2010 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 8-25-2010 

# B ro ok e Gra s s m ye r v . S hred-It U SA Inc P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 09-3876

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_____________ BRO OK E R. GR ASSM YER ; PATRI CI A A . M CG RA NE;

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v. S HRED- I T US A, I NC.

_______________ O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o r th e W e ste rn D istric t o f P e n n sy lv a n ia ( D . C . N o. 07- cv- 098) D i s tr i ctJ udge: H onor abl e K i m R . G i bs on

_______________ A r gued: J ul y14, 2010 B e f o re : R E N D E L L , J O R D A N , a n d G R E E N A W A Y , J R ., C i r cui tJudges .

( Fi l ed : A ugus t25, 2010)

_______________ S t e p h e n D. Wi c k s [ AR GUE D] 109 L akemontPar k B l vd. A l t oona, PA 16602 C o u n se l fo r Ap

p e lla n ts C h risto p h e r J. D a v is S h e rra rd , G e rm a n & K e lly 6 2 0 L ib e rtyA v e n u e - 2 8 F l. th Pi t t s bur gh, PA 152222

Gr e g o ryG. P i n s k i [ AR GUE D] C onner& Pi ns ki 5 2 0 T h ird A v e n u e N o rth P. O . B ox 3028 G r eatFal l s , M T 59403 C ouns el f orAppel l ee

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OPI NI ON O F THE COURT

_______________ J O R D A N , C i r cui tJudge . L ynn R y an, Patr i ci a M cG r ane, and B r ooke G r as s m y er( col l ect i vel ythe “P lai n ti ff

s”) a p p ea l from an o rde r of the U n it ed S tat es D istri ct C o u rtfo r th e W estern D i s tr i ctof Penns y l vani a gr ant i ng s um m aryj udgm enti n favorof Pl ai nt i ffs ’ form er empl oy erShr ed- I tU SA , I nc. ( “Shr ed- I t ”) w i th r es pectt o Pl ai nt i ffs ’ cl ai m s of gende r d isc rim in a tio n a n d R y a n ’s a n d M c G ra n e ’s c laim th a t th e yw e re su b jec ted to a h o stile w or k envi r onm ent , al l havi ng been br oughtpur s uantt o T i t l e V I I of the C i vi l R i ght s A ct of 1964, 42 U . S. C . §§ 2000e- 1 ets eq. Forthe r eas ons thatfol l ow , w e w i l l aff i r m the D i s tr i ctC our t ’ s or derw i th r es pectt o R y an’ s and M cG r ane’ s hos t i l e w or k envi r onm ent c laim a n d G ra ss m y e r’s g e n d e r d isc rim in a tio n c laim , b u t w ill v a c a te w ith re sp e c t to R y an’s and M cG rane’ s gend er di scr i m i nati on cl ai m s. I . Fac t ualBackg r ound S h re d -It is a c o m p a n yth a t p ro v id e s tw o typ e s o f d o c u m e n t d e stru c tio n se rv ice s: a n o n g o i n g “ a u t o ma t i c ” s e r v i c e a ti n t e r v a l s s p e c i f i e d b yth e c u s t o me ra n d a o n e - t i meV a n iel b e g a n w o rk in g a t S h re d -It a s a sa les re p re se n tativ e a n d w a s la ter p ro m o ted to 1 s a le s re p re s e n ta tiv e s u p e rv is o r. 3 “p u rge ” se rvice . T o sell it s serv ices, S h red -Item p loy s sales re p rese n tat ives w h o are a s s ig n e d to v a ri o u s s a le s te rr ito ri e s a n d ta s k e d w ith d e v e lo p in g a n d m a in ta in in g c lie n ts . Pl ai nt i ffs w er e al l empl oy ed as s al es r epr es ent at i ves i n Shr ed- I t ’ s Pi t t s bur gh, Penns y l vani a off

i ce. R y an w as empl oy ed fr om M ay2, 2005 unt i l Sept ember9, 2005, w hen s he w as t erm i nat ed forfai l i ng t o m eets al es quot as . M cG r ane w as empl oy ed fr om February1, 2005 unt i l J anuary13, 2006, w hen s he w as t erm i nat ed forfai l i ng t o m eet s al es quot as . G r as s m y erw as empl oy ed fr om M ay23, 2005 unt i l J anuary25, 2006, w hen sh e v o lu n tar ilyre sig n e d . A ll o f th e P lain tiff

s’ p o sitio n s w e re u lti m a telyf ill e d w ith m a le s a le s re p re s e n ta tiv e s . D ur i ng Pl ai nt i ffs ’ empl oym ent , G i no L as pi na w as Shr ed- I t ’ s gener al m anage r , and K evi n M i t chel l and D avi d V ani el w er e Shr ed- I t ’ s s al es r epr es ent at i ve s upervi s or s . Shr edItal so em ploy ed the foll ow i ng seven m al e sal es r epresent at i ves du ri ng P l ai nti ffs’ empl oym entatShr ed- I t : D ana St ephens ; D avi d V ani el ; L arryB ow s er ; J ack Paps on; 1 D avi d Pet er s ; N i ck Pavl eci c; and D enni s M i l avec . O f the s even mal e s al es r epr es ent at i ves , onl yPet er s w as t erm i nat ed. H ow ever , of the el even s al es r epr es ent at i ves Shr ed- I thas t erm i nat ed overthe l as tfi ve y ear s forfai l i ng t o m eetthe s al es quot as , s even w e re m a le a n d f

o u r w e re f

e m a le .4

Pl ai nt i ffs do notdi s put e thattheyfai l ed t o m eetthe s al es quot as es t abl i s hed by Shr ed- I t . T hei rcl ai m s ar e bas ed upon the al l egedl ydi s cr i m i nat orym anneri n w hi ch Shr ed- I tenfor ced i t s s al es quot as , tr ai ned s al es r epr es ent at i ves , and as s i gned s al es ter rito rie s, a n d b a se d o n a n o v e ra ll “m e n ’s c lu b ” a tm o sp h e re o n th e jo b . F o r th e ir h o stile w or k envi r onm entcl ai m , R y an and M cG r ane poi ntpart i cul ar l yt o comm ent s m ade by M i t chel l thattheydes cr i be as s exual l yexpl i ci t , pr ofane , and vul gar . T he fa ctual a l l e g a t i o n s u n d e r l y i n g th e P l a i n t i f f s ’ c l a i ms a r e d i s c u s s e d i n g r e a t e rd e t a i l b e l o w. A . E nforcem ent of

Q uo tas Shr ed- I t ’ s s al es r epr es ent at i ves w er e r equi r ed t o achi eve the fol l ow i ng s al es t ar get s : 10 appoi nt m ent s perw eek, 10 new aut om at i c cl i ent s perw eek, $1, 190 of aut om at i c r evenue perm onth, 50 col d cal l s perw eek, 150 t el epr os pect i ng cal l s perw eek, 5 r efe rr al s perw eek, and 5 cl i entcar e ca l l s perw eek. “A ut om at i c cl i ent s ” ar e thos e w ho sig n u p f o r a u to m a tic s e rv ice a t sp e c if ied in ter v a ls, a n d th e ir a c c o u n ts g e n e ra te “aut om at i c r evenue . ” N ew aut om at i c r evenue s al es w er e the keybus i nes s i ndi cat orand s ta n d a rd o f

s u c c e s s f

o r s a le s re p re s e n ta tiv e s a t S h re d -I t. i . P la in tif

fs ’ P er f or m ance and Tr eatm ent R y an bega n w or ki ng atShr ed- I ton M ay2, 2005. O n J ul y19, 2005, havi ng g e n e ra ted a p p ro x im a tely$ 2 5 0 o f n e w a u to m a tic re v e n u e d u rin g h e r f irst tw o a n d o n e -h a lf m o n th s o n th e jo b , R y a n re c e iv e d a w ritten w a rn in g , ind ica tin g th a t sh e n e e d e d to im p rov e h er p erf

o rm an ce . S h e w as a lso p lace d o n a P erf o rm an ce A cti o n P lan (“ P A P ”),5

