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69 Fair empl.prac.cas. (Bna) 392, 67 Empl. Prac. Dec. P 43,771 Mary Cook v. Arrowsmith Shelburne, Inc., Kdt Industries, Inc., and Clifton Lind

Citations: 69 F.3d 1235; 67 Empl. Prac. Dec. (CCH) 43,771; 69 Fair Empl. Prac. Cas. (BNA) 392; 1995 U.S. App. LEXIS 31622Docket: 94-7445

Court: Court of Appeals for the Second Circuit; November 7, 1995; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal by a former employee, Cook, against a summary judgment dismissing her claims of gender discrimination under the Vermont Fair Employment Practices Act (VFEPA) and Title VII of the Civil Rights Act, along with common law claims for wrongful discharge and intentional infliction of emotional distress. Cook alleged that her termination by Arrowsmith Shelburne, Inc., a subsidiary of KDT Industries, Inc., was due to gender discrimination, as evidenced by derogatory remarks made by her General Manager, Lind. The court found that Cook established a prima facie case for gender discrimination, reversing the summary judgment on the Title VII and VFEPA claims. However, it upheld the dismissal of the common law claims, as Cook was an at-will employee and her termination did not involve conduct meeting the threshold for intentional infliction of emotional distress. The court also dismissed claims against Lind personally, citing the lack of individual liability under Title VII and VFEPA. The case highlights the legal standards for gender discrimination claims and the parameters for holding parent corporations liable for the actions of their subsidiaries.

Legal Issues Addressed

Admissibility of Statements Made by Supervisors

Application: Cook's testimony regarding statements by supervisors was deemed admissible as they were made within the scope of their employment.

Reasoning: Cook's testimony regarding statements made by her supervisors, Martin and Arcouette, is admissible as statements made within the scope of their employment, despite lacking formal affidavits from them.

Gender Discrimination under Title VII and VFEPA

Application: The court found that Cook established a prima facie case for gender discrimination, leading to the reversal of the summary judgment on these claims.

Reasoning: The court found that Cook established a prima facie case for gender discrimination, reversing the summary judgment on the Title VII and VFEPA claims.

Individual Liability under Title VII and VFEPA

Application: The claims against Cook's supervisor, Lind, were dismissed as individual supervisory personnel cannot be held liable under Title VII or VFEPA.

Reasoning: The Title VII and VFEPA claims against Lind must be dismissed based on the precedent set in Tomka v. Seiler Corp., which ruled that individual supervisory personnel cannot be held liable under Title VII.

Intentional Infliction of Emotional Distress under Vermont Law

Application: Cook's claim was dismissed as her termination did not involve oppressive conduct, which is required to prove intentional infliction of emotional distress.

Reasoning: Cook did not allege that her termination involved such oppressive conduct and failed to provide details or claim any defamatory statements or threats associated with the termination.

Liability of Parent Corporation for Subsidiary’s Actions

Application: KDT Industries, Inc. was found potentially liable for the acts of its subsidiary, as it exhibited substantial interrelation in operations and control over employment decisions.

Reasoning: KDT, as a wholly owned subsidiary of ASI, exhibited substantial interrelation in operations, directly managing ASI's practices.

Wrongful Discharge under Vermont Law

Application: The court upheld the summary judgment dismissing Cook's wrongful discharge claim, reaffirming that at-will employees cannot pursue such claims.

Reasoning: ASI's written employment offer to Cook specified that her position was at-will, meaning either party could terminate employment at any time for any lawful reason.