Cornwell v. Microsoft Corp. , 430 P.3d 229 ( 2018 )


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  •                                               this opinion was filed for record
    FILE                                 at^ ^- Od         on"u
    IN CLERKS OFFICE
    •UHSE COURT. StKTE OF WASHINGTON
    I o«7?_N0VJJJpi8 ,
    SUSAN L^CARLSON
    '^dA'AbAUA4 , C6-                                SUPREME COURT CLERK
    IN THE SUPREME COURT OF THE STATE OF WASHINGTON
    DAWN CORNWELL,                                              No. 94846-1
    Petitioner,                                En Banc
    V.
    Filed            2 9 2018
    MICROSOFT CORPORATION,
    A Delaware Corporation,
    Respondent.
    WIGGINS, J.—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
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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
    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.
    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"^ 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.
    ^ Cornwell and Blake referred to CornweH's previous legal action against Microsoft as a
    "lawsuit." We refer to that activity using the same terminology.
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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.
    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
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    rating of "4," the second lowest possible score. Cornwell told Blake that she disagreed
    with that rating and was upset with this information. Blake followed up with human
    resources and McKinley about CornweH's response. Human resources promised to
    have Microsoft's legal department review Cornwell's performance rating.
    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.
    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
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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.^
    II. Procedural History
    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.
    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. 74919-6-1, slip op. at 1-2 (Wash. Ct. App. June 5, 2017)
    (unpublished), https://www.courts.wa.gov/opinions/pdf/749196.pdf. The court agreed
    that Cornwell had failed to present evidence to prove causation between her prior
    lawsuit and the adverse employment actions taken against her. 
    Id. at 9.
    But it declined
    to address whether Cornwell's prior lawsuit was "protected activity" under WLAD. 
    Id. The court
    also declined to adopt Cornwell's proposed standards of review for the
    claim. 
    Id. at 13.
    2 After she was terminated, Cornwell applied for 170 different positions at Microsoft.
    Corn well(Dawn) v. Microsoft Corp.
    No. 94846-1
    Cornwell appealed the Court of Appeals' adverse decision to this court, and we
    accepted review of all issues.
    STANDARD OF REVIEW
    "We review a trial court's grant of summary judgment de novo." Scrivener v.
    Clark Coll., 
    181 Wash. 2d 439
    , 444, 
    334 P.3d 541
    (2014). "Summary judgment is
    appropriate only when there is no genuine issue as to any material fact and the moving
    party is entitled to judgment as a matter of law." 
    Id. "[Bjecause of
    the difficulty of
    proving a discriminatory motivation," 
    id. at 445,
    "[sjummary judgment for an employer
    is seldom appropriate" in the employment discrimination context, MIkkelsen v. Public
    Utility District No. 1 of Kittltas County, 
    189 Wash. 2d 516
    , 527, 
    404 P.3d 464
    (2017). We
    must also "consider all facts and make all reasonable factual inferences in the light
    most favorable to the nonmoving party." 
    Scrivener, 181 Wash. 2d at 444
    .
    ANALYSIS
    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.
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    I. Retaliation under WLAD
    WI_AD proscribes discrimination in employment on the basis of sex, race,
    sexuai orientation, and other protected characteristics. RCW 49.60.030. WLAD also
    prohibits employers from retaliating against empioyees who oppose discriminatory
    practices. RCW 49.60.210(1). To further these purposes, the legislature has directed
    us to iiberaliy construe the provisions of WLAD. RCW 49.60.020.
    When evaluating the merits of cases brought under WLAD, we employ the
    McDonnell Douglas^ "evidentiary burden-shifting" framework. 
    MIkkelsen, 189 Wash. 2d at 526
    . This framework involves three steps, but we are concerned with only the first
    step in this case—the plaintiff's burden to establish a prima facie case of
    discrimination. 
    Scrivener, 181 Wash. 2d at 446
    .'"Ordinarily the prima facie case must, in
    the nature of things, be shown by circumstantial evidence, since the employer is not
    apt to announce retaliation as his motive.'" Wllmot v. Kaiser Alum. & Chem. Corp.,
    
