“In the absence of more significant operational entanglement, common ownership and de minimis coordination in hiring are insufficient bases to disregard the separate corporate forms”
How later courts described this case
- “In the absence of more significant operational entanglement, common ownership and de minimis coordination in hiring are insufficient bases to disregard the separate corporate forms”
- “To decide a motion to dismiss, courts generally consider only the allegations contained in the complaint.”
- finding genuine issue of material fact as to whether two entities are consolidated where the two entities had increased overlap in management and personnel decisions, shared the same building, and were more likely to be treated as a single unit by third parties
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF PENNSYLVANIA
MAURA A. JENKINS, : NO. 1:24-CV-01724
Plaintiff, :
:
v. :
: (CAMONI, M.J.)
HARRISBURG ROTARY CLUB :
A.K.A. ROTARY CLUB OF :
HARRISBURG, AND ROTARY :
INTERNATIONAL, :
Defendants. :
MEMORANDUM OPINION
This matter comes before the Court upon Defendants Rotary
International (“RI”) and Rotary Club of Harrisburg’s (“RCH”) Motions for
Summary Judgment. Docs. 35, 38. Plaintiff Maura Jenkins opposed, and
the Defendants replied. Docs. 42, 44, 46, 47. The Court has carefully
considered the parties’ submissions and reaches its decision without oral
argument under Federal Rule of Civil Procedure 78(b). For the reasons
below, the Court grants the Defendants’ Motions for Summary
Judgment.
I. BACKGROUND
The Court begins with the undisputed and disputed facts. Pursuant
to the Middle District of Pennsylvania’s Local Rules and the Federal
Rules of Civil Procedure, the Court deems admitted Defendants’
statements of material facts to the extent that the Plaintiff’s responses
fail to controvert them.1
A. Undisputed Facts
Plaintiff alleges Title VII employment discrimination claims.
Amended Complaint, Doc. 8 at 1. RCH, a community service
organization, is a member club of RI, an association of member Rotary
clubs throughout the world. RCH’s Statement of Undisputed Material
Facts (“SUMF”), Doc. 38-1 ¶¶ 11, 16; Pl.’s Response to RCH’s SUMF, Doc.
45 ¶¶ 11, 16. Both entities are separate and distinct. RI’s SUMF, Doc. 37
¶ 9; Pl.’s Response to RI’s SUMF, Doc. 43 ¶ 9(c).
1 To one third of the Defendants’ statements of material facts, the
Plaintiff responded, “cannot confirm or deny.” Doc. 43 ¶¶ 2–5, 7–8, 10–
11, 14–16, 18, 20–21, 23, 26–32, 44, 52, 54, 61, 63, 84; Doc. 45 ¶¶ 11–14,
16–21, 23–28, 35. These responses fail to dispute Defendants’ statements
of facts, and so those facts are deemed admitted for the purpose of
summary judgment. M.D. Pa. L.R. 56.1 (“All material facts set forth in
the statement required to be served by the moving party will be deemed
to be admitted unless controverted by the statement required to be served
by the opposing party.”); Fed. R. Civ. P. 56(e)(2) (“If a party fails . . . to
properly address another party’s assertion of fact . . . the court may . . .
consider the fact undisputed for purposes of the motion”); Beard v.
Helman, 722 F. Supp. 3d 521, 527–28 (M.D. Pa. 2024) (“Where
nonmovants fail to support denials with record citations, a common
sanction is to deem these allegations admitted.”).
In 2023, Plaintiff Maura Jenkins worked as a club administrator
for RCH, until it terminated her employment. Doc. 38-1 ¶¶ 29–30; Doc.
45 ¶¶ 29–30. RCH terminated the Plaintiff, its only employee, because
the Plaintiff violated RI’s Code of Conduct via a Facebook post. Doc. 38-1
¶¶ 27, 30, 47; Doc. 45 ¶¶ 27, 30, 47. That Facebook post depicted a small
child saying, “Mommy, I think I’m a boy,” to which the child’s mother
responded, “Well you’re not.” Doc. 38-1 ¶¶ 40–41; Doc. 45 ¶¶ 40–41.
RCH first learned about the Plaintiff’s Facebook post from Una
Martone, a former volunteer for RI. Doc. 37 ¶¶ 53–54, 58; Doc. 43 ¶¶ 53–
54, 58. Martone emailed the “Rotary Club of Harrisburg Leadership,”
criticizing the Plaintiff’s Facebook post as “unacceptable.” Ex. 16, Doc.