w hich speci fi ed cert ai n sal es goals and the d at es byw hich she w as r equ i red t o acco m pli sh them. O n Sept ember9, 2005, j us tfourm onths aft ers he bega n w or ki ng atShr ed- I t , R y an w as t erm i nat ed forfai l i ng t o m eetthe s peci fi ed s al es r equi r ement s . A tthe t i m e of he r te rm in a tio n , R y a n h a d s o ld $ 9 5 6 in a u to m a tic re v e n u e (a p p ro x im a te ly $ 3 6 .7 6 p e r w e e k ). M cG r ane be gan w or ki ng atShr ed- I ton February1, 2005. O n Sept ember9, 2005, Shr ed- I tpr ovi ded M cG r ane w i th a per form ance eval uat i on, i ndi cat i ng thats he w as not m eet i ng hers al es quot a. A tthe t i m e, M cG r ane ha d been w or ki ng atShr ed- I tfor a p p r o x i ma t e l ye i g h tmo n th s a n d h a d s o l d $ 1 , 9 4 0 i n n e w a u t o ma t i c r e v e n u e . On D ece m ber20, 2005, L as pi na metw i th M cG r ane t o di s cus s herper form ance , and V ani el l at erpr ovi ded herw i th anotherw r i t t en w arni ng, w hi ch det ai l ed hers al es per form ance d e f icie n c ies a n d p lac e d h e r o n a P A P . M c G ra n e ’s P A P re q u ire d h e r to m e e t ce rta in g o a ls o v e r th e n e x t tw o w e e k s, n o tw ith sta n d in g th e f a c t th a t D e c e m b e r is, a c c o rd in g to M cG r ane, a s l ow s al es per i od forShr ed- I t ’ s s ervi ces , gi ven the end- of- y earhol i day s e a s o n . A ft erfai l i ng t o m eetthe r equi r ement s i dent i fi ed i n the D ece m ber20, 2005 w r i t t en w arni ng and PA P, M cG r ane r ece i ved anotherw r i t t en w arni ng on J anuary9, 2006, i ns truct i ng hert o m eetthe r equi r ed s al es num ber s byJ anuary13, 2006 and i nform i ng her thats he w oul d be t erm i nat ed i f s he fa i l ed t o achi eve the s peci fi ed s al es r equi r ement s by thatdat e. O n J anuary13, 2006, havi ng nots at i s fi ed the r equi r ement s i dent i fi ed i n the De c e mb e r2 0 , 2 0 0 5 a n d J a n u a r y9 , 2 0 0 6 wr i t t e n wa rn i n g s , M c Gr a n e wa s t e r mi n a t e d . At6

the t i m e of he rt erm i nat i on, M cG r ane ha d s ol d $3, 762 i n new aut om at i c r evenue (a p p ro x im a te ly $ 8 5 .5 0 p e r w e e k ). G ra s s m y e r b e g a n w o rk in g a t S h re d -I t o n M a y2 3 , 2 0 0 5 . O n O ct ober10, 2005, s he re c e iv e d a p e rf

o rm a n c e e v a lu a tio n n o tify in g h e r th a t sh e h a d n o t sa tisf ied th e sa les q u o ta fornew aut om at i c r evenue . G r as s m y erqui therj ob atShr ed- I ton J anuary25, 2006. She c l a i ms th a ts h e h a d n o c h o i c e b u tt o q u i tb e c a u s e h e rwo r k i n g c o n d i t i o n s h a d b e c o me i nt ol er abl e, s peci fi cal l ybeca us e Shr ed- I thad adve r t i s ed a s al es pos i t i on on the i nt ernet thatcover ed hert err i t oryand s he had r ece i ved emai l s thatw er e nega t i ve and a ggr es s i ve, and al s o beca us e M cG r ane ha d r ece nt l ybeen t erm i nat ed. H ow ever , G r as s m y erconce des th a t sh e w a s n e v e r to ld th a t sh e w o u ld b e ter m in a ted . S h e a lso c o n c e d e s th a t th e a lleg e d ly negat i ve and a ggr es s i ve emai l s s he r ece i ved, w hi ch foc us ed on i ncr eas i ng s al es per form ance , w er e s entt o al l s al es r epr es ent at i ves and w er e gende rneutr al , exce ptfort he u s e o f th e w o rd “ te a m ,” w h ic h s h e b e lie v e s to h a v e a m a le c o n n o ta tio n . A ft erl eavi ng Shr ed- I t , G r as s m y eracc ept ed a pos i t i on w i th L aur el M edi cal Suppl i es , w hi ch pai d a hi ghers al ary . D ur i ng herdepos i t i on, G r as s m y ert es t i fi ed thats he di d notcont acthernew empl oy erorcont empl at e l eavi ng Shr ed- I tunt i l J anuary20, 2006, w h en sh e sa w that h er sa les t errit o ryw as b eing ad v erti sed o n the in terne t. H o w ev er, per s onnel r ecor ds fr om L aur el M edi cal Suppl i es i ndi cat e thatG r as s m y ercont act ed Laur el M edi cal Suppl i es on D ece m ber30, 2005 and i nt ervi ew ed w i th the companyon J anuary5, 2 0 0 6 .7 ii. Mal e Sal es R epr es entat i ves Pl ai nt i ffs poi ntt o t he per form ance of m al e s al es r epr es ent at i ves B ow s er , Paps on, a n d P a v lec ic, in su p p o rt o f th e ir a lleg a tio n th a t S h re d -It a p p lied th e sa les q u o tas u n e v e n ly t o m en and w om en. B ow s erw or ked as a s al es r epr es ent at i ve atShr ed- I tfr om J ul y18, 2 0 0 5 u n til A u g u st 2 8 , 2 0 0 6 , w h e n h e v o lu n tar ilyre sig n e d h is p o sitio n a t S h re d -It to acc epta j ob w i th anothercompany . D ur i ng hi s fi r s tthr ee mont hs atShr ed- I t , B ow s er gener at ed no aut om at i c r evenue . B ut , unl i ke R y an, w ho r ece i ved a w r i t t en w arni ng and PA P forfai l i ng t o m eetthe s al es quot a af t erw or ki ng atShr ed- I tforonl ytw o and onehal f m onths and gene r at i ng $250 i n new aut om at i c r evenue , B ow s erdi d notr ece i ve any s uch w arni ngs abouthi s per form ance and w as notpl ace d on a PA P. I n 2005, B ow s er g e n e ra te d a to ta l o f

$ 3 ,7 8 1 in n e w a u to m a tic re v e n u e (a p p ro x im a te ly $ 1 6 4 p e r w e e k ). P a v e lec ic w o rk e d a s a sa les re p re se n tativ e a t S h re d -It f ro m Ju ly1 8 , 2 0 0 5 u n til O ct ober2, 2006, w hen he vol unt ar i l yr es i gned. Pavel eci c ac know l edges that , l i ke the Pl ai nt i ffs , he w as notm eet i ng hi s s al es quot a and s houl d have ther efor e bee n gi ven a P A P . H o w e v e r, P a v e le c ic w a s n o t p la c e d o n a P A P , d e s p ite h is p o o r s a le s p e rf o rm a n c e . In 2 0 0 5 , P a v e lec ic g e n e ra ted a to tal o f $ 6 5 9 in n e w a u to m a tic re v e n u e (a p p ro x im a tely $ 2 8 .6 5 p e r w e e k ). P a p so n w o rk e d a s a sa les re p re se n tativ e a t S h re d -It f ro m M a rc h 2 1 , 2 0 0 5 u n til February21, 2006. L i ke the Pl ai nt i ffs , Paps on al s o w as notm eet i ng hi s per form ance r equi r ement s . Shr ed- I tcl ai m s thatPaps on r es i gned underthe thr eatof t erm i nat i on for8

poors al es per form ance aft err ece i vi ng a w r i t t en w arni ng. H ow ever , Paps on t es t i fi ed at h is d e p o sitio n th a t h e d id n o t re c a ll rec e iv in g a w ritten w a rn in g o r b e in g th re a ten e d w ith t erm i nat i on due t o hi s poors al es per form ance , though he bel i eves thathe mayhave be en w arn ed inf

