for the duration of her employment with EWP, she "regularly worked in excess of forty (40) hours per week," yet EWP misclassified her as a salaried, exempt employee, and failed to pay her overtime compensation for her hours in excess of forty per week. Compl. ¶¶ 68-70.
Sirois claims that, "[a]s part of her job, [she] was required to interact and communicate with Mrs. Dedeaux and Dedeaux's parents," and that "[a]t that time, it was clear to [Sirois] that Mrs. Dedeaux was not fully aware of Dedeaux's infidelity with Mrs. Sutton." Compl. ¶ 39. As such, Sirois "was required by EWP and Sutton to participate in a scheme to conceal the fact that her supervisor's wife was having an adulterous affair with an EWP customer." Compl. ¶ 40.
See Compl. ¶ 41 ("In connection with the 2016 Surf and Turf event, Sutton asked Plaintiff to book 'hot' female dancers because he wanted to ensure a sexually-charged atmosphere.").
For example, the Complaint contains detailed allegations of EWP marketing events that Sirois planned. During these events, Mrs. Sutton and Dedeaux's inappropriate behavior was so evident to those present that individuals in the Kauai luxury real estate community have since asked Sirois about the "sexual activity" taking place at her events. Compl. ¶¶ 31, 33-36, 46. Sirois contends that Sutton instructed her to schedule these events "directly with Mrs. Sutton, solely so that Mrs. Sutton could continue her illicit affair with Dedeaux." Compl. ¶ 38.
Sirois contends that during a 2016 event, Sutton "taunt[ed] and ridicule[d] her throughout the evening, including in front of others at the event" in this manner, including by filming Sirois from behind while she, wearing a dress for the event, was hitting golf balls. Compl. ¶¶ 47-49.
The termination letter has not been made part of the record in this case.
EWP filed its substantive joinder (Dkt. No. 25) to the Individual Defendants' MTD on September 5, 2017.
Courts have described "[a] scandalous matter" as one that "improperly casts a derogatory light on someone, usually a party." Wilkerson v. Butler ,
To establish a prima facie case of retaliation against an employee for opposing unlawful discrimination under Title VII, 42 U.S.C. § 2000e-3(a) (2003), the plaintiff must show: "1) that [she] acted to protect [her] Title VII rights; 2) that an adverse employment action was thereafter taken against [her]; and 3) that a causal link existed between the two events." McGinest ,
For example, the Complaint alleges that "[a]pproximately two days before the 2016 Surf and Turf event," Sirois "again complained to Greener about Sutton, the Surf and Turf event, and the hostile work environment she was experiencing" and "specifically requested that Greener conduct an investigation." Yet "Greener, with no justification, again ignored [Sirois'] complaints and refused to conduct any investigation," and "[t]he Surf and Turf event took place as scheduled on September 8, 2016." Compl. ¶¶ 43-45.
Although Defendants cite to Rosemond v. United States , --- U.S. ----,
For example, the pleadings refer to Dedeaux as an "important" and "wealthy" "businessman" and EWP customer; to Dedeaux's friends as "a group of wealthy men from California"; to the Surf and Turf events as "EWP marketing event[s]"; and they suggest that "[m]ultiple people conducting business in the relatively small Kauai luxury real estate community, including real estate executives and sales representatives" had knowledge of the improprieties associated with the events. Compl. ¶¶ 25(a), 25(i), 31, 33, 35-37.
In Park , the plaintiff, a former bus driver for Oahu Transit Services ("OTS"), alleged that during two years of employment, he was subject to "verbal harassment, discrimination, and retaliation" at the hands of four individual defendants-one OTS co-worker, and three OTS supervisors.
Indeed, the Complaint notes that "Plaintiff asked to speak directly with EWP CEO, Frampton" only after "[r]ecognizing that Greener was completely unwilling to address the serious accusations of harassment that Plaintiff had lodged." Compl. ¶¶ 54-56. And while Sirois did receive an audience with Frampton, together with Greener, on or about September 26, 2016, Frampton was equally dismissive.
Note that Defendants also argue that "Count V fails to state a claim because Sirois did not allege that she received a right to sue from the Hawaii Civil Rights Commission, as required by
The Individual Defendants do not argue that this interpretation of the Colorado rule is inappropriate, nor do they argue that service should have been made in accordance with the Hawaii Rules of Civil Procedure. Rather, the Individual Defendants focus on the merits of Sirois' CRCP 4(e)(3) claim, so the Court does likewise.