37-16 at 2. The email’s recipients did not include any officer or director of
RI. Doc. 37 ¶ 61; Doc. 43 ¶ 61. A few days after receiving Martone’s email,
RCH convened a board meeting. Doc. 37 ¶ 67; Doc. 43 ¶ 67. The RCH
board voted by a majority to terminate the Plaintiff’s employment. Doc.
37 ¶ 71; Doc. 43 ¶ 71.
B. Disputed Facts
The parties primarily dispute: (1) whether RI was the Plaintiff’s
employer (under the single employer theory of liability); and (2) whether
Martone was an employee, representative, or agent of RI. Pl.’s Br., Doc.
42 at 6–8; RCH’s Br., Doc. 39 at 2–5; RI’s Br., Doc. 36 at 19.
The Plaintiff maintains that RI employed her because, among other
reasons, “the facts referenced in [the Plaintiff’s] Amended Complaint are
already admitted as true.” Doc. 45 ¶ 8(b)(ii)–(iii).2 The Plaintiff also
asserts that RI “played a substantial role in managing [RCH] and in the
employment termination of Plaintiff . . . , including but not limited to
direct actions through RI’s employee and/or Agent Una Martone.” Id.
¶ 8(c).
2 The Plaintiff seems to assert that because the Defendants argue there
are no disputed issues of fact that would defeat summary judgment under
Rule 56, that Defendants have “admitted as true” all allegations in the
Amended Complaint. This contention has no basis in any legal authority
the Court is aware of. Elsewhere, Plaintiff argues that this Court must
accept all of the allegations in the Amended Complaint as true under
Rule 12(b), citing to Supreme Court and Third Circuit precedents. See,
e.g., Doc. 44 at 2, citing Leatherman v. Tarrant Cnty. Narcotics Intel. &
Coordination Unit, 507 U.S. 163, 164 (1993) and Nesbit v. Gears
Unlimited, Inc., 347 F.3d 72, 76 (3d Cir. 2003), inter alia. Plaintiff
provides no explanation why the Court should apply the Rule 12(b)
motion to dismiss standard to decide a Rule 56 motion for summary
judgment. All of the cases Plaintiff relies on for this proposition deal with
motions to dismiss, not summary judgments, and are therefore
irrelevant. The Court will not accept as true Plaintiff’s allegations for the
purposes of deciding this motion, but will instead apply the appropriate
summary judgment standard of review.
The Defendants disagree. Doc. 39 at 2; Doc. 36 at 19. They contend
that RI and RCH are separate and distinct legal entities, and that RCH
is not a subsidiary of RI, but is an independent, autonomous club. Doc.
37 ¶ 9; Doc. 38-1 ¶ 15. The Defendants agree with each other that: (1)
neither RCH, “nor its members, agents, or employees, have any authority
to ‘act, negotiate, or contract on behalf of [RI].’” Doc. 38-1 ¶ 21 (quoting
Doc. 37 ¶ 16); (2) “[RI] plays absolutely zero role in the management of or
governing of the daily and internal activities—including the hiring,
firing, training, and/or supervising of employees—of [RCH].” Id. ¶ 22
(citing Doc. 37 ¶ 25); (3) no RCH officer served as an employee, officer or
director of RI, or were in any capacity authorized to act on RI’s behalf.
Doc. 37 ¶¶ 26–28; Doc. 38-1 ¶ 25; and (4) Martone was never an employee
of RCH or RI. Doc. 37 ¶ 52; RCH’s Reply Br., Doc. 47 at 3–4.
C. Procedural History
On October 9, 2024, the Plaintiff filed a complaint, alleging a
violation of Title VII of the Civil Rights Act of 1964. Doc. 1. Finding
deficiencies, the Court granted the Plaintiff leave to amend. Doc. 6. The
Plaintiff filed the Amended Complaint against the Defendants, alleging
religious discrimination and retaliation in violation of Title VII. Doc. 8
¶¶ 61–132. The Defendants moved to dismiss. Docs. 23, 28. Following a
conference with the parties, the Court ordered a limited three-month
period of discovery on the issue “surrounding who was Jenkins’s
employer, including whether the defendants were acting as a single
entity and whether [RCH] was acting as an agent of [RI].” March 12,
2025, Order, Doc. 31 at 1. After discovery, the Defendants moved for
summary judgment. Docs. 35, 38. The motions are fully briefed. Docs. 42,
44, 46, 47. The parties have consented to the jurisdiction of a United
States Magistrate Judge to conduct all proceedings in this case, pursuant
to 28 U.S.C. § 636(c) and Federal Rule of Civil Procedure 73, including
entry of final judgment.3 Doc. 22.