o rm all yat so m e p o int. H e a lso testi fied that h e lef t Sh red -Ito f h is ow n ac co rd f o r f in a n c ial re a so n s. In 2 0 0 5 , P a p so n g e n e ra ted a to tal o f $ 3 ,4 1 2 in n e w a u to m a tic re v e n u e (a p p ro x im a te ly $ 8 3 .2 1 p e r w e e k ). B . Trai ni ng T r ai ni ng atShr ed- I tcons i s t ed of ( 1) t aki ng the s al es r epr es ent at i ve tr ai ni ng pr ogr am duri ng the fi r s tw eek of empl oym ent , w hi ch i ncl uded vi deo and onl i ne tr ai ni ng, ( 2) w or ki ng i n t he fi el d w i th s upervi s or s , and, fors om e, ( 3) att endi ng an A dvance d Sal es T r ai ni ng pr ogr am (“ A ST ”) i n T or ont o. Pl ai nt i ffs do notdi s put e thattheyr ece i ved equa l tr ai ni ng dur i ng the one- w eek s al es r epr es ent at i ve tr ai ni ng pr ogr am. R ather , theyal l ege th a t S h re d -I t d is c ri m in a te d a g a in s t th e m w ith re g a rd to f ie ld tr a in in g a n d th e A S T . D u rin g a “ rid e -a lo n g ,” s a les re p re se n tativ e s w e re a c c o m p a n ied in th e f ield thr oughoutthe daybyei therM i t chel l orV ani el . A s V ani el s t at ed, the purpos e of a r i dealon g is t o “[ r]i d e w ith [th e sa les rep rese n tat ives ], see if th ere is an yissue s tha t th ey ’re havi ng, anypr obl ems thatthey ’ r e fa ci ng, and al s o t o s ee i f ther e i s anyhel p thattheyneed as faras . . coac hi ng . . . [and] how they ’ r e ac tual l ydoi ng thei rpr es ent at i ons and goi ng thro u g h the s ales p roc ess.” (A p p . at 56 4 -65 . ) L as pi na dec i ded how m anyr i de- al ongs e a c h sa les re p re se n tativ e w o u ld re c e iv e , w h ile th e sa les su p e rv iso rs, M itch e ll an d V a n iel,9

deci ded betw een themsel ves w hi ch s al es r epr es ent at i ves theyw oul d acc om pany . T he pr ot ocol forr i de- al ongs w as foreac h s al es r epr es ent at i ve t o be gi ven one r i de- al ong per m o n th . M o re tim e w a s s p e n t w ith n e w s a le s re p re s e n ta tiv e s . L a sp in a d ire c ted six rid e -a lo n g s f o r m a le s a les re p re se n tativ e M ilav e c d u rin g h is fi r s tm onth as a s al es r epr es ent at i ve atShr ed- I t . I n contr as t , M cG r ane ne verr ece i ved m o re th a n tw o rid e -a lo n g s in a n yg iv e n m o n th . S h e a lso c laim s th a t M itch e ll fa iled to at t end schedu l ed ri de-al on gs w i th h er on t w o o ccasi on s and that , on tw o o ther occasi on s, he s how ed up butthen cutthe r i de- al ong s hor t . M cG r ane a nd G r as s m y erboth cl ai m t hat V ani el al s o fai l ed t o att end s chedul ed r i de- al ongs w i th them and t hat , w hen he di d att end ri d e -a lo n g s , h e f

a ile d to p ro v id e th e m w ith f e e d b a c k . R y an w as s uppos ed t o be tr ai ned byM i t chel l . H ow ever , s he cl ai m s thatdur i ng her t i m e atShr ed- I t , M i t chel l acc om pani ed heri n the fi el d onl ytw i ce a nd that , des pi t e her r epea t ed r eques t s fortr ai ni ng and as s i s t ance , herl as tr i de- al ong t ook pl ace on J une 22, 2005, appr oxi m at el ytw o and one- hal f m onths pr i ort o hert erm i nat i on. R y an cl ai m s t hat on atl eas tfi ve occ as i ons , s he r eques t ed as s i s t ance and tr ai ni ng fr om M i t chel l and w as deni ed, and thatM i t chel l fr equent l ycanc el l ed thei rs chedul ed meet i ngs w i th l i t t l e orno n o ti ce , fo r reaso n s su ch as b eing “too h u n g o v er.” (A p p . at 77 0 . ) L as pi na di d notr eca l l anyof the mal e s al es r epr es ent at i ves compl ai ni ng that M i t chel l orV ani el had fa i l ed t o conductr i de- al ongs w i th them. N orcoul d m al e s al es re p re se n tativ e s B o w se r, P a v lec ic, o r P e ter s re c a ll ev e r h a v in g su c h p ro b lem s. F u rth e r, in10

a d d i t i o n t o th e r i d e - a l o n g s , Bo ws e rwa s p e r mi t t e d t o s h a d o w St e p h e n s ( wh o h a d b e c o me a t op -s el l i ng sal es r epresent at i ve) and V aniel on several of thei r s al es cal l s. M i t chell al so perm i t t ed B ow s ert o s hadow hi m on s ever al of M i t chel l ’ s appoi nt m ent s , and acc om pani ed B ow s ert o s ever al of B ow s er ’ s appoi nt m ent s w hen B ow s erfi r s ts t art ed w o rk in g a t S h re d -It. P lain tiff s c laim th a t th e yw e re n o t allo w e d to sh a d o w V a n iel, S te p h e n s , o r M itc h e ll o n s a le s c a lls . M or eover , unl i ke thei rfemal e count erpart s , the mal e s al es r epr es ent at i ves fel tt hat theyw er e gi ven val uabl e fe edbac k dur i ng thei rtr ai ni ng s es s i ons , and thati thel ped them lea rn th e b u sin e ss a n d b e c o m e b e tter s a les re p re se n tativ e s. M ilav e c sta ted th a t “[ V a n iel] w oul d r eal l ydo a w onder ful j ob, and . . . w as abl e t o l ook thr ough hi s know l edge a nd so m eh o w g ive s o m e d iffe ren t ang les o n b eing ab le t o clos e a sale.” (A p p . at 58 1 . ) L i kew i s e, B ow s ers t at ed thatV ani el ’ s tr ai ni ng “r eal l yhel ped me l earn the bus i nes s and w h at t o d o . ” (A p p . at 71 9 -20 . ) R egar di ng A ST , L as pi na s ai d i tw as “qui t e cos t l y ” and he “l et[the s al es r epr es ent at i ves ] know thatunl es s . . . y ou ar e s el l i ng new aut o r evenue t o j us t i fythattype o f training an d the c o st th at w e, w e w o u ldn ’tb e se n d ing ev eryb o d y . ” (A p p . at 52 0 . ) W hi l e none of

the Pl ai nt i ffs w er e s el ect ed t o att end the A ST , tw o m al e s al es r epr es ent at i ves w er e: V ani el ( w ho w as a s al es r epr es ent at i ve atthe t i m e and l at er p ro m o ted to sa les m a n a g e r) a n d S tep h e n s. M c G ra n e c laim s th a t M itch e ll o rig in a llyto ld herthats he had be en s el ect ed t o att end A ST i n Sept ember2005 and that , dur i ng a gene r al11