    118 Wash. 2d 46
    , 69, 
    821 P.2d 18
    (1991)(quoting 1 Lex K. Larson, Unjust Dismissal
    § 6.05[5], at 6-51 (1988)); see also Currier v. Northland Servs., Inc., 
    182 Wash. App. 733
    , 746-47, 
    332 P.3d 1006
    (2014)('"Because employers rarely will reveal they are
    motivated by retaliation, plaintiffs ordinarily must resort to circumstantial evidence to
    demonstrate retaliatory purpose.'"(internal quotation marks omitted)(quoting Estevez
    V. Faculty Club of Univ. of Wash., 
    129 Wash. App. 774
    , 799, 
    120 P.3d 579
    (2005))).
    3 McDonnell Douglas Corp. v. Green, 
    411 U.S. 792
    , 93 8. Ct. 1817, 
    36 L. Ed. 2d 668
    (1973).
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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, 182 Wash. App. at 742
    ;
    see also 
    Wilmot, 118 Wash. 2d at 68
    (establishing the retaliation test in the worker's
    compensation context).
    Here, Microsoft alleges that Cornwell has failed to produce sufficient evidence
    for the first and third elements of her prima facie case.'' 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.® We instead address only whether Cornwell presented sufficient
    evidence to show a potential causal link between her performance rating score, her
    termination, and her prior lawsuit.
    II. Causation
    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.
    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 rehlrlng. CP at 219-20. This
    undoubtedly qualifies as an adverse employment action. See Jin Zhu v. N. Cent. Educ. Serv.
    Dist.—ESD 171, 
    189 Wash. 2d 607
    , 619, 404 P.Sd 504 (2017) ('"An employment action Is
    adverse If It Is harmful to the point that It would dissuade a reasonable employee from making
    complaints of. . . retaliation.'" (Internal quotation marks omitted)(quoting Boyd v. State, 
    187 Wash. App. 1
    , 15, 349 P.Sd 864 (2015))).
    5 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 W1_AD.
    8
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    An employee proves causation "by showing that retaliation was a substantial
    factor motivating the adverse employment decision." Allison v. Hous. Auth., 
    118 Wash. 2d 79
    , 96, 
    821 P.2d 34
    (1991). At the summary judgment stage, the plaintiff's
    burden is one of production, not persuasion. 
    Scrivener, 181 Wash. 2d at 445
    . Thus, to
    avoid summary judgment on causation, the employee must show only that a
    reasonable jury could find that retaliation was a substantial factor in the adverse
    employment decision. 
    Id. Employees may
    rely on the following facts to show this: (1)
    the employee took a protected action, (2) the employer had knowledge of the action,
    and (3) the employee was subjected to an adverse employment action. 
    Wllmot, 118 Wash. 2d at 69
    .
    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.
    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.®
    ® 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.
    Kesslerv. Westchester County Dep't of Soc. Servs., 
    461 F.3d 199
    , 210(2d Cir. 2006). Under
    this standard, the jury can still find retaliation in circumstances where the particular decision-
    maker denies actual knowledge of the plaintiff's protected activities, "so long as . . . the jury
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    a. Actual Knowledge
    Cornwell has presented sufficient evidence to survive summary judgment under
    the actual knowledge standard.
    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., Mann v. King County, 
    194 Wash. App. 795
    , 813, 
    378 P.3d 203
    , review denied,
    
    186 Wash. 2d 1028
    , 
    385 P.3d 124
    (2016)("Marin failed to show that anyone . . . knew
    about his protected activity . . . , precluding his claim that employees . . . retaliated for
    that activity. He identifies no evidence that supports his bare assertion that the entire
    'chain of command' knew [about his protected activity]."); Raney v. VInson Guard
    Serv., Inc., 
    120 F.3d 1192
    , 1197 (11th Cir. 1997)("In order to satisfy the 'causal link'
    prong of a prima facie retaliation case, a plaintiff must, at a minimum, generally
    establish that the defendant was actually aware of the protected expression at the
    time the defendant took the adverse employment action.").^ Because retaliation is an
    concludes that an agent is acting explicitly or implicit[ly] upon the orders of a superior who
    has the requisite knowledge." Gordon v. N.Y.C. Bd. of Educ., 
    232 F.3d 111
    , 117 (2d Cir.
    2000). While the standard may be useful in situations where many individuals act collectively
    in a large company, it is not applicable here where CornweH's two supervisors had actual
    knowledge of her prior lawsuit. Thus, we decline to address the "general corporate
    knowledge" standard in this case.
    ^ See a/so MIchkowskI v. Snohomlsh County, No. 71328-1-1, slip op. at 14 (Wash. Ct. App.
    Feb. 17, 2015)(unpublished), https://www.courts.wa.gov/opinions/pdf/713281.pdf ("Without
    evidence of actual knowledge, [an employee] fails to establish the causal connection
    necessary to make out a prima facie case of retaliatory discharge."); Stephens v. Erickson,
    
