Opinion

ZOLLMAN v. MAGNOLIA HEALTH SYSTEMS XI, LLC

Court
District Court, S.D. Indiana
Filed
Sep 10, 2025
Cited by
0 cases
Authority
More cited than 39.2%

The opinion

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF INDIANA

NEW ALBANY DIVISION

DOUGLAS ZOLLMAN, )

)

Plaintiff, )

)

v. ) No. 4:24-cv-00071-SEB-KMB

)

MAGNOLIA HEALTH SYSTEMS XI, LLC, )

)

Defendant. )

)

)

MAGNOLIA HEALTH SYSTEMS XI, LLC, )

)

Counter Claimant, )

)

v. )

)

DOUGLAS ZOLLMAN, )

)

Counter Defendant. )

ORDER DENYING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT

Plaintiff Douglas Zollman ("Mr. Zollman") brought this employment discrimination

action against his former employer, Defendant Magnolia Health Systems XI, LLC's ("Mag-

nolia"), alleging that he was subjected to a hostile work environment and that he was con-

structively discharged because of his sexual orientation, in violation of Title VII of the Civil

Rights Act of 1964 ("Title VII"), 42 U.S.C. § 2000e, et seq. Now before the Court is Mag-

nolia's Motion for Summary Judgment. Dkt. 31. As discussed in greater detail below, Mag-

nolia's Motion for Summary Judgment is DENIED.

LEGAL STANDARD

Summary judgment is proper when "the movant shows that there is no genuine dis-

pute as to any material fact and that the movant is entitled to judgment as a matter of law."

Fed. R. Civ. P. 56(a). Material facts are those that "might affect the outcome of the suit,"

and a dispute of material fact is genuine when "a reasonable jury could return a verdict for

the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).

As the "put up or shut up" moment in a litigation, summary judgment requires par-

ties to "show what evidence [they] ha[ve] that would convince the trier of fact to accept

[their] version of events" and to find in their favor on any disputed elements. Steen v. Mey-

ers, 486 F.3d 1017, 1022 (7th Cir. 2007). Because summary judgment is not "a vehicle for

resolving factual disputes," the district court need not "sift through the evidence, pondering

the nuances and inconsistencies, and decide whom to believe." Waldridge v. Am. Hoechst

Corp., 24 F.3d 918, 920 (7th Cir. 1994). Indeed, those tasks belong to the factfinder. Miller

v. Gonzalez, 761 F.3d 822, 827 (7th Cir. 2014). "The court has one task and one task only:

to decide, based on the evidence of record, whether there is any material dispute of fact

that requires a trial." Waldridge, 24 F.3d at 920 (citing Anderson, 477 U.S. at 249–50).

When deciding whether a genuine dispute of material fact exists, the court construes all

facts in the light most favorable to the non-moving party and draws all reasonable infer-

ences in that party's favor. Khungar v. Access Cmty. Health Network, 985 F.3d 565, 572

(7th Cir. 2021).

BACKGROUND

Omitted from the following factual recitation are factual assertions that have no

bearing on our determination of the legal claims before us as well as those that are unsup-

ported by admissible record evidence.1

I. The Parties

Magnolia is the licensed operator of Azalea Hills ("Azalea"), a residential care and

assisted living facility located in Floyd Knobs, Indiana. On January 18, 2022, Magnolia

hired Mr. Zollman, a gay man, as Azalea's Dietary Manager. Mr. Zollman's responsibilities

as Dietary Manager are not described to us, since neither party has explained what those

duties entailed beyond indicating that he oversaw ordering food for Azalea's residents. Al-

exander Decl. ¶ 10, dkt. 45-1 ("It was [Mr.] Zollman's responsibility to place food orders .

. . ."). Mr. Zollman resigned from his position effective immediately on October 19, 2023.

Prior to his resignation, Mr. Zollman received "a yearly raise" in his wages. Zollman Dep.

