--------

FILED
CHARLOTTE, N. C.

Sf.P 2 6 2005

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF NORTH CAROLDiAS. DISTRICT COURT

CHARLOTTE DIVISION

W. DlST. OF N. C.

EQUAL EMPLOYMENT

)

OPPORTUNITY COMMISSION,

)

)

Plaintiff,

)

)

v.

)

)

CUSTOM INDUSTRIES, INC. d/b/a

)

GREASE MASTER

)

)

Defendant.

)

CIVIL ACTION NO. 3: 05CV413-C.,
COMPLAINT JURY TRIAL DEMAND

NATURE OF THE ACTION
'
This is an action under Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991, to correct unlawful employment practices on the basis of race and retaliation and to provide appropriate relief to Ramon Peoples who was adversely affected by the practices. The U.S. Equal Employment Opportunity Commission ("the Commission") alleges that Defendant Custom Industries, Inc. d/b/a Grease Master ("Defendant") discriminated against Ramon Peoples by subjecting him to a racially hostile work environment because of his race, African American. The Commission further alleges that Defendant discriminated against Mr. Peoples by discharging him for complaining about the racially hostile work environment, or in the alternative, by constructively discharging him.
JURISDICTION AND VENUE 1. Jurisdiction of this Court is invoked pursuant to 28 U.S.C. §§ 451, 1331, 1337, 1343 and 1345. This action is authorized and instituted pursuant to Section 706(f)(l) and (3) of

- - - - - -- - - - - - - - - - - - - -----·-·····"'"

Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e- 5(f)(l) and (3) (''Title

VII"), and Section 102 ofthe Civil Rights Act of 1991 , 42 U.S.C. § 198la.

2. The employment practices alleged to be unlawful were committed within the

jurisdiction of the United States District Court for the Western District of North Carolina.

PARTIES

3. Plaintiff, the Equal Employment Opportunity Commission (the "Commission"), is

the agency of the United States of America charged with the administration, interpretation and

enforcement of Title VII of the Civil Rights Act of 1964, and is expressly authorized to bring this
'
action by Sections 706(£)(1) and (3) of Title VII, 42 U.S.C. §2000e-5(f)(l) and (3).

4. At all relevant times, Defendant has continuously been a North Carolina

corporation doing business in the State of North Carolina and the City of Indian Trail and has

'
continuously

had

at

least

fifteen

employees.

5. At all relevant times, Defendant has continuously been an employer engaged in an

industry affecting commerce under Sections 70l(b), (g) and (h) of Title VII, 42 U.S.C.

§§ 2000e(b), (g) and (h).

STATEMENT OF CLAIMS

6. More than thirty days prior to the institution of this lawsuit, Ramon Peoples filed

a charge with the Commission alleging violations of Title VII by Defendant. All conditions

precedent to the institution of this lawsuit have been fl;llfilled.

7. From around June 2001 until around July 2004, Defendant engaged in unlawful

employment practices at its Indian Trail, North Carolina facility in violation of Section 703(a)(l)

of Title VII, 42 U.S.C. §2000e-2(a)(l). Specifically, Defendant subj~cted Ramon Peoples to

2

- - - - - - -- - - - - - - - - - - - - -- - -- - - -- - -- - - -------- ·-·-----·- ·-·-·--··..- ·-·· __ ..........,,.__, .._..

discrimination based on his race, African American, by subjecting him to severe or pervasive

racial comments that created a racially hostile work envirorunent. The racial comments included

name calling, such as "nigger," "boy," "monkey" and "spook," all of which were unwelcome to

Mr. Peoples. The harassment was perpetrated by Mr. Peoples' supervisor and a co-worker.

Although Mr. Peoples complained to Defendant about the racial harassment in or around

December 2003, and Defendant otherwise knew or reasonably should have known about it,

Defendant failed to take prompt or effective action to stop it. On or about July 9, 2004,
.
Defendant constructively discharged Mr. Peoples based on his race, by making his work

environment so intolerable that he reasonably felt compelled to resign.

