Evans v. Valley Elec. Ass'n

• Decision Date: 13 January 2023
• Docket Number: 2:20-cv-000986-ART-VCF
• Parties: ANGELA EVANS, an individual; Plaintiff, v. VALLEY ELECTRIC ASSOCIATION, INC.; DOES I through X and ROE CORPORATIONS XI through XX, inclusive; Defendants.
• Court: U.S. District Court — District of Nevada

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ANGELA EVANS, an individual; Plaintiff, v. VALLEY ELECTRIC ASSOCIATION, INC.; DOES I through X and ROE CORPORATIONS XI through XX, inclusive; Defendants.

No. 2:20-cv-000986-ART-VCF

United States District Court, D. Nevada

January 13, 2023

ORDER

ANNE R. TRAUM UNITED STATES DISTRICT JUDGE

I. SUMMARY

Plaintiff Angela Evans (“Evans”) brings this action alleging that Defendant Valley Electric Association (“VEA”) unlawfully terminated her and discriminated against her on the basis of race, sex, national origin, and age, among other claims. Before the Court is Defendant VEA's Motion for Summary Judgment (ECF No. 80) and Evans' Motion for an Order Directing Additional Discovery (ECF No. 87). For the reasons set forth in this order, the Court grants in part and denies in part VEA's Motion for Summary Judgment and denies Evans' Motion for an Order Directing Additional Discovery.

II. BACKGROUND

Except as noted, the following facts are undisputed. Angela Evans is a fifty-nine-year-old, Hispanic woman with thirty years of experience working with public utilities. (Compl ¶¶27, 28; ECF No. 1-1). VEA is a member-owned electric utility cooperative established in 1965 and headquartered in Pahrump, Nevada. (Mot. Summ. J. at 1:18-19, ECF No. 80 (“MSJ”)); Compl. ¶18). VEA is governed by an elected board of directors and serves 45,000 ratepayers across Southwest Nevada. (Hall Aff. ¶3, ECF No. 80-1; Compl. ¶19).

A. Evans Was Hired at VEA and Promoted to CEO

Evans was initially hired at VEA as an Executive Vice President and was promoted to permanent Chief Executive Officer (“CEO”) approximately twenty months later. (MSJ at 2:7-3:12). On January 10, 2017, VEA offered Evans a position as “Executive Vice President of Operations” after Evans responded to an online job posting created by VEA. (Compl. ¶¶29, 30; Evans Offer Letter, 1, ECF No. 80-6). In February 2017 Evans accepted VEA's offer and began work at VEA later that month. (Compl. ¶ 30). Evans' starting salary was $180,000 per year, which was $50,000 less than other Executive Vice Presidents at VEA-two white women and a non-white man-who were paid a higher salary of $230,000 per year. (Evans Dep. Tr. at 37:23-25, ECF No. 80-4; MSJ at 13:16-19). On or about April 14, 2018, VEA's previous CEO, Tom Husted (“Husted”), selected Evans and another employee-Ken Johnson (“Johnson”)-to temporarily rotate through two COO positions and increased Evans' salary to $230,000 per year. (Evans Dep. at 78:1-22, ECF No. 80-4).

Shortly after Evans was rotated into the COO position, VEA fired Husted after a female employee accused him of sexual misconduct. Evans, who was the only candidate considered for the interim CEO position, was promoted to interim CEO on May 4, 2018. After VEA's preferred candidate for permanent CEO, Byron Nolde, withdrew from consideration, Evans was promoted to permanent CEO on or about October 1, 2018. (Compl. ¶¶32-33; MSJ at 2:19-24, 3:5-13). As CEO, Evans oversaw a significant rate increase and workforce reductions intended to improve VEA's financial health. (MSJ at 3:15-19). Workforce reductions included a voluntary separation program in December 2018 and involuntary layoffs in late January or early February 2019. (Evans Dep. at 105:22-24, 112:7-23, ECF No. 80-4). The 2019 rate increase was the first imposed on VEA's members in more than ten years and “enraged” VEA's members. (MSJ at 3:20-23).

Also in January or early February 2019, Evans supervised the termination of Johnson, who was accused of sexual harassment by thirteen female VEA employees. (Evans Dep. Tr. p. 128:13-23, ECF No. 80-7).

B. Evans Was Arrested and Put on Administrative Leave

After he was fired, Johnson became an active critic of VEA and Evans, and spearheaded a campaign to have Evans arrested and removed as CEO. Johnson founded “VEA Members for Change” (“MFC”), a group committed to recalling VEA's Board of Directors, including CEO Evans, around February 15, 2019. (MSJ at 3:24-4:5; Facebook Poll at 2, ECF No. 80-30 (showing a MFC page creation date of February 15, 2019); Johnson Dep. Tr. 18:4-25, ECF No. 80-13). Johnson tipped off another member of MFC, Nye County Sheriff's Office (“NCSO”) Lieutenant Boruchowitz, about alleged criminal acts by Evans. Boruchowitz helped Johnson establish MFC and later became a spokesperson for the group. (MSJ at 4:14-23).

