Wensel v. State Farm Mutual Automobile InsuranceWensel v. State Farm Mutual Automobile Insurance
MEMORANDUM OPINION AND ORDER REGARDING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT
TABLE OF CONTENTS
I.INTRODUCTION.1050
A. Procedural Background.1050
B. Disputed And Undisputed Facts .1050
1. The training program .1051
2. Wensel’s employment and training .1051
II. DISCUSSION.1052
A. Standards For Summary Judgment . 1052
1. Requirements of Rule 56. 1053
2. The parties’ burdens .1053
3. Summary judgment in employment discrimination cases.1054
B. Common-Law Claims.1055
C. Discrimination Claims.1055
1. Price Waterhouse direct evidence framework.1057
a. The speaker.1059
b. The content.1059
c. Causation.1061
2. Circumstantial evidence and the McDonnell Douglas burden-shifting paradigm.1062
a. Disparate treatment through constructive discharge .1062
/. Intolerableness of working conditions. 1064
ii. Opportunity to respond.1066
b. Pregnancy discrimination: Failure to receive independent agent contract.1068
ii. Were other agents who received contracts similarly situated to Wensel?. O o
Hi. Legitimate business justification and proof of pretext T — 1 o
III. CONCLUSION. .1073
In this employment discrimination case, the plaintiff claims that, because of her pregnancy, she was treated unfairly and differently than her counterparts in the defendant’s training program and, as a result, that she was constructively discharged. More specifically, the plaintiff participated in the defendant’s Trainee Agent program with the hope of being awarded an independent agency contract and operating her own franchise insurance office in Sheldon, Iowa. However, after two extensions of her training period, the second of which occurred during the third trimester of her pregnancy, the plaintiff concluded that she would not be granted agency status and, consequently, resigned. On this motion for summary judgment, the court is called upon to decide whether the plaintiff has generated genuine issues of material fact on her claims of disparate treatment based on constructive discharge and failure to receive an independent agency contract.
I. INTRODUCTION
A. Procedural Background
The plaintiff filed this lawsuit on March 2, 2001. In her complaint, she alleges eight causes of action, including two statutory claims of gender discrimination under both Title VII and chapter 216 of the Iowa Civil Rights Act (“ICRA”) and six state common-law claims of fraudulent concealment, fraudulent misrepresentation, fraud in the inducement, negligent misrepresentation, breach of contract, and promissory estoppel. This court’s exercise of jurisdiction over the plaintiffs federal claim is proper pursuant to 28 U.S.C. § 1331 (federal question), 28 U.S.C. § 1343 (civil rights), and 42 U.S.C. § 2000e-5(f)(3) (providing for original jurisdiction of Title VII claims in federal district courts). Jurisdiction over the plaintiffs state-law claims is proper pursuant to 28 U.S.C. § 1367 (supplemental jurisdiction). In addition, this litigation is timely, because the plaintiff brought this suit within the prescribed 90 days after having received administrative releases from the Equal Employment Opportunity Commission and the Iowa Civil Rights Commission, which were issued on December 19, 2000 and on January 3, 2001, respectively.
This action is scheduled for a jury trial to begin on September 23, 2002. Before the court is the defendant’s motion for summary judgment, filed pursuant to Federal Rule of Civil Procedure 56. The court heard oral arguments on this motion on August 2, 2002. Counsel were thoroughly prepared, well-versed in relevant caselaw, and provided helpful input. The defendant was represented at these arguments by Scott Davies and Jason Hedican, of Briggs Morgan PA, Minneapolis, Minnesota. The plaintiff was represented by Michael Carroll, of Coppola, Sandre, McConville & Carroll, P.C., West Des Moines, Iowa.
B. Disputed And Undisputed Facts
The factual background of this case can be summarized in a fairly succinct manner because there are very few disputed facts. Instead, the parties’ principle arguments on this motion for summary judgment center on the legal significance of the circumstances surrounding the plaintiffs employment and her resignation.
The defendant, State Farm Mutual Automobile Insurance Company (“State Farm”), provides insurance services through sales agents who operate as independent contractors. “Agency 2000” refers to the former training program through which State Farm employees transitioned into independent agents. Pri- or to entering this training program, the plaintiff, Kelli Rae Wensel (“Wensel”), worked as a claims specialist for approximately three years. In April of 1997, after some preliminary screening, State Farm selected Wensel to participate in the Agency 2000 process. State Farm ceased the Agency 2000 program midway through Wensel’s training process in December of 1998 and implemented a three-phase process, which is similar to Agency 2000 but stresses different criteria. Wensel notes, however, that State Farm did not inform candidates of the new program nor of its new criteria until March of 1999.
State Farm’s Agency 2000 training program consisted of an initial six-month training period, after which a selection committee identified those candidates who would continue with the process. If a candidate was approved, she left her current position with State Farm and began intern training, which entailed a six to eight month intensive course of study at State Farm’s regional headquarters. In Wensel’s case, she completed her intern training in Lincoln, Nebraska. If a candidate successfully completed intern training, as Wensel did, she was offered a trainee agent contract.
