Opinion ID: 4561629
Heading Depth: 3
Heading Rank: 2

Heading: Dr. Khalaf’s Alleged Protected Conduct

Text: Dr. Khalaf alleges three instances of protected conduct in support of his retaliation claims against Jay Zhou, to whom Dr. Khalaf reported from August 2013 to June 2014. The first involved a heated phone call between two employees in Dr. Khalaf’s department, Pauline Burke and David Buche, in February 2013. This exchange reportedly involved discussion of cost-saving measures. Buche allegedly told Burke to “be a big girl and come up with the savings.” R.79-7, PX15, PageID 2459. Upon learning of the phone exchange, Dr. Khalaf directed Burke to send a “claim” to Human Resources (HR). R.79-8, PX16, PageID 2469.4 In her HR submission, Burke indicated she had a “right to work in a non-hostile environment.” However, in neither Burke’s filing nor 3Theweekly meetings involved separate sessions with Fowler’s QS&PP Department and with Ford’s CEO and his leadership team. R.136, 3.15.Tr., Page ID 6094-6104. 4Dr. Khalaf also notified HR that he had “asked Pauline to file a claim with HR because she made accusation [sic] over a discussion she had with David Buche yesterday.” R.79-7, PX15, PageID 2459. Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 6 subsequent email exchanges between Dr. Khalaf and HR did Burke or Dr. Khalaf ever characterize the phone conversation as involving sexual discrimination or sexual harassment. See id.; R.79-8, PX16, PageID 2468–2469. The second instance of protected conduct referenced by Dr. Khalaf involved an email he sent in June 2013 to Wendy Warnick, a Human Resources manager at Ford. See R.37-14, PX26, PageID 1176-1180. Prior to sending the email, Dr. Khalaf had approached Fowler, alleging hostile treatment by his subordinates. Fowler responded to Dr. Khalaf’s concerns by directing Dr. Khalaf to ask that Warnick transition the hostile subordinates to a different part of the company. R.135, 3.14.Tr., PageID 5744-5745. Adhering to Fowler’s instruction, Dr. Khalaf sent an email to Warnick, in which he outlined the hostile treatment he had faced by his subordinates, and explained that the subordinates’ direct supervisor, Kim Harris, had refused to hold them accountable. Id. at PageID 5745; R. 37-14, Warnick Email, Page ID 1176-1179. Dr. Khalaf characterized the collective actions of his subordinates as creating a hostile work environment. R.37-14, PX25, PageID 1176-1179. According to Dr. Khalaf, HR’s response was to do nothing. R.135, 3.14.Tr., PageID 5745. Frustrated with the inaction, Dr. Khalaf approached Fowler again about his subordinates. Id. at PageID 5745-5746. At that point, Fowler responded that Ford would not relocate the hostile subordinates, and Dr. Khalaf would just have to “deal with it.” Id. at PageID 5746. The final instance of protected conduct referenced by Dr. Khalaf involved his filing another complaint to HR on April 4, 2014, approximately three weeks before he was placed on the “performance-enhancement-plan” (PEP) by Zhou. Id. at PageID 5782, 5787-5787; R.140, 3.22.Tr., PageID 6840-6841. In the email, Dr. Khalaf specifically alleged that he was being subjected to a hostile work environment by Zhou and Fowler, and that he was being retaliated against for his protected activity. R.135, 3.14.Tr., PageID 5783; PX64, R.79-24, HR Email, PageID 2536. Several days after Dr. Khalaf’s filing of the complaint, he met with HR officer Les Harris. During this encounter, Dr. Khalaf offered further explanation of his April 4 complaint, stating that he was reporting discrimination and harassment based on his national origin, which included Fowler’s abusive treatment of him in one-on-one meetings and Fowler’s Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 7 demands that Dr. Khalaf—and only Dr. Khalaf—fetch Fowler coffee in larger meeting settings. R. 135, 3.14.Tr., PageID 5785-5786. C. Fowler’s Re-Organization of the QS&PP Department Fowler testified that even after several months as department manager, Dr. Khalaf in 2013 was still failing to prepare the BPR in a satisfactory manner. R.137, 3.19.Tr., PageID 6122. Additionally, Dr. Khalaf continued to encounter difficulties in managing his team, as documented by “Pulse” surveys,5 completed by Dr. Khalaf’s subordinates in August and September 2013. R.138, 3.20.Tr., PageID 6388-6390; R.137, 3.19.Tr., PageID 6167; see also id. at PageID 6252. One particular report indicated that Dr. Khalaf received a rating of “30” from his subordinates based on their dissatisfaction with him as a supervisor. Ford characterized this score as “shocking[ly] low.” In fact, it was the “lowest” score to ever be recorded in the QS&PP