    569 F.3d 779
    , 788 (7th Cir. 2009)("Clearly, a superior cannot retaliate against an employee
    for a protected activity about which he has no knowledge."); Raad v. Fairbanks N. Star
    Borough Sch. DIst., 
    323 F.3d 1185
    , 1197 (9th Cir. 2003)("In addition, the plaintiff must make
    some showing sufficient for a reasonable trier of fact to infer that the defendant was aware
    that the plaintiff had engaged in protected activity.").
    10
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    intentional act, an employer cannot retaliate against an employee for an action of
    which the employer is unaware. Marin, 194 Wn. App. at 818("WI_AD does not prohibit
    an employer's actions without evidence of a causal link between the action and a
    plaintiffs protected activity.").
    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. ROW 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 aiso 
    Wilmot, 118 Wash. 2d at 69
    (stating that an employee could prove causation by showing three facts, including
    "that the employer had knowledge of the [action]"). "The proper inquiry is whether the
    . . . evidence suggests a causai connection between the protected activity and the
    subsequent adverse action sufficient to defeat summary judgment." Reich v. Hoy
    Shoe Co., 
    32 F.3d 361
    , 367 (8th Cir. 1994). Cornwell has presented sufficient
    evidence that Blake and McKinley knew Cornwell took prior legal action against
    Microsoft.
    11
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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. ®
    Given Blake and McKinley's knowledge of the suit and the poor performance
    rating and termination that followed shortly thereafter,® 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, 
    217 F.3d 1234
    , 1244 (9th Cir.
    2000)); see also 
    Wilmot, 118 Wash. 2d at 69
    (stating, "'[pjroximity in time between the
    ® Contrary to the dissent's criticisms, it is because of all of the facts here discussed, not merely
    because CornweN's prior suit involved a male supervisor, that her claim survives summary
    judgment. Dissent at 2. Further, also despite the dissent's assertions, we know that Cornweirs
    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 2-5.
    9 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.
    12
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    claim and the firing is a typical beginning point'" for proving retaliation (quoting 1
    Larson, supra, § 6.05[5], at 6-51)).^° In addition, Cornwell had previously received
    positive ratings and promotions during her employment at Microsoft. In the year that
    she was terminated, "several" other managers disagreed with Blake's decision to rate
    Cornwell poorly and thought that she should be rated higher based on her
    performance. Again, McKinley and Blake knew about Cornwell's prior legal action,
    and the circumstantial evidence supports the reasonable inference that Blake's
    knowledge of Cornwell's lawsuit was a substantial factor in her poor rating and
    eventual termination. That is all that is required to survive summary judgment. As a
    result, Cornwell presented the necessary circumstantial evidence to show that her
    lawsuit was a substantial motivating factor in her poor performance rating and
    termination under the actual knowledge standard.
    b. Knew or Suspected
    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
    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 CornweH'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.
    13
    Corn weII(Dawn) v. Microsoft Corp.
    No. 94846-1
    that an employee engaged in protected action.''^ 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., 
    343 F.3d 1107
    , 1113 (9th Cir. 2003). This standard applies, for example,
    when a supervisor has actual knowledge that a complaint was made but has only a
    suspicion regarding who made the complaint and subsequently takes an adverse
    employment action based on that suspicion.
    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. 
    Id. In that
    case, an employee learned that his coworker was allegedly harassed by a
    supervisor. 
    Id. at 1110.
    Because his coworker was afraid to report the harassment,
    the employee reported it to the human resources department. 
    Id. Shortly thereafter,
    the supervisor fired the employee, /c/. at 1111. After the employee sued for retaliation,
    the supervisor denied that he knew which employee reported him for harassment and
    stated that the employee's termination was for cause. 
    Id. at 1113.
    The trial court
    granted summary judgment in favor of the employer on this basis. 
    Id. "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., 
    343 F.3d 1107
    (9th Cir. 2003); Reich, 
    32 F.3d 361
    .
    14
    Cornwell(Dawn) y. Microsoft Corp.
    No. 94846-1
    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." 
    Id. The court
    reasoned
    that "[i]t is frequently impossible for a plaintiff in [the employee's] position to discover
    direct evidence contradicting someone's contention that he did not know something."
    
