Smith v. Raleigh Dist. of N.C. Methodist Church

• Decision Date: 27 July 1999
• Docket Number: No. 5:98-CV-715-BR.,5:98-CV-715-BR.
• Citation: 63 F.Supp.2d 694
• Court: U.S. District Court — Eastern District of North Carolina
• Parties: Debbie F. SMITH and Tracy Newman, Plaintiffs, v. The RALEIGH DISTRICT OF THE NORTH CAROLINA CONFERENCE OF THE UNITED METHODIST CHURCH; and the North Carolina Conference of the United Methodist Church, Defendants.

63 F.Supp.2d 694

Debbie F. SMITH and Tracy Newman, Plaintiffs, v. The RALEIGH DISTRICT OF THE NORTH CAROLINA CONFERENCE OF THE UNITED METHODIST CHURCH; and the North Carolina Conference of the United Methodist Church, Defendants.

No. 5:98-CV-715-BR.

United States District Court, E.D. North Carolina, Western Division.

July 27, 1999.

COPYRIGHT MATERIAL OMITTED

Joyce L. Davis, Raleigh, NC, Zoe G. Mahood, Joyce L. Davis & Associates, Raleigh, NC, for plaintiffs.

Frederick K. Sharpless, Elrod & Lawing, Greensboro, NC, for defendants.

ORDER

BRITT, Senior District Judge.

This matter is before the court on defendants' motion to dismiss under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6).

On 18 June 1998, plaintiffs Debbie F. Smith and Tracy Newman filed a complaint in the Superior Court of Wake County against the Raleigh District of the North Carolina Conference of the United Methodist Church (the District) and the North Carolina Conference of the United Methodist Church (the Conference), alleging that defendants violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and the Civil Rights Act of 1991 by failing to take appropriate action to ensure a work environment free of sexual harassment. On 15 September 1998, defendants removed the action to this court pursuant to 28 U.S.C. § 1441. Also on that date, defendants filed this motion, a supporting memorandum, and the affidavit of Kermit Braswell. Plaintiffs requested and were granted an extension of time to respond to defendants' motion to dismiss pending a ruling by the court on plaintiffs' anticipated motion to remand.

On 15 October 1998, plaintiffs timely filed a motion to remand, or in the alternative, to stay the proceedings until similar state proceedings were concluded, which defendants opposed on 5 November 1998. On 16 February 1999, this court denied plaintiffs' motion and directed plaintiffs to file a response to defendants' motion to dismiss within twenty days.

Plaintiffs obtained a further extension of time within which to file their response, and, on 22 March 1999, plaintiffs filed a brief in opposition to defendants' motion to dismiss. On 31 March 1999, defendants filed a reply. The parties have briefed the issues, and the motion to dismiss is now ripe for review.

PROCEDURAL HISTORY

On 26 February 1996, plaintiffs filed an action in Wake County Superior Court (Civil Action No. 96-CV-1983) against Senior Pastor William Edward Privette alleging assault and battery, and against White Plains United Methodist Church (the Church), the District, and the Conference alleging negligent supervision and retention. (Pl.s' Mem., Ex. 1.) The trial court dismissed plaintiffs' claims against the Church and defendants for lack of subject matter jurisdiction, and plaintiffs appealed. On 3 February 1998, the North Carolina Court of Appeals reversed the trial court's dismissal of the negligent supervision and retention claims against the Church and defendants and remanded for discovery and trial. (Pl.s' Mem., Ex. 2.) On 6 May 1998, the North Carolina Supreme Court dismissed the Church's and defendants' notices of appeal. (Pl.s' Mem., Ex. 4.) Subsequently, plaintiffs settled with the Church and dismissed their claims against it. As of the date plaintiffs filed a response in this matter, the trial date for plaintiffs' negligent supervision and retention claims against defendants had not yet been set and discovery had not been completed. While plaintiffs were appealing the trial court's dismissal of their claims against the Church and defendants, plaintiffs tried their assault and battery case against Privette, and a jury found in their favor, awarding them $420,000 in compensatory and punitive damages. (Pl.s' Mem. at 7.)

At the same time plaintiffs initiated their cause of action against Privette, the Church, and defendants in state court, plaintiffs also initiated the requisite administrative proceedings to bring an action against defendants pursuant to Title VII. In early 1996, plaintiffs contacted the EEOC and filed formal charges of discrimination against the Church and defendants. Plaintiffs received notices of their right to sue on 20 March 1998. They then timely filed this Title VII action against defendants in Wake County Superior Court (Civil Action No. 98-CV-07238/5:98-CV-715-BR) in lieu of amending their complaint in the pending state court case.

FACTS

Plaintiffs' Title VII claims are based upon allegations that William Edward Privette, then Senior Pastor of the White Plains United Methodist Church in Cary, North Carolina, sexually harassed them during the course of their employment with the Church. (Compl. ¶¶ 24-27 (Newman) and ¶¶ 28-31 (Smith).) Plaintiffs also allege that defendants knew about the harassment and failed to take action to stop it.