Department. R.137, 3.19. Tr., PageID 6256, 6265. According to Fowler, Dr. Khalaf’s sub-optimal scores, as well as “[a] lot of errors in [Dr. Khalaf’s] presentation,” led Fowler to reorganize the QS&PP Department. R.136, 3.15.Tr., PageID 6029. The first change he made was to appoint Zhou as manager of the department. Id.; R.135, 3.14.Tr., PageID 5755-5756; R.137, 3.19.Tr., PageID 6166. Fowler then created a new LL5 position, “Lead QFL,” which he assigned to Dr. Khalaf. This position relieved Dr. Khalaf of his prior responsibility to manage the Quality Analysts, though he would still supervise the QFLs. R.135, 3.14.Tr., PageID 5756; R.136, 3.15.Tr., PageID 6029. As Lead QFL, Dr. Khalaf retained the same pay and benefits as his prior position, but he now reported directly to Zhou. R. 137, 3.14.Tr., PageID 6124-6125. D. Dr. Khalaf’s Performance as Lead QFL In a November 2013 performance assessment conducted by Zhou, Dr. Khalaf received an “Achiever” rating, which, according to Zhou, is the “average rating . . . that most [Ford employees] get.” R.137, 3.19.Tr., PageID 6261. However, Zhou informed Dr. Khalaf that he 5Ford used the annual “Pulse” surveys to solicit input from employees regarding their supervisors and workplace. R. 138, 3.20. Tr., PageID 6388-6390; R. 137, 3.19. Tr., PageID 6167. According to the company, “[t]he Pulse score is the most reliable process” at Ford “to get the feedback from the people in the organization.” Id. Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 8 was “trending toward a lower achiever” rating. Id. In his written evaluation, Zhou indicated that Dr. Khalaf’s “leadership & supervisory skills need to be addressed.” R.82-5, DX26, PageID 2899. Underscoring this assessment, Zhou offered examples of what he believed were Dr. Khalaf’s sub-optimal leadership characteristics, including his inabilities to (1) “own[] an issue” versus decide it was “out of [his] control”; (2) “acknowledg[e] a concern & [] delegat[e] for resolution”; and (3) “deal[] with difficult situations, communication skills, team motivation & leadership engagement.” Id. According to this written assessment, improvement would require Dr. Khalaf to address his “PULSE [ratings], personnel relations issues, morale, relationships, & decision making.” Id. at PageID 2900. Finally, Zhou warned that “[i]f there [was] not sustained improvement,” Dr. Khalaf would “be placed on a PEP.” Id. After providing this evaluation, Zhou made efforts to assist Dr. Khalaf with his leadership skills. Zhou shared with Dr. Khalaf resources, available through Ford’s website, that could aid employees with “leadership and development and communications skills development.” R. 37, 3.19.Tr., PageID 6262. However, according to Zhou, when he met with Dr. Khalaf in January 2014, Dr. Khalaf continued to deny his “responsibility on the items highlight[ed] in the performance [review].” R.137, 3.19. Tr., PageID 6265. E. Dr. Khalaf’s Initial Placement on a “Performance Enhancement Plan” Dr. Khalaf’s management problems with his teams persisted into March 2014. During that month, Dr. Khalaf’s direct supervisees met with Zhou to “complain[] about . . . the leadership behaviors of Dr. Khalaf” and discuss “how people [were] mistreated” within the group. R.137, 3.19.Tr., PageID 6214-6215. According to Zhou, one employee in particular wanted “to change job[s]” because the stress of dealing with Dr. Khalaf was “affecting [that employee’s] health.” R.138, 3.20.Tr., PageID 6394. Upon concluding that the “team was destroyed by [Dr. Khalaf],” R.137, 3.19.Tr., PageID 6214, Zhou decided to place him on a PEP. R.137, 3.19.Tr., PageID 6213. An HR representative, who was directly responsible for Dr. Khalaf’s department, decided a 30-day PEP, as opposed to a 60-day PEP, would be most appropriate, given that members of HR had “already coached [Dr. Khalaf] on [] issues [related to his leadership performance].” R.82-5, DX132, PageID 2902. Nonetheless, as HR noted at the Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 9 time, if Dr. Khalaf did not improve during his initial 30-day PEP, this plan would be “extend[ed] to a second 30[-]day PEP with [Career Transition Plan] language.” Id. The first PEP was set to commence on April 4, 2014. On that day, Zhou scheduled a meeting with Dr. Khalaf at which he planned to deliver news of the PEP. But, before the meeting could take place, Dr. Khalaf canceled the appointment. He indicated to Zhou that he would be “working from home” on April 4 instead. R.82-5, DX135, PageID 2909; R.137, 3.19.Tr., PageID 6273–6274. On the afternoon of April 4, Dr. Khalaf then submitted an official complaint to HR, in which he