85:22–87:5, dkt. 33-2 at 32–34.

During Mr. Zollman's tenure as an at-will employee, Azalea's Administrator and Mr.

Zollman's direct supervisor was Cassandra McCoun ("Ms. McCoun"). Mr. Zollman's alle-

gations of discrimination relate primarily to his direct and indirect interactions with Ms.

McCoun.

1 For instance, we have excluded Mr. Zollman's assertions of fact supported only by reference to

his unverified Complaint, see dkt. 45 at 5, 10, which comprises mere allegations and thus does not

establish facts for purposes of summary judgment. Jones v. Van Lanen, 27 F.4th 1280, 1287 (7th

Cir. 2022); Beal v. Beller, 847 F.3d 897, 901 (7th Cir. 2017); see S.D. Ind. L.R. 56-1(f)(2).

II. Azalea's Employee Handbook

While employed at Azalea, Mr. Zollman twice received a copy of the Employee

Handbook (the "Handbook"): once on January 18, 2022, and again on May 25, 2022, fol-

lowing an April 2022 revision. Dkt. 33-2 at 38–39. We highlight below specific aspects of

the Handbook to which the parties have cited.

A. Equal Employment Opportunity & Anti-Harassment Policy

According to Azalea's equal employment opportunity and anti-harassment policy,

Azalea is "committed to providing a workplace free of inappropriate treatment of any em-

ployee because of an employee's" legally protected characteristic(s). Dkt. 33-2 at 48. Con-

tinuing, the Handbook provides that Azalea "does not . . . condone or tolerate any harassing

or otherwise inappropriate conduct based on any legally protected category" and "is com-

mitted to protecting employees from inappropriate conduct . . . ." Id. at 48–49.

To report behavior inconsistent with Azalea's anti-discrimination policies, employ-

ees "must immediately report [their] concern(s) to the Administrator or Director of Nurs-

ing." Id. at 50. Alternatively, if employees are uncomfortable reporting thereto, they may

place a call to Azalea's hotline. Id. Thereafter, "[m]anagement will investigate and take

appropriate action as to all complaints." Id.

B. Resident Abuse

When employees are accused of "resident abuse" (a term which neither party de-

fines), "[i]t's the policy to relieve them of their duties while an investigation is performed."

McCoun Dep. 22:22–25, dkt. 45-4 at 11. The mandatory investigation entails "interviewing

witnesses," namely staff members. Id. at 23:1–4, dkt. 45-4 at 12. Azalea must also report

allegations of resident abuse to the Indiana Department of Health. Id. at 23:5–11, dkt. 45-

4 at 12.

III. Mr. Zollman's Treatment2

In opposing summary judgment, Mr. Zollman describes the following circum-

stances contributing to his belief that he was subjected to discrimination:

• On an unspecified date, as Mr. Zollman and a coworker were cleaning the dining

room, a news broadcast aired on a nearby television regarding the latest monkey

pox updates, including information about potential monkey pox contagion

among people "in the gay community." Zollman Dep. 13:13–25, dkt. 45-3 at 8.

Mr. Zollman's coworker reacted to the news, commenting, "Men with men,

women with women, they're nothing but a bunch of animals." Id. When Mr.

Zollman reported this comment to Ms. McCoun, she declined to take any reme-

dial or punitive action, stating to Mr. Zollman that the coworker "can say what

she wants" and that, due to the coworker being "an older lady," Ms. McCoun

would not "say[ ] something to her." Id. at 95:4–9, dkt. 45-3 at 53.

• Alisha Collett, the business office administrator, informed Mr. Zollman that Ms.

McCoun had questioned whether Mr. Zollman's marriage to his husband "was a

real marriage" and had suggested "that she was looking to find another Christian

individual, straight person to take [his] position." Id. at 32:14–20, dkt. 45-3 at

15; see id. at 93:17–22, dkt. 45-3 at 51.