s al es m eet i ng, M i t chel l announce d thatM cG r ane a nd V ani el w oul d both be att endi ng A ST t ogetheri n O ct oberorN ovember2005. A ccor di ng t o M cG r ane, V ani el then as ked, “D o w e h av e to g o tog ethe r? C an I trad e w ith so m eo n e e lse? ” (A p p . at 75 4 . ) S h red -It s u b s e q u e n tly se n t V a n ie l to A S T b u t d e c lin e d to s e n d M c G ra n e . C . Ter r i t or i es L as pi na w as r es pons i bl e form aki ng t err i t oryas s i gnm ent s and al l ocat i ons , w hi ch change d fr equent l y , w i th t err i t or i es expandi ng as s al es r epr es ent at i ves l eftthe company an d co n tr ac ti n g as n ew sales re p rese n tat ives w ere h ir ed . P lai n ti ff s claim that S h red -It d iscri m inated ag ains t th em o n the b asis o f se x b yfa il ing to n o ti fythem o f sa les t errit o ry o p e n i n g s a n d b ya s s i g n i n g th e mo r e d e s i r a b l e s a l e s t e rr i t o r i e s , s u c h a s d o wn t o wn P itt sb u rg h , to m e n . S p e c if ica lly , M c G ra n e c o n ten d s th a t h e r p o o r p e rf o rm a n c e is attr i but abl e, i n part , t o t he fa ctthats he w as notas s i gned t o the dow nt ow n Pi t t s bur gh s al es t err i t ory , w hi l e mal e s al es r epr es ent at i ves w ho w er e hi r ed af t erherw er e gi ven port i ons of thatt err i t ory . W hen M cG r ane w as hi r ed on February1, 2005, s he w as as s i gned t o a l ar ge geogr aphi cal t err i t orythatdi d noti ncl ude anypor t i on of dow nt ow n Pi t t s bur gh. W hen V ani el w as hi r ed a mont h l at er , he w as gi ven a l ar ge port i on of the dow nt ow n Pi t t s bur gh t err i t ory , fr om w hi ch he r ecrui t ed s om e of hi s bi gges tcus t om er s . A ccor di ng t o L as pi na, M cG ran e h ad n o t bee n co n side red fo r th at t errit o ryp ri o r t o V an iel ’s arri v al at S h red -It beca us e he w ant ed hert o pr ove her s el f. W hen V ani el w as pr om ot ed t o s al es12

re p re se n tativ e su p e rv iso r, h is d o w n to w n ter rito ryw a s g iv e n to P a v lec ic a n d M ilav e c , b o th o f w h o m b e g a n w o rk in g a t S h re d -I t a f te r M c G ra n e . O n oraboutD ece m ber12, 2005, a l ar ge port i on of one of M cG r ane’ s bett er t err i t or i es w as t aken f

r om herand gi ven t o M i l avec , w ho had r ece nt l ybeen hi r ed. Pr i or t o the cha nge and w i thoutM cG r ane’ s know l edge, M i l avec w as not i fi ed thathe w oul d be gi ven thatpor t i on of M cG r ane’ s t err i t oryand t ol d byV ani el t o “[j ] us tkeep i ton the hus h. ” ( A pp. at591. ) L as pi na and V ani el offe r ed conf l i ct i ng expl anat i ons forthe deci s i on t o gi ve M i l avec partof M cG r ane’ s t err i t ory . L as pi na, w ho cl ai m s thathe al one m ade the dec i s i on, s t at ed that“w e w er e notgener at i ng anyi ncome orr evenue fr om that m a r k e tp l a c e th a tI f

e l th a d a tr e m e n d o u s a m o u n to f o p p o r tu n i ty, s o th a t ’ s th e r e a s o n w h y I m oved s om e zi p codes ar ound. ” ( A pp. at517. ) I n contr as t , V ani el cl ai m s thathe and L as pi na made the dec i s i on t ogetherand thati tw as done onl yforl ogi s t i cal r eas ons , not b e c a u s e o f

M c G ra n e ’s p o o r s a le s p e rf o rm a n c e . Shr ed- I tdi s put es the Pl ai nt i ffs ’ as s ert i on thats om e s al es t err i t or i es ar e bett ert han other s . A ccor di ng t o L as pi na, “eve ryt err i t oryi s a good s al es t err i t ory . I ti s w hatthe s al es r epr es ent at i ve makes of thatt err i t ory . ” ( A pp. at517. ) W i th r es pectt o the dow nt ow n s al es t err i t orys peci fi cal l y , V ani el s t at ed thats el l i ng dow nt ow n i nvol ves “a l ot of w heel - s pi nni ng and i t ’ s a l otof ac t i vi tyfor– i n m yopi ni on, l i t t l e r es ul t s . ” ( A pp. at 1 0 9 -10 . ) L ikew ise, P av lecic an d M il av ec b eli ev ed that, w h il e the d o w n tow n terri tory13

m a yh a v e h a d “ m o re p ro sp e c ts,” m e e tin g th e sa les re q u ire m e n ts d o w n to w n is “ e v e ryb it as h ard ” a s o ther a rea s an d that “b u sine ss is bu sine ss.” (A p p . at 57 9 . ) O n th e o th e r h a n d , P e ter s te stif ied th a t itw a s e a sie r to m e e t th e sa les re q u ire m e n ts in th e d o w n to w n ter rito ryb e c a u se th e “ [ c ]o n c e n tra ted b u sin e ss in to w n [ m a d e it] ea syto getar ound w i thouthavi ng a l otof dow n t i m e . . . dr i vi ng fr om y ourl ocat i on t o a new t err i t ory . ” ( A pp. at699. ) L i kew i s e, w hi l e atone poi nti n hi s depos i t i on, M i l avec cl ai m ed thatthe dow nt ow n t err i t oryw as no bett erthan othert err i t or i es , he l at erconce ded that “[do w ntow n] w ou l d b e easi er, becau se y ou . . . cou l d k no ck o ut a l ot of y ou r quota i n just one ortw o day s dow n her e, ver s us havi ng a t err i t oryouti n W as hi ngt on [C ounty ] or anotherar ea. ” ( A pp. at579- 80. ) St ephens al s o di s agr eed w i th the not i on thatal l s al es ter rito rie s w e re e q u a l. H e tes tifie d th a t, w h e n L a sp in a o f f e re d h im a n e w sa les ter rito ryin the Fal l of 2003 s hor t l yaft erbei ng hi r ed, he “gr abbed i t ” bec aus e he be l i eved thatthe n ew terri toryh ad m o re sa les o p p o rtu n it ies. (A p p . at 60 4 -05 . ) Shr ed- I tal s o cl ai m s thatthe onl yr eas on thatthe Pl ai nt i ffs w er e notas s i gned t o t he al l eged l ym ore desi rabl e sal es t err i t ori es i s theynev er r equ est ed such t err i t ori es. A ccor di ng t o L as pi na, t err i t oryopeni ngs w er e comm uni cat ed t o al l s al es r epr es ent at i ves d u rin g sa les m e e tin g s, a n d h e “ u se d to tell e v e ryb o d y , if a ter rito ryd o e s o p e n , I re a lly l ook forthe s al es per s on t o t ake thati ni t i al s t ep t o come t o m e and s ay , hey , I r eal l yw ant thi s beca us e I can do i t . ” ( A pp. at517. ) T hus , L as pi na cl ai m s thatthe onl yr eas on thathe14

di d notgi ve anypor t i on of the dow nt ow n t err i t oryt o M cG r ane orR y an i s theynever a s k e d f o r i t. I n contr as tt o L as pi na’ s t es t i m ony , Pl ai nt i ffs cl ai m thatno one atShr ed- I tever n o tifie d th e m o f

ter rito ryo p e n in g s, o r to ld th e m th a t th e yc o u ld a p p lyf o r c e rta in t err i t or i es , oroffe r ed them desi r abl e t err i t or i es . W i th r es pectt o the s al es t err i t oryopeni ng thatw as gi ven t o St ephens i n t he Fal l of 2003, St ephens di d notr eca l l L as pi na announci ng the openi ng t o al l the s al es r epr es ent at i ves ata s al es m eet i ng, as L as pi na claim s h e d id w h en ev er a n o p en ing aro se, an d S h red -Itg av e the p o rt ion o f M cG ran e’s s al es t err i t oryt o M i l avec w i thoutnot i fy i ng others al es r epr es ent at i ves w ho m ayhave been i nt er es t ed i n t he t err i t oryand w i thoutM i l avec comi ng t o L as pi na and a s ki ng fort he te rr ito ry. D . “Men s’ C lub ” C u ltu re a t Sh red -It D ur i ng hi s depos i t i on, M i l avec des cr i bed Shr ed- I t ’ s cul tur e as “s or tof l i ke a ‘m en’s cl ub . ’” ( A pp . at58 9-90.) H e exp l ai ned that, i n h i s opini on , “i tw as tw o o ffi ces, as f ar a s the w aythe g u y s w ere tr ea ted a n d the w aythe g ir ls w ere tr ea ted,” (A p p . at 58 7 ), that“ther e w er e . . . di ffe r ents et s of rul es fors om e of the guy s , ” ( A pp. at592) , and that th in g s w e re n o t q u ite “ e v e n S te v e n ” a m o n g th e m e n a n d th e w o m e n . (I d. ) S p e c i f