8. In the alternative, on or about July 9, 2004, Defendant engaged in unlawful

employment practices at its Indian Trail, North Carolina facility, in violation of Section 704(a) of

Title VII, 42 U.S.C. § 2000e-3(a), by discharging Ramon Peoples because he opposed

employment practices made unlawful by Title VII. Specifically, Mr. Peoples complained about

racial harassment in or around December 2003, and Defendant discharged him in retaliation for

complaining about the racial harassment.

9. The effect of the practices complained of in paragraph 7 above has been to deprive

.

.

Ramon Peoples of equal employment opportunities and othernrise adversely affect his status as

an employee because ofhis race, African American.

10. The effect of the practice complained of in paragraph 8 above.has been to deprive
.
Ramon Peoples of equal employment opportunities and othenvise adversely affect his status as

an employee because of his opposition to practices made unlawful under Title VII.

3

11. The unlawful employment practices complained of in paragraphs 7 and 8 above were intentional.
12. The unlawful employment practices complained of in paragraphs 7 and 8 above
were-done with malice or with reckless indifference to the federally protected rights ofRamon Peoples.
PRAYER FOR RELIEF Wherefore, the Commission respectfully requests that this Court: A. Grant a pennanent injunction enjoining Defendant, its officers, successors, assigns, and all persons in active concert or participation with it, from maintaining a racially hostile work environment or from any other employment practice that discriminates on the basis ofrace, and from retaliating against employees who oppose unlawful discrimination, make a charge ofunlawful discrimination, or participate in an investigation ofunlawful discrimination. B. Order Defendant to institute and carry out policies, practices, and programs that provide equal employment opportunities for African Americans, and which eradicate the effects of its past and present unlawful employment practices. C. Order Defendant to make whole Ramon Peoples by providing appropriate back pay with prejudgment interest, in amounts to be detennined at trial, and other affmnative relief necessary to eradicate the effects ofthe unlawful employment practices described in paragraphs 7 and 8 above, including but not limited to reinstatement or front pay. D. Order Defendant to make whole Ramon Peoples by providing compensation for
past and future pecuniary losses resulting from the unlawful employment practices described in
paragraphs 7 and 8 above, including medical expenses, in amounts to be determined at trial.
4

- - - - - - - - - - - - - -- - - - - - -- - - -···..... c-3:<l6-w·00413 Documant1-1 Fllecl 0912&'2005 .._.6ot6

E. Order Defendant to make whole Ramon Peoples by providing compensation for

· past ~d future non-pecuniary losses resulting from the unlawful practices complained of in

paragraphs 7 and 8 above, including but not limited to emotional pain, suffering, inconvenience,

loss of enjoyment of life, humiliation, loss of self-esteem and loss of civil rights, in amounts to

be determined at trial.

F. Order Defendant to pay Ramon Peoples punitive damages for its malicious and

reckless conduct, as described above, in amounts to be detemlined at trial.

. . . . .

..I•

G. Grant such further relief as the Court deems necessary and proper in the public .

interest.

H. Award the Commission its costs of this action.

JURY TRIAL DEMAND

The Commission requests a jury trial on all questions of fact raised by its complaint.

5

DATED this the 26th day of September, 2005. Respectfully submitted,
JAMES L. LEE Deputy General Counsel GWENDOLYN YOUNG REAMS Associate General Counsel EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1801 L Street, N.W. Washington, D.C. 20507
TEA. BARNES Acting Regional Attorney
....... t...
MARYM, DYERSE Trial Attorney EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Charlotte District Office 129 West Trade Street, Suite 400 Charlotte, North Carolina 28202 (704) 344-6886
ATTORNEYS FOR PLAINTIFF
6

 
 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION

EQUAL EMPLOYMENT OPPORTUNITY )

COMMISSION,

)

)

Plaintiff,

)

)

v.