3 RI seeks to renew its motion to dismiss. Doc. 36 at 4. The parties,
however, have completed discovery on the issues raised in the
Defendants’ motions to dismiss pursuant to this Court’s March 12, 2025,
Order. Doc. 31 at 1. Because RI asks the Court to consider facts arising
from discovery, and because the Court considers matters outside the
pleadings to decide motions for summary judgment and not motions to
dismiss, the Court denies the Defendant’s request to renew its motion to
dismiss as moot. See Schmidt v. Skolas, 770 F.3d 241, 249 (3d Cir. 2014)
(“To decide a motion to dismiss, courts generally consider only the
allegations contained in the complaint.”); Fed. R. Civ. P. 12(d) (“If, on a
motion under Rule 12(b)(6) . . . matters outside the pleadings are
presented to and not excluded by the court, the motion must be treated
as one for summary judgment under Rule 56.”).
II. LEGAL STANDARD
Summary judgment is appropriate where “there is no genuine
dispute as to any material fact and the movant is entitled to judgment as
a matter of law.” Fed. R. Civ. P. 56(a). A dispute 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). A fact is
“material” only if it has the ability to “affect the outcome of the suit under
governing law.” Kaucher v. County of Bucks, 455 F.3d 418, 423 (3d Cir.
2006) (citing Anderson, 477 U.S. at 248). Disputes over irrelevant or
unnecessary facts will not preclude a grant of summary judgment.
Anderson, 477 U.S. at 248.
The moving party bears the burden of showing that no genuine
dispute exists such that summary judgment is warranted. See Celotex
Corp. v. Catrett, 477 U.S. 317, 322–23 (1986). Once the movant
adequately supports its motion, the burden shifts to the nonmoving party
to “go beyond the pleadings and by her own affidavits, or by the
depositions, answers to interrogatories, and admissions on file, designate
specific facts showing that there is a genuine issue for trial.” Id. at 324.
“In considering a motion for summary judgment, a district court
may not make credibility determinations or engage in any weighing of
the evidence.” Marino v. Indus. Crating Co., 358 F.3d 241, 247 (3d Cir.
2004) (citing Anderson, 477 U.S. at 255). Rather, “[a]ll facts and
inferences are construed in the light most favorable to the non-moving
party.” Boyle v. County of Allegheny, 139 F.3d 386, 393 (3d Cir. 1998).
Credibility determinations are “the province of the factfinder.” Big Apple
BMW, Inc. v. BMW of N. Am., Inc., 974 F.2d 1358, 1363 (3d Cir. 1992).
The court's role, at the summary judgment stage, is “to determine
whether there is a genuine issue for trial.” Anderson, 477 U.S. at 249.
There can be “no genuine issue as to any material fact,” however, if a
party “fails to make a showing sufficient to establish the existence of an
element essential to that party’s case, and on which that party will bear
the burden of proof at trial.” Celotex, 477 U.S. at 322.
III. DISCUSSION
Under Title VII, an “employer” is an entity with “fifteen or more
employees.” 42 U.S.C. § 2000e(b). This “threshold number of employees
for application of Title VII is an element of a plaintiff’s claim.” Arbaugh
v. Y&H Corp., 546 U.S. 500, 516 (2006). Here, the Plaintiff “fails to make
a showing sufficient to establish the existence” of this essential element.
Celotex, 477 U.S. at 322. Viewing the facts in the light most favorable to
the Plaintiff, no reasonable jury would consider RI and RCH a single
entity such that they were the Plaintiff’s “employer” under Title VII’s
definition. See Anderson, 477 U.S. at 248. For the reasons below, the
Court will grant the Defendants’ motions for summary judgment. See
Celotex, 477 U.S. at 322–23 (“[T]he plain language of Rule 56(c) mandates
the entry of summary judgment, . . . against a party who fails to make a
showing sufficient to establish the existence of an element essential to
that party’s case.”).
A. There is no genuine dispute that RCH does not qualify
as an employer under Title VII’s threshold element.
The parties agree that RCH had only one employee when it
terminated the Plaintiff’s employment and currently has no employees.
Doc. 38-1 ¶ 27; Doc. 45 ¶ 27. Because RCH has fewer than fifteen
employees, under Title VII, RCH is not an employer. See 42 U.S.C.
§ 2000e(b). The Plaintiff’s Title VII claim against RCH, therefore, fails as
a matter of law. But, the Plaintiff argues, RCH and RI were a “single
entity” under the circumstances and therefore qualify as an “employer”
under Title VII because the total number of employees can be aggregated.
