Judge: Lee W. Tsao, Case: 21NWCV00541, Date: 2023-06-29 Tentative Ruling

Case Number: 21NWCV00541    Hearing Date: June 29, 2023    Dept: C

CASTENADA v. STARBUCKS CORPORATION

CASE NO.: 21NWCV00541

HEARING:  06/29/23

 

#10

 

     I.        Defendant STARBUCKS CORPORATION’s Motion for Summary Adjudication is DENIED in part and GRANTED in part.

 

    II.        Defendant ASHLEY ALLEN’s Motion for Summary Judgment is GRANTED.

 

Moving Party(s) to give notice.

 

This wrongful termination action was filed by Plaintiff MARIA DEL CARMEN CASTANEDA (“Plaintiff”) on August 25, 2021. Plaintiff alleges the following relevant facts: “Plaintiff started working for Defendant in or around September 2011 as a Barista Manager….. Plaintiff’s work performance was consistently above expectation as she was a top performer according to her performance reviews.” (Complaint ¶8.) “At the time of her termination, on September 3, 2020, Plaintiff was around 56 years old, while Defendant hired and retained predominantly employees in their 20s and 30s. [¶] Plaintiff is Hispanic and has an accent.[¶] On July 1st, 2020, Ashely Allen [ ] officially became Plaintiff’s supervisor. Plaintiff had temporarily worked with Ashley for a few months in 2019. During that time, Ashley had made negative remarks about Plaintiff’s accent. Ashley, who is Caucasian and in her 30s, was always hostile towards Plaintiff because of Plaintiff’s national origin/race and accent and her age, i.e., characteristics that stood out among the Starbucks employees.” (Complaint ¶¶9-11.) “Before her termination, Plaintiff had never received a negative performance review and was instead a stellar employee. Plaintiff believes that Defendant discriminated against her because of her age, race and national origin and made up nonsensical reasons to terminate her employment.” (Complaint ¶26.)

 

Plaintiff’s Complaint asserts the following causes of action: (1) Waiting Time Penalties; (2) Age Discrimination; (3) Race Discrimination; (4) Work Environment Harassment; (5) Retaliation (Gov. Code §12940(h).); (6) Retaliation (Labor Code §246.5); (7) Retaliation (Labor Code §1102.5); (8) Failure to Prevent Harassment, Discrimination, and Retaliation; (9) Unfair and Unlawful Business Practices; and (10) Wrongful Termination.

 

Defendant STARBUCKS CORPORATION (“Starbucks”) moves for summary adjudication as to the following issues:

·        Plaintiff’s second cause of action for Age Discrimination fails as a  matter of law;

·        Plaintiff’s third cause of action for Race Discrimination fails as a matter of law;

·        Plaintiff’s fourth cause of action for Work Environment Harassment fails as a matter of law;

·        Plaintiff’s fifth cause of action for Retaliation (Gov. Code §12940) fails as a matter of law;

·        Plaintiff’s sixth cause of action for Retaliation (Labor Code §246.5) fails as a matter of law;

·        Plaintiff’s seventh cause of action for Retaliation (Labor Code §1102.5) fails as a matter of law;

·        Plaintiff’s eighth cause of action for Failure to Prevent Harassment, Discrimination, and Retaliation fails as a matter of law;

·        Plaintiff’s ninth cause of action for Unfair and Unlawful Business Practices fails as a matter of law because it is derivative of other causes of action;

·        Plaintiff’s tenth cause of action for Wrongful Termination in Violation of Public Policy fails as a matter of law; and

·        Plaintiff’s prayer for punitive damages fails because Starbucks did not act with fraud, oppression, and malice.

 

Defendant ASHLEY ALLEN (“Allen”) moves for summary judgment. Only the fourth cause of action for Work Environment Harassment (and Plaintiff’s prayer for punitive damages) is asserted against Allen.

 

Plaintiff’s Memorandum in Opposition

In Reply, Defendant Allen argues that this Court should strike Plaintiff’s Opposition because it exceeds the 20-page limit set forth in CRC Rule 3.133(d).

 

“In a summary judgment or summary adjudication motion, no opening or responding memorandum may exceed 20 pages.” (CRC Rule 3.133(d).)

 

Plaintiff filed one consolidated 33-page Opposition in response to the two separate Motions filed by Defendants and Allen. Given the fact that Defendants’ Motions address some overlapping issues, the Court does not find that Plaintiff must have necessarily filed two separate Oppositions. Given the fact that Plaintiff’s Opposition addresses two separate Motions, the Court exercises its discretion to consider the entirety of Plaintiff’s oversized memorandum.