    Id. at 1114.
    Thus, "[w]hat-did-he-know-and-when-did-he-know-it questions are often
    difficult to answer, and for that reason are often inappropriate for resolution on
    summary judgment. . . . But [the employee] has introduced substantial circumstantial
    evidence. . . . He has produced sufficient evidence which, if credited by the jury, would
    satisfy [the] burden of establishing a prima facie case." 
    Id. at 1113-14.
    So long as an
    employee produces evidence from which a reasonable jury could infer that retaliation
    had taken place, this is sufficient to survive summary judgment, /c/. at 1114. And while,
    a jury could believe the supervisor's version of events rather than the employee's, the
    jury must be permitted to consider and weigh evidence. 
    Id. Here, Cornwell
    had to prove that Microsoft knew or suspected that she had
    taken a prior iegal action. As previously discussed, Cornwell produced sufficient
    evidence 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.
    15
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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.
    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, 32 F.3d at 368
    . "It is well recognized that WLAD . . . relies heavily on private
    individuals for its enforcement. This reliance would be unrealistic, to say the least, 'if
    this court does not provide them some measure of protection against retaliation.'" Jin
    Zhu V. N. Gen. Educ. Sen/. Dist.—BSD 171, 
    189 Wash. 2d 607
    , 622-23, 
    404 P.3d 504
    (2017)(citation omitted)(quoting 
    Allison, 118 Wash. 2d at 94
    ). Restricting the application
    of WI-AD's antiretaliation provisions to instances of actual knowledge results in
    inconsistent protection of employees:
    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 F.3d at 368
    . Employers are not limited to retaliation decisions based on
    information they actually know to be true. 
    Id. Instead,"common sense
    and experience
    16
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    establish that employers also make employment decisions on what they suspect or
    believe to be true." 
    Id. 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 anti-
    retaliation provisions." Id.(emphasis added); see also Brady v. Autozone Stores, Inc.,
    
    188 Wash. 2d 576
    , 583, 
    397 P.3d 120
    (2017) (recognizing that because a policy
    "ultimately provides greater protection for workers, it is more in tune with other
    Washington case law addressing employee rights"). As a result, as long as an
    employee presents evidence "suggest[ing] a causal connection between the protected
    activity and the subsequent adverse action sufficient to defeat summary judgment,"
    that employee has made a prima facie case of retaliation under WLAD. 
    Reich, 32 F.3d at 367
    .
    Microsoft and amid 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.
    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
    17
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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
    .
    In addition, the standard requires the production of evidence] mere speculation
    will not suffice to defeat summary judgment. Grimwood v. Univ. of Puget Sound, Inc.,
    
    110 Wash. 2d 355
    , 359-60, 
    753 P.2d 517
    (1988)("The 'facts' required by CR 56(e) to
    defeat a summary judgment motion are evidentiary in nature. Ultimate facts or
    conclusions are insufficient. Likewise, conclusory statements of fact will not suffice."
    (citation omitted)). "It is frequently impossible for a plaintiff . . . to discover direct
    evidence contradicting someone's contention that he did not know something."
    