In both the Agency 2000 and three-phase programs, while a trainee agent, or “TA,” the candidate receives a salary from State Farm, and State Farm rents an office and pays most office expenses. During this time, TAs are supervised and evaluated by a “management team.” Wensel’s management team consisted of Terry Barton (Agency Vice President for Iowa), Mark Heeox (Agency Field Executive), Marsha Carlson (Agency Field Consultant), and Becky Moore and Mark Maxon (Agency Field Specialists). Throughout the training process, members of the management team provide feedback in the form of written progress reports. A candidate continues as a TA for a minimum of twelve months before being considered for an independent contractor agreement.
The three-phase program is similar to the Agency 2000 program except that it is broken down into separate phases, with greater emphasis on staff management. A TA advances through the phases of this program based on his or her management team’s assessment of the TA’s skills. At the time of her resignation, Wensel was in the final phase of the three-phase training process.
2. Weasel’s emplogment and training
Wensel acknowledges that State Farm held the trainee agent process out as lasting a minimum of twelve months. However, she contends that the pattern and practice of the company was to award independent contracts to TAs after twelve months. Wensel became a TA in Sheldon, Iowa on August 1, 1998. At a meeting in May of 1999, State Farm informed Wensel that she would not receive her agency contract in August as Wensel had originally anticipated. At the time she learned of State Farm’s decision, she was pregnant, but it is undisputed that State Farm did not know of her pregnancy at the time it decided to extend her training period. Upset because she had planned her pregnancy around her expectation to be an independent contractor in August, she left this meeting crying. It was at this time that her management team learned of her pregnancy.
Wensel completed her intern training with five other candidates: Jay Gotta, Brenda Henning, Eric Kent, Jeff Huff, and Rick Hernandez. Like Wensel, all five classmates became TAs. Of these, Kent, Huff, and Hernandez, like Wensel, were assigned to locations in Iowa, while Gotta was assigned in North Dakota and Hen-ning was assigned in Nebraska. Huff received his agency contract after 15 months in the program, Kent was asked to leave the program after 24 months, and Hernandez resigned. Gotta received his agency contract after 15 months, and Henning received her contract after 12 months.
State Farm agency vice presidents are responsible for agency activities within specified territories, and, as Agency Vice President for Iowa, Terry Barton’s territory solely covered the state of Iowa. Thus, because of State Farm’s organizational structure, Gotta and Henning did not report to Barton, and, as a result, they were not necessarily subject to the same criteria during their training periods. Further, the decision of whether or not to award Wensel an independent agency contract was either exclusively Barton’s call or was a decision that involved input from each of the management team members.
Wensel claims that Hecox, the agency field executive on her management team, told her when she began the training program to wait at least five years before starting a family. Not heeding his “counsel,” Wensel became pregnant in the spring of 1999. When State Farm extended Wensel’s training period for the second time in October of 1999, she was in the third trimester of her pregnancy, and, because of her imminent maternity leave, the extension would have prolonged her training period at least five more months, according to Wensel. As a result of this soi-disant indefinite extension, Wensel concluded that she would never obtain an independent contract with State Farm and resigned: “Having been twice denied the opportunity she had earned, and in order to avoid further financial impact, Wensel heard the message: we don’t want pregnant agents, pregnancy and childbirth are a roadblock to your success.” [Pltf.’s Br., at 61].
II. DISCUSSION
A. Standards For Summary Judgment
This court has considered in some detail the standards applicable to motions for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure in a number of prior decisions.
See, e.g., Swanson v. Van Otterloo,
I. Requirements of Rule 56
Rule 56 itself provides, in pertinent part:
Rule 56. Summary Judgment
(b) For Defending Party. A party against whom a claim ... is asserted ... may, at any time, move for summary judgment in the party’s favor as to all or any part thereof.
(c) Motions and Proceedings Thereon.... The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together ivith the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.
Ned. R. Civ. P. 56(a)-(c) (emphasis added).
Applying these standards, the trial judge’s function at the summary judgment stage of the proceedings is not to weigh the evidence and determine the truth of the matter, but to determine whether there are genuine issues for trial.
Quick v. Donaldson Co.,
2. The parties’ burdens
Procedurally, the moving party bears “the initial responsibility of informing the district court of the basis for its motion and identifying those portions of the record which show lack of a genuine issue.”
Hartnagel,
3. Summary judgment in employment discrimination cases
Because this is an employment discrimination case, it is well to remember that the Eighth Circuit Court of Appeals has cautioned that “summary judgment should seldom be used in employment-discrimination cases.”