 

Allen’s request to strike Plaintiff’s Opposition is DENIED.

 

Second Cause of Action – Age Discrimination

To prove a claim of age discrimination, Plaintiff has the initial burden of making a prima facie showing of each of the following elements: (1) she was a member of a protected class (age); (2) she was performing competently in the job she held; (3) she suffered an adverse employment action, including but not necessarily limited to termination; and (4) the circumstances suggest a discriminatory motivation for the adverse employment action. (Guz v. Bechtel Nat., Inc. (2000) 24 Cal.4th 317, 355.) Once Plaintiff makes a prima facie case, then a presumption of age discrimination arises, and the burden shifts to Starbucks to rebut the presumption by proving by a preponderance of the evidence that the adverse employment action was not motivated by age discrimination, but by a legitimate business reason. (Id. at 355-356.) If Starbucks makes that showing, then the burden shifts back to Plaintiff to prove by a preponderance of the evidence that the reason give by Starbucks is re pretext for actual discriminatory intent. (Id. at 356.)

 

“An employer moving for summary judgment on a FEHA cause of action may satisfy its initial burden of proving a cause of action has no merit by showing either that one or more elements of the prima facie case is lacking, or that the adverse employment action was based on legitimate nondiscriminatory factors.” (Soria v. Univision Radio Los Angeles, Inc. (2016) 5 Cal.App.5th 570, 591.) “Once the employer sets forth a nondiscriminatory reason for the decision, the burden shifts to the plaintiff to produce substantial responsive evidence that the employer’s showing was untrue or pretextual.” (Id.) “An employer is entitled to summary judgment if, considering the employer’s innocent explanation for its actions, the evidence as a whole is insufficient to permit a rational interference that the employer’s actual motive was discriminatory.” (Id.)

 

Starbucks argues that it had a legitimate, nondiscriminatory reason to terminate Plaintiff—Plaintiff’s admitted falsification of time records. (Starbucks UMF No. 11, 17-24.) Plaintiff admitted to falsifying labor codes for nearly one year, in violation of Starbucks’ policies. (Starbucks UMF Nos. 11-24.)

 

To defeat summary adjudication, Plaintiff must produce “substantial responsive evidence that the employer’s showing was untrue or pretextual.” (Hersant v. California Dept. of Social Svcs. (1997) 57 Cal.App.4th 997, 1004-1005.) The employee cannot meet her burden of establishing pretext by simply showing that the employer’s reason was wrong or mistaken, because the issue is not the wisdom of the decision, but whether it was discriminatory. (Wills v. Sup. Ct. (2011) 195 Cal.App.4th 143, 159-160.) “Rather, the [employee] must demonstrate such weaknesses, implausibilities, inconsistencies, incoherencies, or contradictions in the employer’s proffered legitimate reasons for its action that a reasonable fact finder could rationally find them ‘unworthy of credence.’… and hence infer ‘that the employer did not act for the [asserted] nondiscriminatory reasons.” (Sandell v. Taylor-Listug, Inc. (2010) 188 Cal.App.4th 297, 314.)

 

In Opposition, Plaintiff cites evidence of discriminatory animus based on statements made to or about Plaintiff referencing her age. Plaintiff submits her own declaration referencing a number of instances wherein Plaintiff was allegedly treated differently from other employees due to her age and race. (see e.g., PUMF Nos. 14, 17, 18, 113, 101-116.) Plaintiff claims:

·        Sharon Moy assigned more important responsibilities related to the management of the store to younger staff members and hired younger employees for store manger positions. (PUMF Nos.101, 104.)

·        Employees made negative comments about Plaintiff’s age. (PUMF No. 102.)

·        Sharon Moy separated employees into groups of older and younger persons and preferred that younger employees undertook organizational tasks related to the promotion of the store during the Holidays, and assigned all Hispanic employees to the same group. (PUMF Nos. 107-108.)

·        Before Plaintiff was terminated, Allen had moved a younger store manager from another district to manage Plaintiff’s store. (PUMF No. 116.)

 

The age- based remarks that Plaintiff relies upon present evidence of some age-based discriminatory animus. “A discharge is not ‘on the ground of age’ within the meaning of this prohibition unless age is a ‘motivating factor’ in the decision.” (West v. Bechtel Corp. (2002) 96 Cal.App.4th 966, 978.)  Here, the Court finds that Plaintiff has successfully raised an inference that her age was a motivating factor in her termination where Plaintiff proffers evidence to show that she was replaced by a younger employee. (PUMF No. 116.) “[T]he fact that a replacement is substantially younger than the plaintiff is a far more reliable indicator of age discrimination than is the fact that the plaintiff was replaced by someone outside the protected class.” (O’Connor v. Consolidated Coin Caterers Corp. (1996) 517 U.S. 308, 312.) Because Plaintiff has raised this inference, the Court finds that there is a triable fact at issue in Plaintiff’s age discrimination claim.