i c a l l y, M i l avec fel tthatPaps on and Pavl eci c w er e s ubj ectt o a di ffe r ents etof rul es i n thatthey w er e al l ow ed t o “come and go as theypl eas ed, ” (I d. ), an d that, in h is op inion , S h red -It had di s cr i m i nat ed aga i ns tM cG r ane on the bas i s of hers ex byt aki ng aw aya port i on of15

h e r sa les ter rito rya n d g iv in g it t o h im . H o w e v e r, M ilav e c a lso a d m itt e d th a t h is o b s e rv a tio n s d id n o t n e c e s s a ri ly h a v e “ b a c k in g b e h in d it.” (A p p . a t 5 8 9 .) E . Fa c ts R eg a rd in gRy a n ’s a n d Mc G ra n e ’s Ho stile W

o rk E n v iro n m e n t C la im R y an and M cG r ane a l s o cl ai m thattheyw er e s ubj ect ed t o s exual l yexpl i ci tand in a p p ro p ria te c o m m e n ts f ro m M itch e ll. S p e c if

ica lly , the ya lleg e th a t M itch e ll reg u lar ly m ade c om m ent s aboutthe s i ze of hi s geni t al i a and a boutthe i nt i m at e det ai l s of hi s s exual r el at i ons hi ps , thathe r efe r r ed t o w om en as “bi t ches ” ( A pp. at503- 04) , thathe t ol d them of a c ol l eague fr equent i ng “t i t tybar s ” and ge t t i ng “t anked, ” ( A pp. at772) , and thathe fr equent l yus ed the w or d “fuc k” i n the off i ce. Pl ai nt i ffs al s o al l ege that , w hi l e R y an and o ther sa les rep rese n tat ives w ere o rga n izi n g b ind ers in the co n fe ren ce roo m o f S h red -It ’s Pi t t s bur gh offi ce, M i t chel l once pl ay ed a c om pactdi s c on hi s l apt op comput erthat i ncl uded s exual l yexpl i ci tl anguage , and thathe once as ked a mal e s al es r epr es ent at i ve, St ephens , i f he ha d a pubi c hai rs tuck i n hi s thr oataft erSt ephens had coughe d dur i ng a s a le s m e e tin g . I I . Pro c e dur alBackg r ound Pl ai nt i ffs fi l ed thei rcompl ai nton A pr i l 27, 2007. A l l of the Pl ai nt i ffs al l eged that Shr ed- I tdi s cr i m i nat ed aga i ns tthem on t he bas i s of gende r , w i th G r as s m y eral l egi ng c o n s tru c t i v e d i s c h a r g e . Ry a n a n d M c Gr a n e a l s o a l l e g e d a h o s t i l e wo r k e n v i r o n me n t . On J anuary12, 2009, Shr ed- I tfi l ed i t s m ot i on fors um m aryj udgm ent , w hi ch the D i s tr i ct C o u rt g ra n te d o n S e p te m b e r 4 , 2 0 0 9 .16

I n anal y zi ng Pl ai nt i ffs ’ genderdi s cr i m i nat i on cl ai m s , the D i s tr i ctC our tappl i ed the thr ee- s t ep, bur den- s hi ft i ng fr amew or k s etfor th bythe Supr eme C our ti n McD o n n e ll D ouglas C or

p. v. G r een , 411 U . S. 792, 802- 03 ( 1973) . T he C our thel d thatthe Pl ai nt i ffs had es t abl i s hed a pr i m a fa ci e ca s e bec aus e theyw er e qual i fi ed and theyw er e al l r epl ace d w i th m al e s al es r epr es ent at i ves butthatShr ed- I thad s at i s fi ed i t s bur den of a r t i cul at i ng a l egi t i m at e non- di s cr i m i nat oryr eas on fort erm i nat i ng the Pl ai nt i ffs , namel y , thatthey f a ile d to m e e t th e s a le s q u o ta s re q u ir e d o f a ll s a le s re p re s e n ta tiv e s . A tthe pr et exts t age, Pl ai nt i ffs ar gued thatthe non- di s cr i m i nat oryr eas on advanc ed byShr ed- I tw as unw or thyof bel i ef be caus e Shr ed- I tdi d nott erm i nat e mal e s al es r epr es ent at i ves w ho w er e per form i ng compar abl yoreven w or s e than theyw er e, appl i ed th e sa les q u o tas u n e v e n lya m o n g m a le a n d f e m a le s a les re p re se n tativ e s w ith re sp e c t to di s ci pl i ne and PA Ps, and di s cr i m i nat ed on the bas i s of s ex i n m att er s s uch as tr ai ni ng, ter rito rya ss ig n m e n ts, a n d p e rf o rm a n c e re q u ire m e n ts. T h e D istric t C o u rt u lti m a telyh e ld th a t n o re a so n a b le f

a c tf in d e r c o u ld c o n c lu d e th a t th e re a so n s a d v a n c e d b yS h re d -It f o r its a c tio n s w e re p re te x tu a l. T he C our thel d t hatdes pi t e the cl ai m ed i ncons i s t enci es i n enfor cementof the s al es quot as , the fa ctthat , overthe l as tfi ve y ear s , Shr ed- I thad t erm i nat ed s even mal e s al es r epr es ent at i ves and onl yfourfemal e s al es r epr es ent at i ves forfai l i ng t o m eetthe s al es r equi r ement s “w oul d pr eventanyr at i onal tr i erof fa ctfr om conce i vabl yfi ndi ng thatt he Pl ai nt i ffs . . . w er e t erm i nat ed bec aus e of thei rgender . ” ( A pp. at18. ) W i th r es pectt o the17

al l ocat i on of s al es t err i t or i es , the C our thel d that , w hi l e “[ w ] hetherdow nt ow n Pi t t s bur gh w a s , in f a c t, a n e a s ie r a re a to m a k e s [ s ic ] s a le s in re m a in s a d is p u te d q u e s tio n o f f a c t,”

“ [ a ] re a so n a b le f

a c tf in d e r sim p lyc o u ld n o t f in d th a t P lain tiff

s w e re d e n ied a c c e ss to t err i t or i es i n w hi ch theycoul d m eetthei rs al es quot as ” bec aus e “Pl ai nt i ffs never req u ested to b e m o v ed to a b ett er terri tory . ” (A p p . at 19 . ) F u rth er, “[t]ha t Plainti ff s w ere no toff ered a bett er ar ea i s not enou gh t o sho w that theyw ere s etup t o fail or est abli sh p re tex t.” (A p p . at 1 9 .) F in a lly , w ith re sp e c t to tra in in g , the C o u rt h e ld th a t “[ e ]v e n if it i s as s um ed, t aki ng the fa ct s i n t he l i ghtm os tfavor abl e t o the Pl ai nt i ffs , thattheyr ece i ved l es s tr ai ni ng and as s i s t ance than otherm al e empl oy ees , Pl ai nt i ffs s t i l l pr es entno evi dence w hat s oeverthatthe ca ncel l at i ons byM r . M i t chel l orthe l es s ertr ai ni ng fr om M r . V ani el occu rr ed b ecause o f i nv i dious gen der di scr i m i nati on . ” (A pp . at20 . ) Th e C ou rtal so r eas oned that“the exi s t ence of anydi s cr i m i nat i on i s part i cul ar l yques t i onabl e gi ven that M r. P ap so n en co u n tered ca n ce ll ati o n s fro m M r. M it ch ell as w ell . ” (A p p . at 20 . ) A s t o t hei rhos t i l e w or k envi r onm entcl ai m , R y an and M cG r ane a r gued that , w hen co m b ined w ith S h red -It ’s m istrea tm en t of them w ith resp ec t t o tr ainin g , terri tory a ss ig n m e n ts, a n d e n f

o rc e m e n t o f

th e sa les q u o tas , M itch e ll’s c o n d u c t cr e a ted a h o stile w or k envi r onm entbas ed upon gende r . T he D i s tr i ctC ourthel d thatno r eas onabl e tr i erof fac tcoul d fi nd thatR y an and M cG r ane w er e s ubj ect ed t o a hos t i l e w or k envi r onm ent beca us e eve n t he combi ned ef fec tof M i t chel l ’ s conductand the otheral l egedT he D i s tr i ctC our thad s ubj ectm att erj ur i s di ct i on pur s uantt o 28 U . S. C . § 1331, and 2 4 2 U .S .C . § 2 0 0 0 e -5 (f

)( 3 ). W e h a v e ju ri s d ic tio n p u rs u a n t to 2 8 U .S .C . § 1 2 9 1 .