)

)

CUSTOM INDUSTRIES, INC.

)

D/B/A GREASE MASTER,

)

)

Defendant.

)

)

CIVIL ACTION NO. 3:05cv413 CONSENT DECREE

The Equal Employment Opportunity Commission (the "Commission") instituted this

action pursuant to Section 706(f)(1) and (3) of Title VII of the Civil Rights Act of 1964, as

amended, 42 U.S.C. Section 2000e-5(f)(1) and (3) ("Title VII"), and Section 102 of the Civil

Rights Act of 1991, 42 U.S.C. § 1981a. The Commission’s complaint alleged Defendant Custom

Industries, Inc. d/b/a Grease Master (“Defendant”) discriminated against Ramon Peoples by

subjecting him to a racially hostile work environment because of his race, African American.

The Commission further alleged that Defendant discriminated against Mr. Peoples by

discharging him for complaining about the racially hostile work environment, or in the

alternative, by constructively discharging him.

The Commission and the Defendant hereby stipulate to jurisdiction of the Court over the

parties and agree that the subject matter of this action is properly before the Court.

The parties have advised this Court that they desire to resolve the allegations in the

Complaint without the burden, expense, and delay of further litigation.

It is therefore the finding of this Court, made on the pleadings and the record as a whole, that: (1) the Court has jurisdiction over the parties and the subject matter of this action; (2) the purpose and provisions of Title VII will be promoted and effectuated by the entry of the Consent Decree; and (3) this Decree resolves all matters in controversy between the parties as provided in paragraphs 1 through 18 below.
It is therefore ORDERED, ADJUDGED AND DECREED as follows: 1. Defendant shall not discriminate against any person on the basis of race or any other protected category within the meaning of Title VII. 2. Defendant shall not discriminate or retaliate against any person because of opposition to any practice made unlawful under Title VII of the Civil Rights Act of 1964 or because of the filing of a charge, the giving of testimony or assistance, or the participation in any investigation, proceeding or hearing under that statute. 3. Defendant shall pay Ramon Peoples the sum of fifty thousand dollars ($ 50,000) in settlement of the claims raised in this action. Defendant shall make payment by issuing two checks payable to Ramon Peoples. A payment of twenty-five thousand dollars ($25,000) shall be made within twenty (20) days after the Court approves this Consent Decree and payment of the remaining twenty-five thousand dollars ($25,000) shall be made on or before July 15, 2006. Defendant shall mail each check to Ramon Peoples at an address provided by the Commission. Within ten (10) days after each check has been sent, Defendant shall mail to Lynette A. Barnes, Regional Attorney, Equal Employment Opportunity Commission, 129 W. Trade Street, Suite 400, Charlotte N.C., 28202, a copy of the check and proof of its delivery to Mr. Peoples.
2

4. Payment of the amount agreed upon in paragraph 3 is conditioned upon Defendant counsel’s receipt of a fully executed Release and Waiver from Ramon Peoples. Defendant agrees to pay up to two hundred dollars ($200.00) for Mr. Peoples to retain private counsel for the sole purpose of reviewing Defendant’s release. Payment will be made directly to the attorney chosen and designated by Mr. Peoples.
5. Within ten (10) days of the entry of this decree by the Court, Defendant shall eliminate from the employment records of Ramon Peoples any and all documents, entries, or references of any kind relating to the facts and circumstances which led to the filing of EEOC Charge Number 140-2004-06106 and the related events that occurred thereafter. Within fifteen (15) days of the entry of this decree by the Court, Defendant shall report compliance with this provision to the EEOC.
6. Defendant agrees to provide Ramon Peoples with a positive letter of reference, a copy of which is attached hereto, marked as Appendix A. In addition, if Defendant receives any inquiries regarding the employment of Mr. Peoples, in lieu of an oral response, Defendant shall provide a copy of the aforementioned letter. Within ten (10) days of responding to any inquiry regarding the employment of Mr. Peoples, Defendant shall report compliance to the Commission, including the name and address of the person or entity to whom the letter was provided.
3