2 Magnolia has neither addressed nor rebutted any of the following allegations. See dkt. 50.

• Eric Torline ("Mr. Torline"), the corporate dietary manager, testified in his dep-

osition that he overheard Ms. McCoun make negative comments about homo-

sexuality, namely, that Ms. McCoun "doesn't understand how it's legal for two

men to marry each other." Torline Dep. 22:5–16, dkt. 45-2 at 14. According to

Mr. Torline, Ms. McCoun justified her remarks based on the fact that her son is

gay. Id. at 22:19–23:2, dkt. 45-2 at 14–15.

• Mr. Torline also testified that Ms. McCoun questioned aloud "who is more of the

man" in Mr. Zollman's marriage. Id. at 13:8–10, dkt. 45-2 at 8.

• In October 2023, as Mr. Zollman was attempting to fix a vacuum cleaner, Ms.

McCoun approached him and asked, "Don't you live with a man? Do you not

know how to fix stuff? . . . What are you, a little housewife?" Zollman Dep.

30:5–15, dkt. 45-3 at 13.

• When Ms. McCoun discovered that Mr. Zollman "had been interviewing at other

places," she pressured him to quit his position at Azalea, stating that "if [he]

didn't like it there[,] [he] could just quit." Id. at 77:2–7, 79:1–4, dkt. 45-3 at 41;

see, e.g., McCoun Dep. 18:12–14, dkt. 45-4 at 10; McCoun Aff. ¶ 5(h), dkt. 45-

5.

• Mr. Zollman learned, directly and indirectly, that at least four other Azalea em-

ployees disapproved of his "lifestyle" (i.e., being gay), which Mr. Zollman did

not report to Ms. McCoun because he knew that she, too, had questioned the

legitimacy of his marriage. Zollman Dep. 88:13–95:9, dkt. 45-3 at 46–53. Alt-

hough the parties provide no further details about these coworkers and/or the

nature of Mr. Zollman's interactions with them, Mr. Zollman's deposition testi-

mony includes the identification of these coworkers as "Elizabeth Peterson," id.

at 89:1, dkt. 45-3 at 47; "Emma," id. at 89:2, dkt. 45-3 at 47; "Beth Muniz," id.

at 92:23, dkt. 45-3 at 50; and "Jacob Burr," id. at 93:24, dkt. 45-3 at 51.

• Jeffrey Alexander ("Mr. Alexander"), Azalea Hill's Activities Director from Au-

gust 2022 through February 2023, stated in an affidavit that Ms. McCoun criti-

cized the appearance of food prepared by Mr. Zollman, reportedly saying,

"[T]hat is the way gay people cook." Alexander Decl. ¶ 6, dkt. 45-1. Ms.

McCoun also reportedly stated that "gay people will go to hell." Id. ¶¶ 6, 8. Ac-

cording to Mr. Alexander, Ms. McCoun made these (and similar) comments in

the presence of "[m]any staff members." Id. ¶ 6.

• According to Mr. Alexander, Ms. McCoun routinely referenced Mr. Zollman's

sexual orientation to others, despite the fact that such information was "not well

known." Id. ¶ 7.

During his deposition, Mr. Zollman testified that he was uncomfortable approaching

Ms. McCoun to discuss issues relating to his sexual orientation because he had heard of

her disparagements of him and/or his sexual orientation. Zollman Dep. 15:25–16:10, dkt.

45-3 at 10–11 (explaining that "because of things [Ms. McCoun] said . . . [he] didn't feel

comfortable talking about those kinds of details with her"); id. at 30:20–31:16, dkt. 45-3 at

13–14 (stating that, although Ms. McCoun "never directly said[, ']I don't want you here

because you're gay . . . ,['] she had . . . made comments to my peers and coworkers that"

revealed "how she really felt about me"); id. at 76:7–21, dkt. 45-3 at 40 (felt uncomfortable

talking to Ms. McCoun because she openly disclosed her close friendship with the owner,

indicating that "she had a lot of pull with the company").