 

Summary adjudication is DENIED.

 

Third Cause of Action – Race Discrimination

Plaintiff claims that Starbucks discriminated against her based on her race (Hispanic). Plaintiff relies on the following evidence:

·        Employees were not allowed to speak Spanish while working on the floor. (PUMF No. 11.)

·        Allen made negative remarks about Plaintiff’s accent. (PUMF No. 17.)

·        Allen made demeaning comments about Hispanic people to Plaintiff. (PUMF Nos. 15 and 113.)

·        Sharon Moy separated employees into groups of older and younger persons and preferred that younger employees undertook organizational tasks related to the promotion of the store during the Holidays, and assigned all Hispanic employees to the same group. (PUMF Nos. 107-108.)

 

While there may be evidence of discriminatory animus, “proof of discriminatory animus does not end the analysis of a discrimination claim. There must also be evidence of a causal relationship between the animus and the adverse employment action. (DeJung v. Sup. Ct. (2008) 169 Cal.App.4th 533, 550.)

 

Here, while the alleged statements made by Starbucks about Plaintiff are direct evidence of a discriminatory animus, there is no admissible evidence of a causal relationship between the alleged race-based animus and any adverse employment action. Accordingly, Starbucks motion or summary adjudication of Plaintiff’s third cause of action is GRANTED.

 

Fourth Cause of Action (Allen and Starbucks) – Work Environment Harassment

Defendants Allen and Starbucks both move for summary adjudication of this issue. As indicated above, the fourth cause of action is the sole claim asserted against Allen.

 

“The elements of a cause of action [for age/national origin harassment] are: (1) [p]laintiff belongs to a protected group; (2) plaintiff was subject to unwelcome sexual harassment; (3) the harassment complained of was based on sex; (4) the harassment complained of was sufficiently pervasive so as to alter the conditions of employment and create an abusive working environment; and (5) respondeat superior. [Citation Omitted.] To be sufficiently pervasive harassment, the acts complained of cannot be isolated or trivial. Rather, there must be a pattern of harassment of a routine or generalized nature. [Citation Omitted.]” (Guthrey v. State of California (1998) 63 Cal.App.4th 1108, 1123.) “The factors that can be considered in evaluating the totality of the circumstances are: (1) the nature of the unwelcome [ ] acts or works….; (2) the frequency of the offensive encounters; (3) the total number of days over which all of the offensive conduct occurs; and (4) the context in which the sexually harassing conduct occurred.” (Fisher v. San Pedro Hospital (1989) 214 Cal.App.3d 590, 610.) Harassment “cannot be occasional, isolated, sporadic, or trivial; rather the plaintiff must show a concerted pattern of harassment of a repeated, routine or a generalized nature.” (Aguilar v. Avis Rent A Car Sys., Inc. (1999) 21 Cal.4th 121, 130-131.)

 

Summary adjudication of the fourth cause of action as to Defendant Allen and Defendant Starbucks is GRANTED. Plaintiff fails to demonstrate a triable issue of material fact that the alleged incidents were severe, pervasive, and routine enough to constitute actionable harassment.

 

Consequently, Allen’s Motion for Summary Judgment is GRANTED.

 

Fifth Cause of Action – Retaliation (Gov. Code §12940(h).)

Gov. Code §12940(h) makes it an unlawful business practice “[f]or any employer… to discharge, expel, or otherwise discriminate against any person because the person has opposed any practices forbidden under this part or because the person has filed a complaint, testified, or assisted in any proceeding under this part.” “To establish a prima facie case of retaliation under FEHA, a plaintiff must show (1) he or she engaged in a ‘protected activity.’ (2) the employer subjected the employee to an adverse employment action, and (3) a causal link existed between the protected activity and the employer’s action. [Citations.]” (Nealy v. City of Santa Monica (2015) 234 Cal.App.4th 359, 380.)

 

Summary adjudication is GRANTED. Plaintiff fails to submit sufficient evidence to show that the proffered reasons for her termination were a pretext for a retaliatory motive. Plaintiff relies on the following facts: Plaintiff complained to Richard Brazil about her District Manger’s decision to assign her to Norwalk because of her age; Plaintiff complained about Ms. Moy’s segregation of store employees into groups of younger and older people and grouping Hispanic employees together; Plaintiff tried to contact Partner Resources to discuss Ms. Price’s negative remarks about Plaintiff’s age and to complain about the fact that Ms. Price gave younger employees more hours; and Plaintiff opposed requests to write up and terminate two employees due to their race. Here, Plaintiff fails to support the contention that her termination was motivated by a retaliatory (as opposed to an age-based) motivation. For instance, Plaintiff submits no evidence to show that employees who filed complaints against Starbucks suffered discipline, as opposed to those who did not file complaints. Timing evidence, although sufficient to state a prima facie case for retaliation, is insufficient, on its own, to show pretext.