    Hernandez, 343 F.3d at 1114
    . Instead, as long as "[a] reasonable jury could infer from
    [a plaintiff's] evidence" that the plaintiff's protected activity was a substantial factor in
    the adverse employment decision, that plaintiff has satisfied his or her burden of
    establishing a prima facie case of retaliation. 
    Id. For these
    reasons, we adopt the "knew or suspected" standard because it
    furthers WLAD's purpose of protecting employees from retaliation.
    CONCLUSION
    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
    18
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    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.
    19
    Cornwell(Dawn) v. Microsoft Corp.
    No. 94846-1
    WE CONCUR.
    '7%U fiwA
    7
    20
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    No. 94846-1
    GORDON McCLOUD, J. (dissenting)—I agree with the majority's
    main conclusion that a plaintiff can show retaliatory discharge in violation of the
    Washington Law Against Discrimination (WLAD), ROW 49.60.030, without
    showing that the employer had actual knowledge of the plaintiffs 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 13-16.
    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 Comwell's current supervisors knew or suspected that her prior lawsuit
    involved the WLAD-prohibited activity of sex discrimination.
    I say that because the majority holds that the following facts, alone,
    suffice to satisfy the knowledge or suspicion element of WLAD causation:
    (1) Comwell's supervisors knew that she had previously brought a lawsuit against
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCIoud, J., dissenting)
    Microsoft Corporation^,(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 2.
    Indeed, the majority accepts Microsoft's assertion that
    Comwell'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 11
    (emphasis added). Thus, the majority ends up holding that because Comwell'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 12(emphasis
    added).
    I disagree. That analysis creates a standard that is both significantly
    over-inclusive in certain respects and significantly under-inclusive in other respects.
    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
    ' Like the majority, I use the parties' terminology. See majority at 2 n.1.
    2
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    claims for negligent infliction of emotional distress, intentional infliction of
    emotional distress, or defamation.
    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 29 U.S.C. § 158(a)(3). A male
    supervisor could give a female employee a poor review score because he thought
    that she was insufficiently committed to the company after she spent two weeks
    serving on a jury trial—in violation of RCW 2.36.165(2). As yet another example,
    a male supervisor might give a female employee a poor review score because she
    blew the whistle under the Sarbanes-Oxley Act of 2002, an 18 U.S.C. § 1514A
    violation. Or a male supervisor could give a female employee a poor review score
    because she refused to disclose her login information to her personal social
    networking account, access her personal social networking account in the
    supervisor's presence, add a contact of the supervisor's selection to her personal
    social networking account, or alter the view settings of her personal social
    networking account—all in violation of RCW 49.44.200(1)(e).            A female
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    employee's refusal to take a 23andMe DNA (deoxyribonucleic acid) test, even
    though everybody else in the department was doing so and thought that looking at
    the results was great fun, might also generate a poor review score from a male
    supervisor, violating 42 U.S.C. § 2000ff-l(b). A male supervisor might also give a
    female employee a poor review score because she declined to support the
    company's—or her supervisor's—^preferred candidate or political party,
    implicating RCW 42.17A.495(2). A male supervisor could also give a female
    employee a poor review score because he thought that her invocation of federal
    bankruptcy protections in her personal life made her unreliable and untrustworthy,
    in violation of 11 U.S.C. § 525(b). Annoyed at the increased paper work in his life,
    a male supervisor could also give a female employee a poor review score because
    she filed a workers' compensation claim—rurming afoul of RCW 51.48.025(1).
    Likewise, a male supervisor might give a female employee a poor review score
    because she took action to stop her employer from defrauding the federal
    government, implicating 31 U.S.C. § 3730(h)(1).
    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
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    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-^xotQoXQd
    activity.
    The majority justifies its analysis by asserting that the supervisors'
    "knowledge about the substance of the suit is" immaterial. Majority at 11.
    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." 
    Id. The majority
    cites Wilmotv. Kaiser Aluminum and Chemical Corp. for that proposition.
    Id.; see 
    118 Wash. 2d 46
    , 69, 
    821 P.2d 18
    (1991). But that is not what Wilmot held.
    Wilmot involved claims for wrongful termination in violation of public 
    policy. 118 Wash. 2d at 51-52
    . The plaintiffs alleged that their employers fired them because they
    had filed workers' compensation claims. 
    Id. We held
    "that a plaintiff may establish
    the required case by showing that the worker filed a workers' compensation claim,
    that the employer had knowledge of the claim, and that the employee was
    discharged." 
    Id. at 69.
    But that"knowledge ofthe claim" language was a reference
    to the fact that in Wilmot, the substance of the claims—^that is, that they were
    workers' compensation claims—was well known to the employers when they fired
    the employees. 
    Id. at 51;
    Moran v. Wash. Fruit & Produce,60 Wn. App. 548, 550,
    804 P.2d 1287(1991), rev'dby 
    Wilmot, 118 Wash. 2d at 79
    . Wilmot did not involve a
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    mysterious prior claim that inspired "detective work," as this case does. Clerk's
    Papers at 156. Moreover, Wilmot concluded that a plaintiff must show that at least
    part of the employer's ''motivation for the discharge was the employee's exercise
    of or intent to exercise the statutory 
    rights." 118 Wash. 2d at 68-69
    (emphasis added);
    see also 
    id. at 67
    (requiring a showing of the employer's "'motivat[ion]'"(quoting
    Thompson v. St. Regis Paper Co., 
    102 Wash. 2d 219
    , 232, 
    685 P.2d 1081
    (1984))).
    Here, contrary to the WLAD and contrary to Wilmot, the majority discards the
    requirement that knowledge or suspicion of IfX^D-protected activity was a
    substantial factor in the adverse employment action. Once again, the majority's
    analysis is over-inclusive.
    But the majority's approach is also under-inclusive in a different
    respect. There is no doubt that the history ofgender discrimination in the workplace
    is basically a history of gender discrimination against women. See generally Cal.
    Fed. Sav. & Loan Ass'n v. Guerra, 
    479 U.S. 272
    , 286, 107 S. Ct. 683,93 L. Ed. 2d
    613(1987)(purpose of antidiscrimination legislation at issue was to "provide relief
    for working women and to end discrimination against pregnant workers"); Muller
    V. Oregon, 
    208 U.S. 412
    , 
    28 S. Ct. 324
    , 
    52 L. Ed. 551
    (1908) (detailing and
    justifying history of limitations on women in the workplace). But there is also no
    doubt that male supervisors can violate their male employees' rights to be free of
    Cornwell(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    sex discrimination in the workplace and so too can female supervisors vis-a-vis
    female or male employees. See, e.g., Oncale v. Sundowner Offshore Servs., 
    523 U.S. 75
    , 
    118 S. Ct. 998
    , 
    140 L. Ed. 2d 201
    (1998)(sex discrimination includes
    sexual harassment by male supervisor against male employee); Nichols v. Azteca
    Rest. Enters., Inc., 
    256 F.3d 864
    (9th Cir. 2001)(male coworkers' type of verbal
    abuse of male employee constituted sexual harassment). I fear that the majority's
    standard fails to take account of those discrimination claims.
    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(Dawn) v. Microsoft Corp., No. 94846-1
    (Gordon McCloud, J., dissenting)
    