At all times relevant to these proceedings, Privette was an ordained minister of The United Methodist Church and a clergy member of the North Carolina Annual Conference (the Annual Conference or the Conference).¹ (Braswell Aff. ¶ 7). The Church is a charge within the Annual Conference, and the Annual Conference is one of the divisions of the United Methodist Church (UMC). (Braswell Aff. ¶¶ 5, 3). The UMC also contains the General, Jurisdictional, Central and Charge Conferences (Braswell Aff. ¶ 3) as well as numerous other annual conferences covering various geographic regions. See United Methodist Church, Baltimore Annual Conference v. White, 571 A.2d 790, n. 1 (D.C.1990). The internal affairs of the UMC are governed by the UMC's Constitution and the 1992 Book of Discipline. (Braswell Aff. ¶ 3). The Church is organized in accordance with the Book of Discipline, and the Bishop of the Conference assigned Privette to the Church pursuant to the procedures set forth in that document. (Braswell Aff. ¶¶ 5, 8.) The appointment of ministers is a part of the itinerant general superintendency in the UMC. (Braswell Aff. ¶ 9.) As prescribed by the Book of Discipline, the Church paid Privette's salary and benefits. (Braswell Aff. ¶ 10.)

Newman began working for the Church as a receptionist in September 1994, (Compl.¶¶ 17-18), and Smith began working for the Church as the Pastor's Secretary in May 1995.² (Braswell Aff., Ex. A.) Privette supervised each of the plaintiffs to some extent. (Compl.¶¶ 21, 23.) Privette allegedly began harassing Newman immediately after she began working for the Church in September 1994, and Smith in July 1995. Newman and Smith reported Privette's sexual harassment to representatives of both the Church and defendants. (Compl. ¶¶ 25-27 (Newman) and ¶¶ 29-30 (Smith); Braswell Aff., Ex. A (Smith) and Ex. C (Newman).)

Although Privette's harassment of Newman began immediately after she started working for the Church in September 1994, Newman did not complain at that time because she did not want "it to seem like [she] was causing waves" and she was afraid she might lose her job. (Braswell Aff., Ex. C.) In March 1995, Newman spoke with Toni Speakman, the Church's Business Manager, about Privette's harassment. (Compl.¶ 25.) Newman subsequently received an apology from Privette, and the harassment stopped for about a week. The harassment then continued. Newman felt Speakman's response was inadequate and spoke with her again in July 1995. (Braswell Aff., Ex. C; Compl. ¶ 26.) Newman also reported Privette's harassment to Kermit Braswell, the District Superintendent of the Raleigh District of the Conference. (Compl.¶ 27.) Ultimately, Newman submitted a two-week notice of her resignation on 1 August 1995 and subsequently submitted a written grievance to defendants on 22 February 1996. (Id.)

In September 1995, Smith reported Privette's harassment to the Pastor of Membership and Evangelism, Ray Warren, an individual assigned to the Church by defendants. (Braswell Aff., Ex. A.) Warren allegedly told Smith he would take care of the situation. (Id.) The harassment continued. On 17 November 1995, Smith spoke with Ann Carver, the Staff Parish Relations Committee contact person, about Privette's harassment. The harassment continued. (Id.) On 30 November 1995, Smith, along with several other female employees in the Church office, met with Speakman regarding Privette's harassing behavior. Unsatisfied with Speakman's response to her concerns, Smith submitted her formal grievance to Braswell on 5 December 1995. (Braswell Aff., Ex. A.) She alleges that defendants retaliated against her for reporting the sexual harassment by demoting her from Pastor's Secretary to Church Secretary approximately two months after she filed her grievance. (Compl.¶ 31.) Privette remained the Senior Pastor at the Church until May 1997. (Pl.s' Br. at 5.) Although Newman's grievance letter indicates that she stopped working for the Church in August 1995, Smith's grievance does not indicate whether she left her employment with the Church or whether she continued working with Privette through the date he voluntarily resigned in July 1997.

The UMC's Book of Discipline contains a procedure for initiating, processing, and resolving grievances. Pursuant to that procedure, the Bishop or District Superintendent

shall first attempt to resolve the grievance to the satisfaction of all parties through the supervision process. If the grievance cannot be so resolved, then it may be referred as a complaint to the Board of Ordained Ministry.... The complaint is then referred to the Joint Review Committee.... The committee shall attempt to resolve the matter ... but if it is unable to do so, it refers the matter back to the Board of Ordained Ministry with its recommendations. The Board may then recommend appropriate remedial action, up to and including termination of the minister's membership in the Conference. Either the Board of Ordained Ministry through the Committee on Investigation, or the affected minister may choose trial in accordance with procedures set forth in the 1992 Book of Discipline. An involuntary...