Cornwell v. Microsoft Corp.
Cornwell v. Microsoft Corp.
Opinion
*232 ¶ 1 Dawn Cornwell asks us to reverse the grant of summary judgment in her retaliation claim against her former employer, Microsoft Corporation. At issue is whether she presented enough evidence to show that her supervisors had sufficient knowledge that she had taken a protected action under the Washington Law Against Discrimination (WLAD), RCW 49.60.030. Without establishing this knowledge, Cornwell cannot demonstrate a potential causal link between the adverse employment action taken against her and her protected activity. We hold that Cornwell presented sufficient evidence to survive summary judgment on the issues of knowledge and causation. The evidence tends to show that both of Cornwell's supervisors had actual knowledge that Cornwell had previously engaged in protected activity before they subjected her to adverse employment action. As a result, we reverse the Court of Appeals and remand the case to the trial court for further proceedings.
FACTS AND PROCEDURAL HISTORY
I. Factual History
¶ 2 While working for Microsoft, Cornwell believed that her then-supervisor was discriminating against her on the basis of sex, engaging in romantic favoritism, and taking retaliatory action against her. She hired an attorney and settled the case with Microsoft. The settlement was confidential, and Cornwell was no longer required to work under her then-manager, Todd Parsons.
¶ 3 Seven years later, Cornwell's new manager, Mary Anne Blake, asked Cornwell to mentor under another Microsoft employee. After learning that the employee reported to Parsons, Cornwell told Blake that she could not mentor under the employee. Blake asked Cornwell why, and Cornwell responded that it was because she had filed a "lawsuit" 1 against Microsoft and could not report to Parsons. Cornwell also told Blake that the suit involved a review score issue and was confidential. Blake sought more information about the lawsuit from human resources and her direct supervisor, Nicole McKinley. Human resources did not have any information on file about the lawsuit and promised to follow up on the issue.
¶ 4 Meanwhile, Blake told Cornwell that she had inquired about the lawsuit with human resources but that they did not have any further information. She also asked Cornwell what would happen if her team needed to merge with Parsons' team. Cornwell informed Blake that she was unable to discuss the lawsuit further because of the confidentiality agreement and expressed dissatisfaction that Blake had contacted human resources about the matter.
¶ 5 Shortly after Cornwell told her about the suit, Blake conducted a mandatory performance review of Cornwell. During that year, Cornwell had received positive reviews from her peers:
Dawn is [a] strong release manager able to pull all appropriate stakeholders together, drive meetings forward and succinctly, keep topics on point, and hold people to meeting deliverables.
....
... Dawn knows what me [sic] and my team need to be successful and she provides those resources proactively in a timely manner. I never have to wonder where a project stands when Dawn is leading the effort.
....
... She actively solicits feedback, is very receptive to any feedback received and also follows up on it.
....
... Dawn partners extremely well with others and has established a rapport and positive reputation with the many teams she works with.
Clerk's Papers (CP) at 163-64. During her previous years working for Microsoft, Cornwell also had received good performance ratings and promotions. Despite this positive employment history, Blake informed Cornwell that she was trending toward a rating of "4," the second lowest possible score. Cornwell *233 told Blake that she disagreed with that rating and was upset with this information. Blake followed up with human resources and McKinley about Cornwell's response. Human resources promised to have Microsoft's legal department review Cornwell's performance rating.
¶ 6 Ultimately, Blake and McKinley recommended that Cornwell be rated "5," the lowest possible score. Other managers disagreed with the rating, believing that Cornwell was a higher performer. One manager did not have the "impression that Ms. Blake was giving Ms. Cornwell a fair chance to succeed" and "didn't agree with her [Blake's] assessment of [Cornwell's] performance." CP at 202. Another manager involved in the performance rating process recalled being "very surprised as to how [Cornwell] was evaluated" and that "several of the managers in the discussion supported [Cornwell] as being a good performer, undeserving of a '5' rating definition." CP at 212. Even Blake acknowledged that "in general Dawn received feedback that she's a good team player. People found her personality to be enjoyable, and she brought a positive and upbeat experience to teams." CP at 56.