Crawford v. Runyon,
Nevertheless, the Eighth Circuit Court of Appeals also observed that “[ajlthough summary judgment should be used sparingly in the context of employment discrimination cases,
Crawford v. Runyon,
B. Common-Law Claims
State Farm moved for summary judgment on each of Wensel's claims. In her response to State Farm's motion, she explicitly stipulated to the dismissal of her common-law claims, or more specifically, Items C-H of her complaint. Finding there exist no genuine issues of material fact regarding these claims, the court grants State Farm's motion for summary judgment on Wensel's claims for fraudulent concealment, fraudulent misrepresentation, fraud in the inducement, negligent misrepresentation, breach of contract, and promissory estoppel.
C. Discrimination Claims
Wensel's complaint encompasses two disparate treatment claims-one based on constructive discharge and one based on her failure to receive an independent agency contract. In this lawsuit brought under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. and chapter 216 of the Iowa Civil Rights Act ("ICRA"), IowA Cona Ca. 216, she seeks to vindicate her civil rights. As a preliminary matter, it should be noted that in considering Wensel's discrimination claims, the court will generally make no distinction between claims based on federal law and comparable claims based on state law. This is appropriate because the Iowa Supreme Court has recognized that federal precedent is applicable to discrimination claims under the ICRA, IOWA CODE Cu. 216. See Vivian v. Madison,
Title VII prohibits an employer from “discriminat[ing] against any individual, with respect to his [or her] compensation, terms, conditions, or privileges of employment, because of such individual’s ... sex.” 42 U.S.C. § 2000e-2(a)(l). Congress amended Title VII in 1978 with the Pregnancy Discrimination Act (“PDA”), 42 U.S.C. § 2000e(k)
et seq.,
and clarified that the phrase “because of sex” encompasses “pregnancy, childbirth, or related medical conditions.” The purpose of the amendment was to ensure that “women affected by pregnancy, childbirth, or related medical conditions [are] treated the same for all employment-related purposes.”
Id.; see also Lang v. Star Herald,
Under the direct evidence framework if the plaintiff produces direct evidence that an illegitimate criterion, such as gender, “played a motivating part in [the] employment decision,” the burden shifts to the defendant employer to demonstrate by a preponderance of the evidence that it would have reached the same employment decision absent any discrimination.
Price Waterhouse,
Alternatively, absent direct evidence of discrimination, the plaintiff can proceed under the familiar burden-shifting standard set forth in
McDonnell Douglas.
Under this framework, the plaintiff bears the initial burden of establishing a
pnma facie
case of discrimination.
St. Mary’s Honor Center v. Hicks,
In this case, Wensel argues that she can establish her claim of employment discrimination through direct evidence and, in the alternative, through circumstantial evidence. She contends that State Farm illegally discriminated against her on the basis of her pregnancy when State Farm did not award her an independent agency contract but instead extended her training period a second time in October of 1999. 2 She contends that she was both constructively discharged and passed over for a promotional opportunity, ie., did not receive her agency contract, because of her pregnancy.
1. Price Waterhouse direct evidence ft'amework
Under the direct evidence framework enunciated in
Price Waterhouse,
“once [the] plaintiff introduces direct evidence of discrimination, the burden shifts to the employer to show, by a preponderance of the evidence, ‘that it would have made the same decision even if it had not taken the plaintiffs [gender] into account.”
Ross v. Douglas County, Nebraska,
As modified by section 107 of the Civil Rights Act of 1991, 42 U.S.C. §§ 2000e-5(g)(2), the [Price Waterhouse ] model allows for declaratory relief, injunctive relief, attorney’s fees and costs once [the plaintiff] meets his initial burden regarding direct evidence. 42 U.S.C. §§ 2000e-5(g)(2)(B)(i). Thus, [the defendant] is liable for discrimination under this model upon direct evidence that it acted on the basis of a discriminatory motive. Whether or not [the defendant] satisfies its burden to show by a preponderance that it would have reached the same employment decision absent any discrimination is only relevant to determine whether the court may award full relief including damages, court ordered admissions, reinstatement, hiring, promotion or other such relief. Gagnon,284 F.3d 839 , 847-48,284 F.3d 839 .Hence, if the plaintiff can demonstrate a genuine issue of material fact about whether he can meet his initial burden regarding direct evidence, then his claim must survive summary judgment because such direct evidence alone would entitle the plaintiff to recovery of declaratory and injunctive relief as well as attorney's fees and costs. Thus, evidence that the defendant offers on whether it would have subjected the plaintiff to the same employment decision regardless of discriminatory intent cannot defeat a claim altogether, it can only defeat certain remedies such as damages or equitable relief.
Roberts v. Swift and Co.,
Here, Wensel argues that two types of statements made by Hecox are direct evidence of discrimination. First, she claims that his statement when she began agent training with respect to waiting five years before starting a family is direct evidence of discriminatory animus. Second, she contends that Hecox's statements regarding other agents' family plans are also direct evidence of discrimination. Specifically, Hecox stated that the pregnancy of a male trainee agent's wife would ultimately harm the trainee's productivity statistics. He made similar coin-ments about the productivity of two other State Farm female independent agents. State Farm does not dispute that these statements were made but rather contends that they do not constitute direct evidence because there is no indication that the statements played a motivating part in the employment decision or are even causally related to it. In addition, State Farm emphasizes that the statements relate to the effect of child-rearing on an employee's productivity in general; thus, they are gender-neutral statements about an issue that potentially affects all employees. State Farm, therefore, asserts that the statements are not discriminatory and not covered by the Pregnancy Discrimination Act.
