Broderick v. Ruder

• Decision Date: 13 May 1988
• Docket Number: Civ. A. No. 86-1834.
• Citation: 685 F. Supp. 1269
• Parties: Catherine A. BRODERICK, Plaintiff, v. David S. RUDER, Chairman, United States Securities and Exchange Commission, Defendant.
• Court: U.S. District Court — District of Columbia

685 F. Supp. 1269

Catherine A. BRODERICK, Plaintiff, v. David S. RUDER, Chairman, United States Securities and Exchange Commission, Defendant.

Civ. A. No. 86-1834.

United States District Court, District of Columbia.

May 13, 1988.

Beville May, Boston, Mass., for plaintiff.

Elizabeth Stein, S.E.C., Washington, D.C., for defendant.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

JOHN H. PRATT, District Judge.

Trial of the above-captioned matter took place from June 22, 1987 through July 1, 1987. In addition to the oral testimony of some twenty-five (25) witnesses, there has been extensive discovery on both sides in the form of depositions and documents. The matter has been fully briefed. On the basis of the foregoing submissions, the Court enters the following Findings of Fact and Conclusions of Law.

Findings of Fact

The Parties

1. Plaintiff, a 35 year-old white female, is currently employed as a staff attorney in the Division of Corporation Finance of the Securities and Exchange Commission ("Commission" or "SEC"). She has been continuously employed as a staff attorney since August 12, 1979, a period of more than eight years. She filed this action on June 30, 1984, pursuant to Title VII of the Civil Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e-16, et seq., asserting two causes of action. These are, 1) that defendant is responsible for creating and refusing to remedy a sexually hostile work environment at the Washington Regional Field Office ("WRO") of the SEC, and 2) that plaintiff's supervisors at the WRO retaliated against her for opposing actions of the WRO's management that she considered to be illegal under Title VII.

2. Defendant, David S. Ruder, is Chairman of the SEC, having succeeded John S.R. Shad, who was Chairman during the events in controversy. Mr. Ruder is sued in his official capacity.

3. The SEC is a government agency charged, inter alia, with the regulation and enforcement of the federal securities laws, among them the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC's functions are exercised through several field offices, including the WRO located in Arlington, Virginia.

The Organizational Structure Of The WRO Was Organized

4. At all times in question, the WRO, a small branch of the SEC, was organized into two main parts: 1) the Regulation side, responsible for reviewing corporate filings and conducting examinations of broker-dealers and investment advisors, and 2) the Enforcement side, responsible for investigating possible violations of the federal securities laws, such as insider trading. The Enforcement and Regulation Divisions were further sub-divided into branches. Prior to 1980, the WRO Enforcement Division contained two branches. In the fall of 1980 a third enforcement branch was created.

5. The chief executive of the WRO was the Regional Administrator. He had three immediate subordinates, each an Assistant Regional Administrator ("ARA"): two worked in the Enforcement Division in the Arlington and Philadelphia Offices, respectively, and one worked in the Regulation Division. There was also a Regional and a Senior Trial Counsel responsible for civil litigation and administrative proceedings.

6. Paul Leonard ("Leonard") was Regional Administrator of the WRO from 1976 until he retired in August 1985. James C. "Cliff" Kennedy ("Kennedy") was ARA for Enforcement in Arlington from 1976 until May 1986. John L. Hunter ("Hunter") was a branch chief in the WRO from 1976 until September 1980, when he became Senior Trial Counsel. In September 1982 he became Regional Trial Counsel, a position that he held until May 1986. Herbert Brooks ("Brooks") became ARA for Regulation in late February 1981 and held that position until May 1986.¹

Plaintiff's Work History At WRO—August 12, 1979 to September 1984

7. Plaintiff was first employed on August 12, 1979 as a Civil Service Grade 12, step 3, staff attorney. Ms. Broderick's educational qualifications included a Bachelor's Degree with honors from Carnegie Mellon University, a Master's Degree in English, and a Law Degree from the New York University School of Law. Additionally, Ms. Broderick has completed half the requirements for a Master's Degree in Securities Law at Georgetown University. Ms. Broderick is admitted to practice law in both New York and the District of Columbia. While a student, she clerked for the Honorable John R. Bartell of the United States District Court for the Eastern District of New York. She also clerked for the United States Attorney's office for both the Southern and Eastern Districts of New York.