¶ 7 Despite these disagreements, McKinley said that she and Blake would "take the conversation 'off-line,' " meaning that Blake and McKinley would make the final decision about Cornwell's performance rating without the involvement of the other managers. CP at 212. Cornwell's final performance rating was assessed as a "5"-the lowest possible score. Human resources told Blake to not inform Cornwell of her review score "unless she asked about it." CP at 63. Cornwell was then laid off as part of a larger reduction in force. Cornwell remembers being told that she would not receive a review score rating because of the layoff. As a result, Cornwell did not learn about her low score until several years later when she was told that she could not be rehired at Microsoft because her final performance rating was so poor. 2
II. Procedural History
¶ 8 Based on these events, Cornwell filed suit against Microsoft, alleging retaliation in violation of WLAD. Microsoft moved for summary judgment, arguing that Cornwell had failed to present evidence showing a prima facie case of discrimination. The trial court granted Microsoft's motion for summary judgment because the judge believed that "there isn't evidence that Ms. Blake, who gave [Cornwell] the bad [review] score, knew that there was a complaint under WLAD." Report of Proceedings at 40. As a result, the judge believed that Cornwell had failed to show a causal link between the adverse employment action taken against her and her prior lawsuit against Microsoft.
¶ 9 Cornwell appealed the trial court's ruling to the Court of Appeals. The Court of Appeals affirmed the grant of summary judgment in an unpublished opinion.
Cornwell v. Microsoft Corp.,
No. 74919-6-I, slip op. at 1-2,
¶ 10 Cornwell appealed the Court of Appeals' adverse decision to this court, and we accepted review of all issues.
STANDARD OF REVIEW
¶ 11 "We review a trial court's grant of summary judgment de novo."
Scrivener v. Clark Coll.,
ANALYSIS
¶ 12 We reverse the Court of Appeals. Cornwell has presented sufficient evidence to make a prima facie case that Microsoft retaliated against her in violation of WLAD. This evidence was adequate to create an issue of fact about whether there was a causal link between her prior suit and Microsoft's decision to give her a poor review rating and terminate her. Under either the "actual knowledge" standard or the "knew or suspected" standard, Cornwell presented sufficient evidence of the employer knowledge necessary to show causation. Ultimately, summary judgment was improper, and we remand the case to the trial court for further proceedings.
I. Retaliation under WLAD
¶ 13 WLAD proscribes discrimination in employment on the basis of sex, race, sexual orientation, and other protected characteristics. RCW 49.60.030. WLAD also prohibits employers from retaliating against employees who oppose discriminatory practices. RCW 49.60.210(1). To further these purposes, the legislature has directed us to liberally construe the provisions of WLAD. RCW 49.60.020.
¶ 14 When evaluating the merits of cases brought under WLAD, we employ the
McDonnell Douglas
3
"evidentiary burden-shifting" framework.
Mikkelsen,
¶ 15 To establish a prima facie case of retaliation, an employee must show three things: (1) the employee took a statutorily protected action, (2) the employee suffered an adverse employment action, and (3) a causal link between the employee's protected activity and the adverse employment action.
Currier,
¶ 16 Here, Microsoft alleges that Cornwell has failed to produce sufficient evidence for the first and third elements of her prima facie case. 4 Because the Court of Appeals declined to address whether Cornwell's lawsuit against Microsoft was a protected activity, and because the parties did not brief the issue to us, we do not reach that issue on appeal. 5 We instead address only whether Cornwell presented sufficient evidence to show a potential causal link between her *235 performance rating score, her termination, and her prior lawsuit.
II. Causation
¶ 17 Microsoft argues that Cornwell failed to present sufficient evidence to create an issue of material fact that there is a causal link between her prior lawsuit and the adverse employment action taken against her. We disagree for the following reasons.
¶ 18 An employee proves causation "by showing that retaliation was a substantial factor motivating the adverse employment decision."
Allison v. Hous. Auth.,
¶ 19 At issue here is the quantum of employer knowledge about the employee's prior protected activity. We have yet to address this question in a case. The parties advocate for three different standards to evaluate employer knowledge. Microsoft urges us to adopt the actual knowledge standard used by the Court of Appeals and several federal courts, while Cornwell advocates for either a "knew or suspected" standard or a "general corporate knowledge" standard used by other federal courts.