7. Within ninety (90) days of the entry of this Decree by the Court, Defendant shall adopt, implement, and distribute a formal, written anti-discrimination policy, which shall include, but not be limited to, the following:
a. A statement explaining that harassment based on race will not be tolerated; b. An explanation of prohibited conduct; c. Assurance that employees who make complaints of harassment or provide
information related to such complaints will be protected against retaliation; d. A clearly described complaint process that provides at least three (3) accessible avenues of complaint; e. Assurance that the employer will protect the confidentiality of harassment complaints to the extent possible; f. A complaint process that provides prompt, thorough, and impartial investigations; and g. Assurance that the employer will take immediate and appropriate corrective action when it determines that harassment has occurred.
8. Defendant shall distribute to each current employee a copy of the policy referenced in paragraph 7 above, within the aforementioned ninety (90) day time period. Within one hundred (100) days of the entry of this Decree, Defendant shall report compliance to the Commission, including providing a copy of the policy to the Commission. During the term of this Decree, Defendant shall distribute the policy to all new employees at the time of hire and review it with them at the time of hire.
9. During the term of this Decree, Defendant agrees to post a copy of the policy, referenced in paragraph 7 above, in all its facilities in a place where it is visible to employees. If
4

the policy becomes defaced or unreadable, Defendant will replace it by posting another copy of the policy. Within one hundred (100) days after the Decree is entered, Defendant will post the policy and notify the EEOC that it has been posted.
10. During the term of this Decree, Defendant shall provide an annual training program to all of its managers, supervisors and employees. Each training program shall include an explanation of the requirements of Title VII of the Civil Rights Act of 1964, and its prohibition against race harassment and retaliation in the workplace. Each training program shall also include an explanation of Defendant’s policy referenced in paragraph 7 above, and an explanation of the rights and responsibilities of employees, supervisors, and managers under the policy.
The first training program shall be completed within one hundred (100) days after entry of the decree by the Court. Each subsequent training program shall be conducted at approximately one-year intervals. At least fifteen (15) days prior to each program, Defendant shall provide the Commission with an agenda for the training program. Within ten (10) days after completion of each training program, Defendant shall certify to the Commission the specific training which was undertaken and shall provide the Commission with a roster of all employees in attendance.
11. Beginning within thirty (30) days after the entry of this Decree by the Court, and continuing throughout the term of this Decree, Defendant shall conspicuously post, at each of its facilities, a copy of the attached Employee Notice, marked Appendix B, hereby made a part of this Decree, in a place where it is visible to employees. If the Notice becomes defaced or unreadable, Defendant shall replace it by posting another copy of the Notice. Within forty-five
5

(45) days after entry of this Decree, Defendant shall notify the Commission that the Notice has been posted pursuant to this provision.
12. During the term of this Consent Decree, Defendant shall provide the Commission with reports at six (6) month intervals, with the first being due four (4) months after approval by the Court of this Decree. The reports will include the following information:
A. The identities of all individuals who complained of or reported any conduct he/she believed to be racial harassment under Title VII or a violation of Defendant’s racial harassment policy (referenced in paragraph 7 above), including by way of identification each person’s name, last known telephone number and address, social security number, and job title;
B. The name of the individual who allegedly engaged in the racial conduct as well as a detailed description of the alleged racial conduct; and
C. A detailed description of what action, if any, Defendant took in response to the report/complaint.
In the event there is no activity to report pursuant to this paragraph, Defendant shall send EEOC a “negative” report indicating no activity.
13. The Commission may review compliance with this Decree. As part of such review, the Commission may inspect Defendant’s facilities, interview employees and examine and copy documents.
14. If anytime during the term of this Decree, the Commission believes that Defendant is in violation of the Decree, the Commission shall give notice of the alleged violation to Defendant. Defendant shall have twenty (20) days in which to investigate and respond to the allegations. Thereafter, the parties shall then have a period of ten (10) days or such additional
6