"Direct evidence is evidence of conduct or statements by persons involved in the decisionmaking process that is sufficient for a factfinder to find that a discriminatory attitude was more likely than not a motivating factor in the employer's decision." Kerns v. Capital Graphics, Inc.,
This court explored the direct evidence landscape in detail in
Bauer v. Metz Baking Co.,
a. The speaker
The court turns first to the identity of the speaker of the comments allegedly constituting direct evidence of discrimination because “[djirect evidence is evidence of conduct or statements by persons involved in the decisionmaking process.”
Kerns,
h. The content
Next, the court turns to the content of the comments specifically identified by Wensel as her “direct evidence” of discrimination. As this court noted in
Metz Baking Co.,
“[t]his criterion is obviously relevant, because ‘[d]irect evidence is evidence of conduct or statements by persons in
In
Piantanida v. Wyman Center, Inc.,
In examining the terms of the PDA, we conclude that an individual’s choice to care for a child is not a “medical condition” related to childbirth or pregnancy. Rather, it is a social role chosen by all new parents who make the decision to raise a child. While the class of new parents of course includes women who give birth to children, it also includes women who become mothers through adoption rather than childbirth and men who become fathers through either adoption or biology. An employer’s discrimination against an employee who has accepted this parental role— reprehensible as this discrimination might be — is therefore not based on the gender-specific biological functions of pregnancy and child-bearing, but rather is based on a gender-neutral status potentially possessible [sic] by all employees, including men and women who will never be pregnant. Cf. Krauel v. Iowa Methodist Med. Ctr.,95 F.3d 674 , 679-80 (8th Cir.1996) (holding that an employer’s denial of fertility treatments under insurance benefits is not a violation of PDA, and noting that “[potential pregnancy, unlike infertility, is a medical condition that is sexrelated because only women can become pregnant. In this case ... the policy of denying insurance benefits for treatment of fertility problems applies to both female and male workers and thus is gender-neutral”); Troupe v. May Dep’t Stores Co.,20 F.3d 734 , 738 (7th Cir.1994) (holding that PDA plaintiffs complaint, that she was terminated because her employer did not believe that she would return from her maternity leave, was not a violationof Title VII, and noting that a male employee on medical leave could also be terminated due to employer’s fear that he would not return).
Id. at 342.
In Wensel’s case, Hecox’s comments regarding the effect of child-rearing on an agent’s productivity were clearly not based on gender, as evinced by the fact his comments were directed toward a male agent as well as toward female agents. This type of discrimination, therefore, as in Piantanida, is not prohibited by the PDA because the effect of parenthood on an employee’s productivity is not “because of or on the basis of pregnancy, childbirth, or related medical conditions.” See 42 U.S.C. § 2000e(k). Wensel would have the court infer that this type of comment, when juxtaposed against Hecox’s earlier statement that Wensel should wait five years before starting a family, suggests a strong attitude and animus against pregnancy. However, it is this necessity to make an inference that takes Hecox’s child-rearing comments outside the realm of “direct evidence.”
“The direct evidence required to shift the burden of proof is evidence of conduct or statements by persons involved in making the employment decision
directly manifesting a discriminatory attitude,
of a sufficient quantum and gravity that would allow the factfinder to conclude that attitude more likely than not was a motivating factor in the employment decision.”
Farmland Industries,
c. Causation
In addition, even if Hecox’s statement directed toward Wensel could be interpreted to encompass pregnancy or a related medical condition of the type of illegitimate criterion proscribed by the PDA, and did not merely reference the added burdens of parenthood and its effect on productivity, the statement, standing alone,’ lacks any causal connection to the adverse employment action in this case, which occurred over one year after the comment was made.
Because not all statements reflecting a discriminatory animus sufficiently support an inference of discriminatory intent, the plaintiff bears the burden of demonstrating a causal link between the offered evidence and the adverse employment action.
See Metz Baking Co.,
Therefore, State Farm is entitled to summary judgment that Wensel has not presented any “direct evidence” of gender discrimination and, thus, cannot proceed under the Pnce
Waterhouse
paradigm or obtain the relief that would flow from direct proof of discrimination. The court must next determine, however, whether Wensel has come forward with sufficient circumstantial evidence of discriminatory intent to survive summary judgment and proceed to a jury trial because a plaintiff may prove discrimination either directly or indirectly.
See Gagnon,
2. Circumstantial evidence and the McDonnell Douglas burden-shifting paradigm
As noted above, the analytical framework announced in
McDonnell Douglas
enables a plaintiff to prove illegitimate discrimination in the absence of direct evidence by establishing a
prima facie
case of discrimination.