Mr. Zollman did, nevertheless, report his "issues with [Ms. McCoun] treating [him]

differently because of [his] sexual orientation" to Mr. Torline on approximately four occa-

sions throughout 2023. Id. at 11:1–10; 33:25–40:13, dkt. 45-3 at 7, 16–23. Mr. Torline

corroborated Mr. Zollman's testimony, stating that Mr. Zollman began reporting instances

of Ms. McCoun's "[i]nappropriate comments" and "hostile demeanor" towards him within

the first several weeks of Mr. Torline's employment in late 2022 through early 2023. Torline

Dep. 12:16–14:21, dkt. 45-2 at 7–9. Mr. Zollman also testified that he phoned Azalea's

hotline once prior to his resignation and again shortly thereafter. Zollman Dep. 79:20–

81:25, dkt. 45-3 at 43–45. During one phone call, Mr. Zollman spoke to Human Resources

Director Kirk Woodcock ("Mr. Woodcock"), who "more or less hung up" on him. Id.; see

also Toomey Dep. 13:1–14:22, dkt. 45-6 at 7–8 (confirming call log entries showing that

Mr. Zollman placed calls to the corporate line and stating that Mr. Woodcock was a person

to whom somebody could submit a complaint of discrimination).

IV. Mr. Zollman's Work Performance

Mr. Zollman maintains that he was a good employee and that his colleagues re-

garded him as such. Dkt. 45 at 8 (citing Torline Dep. 19:3–17, dkt. 45-2 at 11 (stating that

he would be happy to work with Mr. Zollman again); dkt. 45-2 at 20 (text message from

Mr. Torline to Mr. Zollman stating, "You're wonderful Doug."); see, e.g., dkt. 45-4 at 29

(text message from co-worker Julie Bobby to Ms. McCoun stating, "I've never heard [Mr.

Zollman] be abusive . . . ."). Likewise, Mr. Zollman has adduced evidence from his former

coworkers corroborating his assertion that Ms. McCoun had a "hostile demeanor" towards

him, Torline Dep. 20:22–21:19, dkt. 45-2 at 12–13, and that Ms. McCoun "had it out for"

him, Alexander Decl. ¶ 10, dkt. 45-1.

Throughout the course of his employment in 2023, however, Mr. Zollman received

three write-ups based on alleged violations of Azalea's policies—the third and final of

which was issued by Ms. McCoun on October 19, 2023, and included her recommendation

for Mr. Zollman's termination. Unfortunately, neither party describes the nature of Mr. Zoll-

man's alleged infractions; identifies who was involved; explains how the matters were re-

solved; or specifies when the underlying events and/or the subsequent write-ups occurred

(except for the October 19th write-up). Because the Court is not required to "scour the

record" and "make the lawyer's case," we do not expend our limited resources on assem-

bling a cogent narrative of the record evidence where the parties have otherwise failed to

do so. Little v. Cox's Supermarkets, 71 F.3d 637, 641 (7th Cir. 1995).

Nevertheless, Mr. Zollman's summary judgment response does reveal that Mr. Zoll-

man was written up on one occasion for denying a resident's request for a food item that

was, at the time, out of stock. According to Mr. Zollman, he was disciplined for this inci-

dent, despite the fact that Ms. McCoun had specifically instructed him not to order more

of the (unnamed) foot item, Zollman Dep. 59:14–22, dkt. 45-3 at 27; and despite the fact

that "[i]t's not against policy to tell a resident [']no['] to a request for an item that's unavail-

able . . . ." McCoun Dep. 37:19–12, dkt. 45-4 at 20.

On another occasion, Mr. Zollman was allegedly reprimanded for disposing of a

serving of fried eggs that a resident had requested be reheated. According to Mr. Zollman,

however, Azalea's policy is that, "[o]nce eggs . . . leave the kitchen, they can't be returned

or reheated. They have to be thrown away and fresh ones have to be made." Zollman Dep.