period as may be agreed upon by them, in which to engage in negotiation regarding such allegations before the Commission exercises any remedy provided by law.
15. The term of this Decree shall be for three (3) years from its entry by the Court. 16. All reports or other documents sent to the Commission by Defendant pursuant to this Decree shall be sent to: Lynette A. Barnes, Regional Attorney, Equal Employment Opportunity Commission, 129 W. Trade Street, Suite 400, Charlotte N.C., 28202. 17. Each party shall bear its own costs and attorney’s fees. 18. This Court shall retain jurisdiction of this cause for purposes of monitoring compliance with this Decree and entry of such further orders as may be necessary or appropriate.
Signed: June 8, 2006
7

The parties jointly request that the Court approve and enter the Consent Decree:

This 31st day of May 2006.
PLAINTIFF EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
JAMES L. LEE Deputy General Counsel
GWENDOLYN YOUNG REAMS Associate General Counsel
s/ Lynette A. Barnes LYNETTE A. BARNES (N.C. Bar No. 19732) Regional Attorney e-mail: lynette.barnes@eeoc.gov

This 30th day of May 2006.
DEFENDANT CUSTOM INDUSTRIES, INC. D/B/A GREASE MASTER
s/ Alexander L. Maultsby ALEXANDER L. MAULTSBY, ESQ. (N.C. Bar No. 18317) SMITH MOORE, LLP 300 N. Greene Street, Suite 1400 Greensboro, NC 27401 Phone: 336.378.5331 Fax: 336.378.5400 e-mail: alex.maultsby@smithmoorelaw.com
ATTORNEY FOR DEFENDANT

s/ Mary M. Ryerse MARY M. RYERSE (S.C. Bar No. 68387) Trial Attorney e-mail: mary.ryerse@eeoc.gov
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Charlotte District Office 129 West Trade Street, Suite 400 Charlotte, North Carolina 28202 Phone: 704.344.6886 Fax: 704.344.6780
ATTORNEYS FOR PLAINTIFF

8

 
 CM/ECF - LIVE DATABASE - NCWD - Docket Report

https://ecf.ncwd.uscourts.gov/cgi-bin/DktRpt.pl?108726524914958-L_...

U.S. District Court Western District of North Carolina (Charlotte) CIVIL DOCKET FOR CASE #: 3:05-cv-00413

CLOSED

Equal Employment Opportunity Commission v. Custom Industries, Inc. Assigned to: Robert J. Conrad, Jr Referred to: David Keesler Cause: 42:2000e Job Discrimination (Employment)

Date Filed: 09/26/2005 Date Terminated: 06/08/2006 Jury Demand: Plaintiff Nature of Suit: 442 Civil Rights: Jobs Jurisdiction: U.S. Government Plaintiff

Plaintiff
Equal Employment Opportunity Commission

represented by Lynette A. Barnes Equal Employment Opportunity Commission Charlotte District Office 129 W. Trade Street, Suite 400 Charlotte, NC 28202 704.344.6878 Fax: 704.344.6780 Email: lynette.barnes@eeoc.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

Mary Margaret Ryerse EEOC U.S. Equal Employment Opportunity Commission 129 W. Trade Street, Suite 400 Charlotte, NC 28202 704-344-6886 Fax: 704-344-6780 Email: mary.ryerse@eeoc.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

V.
Defendant
Custom Industries, Inc. doing business as Grease Master

represented by Alexander L. Maultsby Smith Moore LLP 300 North Greene Street, Suite 1400 (27401) Post Office Box 21927 Greensboro, NC 27420 (336) 378-5331 Fax: (336) 433-7460

1 of 3

5/29/2007 11:54 AM

CM/ECF - LIVE DATABASE - NCWD - Docket Report

https://ecf.ncwd.uscourts.gov/cgi-bin/DktRpt.pl?108726524914958-L_...