St. Mary’s Honor Ctr.,
Wensel asserts two discrete claims of gender discrimination: disparate treatment through constructive discharge and employment discrimination where the adverse action claimed is her failure to receive a promotion. The court will address each in turn.
a. Disparate treatment through constructive discharge
To prevail on a sex discrimination claim under a disparate treatment theory, Wensel must establish a
prima facie
case by presenting evidence that demonstrates: “(1) she was a member of a protected group; (2) she was qualified for her position; and (3) she was discharged under circumstances giving rise to an inference of discrimination.”
Hanenburg v. Principal Mut. Life Ins. Co.,
When, as here, an employer does not affirmatively terminate an employee, the employee “must offer evidence sufficient to establish that she was constructively discharged.”
Hanenburg,
A constructive discharge occurs when an employer deliberately renders the employee’s working conditions intolerable and thus forces him to quit his job. Klein v. McGowan,198 F.3d 705 , 709 (8th Cir.1999) (citing Kimzey,107 F.3d at 574 ); see also Johnson v. Runyon,137 F.3d 1081 , 1083 (8th Cir.) (internal quotations omitted), cert. denied,525 U.S. 916 ,119 S.Ct. 264 ,142 L.Ed.2d 217 (1998) (“A constructive discharge occurs when an employer renders the employee’s working conditions intolerable, forcing the employee to quit.”); Summit v. S-B Power Tool,121 F.3d 416 , 421 (8th Cir.1997) (internal quotations omitted), cert. denied,523 U.S. 1004 ,118 S.Ct. 1185 ,140 L.Ed.2d 316 (1998) (citing same). The intent element is satisfied by a demonstration that quitting was “a reasonably foreseeable consequence of the employer’s discriminatory actions.” Id. The employee has an obligation to act reasonably by not assuming the worst and not jumping to conclusions too quickly. See Howard v. Burns Bros., Inc.,149 F.3d 835 , 841-42 (8th Cir.1998).
“ ‘[Ijntolerability of working conditions is judged by an objective standard, not the [employee’s] subjective feelings.’ ” Gartman v. Gencorp, Inc.,120 F.3d 127 , 130 (8th Cir.1997) (quoting Allen v. Bridgestone/Firestone, Inc.,81 F.3d 793 , 796 (8th Cir.1996)). First, the conditions created by the employer must be such that a reasonable person would find them intolerable. See Gartman,120 F.3d at 130 ; Tidwell v. Meyer’s Bakeries, Inc.,93 F.3d 490 , 494 (8th Cir.1996); Parrish v. Immanuel Medical Ctr.,92 F.3d 727 , 732 (8th Cir.1996); Allen,81 F.3d at 796 ; Bradford v. Norfolk S. Corp.,54 F.3d 1412 , 1420 (8th Cir.1995); Smith,38 F.3d at 1460 ; Hukkanen v. International Union of Operating Eng’rs, Hoisting & Portable Local No. 101,3 F.3d 281 , 284 (8th Cir.1993). Second, the employer’s actions “must have been deliberate, that is, they ‘must have been taken with the intention of forcing the employee to quit.’ ” Delph,130 F.3d at 354 (quoting Johnson v. Bunny Bread Co.,646 F.2d 1250 , 1256 (8th Cir.1981)); Gartman,120 F.3d at 130 ; Tidwell,93 F.3d at 494 ; Parrish,92 F.3d at 732 ; Allen,81 F.3d at 796 ; Smith,38 F.3d at 1461 ; Hukkanen,3 F.3d at 284 . The Eighth Circuit Court of Appeals has explained that, “in the absence of conscious intent ..., the intention element may nevertheless be proved with a showing that the employee’s ‘resignation was a reasonably foreseeable consequence’ of the [discriminatory or retaliatory conduct].” Delph,130 F.3d at 354 (quoting Hukkanen, 3F.3d at 285); Gartman, 120 F.3d at 130 (also citing Hukkanen). Finally, “to act reasonably, an employee has an obligation not to assume the worst and not to jump to conclusions too quickly”; therefore, “[a]n employee who quits without giving his employer a reasonable chance to work out a problem has not been constructively discharged.” West v. Marion Merrell Dow, Inc.,54 F.3d 493 , 498 (8th Cir.1995).
Cherry,
In this case, State Farm argues that Wensel was not constructively discharged because (1) a reasonable person would not find her working conditions so intolerable as to require resignation; and (2) she failed to allow State Farm a reasonable opportunity to correct deficiencies. The court, therefore, will address each of these disputed elements in turn.
i.
Intolerableness of working conditions.
As noted above, “[a]n employee is constructively discharged ‘when an employer deliberately renders the employee’s working conditions intolerable and thus forces [her] to quit [her] job.’ ”
West v. Marion Merrell Dow, Inc.,
In
Breeding v. Arthur J. Gallagher & Co.,
Furthermore, this court’s finding that a reasonable person would not find Wensel’s working conditions intolerable is bolstered by Wensel’s own actions. She claims that the extension of her training period in October of 1999 was the impetus for her decision to resign because it was at that point she concluded her pregnancy was disfavored within the company. Still, she did not resign until January 10, 2000, and her resignation did not take effect until February 29, 2000. Her actions in continuing to work for State Farm for approximately four months demonstrate that not even she considered her working conditions to be so intolerable that she was required to resign. In short, her actions demonstrate that she lacked “the overwhelming compulsion to quit that is necessary for constructive discharge.”
