Beverley v. N.Y.C. Health & Hosps. Corp.

• Decision Date: 23 March 2022
• Docket Number: 18 Civ. 8486 (ER)
• Court: U.S. District Court — Southern District of New York
• Parties: MAUVAREEN BEVERLEY, Plaintiff, v. NEW YORK CITY HEALTH AND HOSPITALS CORP., MITCHELL KATZ, individually and in his official capacity as President and Chief Operating Officer of NYC Health and Hospitals Corp., STANLEY BREZENOFF, individually and in his official capacity as Interim President and Chief Operating Officer of NYC Health and Hospitals Corp., and PLACHIKKAT ANANTHARAM, individually and in his official capacity as Chief Financial Officer of NYC Health and Hospitals Corp., Defendants.

MAUVAREEN BEVERLEY, Plaintiff,
v.
NEW YORK CITY HEALTH AND HOSPITALS CORP., MITCHELL KATZ, individually and in his official capacity as President and Chief Operating Officer of NYC Health and Hospitals Corp., STANLEY BREZENOFF, individually and in his official capacity as Interim President and Chief Operating Officer of NYC Health and Hospitals Corp., and PLACHIKKAT ANANTHARAM, individually and in his official capacity as Chief Financial Officer of NYC Health and Hospitals Corp., Defendants.

No. 18 Civ. 8486 (ER)

United States District Court, S.D. New York

March 23, 2022

OPINION & ORDER

Edgardo Ramos, U.S.D.J.

Mauvareen Beverley moves for leave to amend the First Amended Complaint (“FAC”), bringing discrimination, retaliation, and hostile work environment claims against her former employer and supervisors. Beverley is a medical doctor and former Assistant Vice President, Physician Advisor in Finance/Managed Care for the New York City Health and Hospitals Corp. (“H+H”). The proposed Second Amended Complaint (“SAC”) brings claims under federal and New York City law against H+H as well as three officers of H+H, Mitchell Katz, Stanley Brezenoff, and Plachikkat Anantharam (collectively, “Defendants”).^[1] Beverley alleges that Defendants discriminated against her because of her race, age, and Caribbean descent, retaliated against her, and subjected her to a hostile work environment.

1

On May 5, 2019, Defendants moved to dismiss the FAC. Doc. 17. In her response to Defendants' motion, Beverley did not request leave to amend in the event that the Court dismissed the FAC. On March 30, 2020, the Court granted Defendants' motion, and directed the Clerk of Court to close the case. See Doc. 33 (the “March 30 Opinion”). On the same day, the Clerk of Court entered judgment, issued a notice of right to appeal, and closed the case. Doc. 34.

On April 28, Beverley filed a notice of appeal. Doc. 39. On May 1, she moved for reconsideration pursuant to Federal Rule of Civil Procedure 59 and Local Rule 6.3 of the Southern District of New York. Doc. 40. On September 25, the Court denied her motion for reconsideration, but clarified that she could seek to replead following the resolution of her appeal. Doc. 47 (the “September 25 Opinion”). On May 10, 2021, the Court received a mandate from the Second Circuit, which vacated and remanded the Court's March 30 Opinion in light of the Court's willingness to permit Beverley to seek to amend her complaint. Doc. 49. On the same day, the Court issued an order, permitting her to move for leave to file a second amended complaint, along with a proposed second amended complaint, by June 1, 2021. Doc. 50. On June 1, Beverley filed her motion to amend the complaint and the proposed SAC. Docs. 51, 52-1.

For the reasons set forth below, Beverley's motion for leave to amend is GRANTED in part and DENIED in part.

I. FACTUAL BACKGROUND

The facts underlying this case are described in detail in this Court's March 30 and September 25 Opinions, familiarity with which is assumed. For present purposes, the Court provides an abbreviated summary.

2

Beverley is an African American woman of Caribbean descent who is over the age of 69. ¶¶ 7-8. Beginning in 2007, she worked in various positions within H+H until January 5, 2018, when Defendants terminated her employment. ¶ 9. From 2015 until her termination, Beverley held the position of Assistant Vice President, Physician Advisor in Finance/Managed Care. ¶ 48.

At all times relevant herein, and prior to January 2018, Brezenoff was the Interim President and Chief Executive Officer. ¶ 15. Beginning in 2016, Anantharam was the Chief Financial Officer and Head of the Central Finance Office. ¶ 16. Katz assumed his position as President and Chief Executive Office in January 2018, replacing Brezenoff. ¶ 14. All were officers with authority over personnel decisions and policies at H+H. See, e.g., ¶ 204.