63:20–22, dkt. 45-3 at 31.

"[S]ome of the write-ups" evidently concerned accusations of resident abuse. Dkt.

45 at 8 n.7. Although the factual bases for the alleged abuse remain undisclosed to us, the

record reveals that no incident was reported to the Indiana Department of Health and that

Mr. Zollman was not suspended from his position pending any subsequent investigation(s),

despite Azalea's policy requirements. McCoun Dep. 26:1–5, dkt. 45-4 at 15.

V. Mr. Zollman's Resignation

On October 19, 2023, Mr. Zollman submitted via text message to Ms. McCoun his

notice of resignation. He testified at his deposition, "At the end of the day I felt like the

hand was forced for me to [resign] because I believe [Ms. McCoun] was on the verge of

getting rid of me . . . ." Zollman Dep. 77:19–22, dkt. 45-3 at 41. Indeed, Ms. McCoun

confirmed that an employee who has received three write-ups, as Mr. Zollman had here,

would be subject to involuntary termination under company policy. McCoun Dep. 39:18–

22, dkt. 45-4 at 22; McCoun Aff. ¶ 5(b)(v), dkt. 45-5 ("Also on October 19, 2023, but prior

to the time that Mr. Zollman's resignation text was received . . . , the involuntary termina-

tion of that employment had been 'recommended' by, through and within an 'Employee

Warning . . . .' ").

VI. Charge of Discrimination

On November 1, 2023, Mr. Zollman filed a charge of discrimination with the Equal

Employment Opportunity Commission (the "EEOC), which charge he later amended on

February 6, 2024 (hereinafter, the "Charge"). In the Charge, Mr. Zollman alleged that sim-

ilarly situated employees outside of his protected class were treated more favorably than

he. During his deposition, Mr. Zollman named two similarly situated employees: Mr. Al-

exander, the Activities Director, and Amanda Happel ("Ms. Happel"), the "preceding" Ac-

tivities Director. Zollman Dep. 49:18–20, dkt. 45-3 at 24. Although "Activities Director"

and "Dietary Manager" are distinct positions, both are managerial-level jobs whose occu-

pants report to the same supervisor (here, Ms. McCoun) and share overlapping responsi-

bilities. See id. at 50:17–20, dkt. 45-3 at 25 ("The activity director was supposed to help

the dietary manager clear the dining room . . . ."); McCoun Dep. 15:7–13, dkt. 45-4 at 7

(describing activities director duties as "helping in dietary" by "serv[ing] drinks, pass[ing]

desserts, [and] clean[ing] up if needed"). On May 14, 2024, the EEOC dismissed Mr. Zoll-

man's Charge and issued notice of his right to sue.

VII. Procedural History

On May 29, 2024, Mr. Zollman filed the instant lawsuit, alleging that he was con-

structively discharged and subjected to a hostile work environment due to his sexual ori-

entation, in violation of Title VII. Dkt. 1. Defendant has filed a counterclaim against Mr.

Zollman, alleging that his claims are "frivolous and/or made in bad faith" and seeking an

award for attorney's fees and costs expended in defense against his allegations. Dkt. 14. On

November 12, 2024, we granted Mr. Zollman's request to dismiss the counterclaim without

prejudice, explaining: "If Magnolia defeats Mr. Zollman's affirmative claims on the merits,

it will qualify as the prevailing party and will at that point have an opportunity to argue

that an award of attorney's fees in its favor is warranted. A counterclaim to that effect is

unnecessary to preserve the claim." Dkt. 28 at 3.

On January 28, 2025, Magnolia moved for summary judgment on Mr. Zollman's

constructive discharge and hostile work environment claims, dkt. 31, and reasserted that

Mr. Zollman's claims are factually and legally baseless and that Mr. Zollman should be

"estopped from pursuit of his claims" due to his alleged "bad faith," dkt. 32 at 22–23. Mr.