Doc. 42-2 at 6. The undisputed facts do not support the Plaintiff’s theory.
B. There is no genuine dispute that the Defendants are
not a single employer to satisfy Title VII’s numerosity
requirement.
In the Third Circuit, Nesbit v. Gears Unlimited, Inc. governs the
limited circumstances in which a Court may consider two nominally
separate entities as a single employer to reach Title VII’s numerosity
requirement. 347 F.3d 72, 85–89 (3d. Cir. 2003). Failing to proffer
evidence that RCH meets the threshold employee number, the Plaintiff
seeks to combine the Defendants as a single employer to meet the
minimum employee threshold. Doc. 45 ¶ 27 (“[F]or the purpose of Title
VII, [RCH] and RI should be treated as one entity.”).
Under Nesbit, consolidation of separate entities as a single
employer is appropriate when: (1) a company splits itself into multiple
entities to evade coverage under Title VII; (2) a parent company, in a
parent-subsidiary relationship, directs the subsidiary to perform the
allegedly discriminatory act in question; or (3) companies have
operations that are so united that nominal employees of one company are
treated interchangeably with those of another. 347 F.3d at 86–87. Here,
the parties do not suggest that the Defendants split themselves into
multiple entities to evade Title VII. Doc. 36 at 34; Doc. 42 at 5. The facts,
viewed in the light most favorable to the Plaintiff, more closely suggest
the latter two scenarios under Nesbit. Under either scenario, however,
the Plaintiff fails to demonstrate that the Defendants should be treated
as a single employer.
First, under the second scenario, the Plaintiff fails to submit
evidence that a parent-subsidiary relationship existed between the
Defendants. In fact, the Plaintiff admits that RI is a separate and distinct
legal entity. Doc. 37 ¶ 9; Doc. 43 ¶ 9(c). Moreover, the Plaintiff fails to
cite to evidence that can sufficiently demonstrate that RI directed RCH
to commit a Title VII discriminatory act. See Nesbit, 347 F.3d at 86.
Instead, the Plaintiff argues that RI exercised control over RCH to
terminate her employment by adopting RI’s code of conduct. See Doc. 42
at 7–8 (citing to Exs. 25, 26, 28). But an employment relationship cannot
be created by a member club—or the club’s employees—adopting an
association’s code of conduct. To draw an analogy, the American Bar
Association would not qualify as employer of a law firm’s employees by
virtue of the firm unilaterally adopting the ABA’s Model Rules of
Professional Conduct.
In no sense does the subscription to a code of conduct form an
employment relationship. That relationship depends on “the level of
control the [employer] exerted over the [employee]: which entity paid the
employee’s salaries, hired and fired them, and had control over their daily
employment activities.” Covington v. Int’l Ass’n of Approved Basketball
Officials, 710 F.3d 114, 119 (3d Cir. 2013) (citation modified). Here, RI
exercised no control over RCH and its operations. Doc. 38 ¶ 22 (citing
Doc. 37 ¶ 25 (“[RI] plays [no] role in . . . the hiring, firing, training, and/or
supervising of employees—of RCH.”)). Thus, the Plaintiff fails to
sufficiently demonstrate Nesbit’s second scenario.4
4 The Plaintiff additionally argues that RI directed her termination by
“direct actions through RI’s employee and/or Agent Una Martone.” Doc.
45 ¶ 8(c). To support this argument, she underscores Martone’s signature
contained in the email addressed to RCH’s Leadership. Doc. 45 ¶ 8(c)
(citing Doc. 37-16 at 2). The Plaintiff reasons that because Martone
signed the email listing Martone’s credentials as “Training Leader,
Rotary International,” Martone is RI’s employee. Id. ¶ 8(c)(i)(e). But an
email signature alone does not establish that Martone was RI’s employee.
See Covington, 710 F.3d at 119. Indeed, Defendants assert that “Martone
was never an employee of RCH or RI.” Doc. 37 ¶ 52. Plaintiff fails to
effectively controvert that assertion with anything of substance from the
record.
Second, under the third Nesbit scenario, the Plaintiff fails to
controvert the Defendants’ declaration that they share no operation. Doc.
38-1 ¶¶ 21–22 (citing Doc. 37 ¶¶ 16, 25). This Court has declined to
aggregate separate entities for a Title VII claim even where it found
management were interconnected. Spalla v. Elec. Mfg. Servs. Grp., No.