stated that he had been harassed by Fowler and Zhou. R.79-24, PX64, PageID 2536. As discussed above, his act represented the third instance of “protected conduct” that Dr. Khalaf referenced in support of his retaliation claim against Zhou. However, nowhere in Dr. Khalaf’s complaint or within any other correspondence he sent to HR related to the alleged harassment, did Dr. Khalaf ever state that Fowler had criticized his English. Id.; R.136, 3.15.Tr., PageID 5899. On April 23, 2014, Zhou finally delivered the PEP to Dr. Khalaf. Shortly thereafter, when Dr. Khalaf asked HR supervisor Mike Lank why he was being placed on a PEP, Lank responded to him, “you had your chance when you filed your complaint.” R.135, 3.14.Tr., PageID 5789. During the months thereafter, Zhou met with Dr. Khalaf on a weekly basis in order to review Dr. Khalaf’s progress and offer feedback. R.82-5, DX159, PageID 2944; R.137, 3.19.Tr., PageID 6281–6262, 6285–6293. F. Dr. Khalaf’s Second PEP and His Disability Leave Dr. Khalaf failed to complete the first PEP successfully and therefore was placed on a second PEP. R.137, 3.19.Tr., PageID 6294. This PEP stated that if Dr. Khalaf did not “demonstrate significant and sustained improvements,” his employment could be terminated. DX164, App.4; Id., App.3. On June 27, 2014, the day the second PEP was scheduled to end, Dr. Khalaf filed for a disability leave of absence, claiming he was “totally disabled from working.” R.135, 3.14.Tr., PageID 5842–5843. According to Dr. Khalaf, his need for a leave of absence Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 10 stemmed from emotional strain he had experienced at work. He also indicated he had taken antidepressants and anti-anxiety medication since March 2014. Id. at PageID 5794, 5796. Throughout this period, Dr. Khalaf had consulted with his family physician, as well as a psychologist, Dr. Michael Katz. Id. at 5795-5796. The latter diagnosed Dr. Khalaf with posttraumatic stress disorder (PTSD), based on Dr. Khalaf’s symptoms, which included difficulty sleeping, nightmares, stress, muscle tension, extreme anxiety, and depression. R.137, 3.19 Tr., PageID 6317-6319, 6324-6330. Defendants dispute Dr. Katz’s PTSD diagnosis and claim that he made it prematurely, after seeing Dr. Khalaf on only one occasion. Appellees’ Br. at 56-57. Dr. Khalaf remained on medical leave from Ford for approximately one year. R.135, 3.14.Tr., PageID 5803. Based on the terms of Ford’s disability insurance policy, he was paid 100 percent of his salary for the first twelve weeks of his disability leave and 60 percent for the remainder of the year. Id. at 5796-5797. In compliance with Ford’s requirements under the policy, Dr. Khalaf’s physician and psychologist submitted paperwork at approximately onemonth intervals, which confirmed Dr. Khalaf’s need for a medical leave. Id. at PageID 5797. It eventually came to light, however, that Dr. Khalaf was teaching at a local college, Wayne State University. Id. at PageID 5801, 5843-5844. With his disability benefits ending, Dr. Khalaf indicated that he would return to Ford in July 2015.6 Id. at PageID 5804. Ford responded to Dr. Khalaf that his prior Lead QFL role had been filled by another employee. R.139, 3.21.Tr., PageID 6559. Consistent with Ford’s leave policy, the company placed Dr. Khalaf on a “no work available” status for a 30-day period. Id. at 6566. During this time, a search was conducted across the company for an open job commensurate with Dr. Khalaf’s skills, experience, and LL5 designation. The search particularly focused on opportunities within the Global Quality Organization, as well as Manufacturing Operations and Powertrain Program Engineering and other groups, including the Material Handling Organization, the Product Development Group, the Vehicle Operations Manufacturing Engineering Group, and New Models departments. R.139, 3.21.Tr., PageID 6The parties dispute whether Dr. Khalaf’s disability benefits were terminated or had run out under the terms of Ford’s disability plan. Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 11 6565, 6568, 6583, 6582-6590. According to Ford, the search found no LL5 openings. Id. at PageID 6586. Dr. Khalaf disputes that there were no LL5 openings, claiming that his own investigation of Ford Motor Company’s career website revealed “[m]any” jobs that were available and possibly consistent with his qualifications. R.135, 3.14.Tr., PageID 5805. However, Dr. Khalaf pointed to no specific job that was available. Id. at PageID 5805-5806. Regardless, however, Dr. Khalaf did not dispute that Ford eventually located a Global Quality supervisor position within Ford’s Quality Organization that reasonably matched Dr. Khalaf’s skills and experience.7 R.139, 3.21.Tr., PageID 6596. Though the position was at the LL6 level, it offered the same salary as Dr. Khalaf’s pre-disability-leave LL5 job, while providing comparable benefits and the potential for him to get another LL5 position in the future. Id. The new assignment also would accommodate Dr. Khalaf’s specific request that he not report directly to either Zhou or Fowler. Id. at PageID 6606. Dr. Khalaf rejected the job offer. R.135, 3.14.Tr., PageID 5806-5807, 5824–5825; R.8012, PX122, PageID 2587; R.80-14, PX132, PageID 2597. Consequently, on September 1, 2015, Dr. Khalaf was officially separated from Ford under a designated program that would have offered him a severance package. However, Dr. Khalaf rejected the severance package, given that acceptance was contingent on his signing a release form. R.140, 3.22.Tr., PageID 6871. Dr. Khalaf accepted a higher salary job at BASF, another Michigan-based-corporation. This new position also offered Dr. Khalaf a signing bonus. G. Procedural History
In July 2015, Dr. Khalaf sued Ford, Fowler, and Zhou. R.1., Complaint, PageID 2. He amended the complaint in May 2017. R.45, Amended Complaint, PageID 1820. He alleged violations of 42 U.S.C. § 1981; Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et 7This position was located within Ford’s Global Quality Organization, the same group that Dr. Khalaf had formerly worked in as a QS&PP manager. Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 12 seq.; Michigan’s Elliott-Larsen Civil Rights Act (ELCRA), Mich. Comp. Laws, 37.201 et seq.; and 42 U.S.C. § 1981. In March 2018, the case was tried before a jury, which returned the following verdicts. First, the jury concluded that Dr. Khalaf had been neither demoted nor terminated by Ford on account of his race or national origin. Second, the jury determined that neither Ford as a corporate entity nor Zhou had subjected Dr. Khalaf to a hostile work environment. However, the jury did find that Dr. Khalaf’s subordinates had subjected him to a hostile work environment based on national origin or race, and that Fowler had subjected him to a hostile work environment based on national origin, but not race. Finally, the jury agreed with Dr. Khalaf’s claims that he had been subjected to retaliatory demotion by Ford and Fowler, retaliatory placement on a PEP by Zhou, and retaliatory termination by Ford. Nonetheless, the jury rejected Dr. Khalaf’s contentions that he had been subjected to retaliatory placement on a PEP by Fowler or Ford, and that he had been subjected to retaliatory termination by Fowler or Zhou. R.74, Jury Verdict Form, PageID 2400-2401. Based on these findings, the jury awarded Dr. Khalaf $1.7 million in pension and retirement losses, $100,000 in emotional distress damages, and $15 million in punitive damages, with the latter award to be imposed against Ford alone.
After the jury returned the verdict, the district court indicated its initial inclination to grant judgment as a matter of law (JMOL) in Ford’s favor on the Dr. Khalaf’s retaliatory termination claim. R.143, 3.28.Tr., PageID 7237-7238. However, the court decided to delay ruling definitively until it after it had evaluated defendants’ post-verdict motions in their entirety. On July 23, 2018, the district court issued an opinion and order on the entry of judgment. Here again, the court deferred its decision on whether to grant JMOL to Ford on the termination claim, indicating it would do so eventually upon ruling on all of the post-judgment motions. R.95, PageID 3952-3953. Immediately thereafter, the court entered judgment in Dr. Khalaf’s favor, which reflected the compensatory and punitive damages awards, in addition to interest, costs, and attorney’s fees, as allowable by law. R.99, Judgment, PageID 3964. Nos. 19-1435/1468 Khalaf v. Ford Motor Co. Page 13 On August 20, 2018, defendants filed the following motions: (1) for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50(b); (2) for a new trial pursuant to Rule 59(a); (3) to alter or amend the judgment pursuant to Rule 59(e); and (4) for remittitur. R.102, New Trial Motion, PageID 4084-4122. On March 28, 2019, the district court granted defendants’ motion for remittitur and reduced the punitive damages from $15 million to $300,000. However, the district court denied defendants’ motions for JMOL, to alter or amend the judgment, or to grant a new trial. R.115, Order, PageID 5111-5130. Dr. Khalaf subsequently filed an appeal of the district court’s remittitur, while defendants cross-appealed the district court’s denial of their motions for JMOL or a new trial.8