¶ 20 Here, under either the actual knowledge standard or the "knew or suspected" standard, Cornwell presented enough evidence to survive summary judgment. We decline to address the "general corporate knowledge" standard in this case. 6
a. Actual Knowledge
¶ 21 Cornwell has presented sufficient evidence to survive summary judgment under the actual knowledge standard.
¶ 22 Both the Court of Appeals and several federal courts require that the employer have
actual knowledge
of the employee's protected action in order to prove causation.
See, e.g.,
Marin v. King County,
¶ 23 Microsoft argues that Blake and McKinley did not have actual knowledge of Cornwell's suit because they did not know the specific nature of the lawsuit-i.e., that it involved an allegation of discrimination in violation of WLAD. CP at 55, 144. However, Microsoft's focus on the managers' knowledge about the
substance
of the suit is misplaced. A decision-maker need not have actual knowledge about the legal significance of a protected action. Instead, the decision-maker need have actual knowledge only that the employee
took the action
in order to prove a causal connection. RCW 49.60.210(1) ("It is an unfair practice for any employer ... to discharge, expel, or otherwise discriminate against any person because he or she has opposed any practices forbidden by [WLAD].");
see also
Wilmot,
¶ 24 Here, Blake and McKinley actually knew about Cornwell's alleged protected activity-the lawsuit. Regardless of whether they understood that the lawsuit was protected activity under WLAD because of its substance, they still had knowledge that the activity took place. It is undisputed that Blake and McKinley knew that Cornwell had filed a lawsuit against Microsoft and her former supervisor. Blake learned that Cornwell could not discuss the details of the lawsuit, but knew that the suit involved a review score and male supervisor. Blake also knew that Cornwell "had a legal action with Microsoft about a review score." CP at 55. Blake then followed up with human resources about Cornwell's lawsuit with Microsoft. 8
¶ 25 Given Blake and McKinley's knowledge of the suit and the poor performance rating and termination that followed shortly thereafter,
9
it is a reasonable inference that these actions were in retaliation for Cornwell's previous lawsuit. See
Raad
, 323 F.3d at 1197 (" 'That an employer's actions were caused by an employee's engagement in protected activities may be inferred from proximity in time between the protected action and the allegedly retaliatory employment decision.' " (internal quotation marks omitted) (quoting
Ray v. Henderson,
b. Knew or Suspected
¶ 26 Cornwell also asks us to adopt a "knew or suspected" standard for evaluating retaliation claims. The "knew or suspected" standard incorporates the actual knowledge standard and also encompasses cases in which the employer suspects that an employee engaged in protected action.
11
It requires sufficient evidence to reasonably infer "both that [a supervisor] either knew or suspected" that an employee took a protected action "and that there was a causal connection between this knowledge or suspicion and [the employee's] termination."
Hernandez v. Spacelabs Med. Inc.,
¶ 27 In
Hernandez
,
the Ninth Circuit court held that a supervisor's suspicion that a particular employee was the one who filed a sexual harassment report was enough to survive summary judgment after the supervisor fired the suspected employee.
¶ 28 The Ninth Circuit reversed summary judgment, holding that the employee had presented "sufficient evidence from which a reasonable jury could infer both that [the supervisor] either knew or suspected that [the employee] had reported the alleged harassment to [human resources], and that there was a causal connection between this knowledge or suspicion and [the employee's] termination."
¶ 29 Here, Cornwell had to prove that Microsoft knew or suspected that she had taken a prior legal action. As previously discussed, Cornwell produced sufficient evidence *238 showing that both Blake and McKinley had actual knowledge that Cornwell had filed a previous lawsuit against Microsoft. Thus, Cornwell easily meets the "knew or suspected" standard to survive summary judgment on her retaliation claim.
¶ 30 Although Cornwell satisfies the "knew or suspected" standard, the broader question remains of whether we should adopt this standard. We adopt the standard because it furthers WLAD's purpose to protect employees from retaliation.
¶ 31 The purpose behind the "knew or suspected" test is to protect employees from retaliation to the fullest extent possible:
It seems clear to this Court that an employer that retaliates against an employee because of the employer's suspicion or belief that the employee filed a[ ] ... complaint has as surely committed a violation of [the statute] as an employer that fires an employee because the employer knows that the employee filed a[ ] ... complaint. Such construction most definitely furthers the purposes of the Act generally and the anti-retaliation provision specifically.