18 m i s tr eatm entdi d notes t abl i s h s ever e orpervas i ve har as s m entthatw oul d al t erthe c o n d itio n s o f

th e ire m p lo ym e n t. P la in tif f s f ile d a tim e ly n o tic e o f

a p p e a l o n S e p te m b e r 9 , 2 0 0 9 . I I I . D i s cus s i on 2 W e e x e rc is e p le n a ry re v ie w o v e r o rd e rs g ra n tin g s u m m a ry ju d g m e n t. Laure n v. D eF la m in is , 4 8 0 F .3 d 2 5 9 , 2 6 5 -6 6 (3 d C ir. 2 0 0 7 ). T h u s, w e lo o k to se e w h e th e r th e re is anygenui ne i s s ue of mat er i al fac tand w hetherthe movi ng partyi s ent i t l ed t o j udgm entas a m a tte r o f

la w . I d. a t2 6 6 . I n d e t e r mi n i n g wh e th e rs u mm a ryj u d g me n ti s wa rr a n t e d , we re v iew th e f

a c ts in th e lig h t m o st f

a v o ra b le to th e n o n -m o v in g p a rty , an d d ra w a ll re a s o n a b le f

a c tu a l in f

e re n c e s in th e p a rt y ’s f

a v o r. I d. A . Ge n d e rDis c r i mi n a t i o n Cla i ms W hen ther e i s no di r ectevi dence of di s cr i m i nat i on, a Ti t l e V I I cl ai m of gende r di s cr i m i nat i on i s anal y zed a ccor di ng t o the thr ee- s t ep, bur den- s hi ft i ng fr amew or k s et for th i n McD onnel lD ouglas C or p. v. G r een , 41 1 U . S . 79 2, 80 2-03 (19 73 ). A tthe fir st s t e p , th e p l a i n t i f

f b e a r s th e i n i t i a l b u r d e n o f e s t a b l i s h i n g a p r i m a f

a c i e c a s e b y a p re p o n d e ra n c e o f

th e e v id e n c e . Sar ul l o v. U. S. P os talSer v. , 3 5 2 F . 3 d 7 8 9 , 7 9 7 (3d C ir . 2003) . A s or i gi nal l ys etfor th i n McD onnel lD ouglas , the elem ents of a p ri m a facie cas e r equi r ed a c l ai m antt o s how “( i ) thathe bel ongs t o a . . . m i nor i ty ; ( i i ) thathe appl i ed and w a s q u a lifie d f

o r a jo b f o r w h ich th e e m p lo y e r w a s s e e k in g a p p lica n ts; (iii) tha t, de sp ite19

hi s qual i fi cat i ons , he w as r ej ect ed; and ( i v) that , aft erhi s r ej ect i on, the pos i t i on r emai ned o p en an d the e m p loy er c o n ti n u ed to se ek ap p li ca n ts from p erso n s o f c o m p lai n an t’ s qual i fi cat i ons . ” McD onnel lD ouglas , 411 U . S. at802. A s an al t ernat i ve t o the or i gi nal four th pr ong of the pr i m a fa ci e ca s e, a pl ai nt i ff mays how thats i m i l ar l ys i tuat ed in d iv id u a ls o u ts id e th e p la in tif f ’s c la s s w e re tr e a te d m o re f a v o ra b ly. M

at cz ak v. Fr ankf or d C andy & C hocolat e C o. , 1 3 6 F .3 d 9 3 3 , 9 3 9 -4 0 (3 d C ir. 1 9 9 7 ); O l s on v. G en. E l ec. A s tr os

pace , 1 0 1 F .3 d 9 4 7 , 9 5 1 (3 d C ir . 1 9 9 6 ). W e a g r e e wi th th e Di s tr i c tCo u r tth a tRy a n a n d M c Gr a n e e s t a b l i s h e d th e i rp r i ma fac i e ca s e bec aus e theyar e fe m al e, qual i fi ed t o be s al es r epr es ent at i ves , w er e di s char ged, a n d w e re re p lac e d w ith m a le s a les re p re se n tativ e s. H o w e v e r, th e D istric t C o u rt e rre d in hol di ng thatG r as s m y erhad al s o es t abl i s hed a pr i m a fa ci e ca s e bec aus e, unl i ke R y an and M cG ran e, G rassm y er w as n o t t erm inated an d there fo re d o es n o t sat isfythe th ir d r equi r ementof the pr i m a fa ci e ca s e. M or eover , w i th r es pectt o G r as s m y er ’ s cl ai m of cons truct i ve di s char ge, the w or k condi t i ons s he compl ai ns of ( i . e. , advert i s i ng hers al es t err i t oryon the i nt ernet , negat i ve and a ggr es s i ve emai l s , and the t erm i nat i on of hercow or kerM cG r ane) ar e w hol l yi nadequa t e t o s how that“the abus i ve w or ki ng envi r onm ent b e c a m e s o in to le ra b le th a t h e r r e s ig n a tio n q u a lif ie d a s a f ittin g re s p o n s e .” P e n n sy lva n ia Stat e P oli ce v. Su ders , 542 U . S. 129, 134 ( 2004) . A ccor di ngl y , G r as s m y ercannot s u c c e e d o n h e rd i s c r i mi n a t i o n c l a i m.M ore preci sel y , w hen the q uest i on i s, as i ti s here, on e of p ret ext, the p l ai nti ff m ust 3 s h o w th a t th e u n la w f

u l d is c ri m in a tio n w a s a d e te rm in a tiv e f a c to r. See W

at s on v. So u th e a ste rn P e n n sy lva n ia T ra n sp . A u th o rity , 207 F. 3d 207, 215 ( 3d C i r . 2000) ( “[I ] n t he us ual ‘ pr et ext ’ cas e, . . . cons i der at i on of a pr ot ect ed tr ai tm us tbe s how n t o be a d eterm inative f

ac tor i n the a d v erse ac ti o n . ”). 20 A s forR y an and M cG r ane, s i nce theyes t abl i s hed a pr i m a fa ci e ca s e of d i s c r i mi n a t i o n , “ th e b u r d e n o f p r o d u c t i o n s h i f

t [ e d ] t o th e d e f

e n d a n tt o a r t i c u l a t e s o me l egi t i m at e, nondi s cr i m i nat oryr eas on forthe empl oy ee’ s r ej ect i on. ” Fu e n tes v . P e rs k ie , 32 F. 3d 759, 763 ( 3d C i r . 1994) . “The em pl oy ers at i s fi es i t s bur den of pr oduct i on by i ntr od ucing ev i den ce w hich, t aken as true, w ou l d p erm i tthe co nclusi on that there w as a nondi s cr i m i nat oryr eas on forthe unfa vor abl e empl oym entdeci s i on. ” Id . S h red -It s at i s fi ed i t s bur den atthi s s t age byadduci ng evi dence thatPl ai nt i ffs w er e t erm i nat ed due to th e irf a ilu re to m e e t th e s a le s q u o ta s re q u ir e d o f a ll s a le s re p re s e n ta tiv e s a t S h re d -I t. Atth e th i r d s t a g e , t o a v o i d s u mma ryj u d g me n t , “ [ t ] h e p l a i n t i f f mu s tp o i n tt o s o me evi dence , di r ectorci r cumst ant i al , fr om w hi ch a f act fi ndercoul d r eas onabl yei ther( 1) di s bel i eve the empl oy er ’ s art i cul at ed l egi t i m at e r eas ons ; or( 2) bel i eve thatan i nvi di ous di s cr i m i nat oryr eas on w as m or e l i kel ythan nota mot i vat i ng ordet erm i nat i ve ca us e of the e m p lo y e r’ s a c tio n .” I