Document Info

Docket Number: 94846-1

Citation Numbers: 430 P.3d 229

Judges: Wiggins

Filed Date: 11/29/2018

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (18)

Grimwood v. University of Puget Sound, Inc. , 110 Wash. 2d 355 ( 1988 )

Nada Raad v. Fairbanks North Star Borough School District , 323 F.3d 1185 ( 2003 )

William J. Ray v. William J. Henderson, Postmaster General , 217 F.3d 1234 ( 2000 )

Deborah RANEY, Plaintiff-Appellant, v. VINSON GUARD SERVICE,... , 120 F.3d 1192 ( 1997 )

Wilmot v. Kaiser Aluminum & Chemical Corp. , 118 Wash. 2d 46 ( 1991 )

California Federal Savings & Loan Ass'n v. Guerra , 107 S. Ct. 683 ( 1987 )

Elizabeth Gordon v. New York City Board of Education , 232 F.3d 111 ( 2000 )

Muller v. Oregon , 28 S. Ct. 324 ( 1908 )

Allison v. Housing Authority of City of Seattle , 118 Wash. 2d 79 ( 1991 )

michelle-nichols-an-individual-antonio-sanchez-an-individual-anna , 256 F.3d 864 ( 2001 )

Robert B. Reich, U.S. Secretary of Labor v. Hoy Shoe ... , 32 F.3d 361 ( 1994 )

Godofredo Hernandez v. Spacelabs Medical Inc., a Delaware ... , 343 F.3d 1107 ( 2003 )

Thompson v. St. Regis Paper Company , 102 Wash. 2d 219 ( 1984 )

McDonnell Douglas Corp. v. Green , 93 S. Ct. 1817 ( 1973 )

Estevez v. Faculty Club of Univ. of Wash. , 120 P.3d 579 ( 2005 )

Stephens v. Erickson , 569 F.3d 779 ( 2009 )

Richard Kessler v. Westchester County Department of Social ... , 461 F.3d 199 ( 2006 )

Oncale v. Sundowner Offshore Services, Inc. , 118 S. Ct. 998 ( 1998 )

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