8. Plaintiff served as a staff attorney in the Enforcement Division from August 1979 until September 1984, when she was transferred to the Division of Corporation Finance. During this entire period she received one promotion to grade 13, step 1. Because of her length of service, she met the eligibility qualifications for promotion to grades 14 and 15.

9. During her five years of service with the Enforcement Division, plaintiff served under the following immediate supervisors for the periods indicated:

John Hunter, branch chief, for one week in August 1979

Richard Wachterman, branch chief, August 1979 to November 1980, when he left the SEC

Terry Miller, branch chief, December 1980 to August 1981

Hilton Foster, branch chief, shortly after August 1981 to August 1984, when plaintiff was transferred to the Division of Corporation Finance

10. Mr. Wachterman testified that plaintiff worked on one large insider trading case, that her work was substandard, that she took an excessive amount of time to complete her assignments, and that she did not take kindly to criticism. The negative effect of Mr. Wachterman's testimony was substantially undermined by the fact that he, in recommending plaintiff for promotion to GS-13, stated, inter alia, that "in all her work, she demonstrated a high level of professionalism, especially in her ability to express herself orally and in writing." The memorandum also stated that "Ms. Broderick assumed primary responsibility for a significant part of this investigation. She assimilated a mammoth record which had previously been developed, pursued investigatory initiatives on her own, and wrote a memorandum recommending enforcement action. Her effort in this case has substantially furthered the investigation."

11. Ms. Miller testified that in the beginning of August 1980 she and plaintiff had a cordial relationship, but that thereafter she had the same problems with plaintiff that Wachterman had had—i.e., plaintiff's tardiness and inability to accept criticism arising from Miller's editing of her work. After seven months under Miller, plaintiff asked Kennedy for a transfer because of Miller's criticism of her work and "unfairness". Plaintiff remained under Miller's supervision until August 1981.

12. Mr. Hilton Foster was plaintiff's branch chief from August 1981 to August 1984. This period of three years was the longest single period of supervision by the same person and provides the most complete view of plaintiff's performance capabilities and her difficulties with the management of WRO.

13. During this period of approximately three years, the relationship between plaintiff and Hilton Foster ranged from one of mutual respect during the first year, to one of animosity at the end. At the outset, Foster knew that members of management, including Hunter and Kennedy, were unhappy with plaintiff and that they and plaintiff had a mutual distrust for each other. Foster was well aware of plaintiff's complaints about partying and socializing at the WRO, the plaintiff having so expressed herself to him on several occasions. He was aware that Hunter had "bad mouthed" plaintiff, as well as Karen Nelson, a secretary. Foster told plaintiff in the beginning that he would attempt to act as a buffer between plaintiff and management. Foster's first performance appraisal in August 1982 indicated that plaintiff's performance was "superior" in every way, with the exception of the category entitled "Interactions with supervisors". At that time, Foster felt that she had the potential to be a good attorney and that her one deficiency related to "her inability to act in deference to management's wishes that all employees in the office consider themselves as members of the same team." In December 1982, Foster assisted plaintiff in obtaining a four-month assignment with the office of the United States Attorney, which lasted until the end of April 1983. Despite this hiatus which took her away from the WRO, plaintiff's relations with Foster upon her return deteriorated and her performance rating of August 1983 reflects this change. Her performance level in every respect, instead of being "superior", was in the "fully meets" category, with the exception of her "interactions with supervisors," which was rated "unacceptable", the lowest possible rating. Foster amplified the latter with the explanation that "Ms. Broderick is a capable worker, but she is a festering morale problem in that she blames the Commission and its management for her inability to obtain employment elsewhere. She is not happy working at the WRO; she does not respect the Commission or her supervisors." Finally he stated that "her current attitude, if not improved, would cause me to recommend that she be fired." The friction between Foster and plaintiff did not abate, but rather escalated. Plaintiff received criticisms from him because of her late arrival at work and her job performance. Frequently she responded at length to these criticisms. Finally, in August 1984, Foster gave plaintiff a performance appraisal of "unacceptable" in two categories and on August 30, 1984 plaintiff was told by Foster that if she did not improve her job performance in the elements noted "unacceptable" she would be subject to discharge. Based on the foregoing, it is clear to us that plaintiff was a capable worker and that her problems arose from her...