Zollman responded in opposition to summary judgment on April 30, 2025, dkt. 45, and

Magnolia submitted a two-page reply on May 8, 2025, urging that Mr. Zollman "com-

pletely, entirely, and utterly fails to create any 'genuine issue of material fact,' " thereby

entitling Magnolia to judgment as a matter of law, dkt. 50 at 1. Magnolia's Motion for

Summary Judgment is thus fully briefed and ripe for ruling.

DISCUSSION

Magnolia seeks summary judgment on Mr. Zollman's hostile work environment and

constructive discharge claims. Additionally, Magnolia asserts that Mr. Zollman brought this

action in bad faith and should be "estopped" from pursuing his claims further. A careful

review of the arguments laid out in the briefs discloses that the instant motion fails to iden-

tify the undisputed and material facts and to address the pertinent legal principles estab-

lishing an entitlement to judgment as a matter of law. As explicated in greater detail below,

Magnolia holds fast to its position that no unlawful discrimination occurred but omits any

meaningful engagement with the disputed and undisputed material facts. Where, as here,

the summary judgment motion is "blind to outstanding disputes of fact, or off-base on the

relevant principles," sufficient "grounds [exist] for denying the motion." Hotel 71 Mezz

Lender LLC v. Nat'l Ret. Fund, 778 F.3d 593, 603 (7th Cir. 2015). Because Magnolia's

motion for summary judgment cannot be granted on the record before us, it shall be denied

accordingly.

I. Hostile Work Environment

To prevail on a hostile work environment claim, a plaintiff must establish that (1)

he was subject to unwelcome harassment; (2) the harassment was based on a protected

category; (3) the harassment was severe or pervasive to a degree that altered the conditions

of employment and created a hostile or abusive work environment; and (4) there is basis

for employer liability. Robinson v. Perales, 894 F.3d 818, 828 (7th Cir. 2018). "We consider

the hostile work environment claim under a 'totality of the circumstances' approach." Boss

v. Castro, 816 F.3d 910, 920 (7th Cir. 2016) (citations omitted).

Magnolia challenges only the third element of Mr. Zollman's hostile work environ-

ment claim. "In determining whether conduct is severe or pervasive enough to alter the

conditions of employment, courts must consider the severity of the alleged conduct, its

frequency, whether it is physically threatening or humiliating (or merely offensive), and

whether it unreasonably interferes with the employee's work performance." Robinson, 894

F.3d at 828. "While a 'hellish' workplace is surely actionable, plaintiffs' evidence need not

show a descent into the Inferno." Gates v. Bd. of the City of Chicago, 916 F.3d 631, 637

(7th Cir. 2019). "Whether harassment was so severe or pervasive as to constitute a hostile

work environment is generally question of fact for the jury." Johnson v. Advoc. Health &

Hosps. Corp., 892 F.3d 887, 901 (7th Cir. 2018). "In order to remove such a question of

fact from the jury on summary judgment, the court would have to determine that no

reasonable jury could find the conduct at issue severe or pervasive." Id. "If a reasonable

jury could find that the conduct was severe or pervasive, then the claim must go to trial."

Robinson, 894 F.3d at 828 (emphasis added). The standard for proving "severe or perva-

sive" conduct "may be met by a single extremely serious act of harassment or by a series

of less severe acts." Id. (citations omitted).

Viewing the record as a whole and in the light most favorable to Mr. Zollman, the

non-movant, we conclude that a reasonable jury could determine that the alleged conduct

at issue here was sufficiently pervasive to support Mr. Zollman's hostile work environment

claim. Indeed, the record reveals a series of ongoing comments by Ms. McCoun, Mr. Zoll-

man's direct supervisor, indicating that she not only harbored hostility towards him because

of his sexual orientation but also openly expressed her disapproval to Mr. Zollman and his

peers. See, e.g., Torline Dep. 20:22–21:19, dkt. 45-2 at 12–13; Alexander Decl. ¶ 10, dkt.