16-821, 2017 U.S. Dist. LEXIS 19750, at *10 (M.D. Pa. Feb. 13, 2017)
(finding no single employer consolidation even where two entities shared
officers); Nesbit, 347 F.3d at 89 (“In the absence of more significant
operational entanglement, common ownership and de minimis
coordination in hiring are insufficient bases to disregard the separate
corporate forms”). Here, the Defendants share no common officers or
directors. Doc. 37 ¶¶ 26–28; Doc. 38-1 ¶ 25; Doc. 43 ¶¶ 26-28; Doc. 45
¶ 25.5 They do not coordinate any hiring or terminating of employees.
5 The Plaintiff’s responses to Defendants’ Statements of Facts are
muddled, confusing, and largely ineffectual. The Plaintiff frequently
admits that she “cannot confirm or deny” Defendants’ assertions, “outside
of Defendant submittal(s).” See, e.g., Doc. 45 ¶ 25. Far too often, the
Plaintiff attempts to lead the Court on a goose chase, cross-referencing to
previous responses that are often irrelevant. For example, in response to
the assertion that “none of [RCH’s] board members served as an
employee, agent, or officer of Rotary International” during the Plaintiff’s
employment, the Plaintiff directs the Court to assertions about Una
Martone, whom the Plaintiff has never alleged to be a board member of
RCH. Id. Because the Plaintiff failed to controvert such facts with
Doc. 38-1 ¶ 22 (citing Doc. 37 ¶ 25). Neither does the Plaintiff offer
evidence to suggest that the Defendants overlap in personnel decisions.
See Showers v. Endoscopy Ctr. of Cent. Pa., LLC, 58 F. Supp. 3d 446, 457–
59 (M.D. Pa. 2014) (finding genuine issue of material fact as to whether
two entities are consolidated where the two entities had increased
overlap in management and personnel decisions, shared the same
building, and were more likely to be treated as a single unit by third
parties). In fact, RCH, its members, agents, or employees, have no
authority to “act, negotiate, or contract on behalf of RI.” Doc. 38-1 ¶ 21
(quoting Doc. 37 ¶ 16). Without any evidence of overlap between the
Defendants, the Plaintiff fails to demonstrate Nesbit’s third scenario.
The Plaintiff claims that “the record is flooded with evidence” that
RI exercised control over RCH, but does not identify a single piece of
record evidence to support that claim. Doc. 42-2 at 6. Instead, Plaintiff
cites to multiple paragraphs in her Responses to Defendants’ Statement
of Facts,6 almost all of which contain further cross-references and
“references to the parts of the record” that support her position, those
facts could be deemed admitted. L.R. 56.1.
6 The Plaintiff neglected to include a docket citation to specify which of
her two Responses she was asking the Court to search. Ultimately, it is
re-directions. It is up to the Plaintiff to directly and clearly provide the
Court with record evidence that contradicts Defendants’ asserted
undisputed facts. That is what she is required to do as a litigant facing
summary judgment. “’Judges are not like pigs, hunting for truffles buried
in’ the record.” Doeblers’ Pa. Hybrids, Inc. v. Doebler, 442 F.3d 812, 820
(3d Cir. 2006). Nonetheless, the Court has attempted to decipher the
Plaintiff’s Responses (Docs. 43, 45) and has discerned no genuine issues
of material fact in dispute as to the essential elements of the claims
challenged, and has certainly found no support for the contention that
the “record is flooded” with evidence that the Defendants operated as a
single entity or that RI controlled RCH.
The Plaintiff thus fails to establish any disputed issues of material
fact regarding the issue of whether the Defendants can be considered a
single employer or that RI can be considered the Plaintiff’s employer,
rendering Title VII inapplicable to either Defendant.
of no matter, as both documents are substantially the same, though the
paragraph numbers differ.
IV. CONCLUSION
Because the Plaintiff fails to show any operational entanglement,
common ownership, or coordination in hiring between the Defendants,
the Court cannot “disregard the separate corporate forms of” RI and
RCH. Nesbit, 347 F.3d at 89. There is no genuine issue of material fact
as to whether RI and RCH may be consolidated under the single employer
test. The Defendants, therefore, cannot be viewed as a single employer to
meet Title VII’s numerosity requirement. And the Plaintiff does not
otherwise dispute that RCH had only one employee, herself, rendering
RCH not an “employer” under 42 U.S.C. § 2000e(b). Likewise, Plaintiff
raises no other allegation that RI was Plaintiff’s “employer,” outside of
the claim that the two entities acted jointly. Thus, the undisputed facts
show that Plaintiff cannot establish an essential element of her Title VII
claims. Accordingly, the Court will grant the Defendants’ motions for
summary judgment.
Date: October 16, 2025 s/Sean A. Camoni
Sean A. Camoni
United States Magistrate Judge