See Tidwell,
Wensel argues, however, that her working conditions at State Farm were more insufferable than is immediately apparent from the mere second extension of her training period. Instead, she argues that her performance reviews were based on amorphous criteria and that she was at least as qualified, if not more qualified, than other TAs who were receiving their independent agency contracts while she was forced to remain in limbo. She bases her argument, in part, on this court’s holding in
Hennick v. Schwans Sales Enterprises, Inc.,
The facts in Wensel’s case are clearly distinguishable from
Hennick
and
Tid-well.
As previously stated, Wensel does not allege that she was repeatedly passed over for her agency contract while inferi- or candidates received contracts. It is undisputed that State Farm was unaware of her pregnancy the first time it decided to extend Wensel’s training period. Wen-sel does not, therefore, allege that this decision was tainted by any discriminatory animus. She alleges only that her second extension was unlawful discrimination. However, she resigned prior to the time of her would-be third review. Therefore, Wensel was only passed over for an agency contract one time, which, as a matter of law, does not create working conditions that were so intolerable that she was forced to resign. This is especially true in light of Wensel’s admitted deteriorating performance during the time period leading up to her second extension.
See Summit,
Because Wensel cannot show that her working conditions were so intolerable that a reasonable person would feel forced to resign, State Farm is entitled to summary judgment on her constructive discharge claim. However, even assuming that her working conditions were intolerable, the court finds that State Farm would still be entitled to summary judgment on this
ii.
Opportunity to respond.
As a sub-set of the reasonableness analysis, “an employee has an obligation not to assume the worst and not to jump to conclusions too quickly.”
Tidwell,
In some situations, the standard of reasonableness will require the employee who wants to make a successful claim of constructive discharge to do something before walking off the job. The reason is not that there is a doctrine of exhaustion of remedies, which would, as we said, mean that the employee might have to sue twice to preserve his right to sue at all. The reason, rather, is that passivity in the face of working conditions alleged to be intolerable is often inconsistent with the allegation. The significance of passivity is thus evidentiary. Suppose a worker has just been assigned to a job that he believes to be dangerous to his health, but the work force is unionized and he can file a grievance complaining about the assignment. His failure to do so may be compelling evidence that he, or a reasonable person in his situation, would not actually have found conditions in his new assignment unbearable. And likewise if, in a nonunionized shop, he is given an unreasonable order by his foreman and instead of complaining to the foreman’s superior walks off the job and claims he was constructively discharged. Failure to exhaust may show that the employee didn’t really consider his working conditions intolerable or may deny the employer a reasonable opportunity to correct the situation without facing a lawsuit.
Id. at 955-56 (internal citations omitted).
Here, it is undisputed that Wensel did not complain to anyone at State Farm about her perceptions of gender and pregnancy discrimination. In November of 1999, Wensel traveled to Lincoln, Nebraska to meet with Dave Harris, State Farm’s Regional Vice President for the West Central Region.- According to Wensel, her stated intentions in meeting with Harris were to discuss her perception of unfairness in that the TAs in North Dakota, who were not under Barton’s supervision, were not being held to the same standards as the TAs in Iowa, who were under Barton’s supervision. She did not raise any concerns about alleged discriminatory treatment based on her gender and/or pregnancy despite the fact she alleges that she determined in October of 1999 that her pregnancy was the reason her training period was extended.
In addition, State Farm notes in its brief in support of its motion for summary judgment that it maintains a “Code of Conduct Line.” This telephone line is presumably intended as a medium for reporting, among other things, discriminatory conduct on the part of State Farm employees. State Farm stated, and Wensel did not refute, that Wensel did not utilize this means of reporting her suspicions of discrimination. The Eighth Circuit Court of Appeals upheld the dismissal of a Title VII plaintiffs constructive discharge claim in
Sowell v. Alumina Ceramics, Inc.,
In
Sowell,
the plaintiff alleged that her employer’s institution of a policy that re
Unlike the plaintiffs in
Knotvles
and
Coffman,
Wensel failed to lodge a single complaint regarding discriminatory treatment. In
Knowles v. Citicorp Mortgage, Inc.,
This fact pattern surrounding the Knowles plaintiffs resignation is remarkably similar to Wensel’s case. Wensel met with Harris, yet did not mention her concerns that now form the basis of her allegations of discrimination. Further, in her resignation letter, she stated that she was resigning for the following reasons:
I feel that with the ever-changing rules and requirements placed upon me that my success within the program has been made unattainable. No clear completion date has ever been set. Therefore, I can no longer risk the investment of my family’s time and resources on such an unclear future.
[Deft.’s App., Tab 36, at 286].