45-1. Although Ms. McCoun's reported statements—i.e., questioning the legitimacy of Mr.

Zollman's marriage, Zollman Dep. 32:14–20, dkt. 45-3 at 15; see id. at 93:17–22, dkt. 45-

3 at 51, indicating that "gay people will go to hell," Alexander Decl. ¶¶ 6, 8, dkt. 45-1, and

the like—may not, standing alone, support an actionable claim, see Johnson, 892 F.3d at

900, Mr. Zollman's claims are reinforced by his contention that Ms. McCoun fostered a

hostile work environment when she sought to replace him with "another Christian individ-

ual [and/or] straight person," Zollman Dep. 32:1–20, dkt. 45-3 at 15; see id. at 93:17–22,

dkt. 45-3 at 51; directly pressured him to quit, id. at 77:2–7, 79:1–4, dkt. 45-3 at 41, 43;

McCoun Dep. 18:12–14, dkt. 45-4 at 10; McCoun Aff. ¶ 5(h), dkt. 45-5; and interfered

with his ability to perform his work duties by "go[ing] behind his back and plac[ing]

different [food] orders." Alexander Decl. ¶ 10, dkt. 45-1. Furthermore, Mr. Zollman has

adduced evidence from which a reasonable jury could conclude that Ms. McCoun targeted

him with baseless and manufactured write-ups, including accusations of resident abuse,

which Ms. McCoun confirms in her deposition testimony were neither investigated nor

reported to the appropriate state agency, as Azalea's policies require. McCoun Dep. 22:22–

23:11, 26:1–5, dkt. 45-4 at 11–12, 15. Viewed in its entirety, this record—which Magnolia

leaves entirely unrefuted—could permit a reasonable jury to conclude that Ms. McCoun

was motivated by discriminatory animus towards Mr. Zollman based on his sexual orien-

tation and undertook efforts to interfere with Mr. Zollman's work performance, thereby

supporting liability for having created a hostile work environment.

Magnolia's sole argument in favor of summary judgment is that Mr. Zollman's evi-

dentiary basis for his claims falls short of satisfying his burden to prove that he experienced

"severe" harassment during his tenure at Azalea because the alleged discriminatory conduct

was neither physically threatening nor humiliating. Dkt. 32 at 20–21. According to Mag-

nolia, "verbal statements . . . , which were offensive" to Mr. Zollman, are "immaterial for

all purposes of this [summary judgment] motion." Id. at 18–19. This analysis is lacking as

entirely unpersuasive and out of sync with controlling legal precedent.

Clearly, as Magnolia contends, Mr. Zollman has cited no evidence establishing that

he was physically threatened or humiliated. However, the absence of such evidence is not

conclusively dispositive, nor does it undermine the other evidence, detailed above, on the

basis of which a reasonable jury could find that Mr. Zollman was nonetheless subjected to

a hostile work environment because of his sexual orientation. Magnolia's unfortunate

failure to fully address the entire factual record before us and its failure to explain how the

law, as applied to the facts before us, forecloses Mr. Zollman's theory of recovery dooms

its motion. "[I]t is not this court's responsibility to research and construct the parties' argu-

ments." Draper v. Martin, 664 F.3d 1110, 1114 (7th Cir. 2011). Magnolia has failed to

establish its entitlement to judgment as a matter of law on Mr. Zollman's hostile work en-

vironment claim, and its summary judgment motion must accordingly be denied.