d. at764. T o di s cr edi tthe empl oy er ’ s pr offe r ed r eas on, a pl ai nt i ff 3 m us t“demonstr at e s uch w eakne s s es , i m pl aus i bi l i t i es , i ncons i s t enci es , i ncoher enci es , or c o n tra d ictio n s in th e e m p lo y e r’s p ro f f e re d leg iti m a te r e a so n s f o r its a c tio n th a t a r eas onabl e fa ct fi ndercoul d r at i onal l yfi nd them unw or thyof cr edenc e and he nce i nfer thatthe empl oy erdi d notactforthe as s ert ed non- di s cr i m i nat oryr eas ons . ” Id . at76521

( ci t at i ons and quot at i ons om i t t ed) . W e have l i s t ed the fol l ow i ng exampl es of evi dence fro m w h ich a fa ctfind er c o u ld rea so n ab lyco n clud e tha t an ill eg it im ate f ac tor w as m o re l i kel ythan nota det erm i nat i ve ca us e of the adve r s e empl oym entdeci s i on: “s how i ng t hat th e e m p lo y e r in th e p a st h a d su b jec ted [ th e p lain tiff

] to u n law f

u l d isc rim in a to rytre a tm e n t, thatthe empl oy ertr eat ed other , s i m i l ar l ys i tuat ed per s ons notof [pl ai nt i ff’ s ] pr ot ect ed cl as s m or e fa vor abl y , orthatthe empl oy erhas di s cr i m i nat ed aga i ns totherm ember s of [the pl ai nt i ff’ s ] pr ot ect ed cl as s orotherpr ot ect ed ca t egor i es of per s ons . ” I d. a t 7 6 5 . T he Supr eme C our thas hel d thatw her e the l egi t i m at e nondi s cr i m i nat oryr eas on advanc ed bythe empl oy erpert ai ns t o the empl oy ee’ s s ubparper form ance orl ack of q u a lific a tio n s, p re tex t m a yb e sh o w n b yd e m o n stra tin g th a t th e e m p lo y e r f a iled to p ro p e rl ytr a in th e e m p lo y e e . P at t ers on v. McLean C r edi tU ni on , 491 U . S. 164, 188 ( 1989) ( “[P] et i t i onercoul d s eek t o per s uade the j urythatr es pondenthad notoffe r ed the tru e re a so n f

o r its p ro m o tio n d e c isio n b yp re se n tin g e v id e n c e o f re sp o n d e n t’s ... f

a ilu re to tr ai n herforan ac count i ng pos i t i on. ”) . W e al s o have “ r ecogni zed thatw hen an e m pl oy er di s cr i m i nat or i l ydeni es tr ai ni ng and s uppor t , the empl oy erm aynotthen di s favorthe pl ai nt i ff be caus e herper form ance i s aff ect ed bythe l ack of

oppor tuni ty . ” Ezo ld

v . W o lf, B l ock, Schor r& Sol is - C ohen , 9 8 3 F .2 d 5 0 9 , 5 4 0 (3 d C ir . 1 9 9 3 ). R y an and M cG r ane a r gue thatthe D i s tr i ctC our terr ed atthe pr et exts t age by “over l ook[i ng] r eas onabl e i nfer ence s of di s cr i m i nat i on ar i s i ng fr om l ar gel yunexpl ai ned di ffe r ence s i n t r eatm ent , and fa i l [i ng] t o cons i derthe evi dence i n i t s ent i r ety . ”22

( A ppel l ant s ’ O p. B r . at21- 22. ) W e agr ee. W hi l e i ti s undi s put ed thatPl ai nt i ffs w er e not m eet i ng thei rs al es quot as , theyhave pr oduced e vi dence , w hi ch, w hen vi ew ed i n the l i ght m o st fav o rab le t o them , w o u ld p erm ita ra ti o n al j u ryto co n clud e tha t Sh red -It di s cr i m i nat ed aga i ns tthem i n w ay s thataff ect ed thei rabi l i tyt o m eetthe s al es quot as and thatShr ed- I tappl i ed the s al es quot as unevenl yamong m al e and f emal e s al es re p re s e n ta tiv e s . A s to trai n ing an d terri tori es, th e e v iden ce , w h en v iew ed in R y an ’s an d M cG ran e’s favor , r ai s es m at er i al i s s ues of fa ctas t o w hethergenderdi s cr i m i nat i on w as the d e ter m in a tiv e f

a c to r in S h re d -It’s a c tio n s. T h e e v id e n c e in d ica tes th a t, de sp ite th e ir r e q u e s t s f

o rtr a i n i n g a n d a s s i s t a n c e , Ry a n a n d M c Gr a n e we r e d e n i e d th e s a me oppor tuni t i es as the mal e s al es r epr es ent at i ves w i th r es pectt o r i de- al ongs and s hadow i ng oppor tuni t i es . T he evi dence al s o can be vi ew ed as i ndi cat i ng thatcert ai n t err i t or i es offe r ed gr eat ers al es oppor tuni t i es than other s , and thatR y an and M cG r ane w er e not n o tifie d o f

ter rito ryo p e n in g s o r g iv e n th e sa m e o p p o rtu n iti e s a s m e n to m o v e in to desi rabl e geo graphic ar eas. M oreove r, R y an an d M cG rane hav e dem on strat ed “w eakn esses , i m plausi bil i t i es, in c o n sis ten c ies , inc o h e re n c ies , o r c o n tra d ictio n s” in S h re d -It’s p ro f f e re d re a so n s f

o r th e ir s al es t err i t oryal l ocat i ons . L as pi na’ s as s ert i on thathe al one dec i ded t o gi ve M i l avec a por t i on of M cG r ane’ s t err i t oryand thathe di d i tbeca us e i t“had a tr emendous a m ountof oppor tuni ty ” ( A pp. at517) , i s i n di r ectconfl i ctw i th V ani el ’ s as s ert i on thatthe dec i s i on23

w a s m a d e o n ly f

o r l o g is tic a l r e a s o n s a n d th a t h e a n d L a s p in a m a d e th e d e c is io n jo in tly. L asp ina’s e x p lana ti o n also see m s to su g g est th at so m e terri tori es d id, i n fa ct, h av e m o re oppor tuni t i es than other s , w hi ch contr adi ct s hi s otheras s ert i on thata s al es r epr es ent at i ve’ s abi l i tyt o m eetthe s al es quot as i s noti m pact ed byhi s orhers al es t err i t orybeca us e “e veryt err i t oryi s a good t err i t ory , [and] [i ] ti s w hatthe s al es re p re se n tativ e m a k e s o f th a t terr ito ry .” (A p p . at 5 1 7 .) M o re o v e r, w h ile L a sp in a c laim s to h a v e n o tifie d a ll sa les re p re se n tativ e s o f ter rito ryo p e n in g s a t sa les m e e tin g s, S tep h e n s d id notr eca l l L as pi na eve rnot i fy i ng the others al es r epr es ent at i ves aboutthe t err i t oryhe w as gi ven i n the fa l l of 2003, and the s ecr ecyw i th w hi ch M cG r ane’ s t err i t oryw as t aken f r om herand gi ven t o M i l avec s ugges t s thatShr ed- I tas s i gned Pl ai nt i ffs t o cert ai n t err i t or i es w ith o u t c o n s u ltin g th e m o r n o tif y in g th e m o f

