Matthews, et al., v. Harley Davidson, et al., No. SC100116 (Mo. Sup. Ct. Jan. 30, 2023)(J. Powell)

In the case before the Supreme Court of Missouri, Emanuel Matthews and other appellants filed a lawsuit against Harley-Davidson Motor Company Operations, Inc., and Syncreon.US for creating a hostile work environment and aiding and abetting racial discrimination under the Missouri Human Rights Act (MHRA). The circuit court dismissed their claims for failing to state sufficient facts, leading to the appellants’ appeal.

The district court dismissed the appellants’ claims with prejudice, asserting that they failed to allege facts sufficient to state each claim of a hostile work environment and aiding and abetting racial discrimination.

Factual Overview

Until May 24, 2019, Harley operated a manufacturing and assembly facility in Kansas City, Missouri, with a workforce composed mostly of white employees, while about 90 percent of Syncreon’s employees at the plant were black. After filing a charge of racial discrimination with the Missouri Commission on Human Rights, the appellants received a right-to-sue notice and subsequently filed a petition against Harley and Syncreon, alleging multiple MHRA violations. The petition detailed incidents of racial discrimination, including the hiring of a previously terminated discriminatory supervisor, racially motivated insults, a physical division in the plant that segregated employees by race, and bathrooms that were effectively racially segregated.

Legal Analysis

Hostile Work Environment: The appellants argued that they sufficiently pleaded the elements of a hostile work environment under the MHRA, citing incidents such as nooses found on the premises, racially charged graffiti, and an assault on a black employee that was disregarded by Syncreon’s human resources. The Supreme Court of Missouri agreed, stating that the appellants’ petition, if taken as true, established the elements of a hostile work environment claim. The court emphasized that the cumulative effect of the alleged discriminatory acts and the specific instances cited in the petition were sufficient to allege a pervasive and severe hostile work environment.

Aiding and Abetting: Additionally, the appellants claimed that Harley and Syncreon aided and abetted racial discrimination. The Supreme Court found that the appellants sufficiently pleaded facts to support these claims as well. The court noted the alleged actions by Syncreon, such as urging employees to stay quiet about the incidents and misleading them about investigations, as well as Harley’s control over the plant operations and its failure to prevent or discipline racially charged incidents. The court determined that these allegations, if true, could be seen as substantial encouragement or assistance in the commission of acts prohibited under the MHRA.

Notably the Supreme Court formulated a test for aiding and abetting employment discrimination claims under the Missouri Human Rights Act (MHRA). This test clarifies that to hold a party liable for aiding and abetting discrimination, a claimant must prove that the defendant had knowledge of the discriminatory act and provided “substantial assistance or encouragement” to those committing the act. Drawing from the Restatement (Second) of Torts § 876(b), the Court adopted criteria for assessing whether a defendant’s conduct constitutes substantial assistance or encouragement, considering factors such as the nature of the assistance, the defendant’s presence or absence at the time of the act, their relationship to the principal actor, and their state of mind. This test emphasizes a rigorous evaluation of the defendant’s involvement in facilitating or encouraging the discriminatory environment, marking a significant development in the adjudication of employment discrimination claims within Missouri.

In conclusion, the Supreme Court of Missouri vacated the circuit court’s judgment dismissing the appellants’ claims of a hostile work environment and aiding and abetting racial discrimination. The case was remanded for further proceedings, highlighting the sufficiency of the appellants’ allegations to state claims under the MHRA.