Reich,
It would be a strange rule, indeed, that would protect an employee discharged because the employer actually knew he or she had engaged in protected activity but would not protect an employee discharged because the employer merely believed or suspected he or she had engaged in protected activity.
Reich,
¶ 32 Thus, construing WLAD "to protect employees from adverse employment actions because they are
suspected
of having engaged in protected activity is consistent with the general purposes of the Act and the specific purposes of the antiretaliation provisions."
¶ 33 Microsoft and amici curiae the Association of Washington Business and the Chamber of Commerce of the United States of America contest adoption of the "knew or suspected" standard. They argue that adopting the standard leads to strict liability for employers, eliminates the causation element of a retaliation prima facie case, and invites speculation into the summary judgment phase. Of these arguments, none is persuasive.
¶ 34 The "knew or suspected" test does not lead to strict liability or eliminate the requirement that a retaliation be intentional. Instead, the test eliminates the right of employers to intentionally retaliate against employees that they
suspect
but do not actually know to have taken protected action. An employee must still produce sufficient evidence that his or her protected activity was a substantial factor in the employer's decision to take adverse action against the employee.
Allison,
118 Wash.2d at 96,
¶ 35 In addition, the standard requires the production
of evidence
; mere speculation will not suffice to defeat summary
*239
judgment.
Grimwood v. Univ. of Puget Sound, Inc.,
¶ 36 For these reasons, we adopt the "knew or suspected" standard because it furthers WLAD's purpose of protecting employees from retaliation.
CONCLUSION
¶ 37 In conclusion, we reverse the Court of Appeals. We adopt the "knew or suspected" standard and hold that Cornwell presented sufficient evidence to create a dispute of fact about whether there was a causal link between her poor performance rating and termination and the previous lawsuit she filed against Microsoft. Both Blake and McKinley had actual knowledge that Cornwell filed the prior lawsuit against Microsoft. Shortly after learning this, and over the objection of other managers, they gave Cornwell the lowest possible review rating, and Cornwell was laid off. In light of this evidence, the trial court erroneously granted summary judgment to Microsoft. We reverse and remand the case to the trial court for further proceedings consistent with this opinion.
WE CONCUR.
Fairhurst, C.J.
Johnson, J.
Madsen, J.
Owens, J.
Stephens, J.
González, J.
Yu J.
¶ 38 I agree with the majority's main conclusion that a plaintiff can show retaliatory discharge in violation of the Washington Law Against Discrimination (WLAD), RCW 49.60.030, without showing that the employer had actual knowledge of the plaintiff's prior protected activity. A plaintiffs showing that the employer suspected that the plaintiff had previously engaged in WLAD-protected activity is enough to establish the causation requirement of a WLAD retaliatory discharge claim. Majority at 237-38.
¶ 39 But I disagree with the majority's application of that legal standard to the facts of this case. The majority identifies nothing in the record showing that Dawn Cornwell's current supervisors knew or suspected that her prior lawsuit involved the WLAD-prohibited activity of sex discrimination.
¶ 40 I say that because the majority holds that the following facts, alone, suffice to satisfy the knowledge or suspicion element of WLAD causation: (1) Cornwell's supervisors knew that she had previously brought a lawsuit against Microsoft Corporation 1 , (2) those supervisors knew that the lawsuit had involved a male supervisor, and (3) those supervisors knew that the lawsuit had involved a review score. Id. at 232. Indeed, the majority accepts Microsoft's assertion that Cornwell's supervisors "did not know the specific nature of the lawsuit-i.e., that it involved an allegation of discrimination in violation of WLAD." Id. at 236 (emphasis added). Thus, the majority ends up holding that because Cornwell's supervisor knew that her prior lawsuit had "involved a review score and male supervisor," her present claim was entitled to survive Microsoft's motion for summary judgment. Id. at 236 (emphasis added).
¶ 41 I disagree. That analysis creates a standard that is both significantly over-inclusive *240 in certain respects and significantly under-inclusive in other respects.
¶ 42 The majority's analysis is over-inclusive because it assumes that a female employee's lawsuit about a male supervisor and a review score could not have alleged anything but sex discrimination. But that is incorrect. A female employee could bring a lawsuit related to her review score and her male supervisor that sounds in tort. Depending on the explanation that the male supervisor provided for the review score that he gave his female employee, such a lawsuit might advance claims for negligent infliction of emotional distress, intentional infliction of emotional distress, or defamation.
