Whitcomb v. Innerchange Chrysalis, LLC

• Court: U.S. District Court — District of Montana
• Writing for the Court: DANA L. CHRISTENSEN, DISTRICT JUDGE UNITED STATES DISTRICT COURT
• Docket Number: CV 23-39-M-DLC
• Decision Date: 22 October 2024
• Parties: OLIVER WHITCOMB and AMY CLIFFORD, on behalf of M.W., a minor, Plaintiffs, v. INNERCHANGE CHRYSALIS, LLC, d/b/a CHRYSALIS THERAPEUTIC BOARDING SCHOOL; CHANGE ACADEMY AT LAKE OF THE OZARKS, LLC and SOLACIUM HOLDINGS, LLC, d/b/a EMBARK BEHAVIORAL HEALTH; INNERCHANGE VIVE, LLC; COREY HICKMAN; and AMBERLI WYATT, Defendants.
• topic: Civil Rights,Employment Law,Consumer Law

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OLIVER WHITCOMB and AMY CLIFFORD, on behalf of M.W., a minor, Plaintiffs, v. INNERCHANGE CHRYSALIS, LLC, d/b/a CHRYSALIS THERAPEUTIC BOARDING SCHOOL; CHANGE ACADEMY AT LAKE OF THE OZARKS, LLC and SOLACIUM HOLDINGS, LLC, d/b/a EMBARK BEHAVIORAL HEALTH; INNERCHANGE VIVE, LLC; COREY HICKMAN; and AMBERLI WYATT, Defendants.

No. CV 23-39-M-DLC

United States District Court, D. Montana, Missoula Division

October 22, 2024

ORDER

DANA L. CHRISTENSEN, DISTRICT JUDGE UNITED STATES DISTRICT COURT

Before the Court is Defendants' Motion to Dismiss. (Doc. 20.) For the reasons herein, the Motion is GRANTED in part and DENIED in part.

Background^[1]

I. The Parties

Plaintiffs Oliver Whitcomb and Amy Clifford (“Parents”) brought this diversity action on behalf of their minor daughter, M.W alleging that Defendants and their employees abused M.W. while she was a student at Chrysalis School, a therapeutic boarding school located in Eureka, Montana. M.W. is a fifteen-year-old female who currently resides in Idaho with her parents.

Defendant InnerChange Chrysalis, LLC (“InnerChange”) operates Chrysalis School. Defendants Change Academy at Lake of the Ozarks, LLC (“CALO”) and Solacium Holdings, LLC (“Solacium”) operate under the trademark name Embark Behavior Health (“Embark”). Defendant Embark provides information and advertisements about Chrysalis School on its website. Embark owns and operates therapy programs like Chrysalis School at numerous locations throughout the United States. Embark controls and/or operates Chrysalis School. Defendant InnerChange Vive, LLC (“Vive”) also provides information and advertisements about Chrysalis School on its website.

Defendant Corey Hickman has held the role of Executive Director of Chrysalis School since January 2015. At all times relevant to this case, Hickman operated Chrysalis School and managed its employees. Hickman is also identified as an Embark “team member” on Embark's website, and as a Vive “team member” on Vive's website. Hickman represents himself to be a “certified therapeutic recreation specialist.”

Defendant AmberLi Wyatt was an employee and agent of Chrysalis School. Wyatt managed one of the residential homes at Chrysalis School.

II. Chrysalis School and Tyler Wedemeyer

Chrysalis School is a private alternative adolescent residential program licensed to operate in the State of Montana by the Montana Department of Health and Human Services (“DPHHS”). Chrysalis School's mission is to provide at-risk young girls struggling with a variety of emotional, relational, and academic challenges with a nurturing and supportive environment that fosters identity development, self-confidence, and a sense of belonging. Chrysalis School proclaims that its staff consists of highly qualified and caring academic and clinical experts. Through Chrysalis School's website, Defendants have declared that its therapists “bring an expertise that allows students to develop healthy relationships and positive, sustaining habits” and “[t]he Chrysalis clinical approach is to build connection, heal wounds, and find strength.” A crucial aspect of Chrysalis School's curriculum includes “adventure therapy,” which involves taking students on various outdoor excursions including skiing, hiking, rafting, rock climbing, and boating.

Chrysalis School accepts students between the ages of thirteen to eighteen years old. Enrollees leave their families and relocate for full-time residency and supervision on Chrysalis School's 47-acre campus. Students eat, bathe, recreate, sleep, and receive education and counseling at Chrysalis School. Enrollees live on site in one of three residential facilities: Lake House, Horse House, or The Cottage.

Tyler Wedemeyer began his employment with Chrysalis School in July or August of 2021. Wedemeyer, a male in his early thirties, was an “adventure staff” member but worked in every department and in various roles at Chrysalis School, including residential staff, transport, and as a substitute teacher.