Thus, as in
Knowles,
Wensel failed to inform her employer of her complaints, and, as a result, she afforded State Farm no opportunity to address it. The facts of Wensel’s case are even more compelling than in
Knowles,
insofar as the
Knowles
plaintiff reported his concerns but failed to pursue any other action, whereas Wensel made no such complaints.
See Knowles,
Coffman v. Tracker Marine, L.P.,
The Eighth Circuit held that, particularly in light of the employer’s previous corrective action on her sexual harassment complaint, the plaintiff was not entitled to conclude that her retaliation complaint would not lead to similar action. Id. at 1247-48. Because she failed to allow her employer an opportunity to remedy the complained-of retaliatory conduct, the court ruled that a reasonable person in her position could not have found that her working conditions were intolerable. Id. at 1247. While there is no evidence that Wensel knew of the existence of the Code of Conduct Line, she did not dispute State Farm’s assertion that it was available. In any event, she clearly knew of channels within the State Farm organizational structure through which to lodge complaints, as evidenced by her meeting with Harris. However, because she did not allow State Farm to address her allegations of discrimination before tendering her resignation' — not to mention during the four month interim between the time she tendered her resignation and when her resignation took effect — she cannot now set forth a successful claim of constructive discharge. Accordingly, State Farm is entitled to summary judgment on this claim as well.
b. Pregnancy discrimination: Failure to receive independent agent contract
Wensel also asserts a claim of disparate treatment pursuant to both Title VII and the ICRA that is based on State Farm’s failure to grant her an independent agency contract, while granting such contracts to similarly situated, equal or lesser qualified male and nonpregnant females. The court has carefully reviewed the record on this claim and finds that, while this case presents a close call, the plaintiff is entitled to proceed to a jury trial on this claim.
To establish a submissible
prima facie
case of employment discrimination under the
McDonnell Douglas
analysis, the plaintiffs usual burden is to show that: (1) the plaintiff is a member of a protected class; (2) the plaintiff was qualified for the job he or she was performing; (3) the plaintiff suffered adverse employment action, or was discharged; and (4) a nonmember of the protected class replaced the plaintiff or was not subjected to the adverse employment action.
McDonnell Douglas,
i.
Did Wensel suffer an adverse employment action?
When Wensel resigned from the TA program, she returned to her previous position at State Farm in the claims department through the “path back” option, which provided trainee agents the opportunity to leave the TA program and return to a former position within State Farm. State Farm contends that, because she was approved for “path back,” returned to her position as a fire claims specialist with no break in service or reduction in pay or benefits, there was no adverse employment action taken against her.
See, e.g., LaCroix v. Sears, Roebuck & Co.,
Moreover, she rightly points out that the extraordinary investment put into TA selection and training would be absurd if State Farm itself did not view the awarding of an agency contract as an advancement within the company. State Farm’s argument that there was no constructive discharge, and no change in pay, benefit, salary, or seniority upon her return to the claims department and, therefore, no adverse employment action misses the mark because the adverse employment action claimed by Wensel is not the transfer from TA status to the claims department, but rather is her failure to receive her contract, which she contends forced her to return to the claims department. When viewed in this light, there is indeed a change in, at a minimum, pay and prestige. Thus, independent agent status is equivalent to a promotion from a claims department position, and the failure to receive a promotion can serve the basis of a finding of an adverse employment action.
See Morris v. Lindan,
ii. Were other agents who received contacts similarly situated to Wensel? State Farm also asserts that Wensel cannot establish a prima facie case of employment discrimination because those agents who received their independent agency contracts within less time than Wensel were not similarly situated to her. State Farm’s argument is based on the fact that the agents who Wensel claims were less qualified than she and yet received contracts were not under Barton’s supervision, and it is undisputed that regional vice presidents were responsible for agency activities within specified areas. Thus, because Barton was free to establish criteria for trainee agents in his own territory, State Farm contends that trainee agents outside of Barton’s region, i.e., outside of Iowa, are not similarly situated.
State Farm’s argument in this regard has merit. While “[a] plaintiff may prove allegations of disparate treatment by demonstrating that she was treated less favorably than similarly situated employees outside the plaintiffs protected class[,][t]he test for whether employees are ‘similarly situated’ to warrant a comparison to a plaintiff is a ‘rigorous’ one.”
Palesch v. Missouri Comm’n on Human Rights,
In Wensel’s case, she seeks to compare her productivity to all 500 agents in her region. She states that, as among all of these agents, her performance was exceptional. However, regions are sub-divided into territories, and territories are headed by vice presidents, such as Barton, who supervise agent activities within their specified areas. Wensel offers a second comparison, more focused in scope, by identifying her five classmates as similarly situated. However, of her classmates, only Huff, Kent, and Hernandez were in Iowa and, consequently, under Barton’s supervision. Henning’s office was in Nebraska, and Gotta’s office was in North Dakota.