¶ 43 Besides common law torts, such a lawsuit could allege any number of statutory retaliation claims that do not implicate the WLAD. For example, a male supervisor could give a female employee a poor review score because she submitted a safety complaint, in violation of RCW 49.17.160. Or a male supervisor might give a female employee a poor review score because she told her coworkers that she thinks they should form a union, in violation of
¶ 44 All of these supervisory actions would be illegal-but none would violate the WLAD. They would violate other statutes. For this reason, the majority's conclusion that a female employee's review-score lawsuit against a male employer must have been gender-based is impermissibly overbroad. It includes within the WLAD's scope even claims in which the employee fails to show that the employer knew or suspected that the employee engaged in WLAD -protected activity.
¶ 45 The majority justifies its analysis by asserting that the supervisors' "knowledge about the
substance
of the suit is" immaterial. Majority at 236. According to the majority, "the decision-maker need have actual knowledge only that the employee
took the action
in order to prove a causal connection."
¶ 46 But the majority's approach is also under-inclusive in a different respect. There is no doubt that the history of gender discrimination in the workplace is basically a history of gender discrimination against women.
See generally
Cal. Fed. Sav. & Loan Ass'n v. Guerra,
¶ 47 In sum, the majority has not identified any facts showing that the supervisors in this case knew or suspected that Cornwell previously engaged in WLAD-protected activity. For that reason, I respectfully dissent.
Cornwell and Blake referred to Cornwell's previous legal action against Microsoft as a "lawsuit." We refer to that activity using the same terminology.
After she was terminated, Cornwell applied for 170 different positions at Microsoft.
McDonnell Douglas Corp. v. Green,
The second element of the prima facie test is not at issue. It is undisputed that Cornwell received a poor performance evaluation rating and was terminated. CP at 144-45. The poor rating prevented Cornwell from being considered for future rehiring. CP at 219-20. This undoubtedly qualifies as an adverse employment action. See
Jin Zhuv.N. Cent. Educ. Serv. Dist.-ESD 171,
Because the issue is not before us, for purposes of this appeal we assume that Cornwell's prior legal action against Microsoft constituted protected activity under WLAD.
Cornwell asks us to adopt the "general corporate knowledge" standard, which requires a plaintiff to show that the employer generally had knowledge of the plaintiff's protected activity.
Kessler v. Westchester County Dep't of Soc. Servs.,
See also
Michkowski v. Snohomish County,
No. 71328-1-I, slip op. at 14,
Contrary to the dissent's criticisms, it is because of all of the facts here discussed, not merely because Cornwell's prior suit involved a male supervisor, that her claim survives summary judgment. Dissent at 239. Further, also despite the dissent's assertions, we know that Cornwell's prior suit related to sex discrimination; we do not make (or need to make) the "over-inclusive" assumption that all suits by a female employee against a male supervisor involve sex discrimination. Accordingly, the dissent's list of hypothetical claims that might have been brought is surplusage. Id. at 239-41.
Cornwell told Blake about the lawsuit in late 2011. In July 2012, Blake and McKinley rated Cornwell as a "5," and Cornwell was laid off in September 2012.
Microsoft argues that Cornwell lacks evidence of proximity because she filed her prior lawsuit seven years before her poor evaluation and termination. However, this argument focuses on the wrong event. Here, Blake and McKinley learned about Cornwell's previous lawsuit only months before Cornwell was terminated. To properly evaluate whether there is sufficient circumstantial evidence of retaliation, we must focus on the proximity between when Blake and McKinley learned of the lawsuit and the adverse employment actions that they subsequently took. The time between those events is a few months-brief enough to give rise to a reasonable inference of retaliatory motive.
The "knew or suspected" standard has been applied by the United States Court of Appeals, Ninth Circuit, as well as by other federal courts in the OSHA context.
See, e.g.,
Hernandez v. Spacelabs Med. Inc.,
Like the majority, I use the parties' terminology. See majority at 232 n.1.
Reference
- Full Case Name
- Dawn CORNWELL, Petitioner, v. MICROSOFT CORPORATION, a Delaware Corporation, Respondent.
- Cited By
- 52 cases
- Status
- Published