p o te n tia l o p p o rt u n itie s . F inally , there is ev iden ce sh o w ing that the s ales q u o tas w ere en fo rce d m o re har s hl yagai ns tR y an and M cG r ane than theyw er e aga i ns tm al e s al es r epr es ent at i ves B ow s er , Pavl eci c, and Paps on. T he D i s tr i ctC our tw as unper s uaded bythi s evi dence , m os t l ybeca us e of the fa ctthatoverthe cour s e of the l as tfi ve y ear s , Shr ed- I thas t erm i nat ed s even mal e s al es r epr es ent at i ves forfai l i ng t o m eetthe s al es quot as , as com pared w i th o nlyfou r fem al e sal es r epresent at i ves. H ow ever, S hred-I t ’s past e m p lo ym e n t sta tistics sa yn o th in g a b o u t th e tra in in g a n d ter rito rya llo c a tio n s o f th e m a le and fe m al e s al es r epr es ent at i ves w ho w er e t erm i nat ed overthe l as tfi ve y ear s orw hether Shr ed- I totherw i s e di s cr i m i nat ed aga i ns tw om en i n w ay s thataff ect ed thei rabi l i tyt o m eet24

the s al es quot as , as i s al l eged he r e. Fur therm or e, even i f Shr ed- I t ’ s empl oym ents t at i s t i cs c o n c lu siv e lysh o w e d th a t ith a d n o t d isc rim in a ted a g a in st w o m e n in th e p a st, th a t w o u ld noti m m uni ze i tfr om al l pr es entand futur e cl ai m s of gende rdi s cr i m i nat i on. R y an and M cG rane hav e present ed m ore r ecent evi den ce i nd i cat i ng un equ al treatm ent, and w e m ust v ie w th e e v id e n c e in th e lig h t m o s t f a v o ra b le to th e m a t th e s u m m a ry ju d g m e n t s ta g e . In su m , R y an an d M cG ran e h av e p rese n ted s u ff ici en t evid en ce to su rviv e su m m ary j udgm ent , evi dence thatr ai s es m at er i al fac tual i s s ues aboutw hetherShr ed- I ttr eat ed s i m i l ar l ys i tuat ed mal e s al es r epr es ent at i ves m or e fa vor abl ythan fe m al e s al es r epr es ent at i ves w hen i tcame t o enfor cementof the s al es quot as , tr ai ni ng, and s al es t err i t oryal l ocat i ons . T hats ame evi dence al s o r ai s es m at er i al fac tual i s s ues aboutw hether g en d er d iscri m ination w as a d eterm inative f ac tor i n an ysu ch d ispa rate tr ea tm en t. In addi t i on, R y an and M cG r ane ha ve demonstr at ed s ubs t ant i al i ncons i s t enci es i n s om e of Shr ed- I t ’ s pr offe r ed r eas ons fori t s tr eatm entof the Pl ai nt i ffs . A ccor di ngl y , the D i s tr i ct C o u rterred in g ran ti n g su m m aryjud g m en t i n fa v o r of S h red -Ito n R y an ’s an d M cG ran e’s gen der di scr i m i nati on cl ai m s. B . Ho s t i l e Wo rk

E n v i r o n me n tCla i ms T i t l e V I I of the C i vi l R i ght s A ctm akes i tunl aw ful foran empl oy ert o condone a se x u a llyh o stile w o rk e n v iro n m e n t. 42 U .S .C . § 2 0 0 0 e -2 (a )(1 ); Mer i t orSavi ngs B ank v. V i ns on , 477 U . S. 57 ( 1986) . “H os t i l e w or k envi r onm enthar as s m entoccur s w hen unw el come se xual conductunr eas onabl yi nt er fer es w i th a per s on’ s per form ance or25

cr eat es an i nt i m i dat i ng, hos t i l e, oroffe ns i ve w or ki ng envi r onm ent . ” W es t on v. P e n n sy lva n ia , 251 F. 3d 420, 425- 26 ( 3d C i r . 2000) . T o be ac t i onabl e, “the har as s m ent m us tbe s o s ever e orpervas i ve thati tal t er s the condi t i ons of the vi ct i m ’ s empl oym entand cr eat es an abus i ve envi r onm ent . ” I d. a t 4 2 6 . W e h a v e d e v e lo p e d a f iv e ste p tes t w ith r es pectt o hos t i l e w or k envi r onm entcl ai m s thatr equi r es M cG r ane a nd R y an t o s how : “( 1) [they ] s uffe r ed i nt ent i onal di s cr i m i nat i on beca us e of thei rs ex; ( 2) the di s cr i m i nat i on w as pervas i ve and r egul ar ; ( 3) the di s cr i m i nat i on detr i m ent al l yaff ect ed [them]; ( 4) the di s cr i m i nat i on w oul d detr i m ent al l yaff ecta r eas onabl e per s on of the s ame se x i n that pos i t i on; and ( 5) the exi s t ence of r es pondeats uper i orl i abi l i ty . ” A ndr ew s v. C i t y of P h ila d e lp h ia , 8 9 5 F .2 d 1 4 6 9 , 1 4 8 2 (3 d C ir . 1 9 9 0 ). P lain tiff s c o n c e d e d in th e D istric t C o u rt th a t, stan d in g a lo n e , M itch e ll’s c o m m e n ts ar e nots uffi ci entt o s how a hos t i l e w or k envi r onm ent . W e agr ee. W hi l e s ophom or i c and n o d o u b to f

f e n s i v e , M i t c h e l l ’ s l a n g u a g e wa s n o t , b yRy a n ’ s a n d M c Gr a n e ’ s o wn a d m iss io n a n d b yth e e v id e n c e p ro d u c e d , so “ se v e re o r p e rv a siv e ” a s to su p p o rt a h o stile wo r k e n v i r o n me n tc l a i m. P enn . Stat e P oli ce v. Su ders , 542 U . S. 129, 133 ( 2004) . E ven w hen combi ned w i th t hei rot hercompl ai nt s , ther e i s an i ns uffi ci ents how i ng of har as s m entt o be ac t i onabl e. W hi l e R y an and M cG r ane mayhave be en negl ect ed and tr eat ed unequa l l y , the tr eatm enttheyr ece i ved di d notr i s e t o the l evel of bei ng abus i ve a n d a lte ri n g th e c o n d itio n s o f th e s a le s w o rk a t S h re d -I t. See W es t on , 251 F. 3d at426 ( “I n or dert o be ac t i onabl e, the har as s m entm us tbe s o s ever e orpervas i ve thati tal t er s t he26

c o n d iti o n s o f

th e v ictim ’s e m p lo ym e n t an d c re a tes a n a b u siv e e n v iro n m e n t.”); A ndr ew s v. C ity o f P h ila d e lp h ia , 8 9 5 F .2 d 1 4 6 9 , 1 4 8 2 (3 d C ir. 1 9 9 0 ) (“ T o b rin g a n a c tio n a b le c laim f o r s e x u a l h a ra s s m e n t b e c a u s e o f a n in tim id a tin g a n d o f

f e n s iv e w o rk e n v ir o n m e n t, a pl ai nt i ff mustes t abl i s h bythe t ot al i tyof the ci r cumst ance s , the exi s t ence of a hos t i l e or a b u siv e w o rk in g e n v iro n m e n t w h ich is s e v e re e n o u g h to a f f e c t th e p sy c h o lo g ica l sta b ili ty o f a m in o ri ty em p lo y e e ” ). I V . C oncl usi on F o r th e f o re g o in g re a so n s, w e w ill a f f irm th e D istric t C o u rt’s o rd e r w ith re sp e c t to R y an’ s and M cG r ane’ s hos t i l e w or k envi r onm entcl ai m and G r as s m y er ’ s gender di s cr i m i nat i on cl ai m , butw i l l vaca t e w i th r es pectt o R y an’ s and M cG r ane’ s cl ai m for genderdi s cr i m i nat i on underT i t l e V I I . T he ca s e i s r emanded forfur therpr ocee di ngs cons i s t entw i th t hi s opi ni on.