Because State Farm’s vice presidents independently established criteria for their area’s trainee agents, TAs not in Iowa and under Barton’s supervision are not similarly situated to Wensel and,
As between Huff, Kent, and Hernandez, only Huff received an independent contract, which took place at the same time Wensel’s training program was extended— or, in other words, after 15 months in the program. Kent was asked to leave the program after 24 months, and Hernandez voluntarily left after only 13 months. Thus, only Huff was arguably treated better than Wensel. Wensel has offered for comparison the rankings of her classmates and of herself on this motion for summary judgment. However, Wensel notes that Huffs statistics are “mysteriously absent” from the documents turned over in discovery. Thus, it is impossible to compare Wensel’s performance to Huffs. From these rankings, however, it is clear that Wensel’s performance was, at a minimum, acceptable. Because the court draws all reasonable inferences in favor of the non-movant on a motion for summary judgment, it is not a difficult leap to infer that Wensel’s performance was comparable to Huffs based on her statistics and the failure of State Farm to provide Huffs statistics. Because the court concludes that Huff was similarly situated, State Farm is not entitled to summary judgment on the ground that Wensel has not identified any similarly situated non-protected class employees who received their contracts within less time than Wensel.
In addition, Wensel has set forth sufficient evidence to generate a fact question as to the importance of the three-phase criteria, relative to Huff and herself. As noted above, Barton replaced the Agency 2000 program and implemented the three-phase program, which included new competency requirements, sometime during the middle of Wensel’s training program. She states in her affidavit that Barton stressed the new competencies with her, while not holding Huff accountable for them. State Farm has offered no evidence to demonstrate when and how it communicated the new competencies implemented with the three-phase program and, therefore, has not attempted to rebut Wensel’s allegations in this regard. A jury could infer that holding similarly situated employees accountable for different performance goals was a discriminatory employment practice.
Denesha v. Farmers Ins. Exch.,
iii.
Legitimate business justification and proof of pretext.
State Farm argues that, even if Wensel can establish a
prima facie
case of disparate treatment, it is entitled to summary judgment on the ground that it had a legitimate business reason for extending her training period: her performance did not yet justify an independent contract. Namely, her productivity had
Here, Wensel concedes that her productivity statistics had declined because she lost two of her three staff members in August of 1999 and, furthermore, agrees that she had not met each of her productivity goals. However, she notes that all of her performance evaluations were extremely positive and that productivity goals were intentionally set high in order to increase motivation and that State Farm did not expect that all goals would be met each week. She argues that she has come forward with sufficient evidence of pretext to defeat the defendant’s burden of production and to proceed to a jury trial on her disparate impact claim.
Positive performance evaluations in the face of an adverse employment action can provide proof of pretext when an employer relies on poor performance as its justification for its action, such as is the case here.
See, e.g., Nitschke v. McDonnell Douglas Corp.,
In addition, Wensel offers more than simply her positive performance evaluations. While other agents in Wensel’s region are not similarly situated to her for purposes of the “rigorous test” required for comparison on her
prima facie
case, her performance relative to that of other agents is evidence that Wensel was meeting State Farm’s expectations and, accordingly, serves to cast doubt on State Farm’s stated reason for not awarding her an independent contract. Likewise, while the court has concluded that Hecox’s statements regarding waiting to start a family and regarding the negative effects of a family on productivity are not direct evidence, they certainly are relevant to the question of pretext and support the inference that discrimination motivated State Farm’s decision to extend Wensel’s training period in October of 1999. The court, therefore, concludes that Wensel has generated just enough genuine issues of material fact on her proof of pretext and inference of discriminatory intent to proceed to a jury trial on her claim of disparate treat
III. CONCLUSION
In conclusion, the court has determined that Wensel failed to create any genuine issues of material fact as to her state common-law claims. In addition, the court finds that Wensel has not come forward with direct evidence of discrimination and, therefore, that State Farm is entitled to summary judgment on its assertion that the Price Waterhouse framework does not apply to Wensel’s discrimination claims. Moreover, under the McDonnell Douglas framework, which applies in the absence of direct evidence, the court finds that State Farm is entitled to summary judgment on Wensel’s constructive discharge claim but not on her claim of pregnancy discrimination based on the failure to receive an independent agency contract in October of 1999.
THEREFORE, the court hereby grants in part and denies in part State Farm’s motion for summary judgment.
IT IS SO ORDERED.
Notes
. In Reeves, the Supreme Court was considering a motion for judgment as a matter of law after a jury trial, but the Supreme Court also reiterated that "the standard for granting summary judgment `mirrors' the standard for judgment as a matter of law, such that `the inquiry under each is the same.'" Reeves,
. Wensel concedes that State Farm did not know of her pregnancy when it extended her training period for the first time in May of 1999. Because there must be evidence of an employer's actual knowledge of a plaintiffs pregnancy at the time it is alleged to have discriminated on the basis of that pregnancy, Wensel does not assert that her first extension in May of 1999 was motivated by discriminatory animus.
See Prebilich Holland v. Gaylord Entertainment Co.,