Between September 2021 and April 2022, Wedemeyer verbally, physically, sexually, psychologically, and/or emotionally abused and harassed at least five female students. Wedemeyer entered the female students' rooms and masturbated over their beds while he thought they were sleeping. Wedemeyer walked in on girls while they were changing and while in the bathroom and touched their intimate parts, including their breasts and buttocks. In or around Fall of 2021, Wedemeyer attempted to begin a romantic relationship with one student.

In Fall of 2021, at least one student reported her concerns about Wedemeyer's inappropriate behavior to Chrysalis School staff. The student's report-which was sent to Wyatt-indicated that she had concerns that Wedemeyer posed a risk to the female students of the school. Wyatt did not report the suspected abuse, but rather told the student that she “didn't understand how serious the allegations were” and that “the allegations could ruin Wedemeyer's career.” Wyatt also defended Wedemeyer's conduct on the basis that he is a “good Mormon.” Chrysalis School did not conduct an investigation into Wedemeyer's conduct based on the student's report. No Chrysalis School employee reported the known or suspected abuse to the Department of Public Health and Human Services (“DPHHS”).

In February 2022, an employee of Innerchange, Darya Cooper, reported concerns about witnessing Wedemeyer's inappropriate physical contact with another student. On at least three occasions, Cooper expressed her concerns to “Hickman and/or other Chrysalis School staff” about abuse, neglect, and the improper care of enrollees. Cooper also expressed her concern that InnerChange staff were not properly trained. Innerchange did not conduct any investigations following Cooper's report. InnerChange did not terminate Wedemeyer's employment at Chrysalis School after learning of his conduct. Rather, in response to learning of Wedemeyer's attempt to initiate a relationship with a student who was living in Horse House, agents of InnerChange transferred Wedemeyer to oversee Lake House.

III. M.W.

M.W. attended the Wingate Wilderness Program in Utah from November 2021 through January 2022. In early January 2021, M.W.'s family began working with an educational and therapeutic consultant, Thrive Treatment Consulting (“Thrive”), to determine the appropriate next steps for M.W.'s education, growth, and treatment. In collaboration with Thrive, M.W.'s parents chose Chrysalis School as M.W.'s next placement. Leading up to M.W.'s enrollment at Chrysalis School, M.W.'s parents communicated with representatives of InnerChange and Embark. Likewise, Thrive communicated with InnerChange employees prior to and during M.W.'s attendance at Chrysalis School. No representative or employee of InnerChange, Embark, or Chrysalis School mentioned the possibility that Chrysalis School could be an unsafe environment for M.W. Relying on the representations made by Defendants about the benefits Chrysalis School would offer M.W., Plaintiffs entrusted Defendants with M.W.'s physical and emotional well-being.

M.W. was admitted to Chrysalis School in January 2022, at the age of 14, and began attending Chrysalis School later that month. M.W.'s parents and grandparent paid $12,000 a month in tuition via automatic bank withdrawals to Embark. Upon arrival at Chrysalis School M.W. was assigned to live at Horse House, where Wedemeyer worked as a residential staff. Wedemeyer was also assigned to conduct M.W.'s daily check-ins.

Almost immediately, Wedemeyer gained M.W.'s trust and began grooming her, including persuading M.W. to divulge personal, sensitive information of a sexual nature. In February 2022, M.W. broke her collar bone and was labeled a “Person Unable to Participate” in outdoor adventures, or “PUP”. On one occasion, Wedemeyer convinced M.W. and other PUPs to go for a drive, and asked M.W. to sit in the front passenger seat with him. Wedemeyer allowed M.W. to access music on his phone. While M.W. did so, Wedemeyer touched M.W. on the inner thigh. Similarly, at dinner, Wedemeyer would sit next to M.W. and inappropriately touch her legs and thighs.

Wedemeyer's conduct toward M.W. continued to escalate. On several occasions, Wedemeyer intentionally and without consent, observed M.W. naked while changing. Wedemeyer would open the bathroom door without knocking or announcing his presence while M.W. was changing. On another occasion, Wedemeyer intentionally observed M.W. topless without her consent while she was changing after swimming in a lake. After M.W. wrapped herself in a towel, Wedemeyer approached M.W. and whispered “You better have something underneath that towel . . . I know you don't.” Wedemeyer would also come into M.W.'s room and watch her, and at times, Wedemeyer would inappropriately touch M.W.'s body while she was in bed. During one daily check-in, Wedemeyer hugged M.W. and groped her buttocks without her consent.

Wedemeyer was not the only source of abusive or harassing conduct at Chrysalis School. Chrysalis School tolerated open and public sexual conduct, including sexual intercourse, between students on campus. Chrysalis School also tolerated theft of students' belongings, including their underwear and other clothing.

On April 16, 2022, M.W. disclosed the abuse she had suffered to her mother Amy. Amy called Hickman the same night. On the phone call, Hickman acknowledged that he was aware of the abuse allegations the previous Fall, but stated that “you cannot believe these girls, they will even lie about their parents and teachers.” Amy also spoke to M.W.'s therapist at Chrysalis School, Ruth Richards-Schlarman, who confirmed that M.W.'s emotional and mental health had drastically declined. Richards-Schlarman...