Based on Johnson's tips and with Boruchowitz's help, the NCSO investigated and ultimately arrested Evans in February 2019. Prior to Evans' arrest, the NSCO twice obtained and executed search warrants orchestrated by Boruchowitz. (MSJ at 4 fn.3). The first search warrant, executed on February 22, 2019, was based on allegations that VEA paid “hush money” to keep secret the allegations against former CEO Husted. (MSJ at 4:24-5:4). On February 25, 2019, Johnson again contacted the NCSO, this time claiming that Evans had work performed on VEA infrastructure behind a home she was planning to purchase at no cost to Evans. (MSJ at 5:5-7; Perra Email at 1, ECF No. 80-18). The next day, on February 26, 2019, NSCO obtained and executed a second search warrant at VEA and arrested Evans on suspicion of embezzling from VEA. (MSJ at 5:9-11).

After Evans' arrest, VEA placed Evans on paid administrative leave on February 26, 2019 and ordered an investigation into Evans' arrest and related matters. (Compl. ¶ 39; MSJ at 6:20-7:2). VEA hired Dick Peck, a white male, to serve as its interim CEO while Evans was on administrative leave. (MSJ at 6: 9 10).

From March until late May, Evans did not know if she would be allowed to return to VEA, even after it cleared her of criminal wrongdoing. A VEA Board Member, Ken Derschan, allegedly told Evans in late March that she could return to work on or about April 27, 2019, under the supervision of Peck, the interim CEO. (Compl. ¶¶ 41, 43; Evans Decl. ¶2, ECF No. 86-1; Evans Dep. Tr. at 94:2124, ECF No. 86-5).

VEA's internal investigation of Evans cleared her of criminal wrongdoing but reprimanded her for violating an internal VEA policy Peck characterized publicly as an “integrity policy.” (Pub. Summ. of Josh M. Reid Rep. at 2; Jeffrey Meehan, Two months after arrest, no charges filed on VEA's Evans, PAHRUMP VALLEY TIMES, May 1, 2019, at 3, ECF No. 51-3). The summary of the report generated by VEA's internal investigation is dated April 22, 2019. (Pub. Summ. of Josh M. Reid Rep. at 1). The summary found “Ms. Evans' [sic] did not commit any illegal acts with respect to the Property,” and that “the allegations made by the Nye County Sheriff's Office relating to Ms. Evans' actions are unfounded.” (Id. at 2). The summary also found that that Evans violated VEA's “integrity policy” because she “should have disclosed her interest in The Property to her supervisor, former VEA CEO Thomas Husted . . . pursuant to VEA Employment Policy #107.” (Pub. Summ. of Josh M. Reid Rep. at 2). Evans claims that she did inform VEA leadership she was planning to purchase the Property. (Evans Dep. Tr. at 95:295:20, ECF No. 86-5). Evans and VEA agree that the embezzlement allegations against Evans are false. (Evans Dep. at 125:1-16, ECF No. 80-4; MSJ at 5:1-2).

While VEA publicized those findings, it waited one month to transmit the report to the District Attorney. Interim CEO Peck announced the investigation's findings to the press, communicating that Evans violated no laws. (Press Footage of Richard Peck, ECF No. 80-27). Referring to “The private investigation of the Angela Evans Affair-as I call it,” Peck stated that “the investigation found no illegal activities.” (Id.). Peck also signaled that VEA's Board would decide at its upcoming meeting in May whether Evans would return to VEA and its decision was tethered to the disposition of the criminal case. Peck stated, “After the annual meeting the first week in May [the Board will determin[e] whether to bring back Angela at that time. They postponed it until after her arraignment.” (Id.). Peck acknowledged that as of May 17, 2019 the report was not sent to the District Attorney. (Jeffrey Meehan, Valley leader speaks on ongoing investigations, PAHRUMP VALLEY TIMES May 17, 2019, at 3, ECF No. 51-1 (“‘I don't know why they didn't send [the report] even though they said they were going to,' Peck said.”)). VEA waited until May 21, 2019 to transmit the report to the District Attorney and requested it not be made public. (Arabia Email at 1, ECF 80-28). The District Attorney formally dismissed the charges against Evans on November 5, 2019. (Denial from Chris Arabia, District Attorney at 1, ECF No. 51-12).

C. Evans was fired after refusing to resign and complaining of discrimination.

In May and June 2019, VEA's Board urged Evans to resign. VEA Board member Dave Hall met with Evans and requested her resignation on May 29, 2019. (MSJ 8:15-16; Hall Aff. ¶17). Evans refused. (Evans Dep. at 155:18-156:5, ECF No. 80-4). On or about June 5, 2019, Interim CEO Peck met with Evans to persuade her to “take the separation package,” (MSJ 8:22-24; Evans Dep. at 162:19-163:9, 164:20-23, ECF No. 80-4), and met with a search firm to discuss beginning a search for a new CEO to replace Evans (MSJ at 9:3; Search Firm Email at 1, ECF No. 80-35).

Evans was fired eleven days after she complained of discrimination. Her internal complaint with VEA, filed on June 17, 2019 alleged that she was being treated “unfairly, inappropriately, and discriminated against as a female, 56-year-old Hispanic CEO.” (Evans Internal Compl. at 2, ECF 80-36). After learning of Evans' refusal to resign (based on her June 17, 2019, letter), the Board met on June 27, 2019, voted to terminate Evans effective June 30, 2019, and informed Evans of its decision by letter dated June 28, 2019. (Termination Letter at 2, ECF No. 80-37). VEA noted that it...