 

Sixth Cause of Action – Retaliation (Labor Code §246.5)

“California Labor Code section 248.5 outlines the ‘Enforcement of the Article.’ The explicit language in subsections (a)(b)(d) and (e) outline the role of the Labor Commissioner or the Attorney General. Subsection € then sets forth explicitly two distinct mechanisms for civil enforcement of the HWHF…. [U]nder these provisions, a civil enforcement action can be brought by the Labor Commissioner, the Attorney General, or a private litigant, so long as the person or entity brining the action otherwise complies with the requirements set forth in section 248.5(e).” (Diaz v. Rescare Inc. (2020) (N.D. Cal., Oct. 26, 2020, No. 4:20-CV-01333 YGR) 2020 WL 6270934, at *2.)

 

There is no private right of action under Labor Code §246.5. Summary adjudication is GRANTED.

 

Seventh Cause of Action – Retaliation Labor Code §1102.5

Labor Code §1102.5(b) states that “[a]n employer… shall not retaliate against an employee for disclosing information, or because the employer believes that the employee disclosed or may disclose information, to a government or law enforcement agency, to a person with authority over the employee or another employee who has the authority to investigate, discover, or correct the violation or noncompliance, or for providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that that the information discloses a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation, regardless of whether disclosing the information is part of the employee’s job duties.”

 

Plaintiff does not allege or indicate that she reported any actionable workplace violations under this provision. Labor Code §1102.5 does not pertain to internal reports of workplace violations. (See Carter v. Escondido High School Dist. (2007) 148 Cal.App.4th 922, 933-935.)

 

Summary adjudication is GRANTED.

 

Eighth Cause of Action – Failure to Prevent Harassment, Discrimination, and Retaliation

Gov. Code §12940(k) makes it an independent tort for employers “to fail to take all reasonable steps necessary to prevent discrimination and harassment from occurring.” A successful claim for Failure to Prevent Harassment, Discrimination, and Retaliation depends on whether Plaintiff has adequately alleged claims for  for Harassment, Discrimination, or Retaliation. As indicated above, Plaintiff has successfully alleged a claim for Age-Based Discrimination sufficient to withstand summary adjudication.

 

Accordingly, summary adjudication of the eighth cause of action is DENIED.

 

Ninth Cause of Action – Unfair and Unlawful Business Practices

To state a claim under §17200, a Plaintiff must allege whether the conduct complained of is a fraudulent, unlawful or an unfair business practice. To bring a claim under the fraud prong, Plaintiff must allege an affirmative misrepresentation, conduct or business practice on the part of a defendant; or an omission in violation of defendant’s duty to disclose; and that is likely to deceive members of the public. (Buller v. Sutter Health (2008) 160 Cal.App.4th 981, 986.) To state a claim under the unfairness prong, Plaintiff must allege that one or more of Defendant’s business practices are unfair, unlawful or fraudulent; and the remedy sought is authorized by law. (Paulus v. Bob Lynch Ford, Inc. (2006) 139 Cal.App.4th 659, 676; see also Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310, 337.) To state a claim under the unlawful prong, Plaintiff must allege a violation of law and cite that law. (Graham v. Bank of America, N.A. (2014) 226 Cal.App.4th 594, 610 [demurrer to SAC which failed to allege violation of a law was properly sustained without leave to amend].) 

 

Again, as indicated above, Plaintiff’s claim for Age-Based Discrimination is sufficient to withstand summary adjudication. This claim is derivative of the Age-Based Discrimination claim. Therefore, Summary adjudication is DENIED.

 

Tenth Cause of Action – Wrongful Termination

Plaintiff’s final cause of action is for wrongful termination in violation of public policy. In moving for summary adjudication on Plaintiff’s Tameny claim, Starbucks essentially repeats all of the material facts asserted in connection with other causes of action. Because Plaintiff has successfully alleged a claim for Age-Based Discrimination, Starbucks does not meet its initial burden in establishing an entitlement to summary adjudication as a matter of law.

 

Summary adjudication is DENIED.

 

Plaintiff’s Evidentiary Objections:

Nos. 1-6. Overruled

 

Defendants’ Evidentiary Objections:

Nos. 1-59. Overruled