Email: alex.maultsby@smithmoorelaw.com LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 09/26/2005 09/26/2005 10/04/2005 10/18/2005 12/19/2005 01/10/2006 01/23/2006 01/23/2006 01/24/2006
02/03/2006
02/03/2006 06/01/2006

#

Docket Text

1 COMPLAINT against Custom Industries, Inc. , filed by Equal Employment Opportunity Commission. (Attachments: # 1 Civil Cover Sheet)(Basile, Antonietta) (Entered: 09/26/2005)
2 REQUEST FOR WAIVER of Service sent to Custom Industries, Inc. by Equal Employment Opportunity Commission. (Basile, Antonietta) (Entered: 09/26/2005)
Judge David Keesler added. (Basile, Antonietta) (Entered: 10/04/2005)
4 ANSWER to Complaint by Custom Industries, Inc.(MacEwan, Cathy) (Entered: 10/19/2005)
5 CERTIFICATION of initial attorney conference and discovery plan by Equal Employment Opportunity Commission, Custom Industries, Inc..(Ryerse, Mary) (Entered: 12/19/2005)
6 ORDER Initial Pretrial Conference set for 2/3/2006 10:00 AM in In Chambers before David Keesler.. Signed by Judge David Keesler on 1/10/06. (Huntley, Cynthia) (Entered: 01/11/2006)
7 MOTION for Extension of Time to File Response/Reply to discovery requests by Custom Industries, Inc.. Responses due by 2/22/2006 (Attachments: # 1 Proposed Order Extending Time)(Maultsby, Alexander) (Entered: 01/23/2006)
Proposed document submitted to Judge David Keesler. (Maultsby, Alexander) (Entered: 01/23/2006)
8 ORDER granting 7 Motion for Extension of Time to File Response/Reply re 7 MOTION for Extension of Time to File Response/Reply to discovery requests . Signed by Judge David Keesler on 1/24/06. (Hankins, Susan) (Entered: 01/24/2006)
9 PRETRIAL ORDER AND CASE MANAGEMENT PLAN: Estimated Trial Time: 3-5 days Discovery due by 9/29/2006. Motions due by 10/30/2006. Mediation deadline set for 9/29/2006. Signed by Judge David Keesler on 2/3/06. (MacEwan, Cathy) (Entered: 02/06/2006)
Minute Entry for proceedings held before Judge David Keesler : Initial Pretrial Conference held on 2/3/2006. (Anderton, Michelle) (Entered: 02/21/2006)
10 NOTICE by Equal Employment Opportunity Commission, Custom Industries, Inc. of Filing of Proposed Consent Decree (Attachments: # 1 Proposed Order Proposed Consent Decree# 2 Appendix Appendices to proposed Consent Decree)(Ryerse, Mary) (Entered: 06/01/2006)

2 of 3

5/29/2007 11:54 AM

CM/ECF - LIVE DATABASE - NCWD - Docket Report

https://ecf.ncwd.uscourts.gov/cgi-bin/DktRpt.pl?108726524914958-L_...

06/02/2006 06/08/2006

NOTICE of ECF Filing Error re: 10 Notice (Other) filed by Equal Employment Opportunity Commission,, Custom Industries, Inc., Proposed Order/Consent Decree should have been submitted through cyberclerk NO ACTION REQUIRED - FOR INFORMATIONAL PURPOSES ONLY. (Cochran, Candace) (Entered: 06/02/2006)
11 CONSENT DECREE. Signed by Judge Robert J. Conrad Jr on 6/8/06. (Huntley, Cynthia) (Entered: 06/08/2006)

PACER Service Center

Transaction Receipt

05/29/2007 12:55:27

PACER Login: hs0328

Client Code: eeoc

Description: Docket Report Search Criteria: 3:05-cv-00413

Billable Pages: 2

Cost:

0.16

3 of 3

5/29/2007 11:54 AM