Specifically, Anantharam supervised a management staff that included Beverley, Megan Meagher, Frederick Covino, Krista Olson, Maxine Katz, and Robert Melican, all of whom are white. ¶¶ 49, 104, 115. Olson and Meagher are less than 40 years old, Melican is approximately 40 years old, Maxine Katz is approximately 50 years old, and Covino was approximately 52 years old when Beverley began working in Finance. ¶¶ 48, 50-52, 104, 115. Meagher, Covino, and Olson held the positions of Assistant Vice President in Finance, and Melican was a director before Anantharam promoted him to Assistant Vice President following Beverley's termination. ¶¶ 49, 104, 152. Melican has a legal background, while Maxine Katz has a background in education. ¶ 117. Lastly, Brenda Schultz is an approximately 40-year-old white Assistant Vice President in H+H's Information Technology Department, and is paid a “high salary” despite her allegedly incompetent performance. ¶¶ 188-190.

A. The Alleged Discrimination

As further described in the March 30 and September 25 Opinions, the FAC sets forth the following allegations. Anantharam questioned Beverley about her Caribbean background and

3

made comments about his lack of affinity for the “African American experience” in the United States. ¶ 134. Another H+H employee of Caribbean descent was subject to disparaging remarks by white employees regarding his background. ¶¶ 136-37, 139. Anantharam was dismissive of Beverley's concerns and ideas while being receptive to those of the white Assistant Vice Presidents. ¶¶ 79-85. Anantharam did not provide Beverley with resources, such as support staff, that were provided to the white Assistant Vice Presidents and directors. ¶¶ 63-64, 72-73. Anantharam discontinued meeting with Beverley while continuing to meet with the white Assistant Vice Presidents and managers. ¶¶ 76-77, 103. Anantharam did not give Beverley a salary increase or promotion, while promoting or raising the salaries of the younger white Assistant Vice Presidents and directors. ¶¶ 88-93. Anantharam required that Beverley be supervised by and obtain approval from Melican, who was a director and therefore in a lower position than Beverley, and Maxine Katz whose job responsibilities remain unspecified. ¶¶ 103-10, 115. H+H has a history of denying African Americans opportunities provided to non-African American employees, including opportunities to hold high-ranking managerial positions and obtain promotions and salary increases, and ignoring the poor performance of non-African Americans. ¶¶ 175-79.

The SAC expands on these allegations. First, Beverley explains that the employees in Finance work in three areas of functional responsibilities: (1) Budget; (2) Managed Care; and (3) Revenue Cycle. ¶¶ 34-35. Regardless of an employee's area of functional responsibility, H+H's description for the position of Assistant Vice President in Finance grants the same “wide latitude and discretion to exercise ‘independent initiative and unreviewed action.'” ¶¶ 39-41. After Anantharam became the head of Finance, he allegedly eliminated such latitude and discretion for Beverley, but did not do so for the younger white Assistant Vice Presidents. ¶¶ 45-46;

4

see also ¶¶ 107, 112. Second, after Anantharam stopped meeting with Beverley in 2017, she sent him emails regarding her work. ¶ 78. He allegedly complained that he was receiving too many emails from her, while he did not complain about communications received from the other Assistant Vice Presidents. ¶¶ 78-80. Third, Beverley asked Anantharam for a raise in salary or a promotion in January 2017, a request which he denied. ¶¶ 88-90. In 2017, he promoted Meagher from the position of director to Assistant Vice President, and in 2018, he promoted Olson and Covino from the positions of Assistant Vice President to Vice President. ¶¶ 91-93. Furthermore, Beverley asserts that there was no system whereby Finance employees were made aware of opportunities for promotions or salary increases, or the criteria or procedure for obtaining such opportunities. ¶¶ 94-96. Thus, she became aware of the promotions of Meagher, Olson, and Covino only after they occurred. ¶ 97. Fourth, Beverley identifies an H+H employee of Caribbean descent who is only referenced but not named in the FAC as Julian John, a comptroller in Finance, who is approximately 60 years old and African American. ¶ 136. Following his departure from Finance, John was replaced with Jay Wayman, who is white. ¶¶ 136-39.

B. The Alleged Retaliation

As further described in the March 30 and September 25 Opinions, the FAC asserts that on December 18, 2017, Anantharam told Beverley she had two days to submit a letter of resignation and that in January 2018, Defendants terminated her employment. ¶¶ 140, 154. She complained to Katz about the termination and other discriminatory treatment, but he ignored her complaints. ¶ 160.

The SAC details her complaints to her supervisors. For example, in August 2017, Beverley allegedly objected to being required to report to a subordinate employee and noted that

5

she was the only Assistant Vice President who was required to do so. ¶ 113. Throughout October 2017, Beverley complained to Anantharam about being prevented from exercising the same authority over projects as the younger white Assistant Vice Presidents. ¶ 125. She further complained about the errors made on her assignments and for which she was falsely blamed. ¶ 126. On November 1, 2017, Anantharam told Beverley that she should look for another job and that he did not know what she did in Finance. ¶¶ 128-29. He also began preventing her from attending managers' meetings or receiving communications sent to the managers in Finance. ¶¶ 130-31. On December 18, 2017, Anantharam allegedly threatened Beverley to submit a letter of resignation and stated that if she did not do so, he would take her to human resources. ¶¶ 141-42. On the same day, Beverley wrote to Anantharam regarding the unfair treatment to which she was being...