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Case Name EEOC v. Creative Networks, L.L.C. EE-AZ-0033
Docket / Court 2:05-cv-03032-SMM ( D. Ariz. )
State/Territory Arizona
Case Type(s) Equal Employment
Special Collection EEOC Study -- in sample
Attorney Organization EEOC
Case Summary
On September 30, 2005, the Phoenix District Office of the EEOC filed this lawsuit in the U.S. District Court for the District of Arizona. The plaintiffs sued Creative Networks, LLC and its parent company, Res-Care, Inc. under Title VII of the Civil Rights Act of 1964. The plaintiff, representing ... read more >
On September 30, 2005, the Phoenix District Office of the EEOC filed this lawsuit in the U.S. District Court for the District of Arizona. The plaintiffs sued Creative Networks, LLC and its parent company, Res-Care, Inc. under Title VII of the Civil Rights Act of 1964. The plaintiff, representing two former employees of Creative Networks, LLC, asked the court for a permanent injunction, a policy change within the company, and monetary compensation. The plaintiffs claimed that the two employees had been retaliated against after they had opposed unlawful discrimination in the workplace. Specifically, the plaintiffs claimed that one employee had been terminated in retaliation and the other employee had been threatened with termination.

On November 18, 2005, Res-Care, Inc., the parent company to Creative Networks, LLC, moved for dismissal. As a parent company, it claimed that it had no control over its subsidiaries' employee practices. On December 29, 2006, Judge Stephen M. McNamee rejected the motion because, prior to discovery, there remained an issue of material fact as to Res-Care's involvement. (Labor & Empl. L. P 141108) Following discovery, on March 19, 2009, Judge McNamee granted Res-Care's April 11, 2008 motion for summary judgment. Judge McNamee found that the parent company and the subsidiary were distinct corporate entities and there was no evidence that Res-Care was involved in the subsidiary's hiring or firing practices.

On March 9, 2009, Judge McNamee denied the defendant's motion for partial summary judgment with regard to one complainant's allegations. The defendant alleged (1) that a "counseling session" with one employee was not an adverse employment action and (2) there was insufficient evidence to demonstrate a causal link between the alleged retaliation and the employee's participation in a Title VII charge. Judge McNamee found that the evidence provided by the EEOC was both proper and sufficient.

On January 15, 2010, Judge McNamee denied the defendant's April 10, 2009 motion for summary judgment with regard to same employee. In this motion, the defendant asserted (1) the employee's participation as a named witness was not protected under Title VII, and (2) the defendant had a legitimate and non-discriminatory reason for the counseling session. Judge McNamee rejected both assertions.

On May 24, 2010, Judge McNamee signed and approved a consent decree. The decree imposed a permanent injunction on Creative Networks, LLC, enjoining the company from retaliating against its employees because of their opposition to discrimination or their participation in charges against unlawful discrimination. It also imposed notice, training, reporting, and retaliation policy requirements. It further granted $110,000 in monetary relief to the two employees and required the defendant to expunge their files and provide neutral references.

David Friedman - 05/21/2008
Gabriela Hybel - 11/17/2016


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Issues and Causes of Action
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Issues
Affected Gender
Female
Content of Injunction
Develop anti-discrimination policy
Expungement of Employment Record
Neutral/Positive Reference
Reporting
Retaliation Prohibition
Training
Discrimination-area
Discharge / Constructive Discharge / Layoff
Discipline
Discrimination-basis
Sex discrimination
EEOC-centric
Direct Suit on Merits
General
Disparate Treatment
Retaliation
Plaintiff Type
EEOC Plaintiff
Causes of Action Title VII (including PDA), 42 U.S.C. ยง 2000e
Defendant(s) Creative Networks, LLC
Res-Care, Inc.
Plaintiff Description Equal Employment Opportunity Commission, on behalf of one or more workers.
Indexed Lawyer Organizations EEOC
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement
Source of Relief Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2010 - 2011
Case Closing Year 2010
Case Ongoing No
Additional Resources
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Case Studies Megacases, Diversity, and the Elusive Goal of Workplace Reform
Written: Mar. 01, 2008
By: Nancy Levit (University of Missouri-Kansas City School of Law)
Citation: 49 B.C. L. Rev. 367 (2008)
[ Detail ] [ External Link ]

  Second Generation Employment Discrimination: A Structural Approach
By: Susan Sturm (Columbia Law School)
Citation: 101 Colum. L. Rev. 458 (2001)
[ Detail ] [ External Link ]

Docket(s)
2:05-cv-03032-SMM (D. Ariz.) 05/24/2010
EE-AZ-0033-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 09/30/2005
EE-AZ-0033-0001.pdf | Detail
Memorandum of Decision and Order 12/29/2006 (2006 WL 3834286) (D. Ariz.)
EE-AZ-0033-0006.pdf | WESTLAW | Detail
Order 12/12/2008 (2008 WL 5225807) (D. Ariz.)
EE-AZ-0033-0008.pdf | WESTLAW | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Memorandum of Decision and Order 03/09/2009 (2009 WL 597214) (D. Ariz.)
EE-AZ-0033-0009.pdf | WESTLAW | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Memorandum of Decision and Order 03/19/2009 (2009 WL 777189) (D. Ariz.)
EE-AZ-0033-0010.pdf | WESTLAW | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Memorandum of Decision and Order 01/15/2010 (2010 WL 276742) (D. Ariz.)
EE-AZ-0033-0011.pdf | WESTLAW | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Consent Decree 05/24/2010 (D. Ariz.)
EE-AZ-0033-0012.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges McNamee, Stephen M. (D. Ariz.)
EE-AZ-0033-0008 | EE-AZ-0033-0009 | EE-AZ-0033-0010 | EE-AZ-0033-0011 | EE-AZ-0033-0012 | EE-AZ-0033-9000
Monitors/Masters None on record
Plaintiff's Lawyers Chahbazi, Meenoo (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Houk, Christoper Robert (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Lopez, Patrick David (Arizona)
EE-AZ-0033-9000
O'Neill, Mary Jo (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Rosas, Lucila G. (Arizona)
EE-AZ-0033-9000
Shanley, Sally C. (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Smith, C. Emanuel (Alabama)
EE-AZ-0033-9000
Defendant's Lawyers Anderson, Tophas IV (Arizona)
EE-AZ-0033-9000
Blair, James Lawrence (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Drury, William W. Jr. (Arizona)
EE-AZ-0033-9000
Hall, Roger W. (Arizona)
EE-AZ-0033-9000
Klecan, John Anthony (Arizona)
EE-AZ-0033-9000
McKay, Neil Todd (Arizona)
EE-AZ-0033-9000
Shoupe-Gorga, Sandra A. (Arizona)
EE-AZ-0033-0012 | EE-AZ-0033-9000
Spurling, Utiki Y. (Arizona)
EE-AZ-0033-9000
Other Lawyers None on record

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