II. Constructive Discharge

To establish constructive discharge, a plaintiff generally "must show that she was

forced to resign because her working conditions, from the standpoint of the reasonable

employee, had become unbearable." E.E.O.C. v. Univ. of Chicago Hosps., 276 F.3d 326,

331–32 (7th Cir. 2002). There are "two different forms of constructive discharge." Chapin

v. Fort-Rohr Motors, Inc., 621 F.3d 673, 679 (7th Cir. 2010). "In the first form, an employee

resigns due to alleged discriminatory harassment" and must "show working conditions

even more egregious than that required for a hostile work environment claim because em-

ployees are generally expected to remain employed while seeking redress . . . ." Id. (internal

citations omitted). "The second form of constructive discharge . . . occurs when an em-

ployer acts in a manner so as to have communicated to a reasonable employee that she will

be terminated." Id. (citation modified). Either method of proof requires a showing "that the

work environment had become intolerable." Id. (citation modified).

Here, too, Magnolia fails to address the entirety of relevant facts and legal princi-

ples, arguing only that Mr. Zollman cannot prevail under the former theory of constructive

discharge and completely neglecting to engage Mr. Zollman's argument under the latter

form of constructive discharge. Based on the uncontroverted fact that Mr. Zollman resigned

effective immediately on October 19, 2023—the same day that Ms. McCoun authored the

third, and likely final, write-up on him, see McCoun Dep. 39:3–22, dkt. 45-4 at 22—Mr.

Zollman maintains that "the handwriting was on the wall" and that he resigned "just ahead

of the fall of the axe." Lindale v. Tokheim Corp., 145 F.3d 953, 956 (7th Cir. 1998). Because

a reasonable jury could conclude that Mr. Zollman would have been fired had he not re-

signed—and Magnolia does not argue otherwise—Magnolia is not entitled to judgment as

a matter of law. Its motion for summary judgment shall therefore be denied as to Mr. Zoll-

man's constructive discharge claim.

III. Judicial Estoppel

Magnolia asserts that Mr. Zollman has acted in bad faith because, in the Charge of

Discrimination, he alleged "under penalty of perjury" that Azalea treated "similarly situated

employees" outside his protected class more favorably than he, despite Mr. Zollman's ap-

parent knowledge that, "in actual fact, there were no similarly situated employees." Dkt.

32 at 22–23 (citation modified). According to Magnolia, the Court "should correctly [sic]

not countenance th[is] bad-faith conduct and correctly [sic] should protect [our] own in-

tegrity by concluding that Mr. Zollman is estopped from pursuit of his claims asserted in

this civil action." Id. at 23 (citation modified).

The doctrine of judicial estoppel "protects the courts from being manipulated by

chameleonic litigants who seek to prevail, twice, on opposite theories." Grochocinski v.

Mayer Brown Rowe & Maw, LLP, 719 F.3d 785, 795 (7th Cir. 2013) (citation modified).

Similarly, "federal courts have the inherit power to impose a wide range of sanctions upon

parties for abusive litigation," meaning "cases in which a litigant has engaged in bad-faith

conduct or willful disobedience of a court's orders." /d. at 799 (citation modified).

Regarding the case at bar, it escapes us how Mr. Zollman's allegations concerning

the existence of similarly situated employees—.e., a salient, essential, and fact-dependent

element of an employment discrimination claim—exemplifies bad faith, much less how

the circumstances here merit an exercise of our estoppel authority. Because Magnolia's

contentions bear no discernable basis either in fact or law, we shall deny its request.

CONCLUSION

For the reasons stated above, Magnolia's Motion for Summary Judgment is hereby

DENIED. Dkt. 31. This matter shall proceed accordingly.

IT IS SO ORDERED.

Date:

9/10/2025 Pod GausBiker

SARAH EVANS BARKER, JUDGE

United States District Court

Southern District of Indiana

Distribution:

Andrew Dutkanych, III

BIESECKER DUTKANYCH & MACER LLC (Indianapolis)

ad@bdlegal.com

Elizabeth Gatten

Biesecker Dutkanych & Macer LLC

egatten@bdlegal.com

Richard Bernard Kaufman

Richard B. Kaufman Attorney-at-Law

rich@rkaufmanlegal.com

18

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.