Karen Russell vs Fred Meyer Stores, Inc.

Case Background

On May 26, 2024, Karen Russell filed a wrongful termination lawsuit alleging a hostile work environment, discrimination, and retaliation against her employers at Kroger Co., dba Fred Meyer Stores. The case was heard before the Oregon Circuit Court, Deschutes County, and Judge Alycia N. Sykora was the trial judge. [Case number: 22CV17190]

Cause

In November 2017, Karen Russell began working for Kroger Co., dba Fred Meyer as a cashier and customer service representative.

Defendants Lois Shelton, Scott Peterson, and Jennifer Luis, employees at Kroger, repeatedly harassed Karen sexually and maintained a hostile environment by ignoring her complaints about Luis’s unwanted advances.

In April 2020, Karen learned from a co-worker that Luis was asking about her sexual orientation and dating status. Upset by this intrusion, Karen told Luis to stop. Luis also made disturbing inquiries about Karen’s menopause status. By June 2020, Luis continued with inappropriate questions and comments about Karen’s romantic life and appearance. Karen asked a co-worker to intervene, which they did.

In July 2020, Luis approached Karen in the locker room, asking if her name was K. Russell and mentioning flowers she had left, alarming Karen further. Karen told Luis to leave her locker alone but later found her name badge missing and flowers attached to her locker.

In August 2020, Luis left vulgar letters and flowers in Karen’s locker, causing her significant distress. In September 2020, Luis yelled at Karen, expressing jealousy over her customer service work, which shocked Karen.

Karen reported these incidents to a manager who admitted receiving multiple complaints about Luis but took no corrective action. Shelton also ignored Karen’s complaints. When Karen tried to report the harassment, Shelton dismissed her concerns, suggesting Luis’s behavior was trivial and refusing to accept written accounts.

Karen learned that other employees had also complained about Luis. On October 3, 2020, Luis exposed herself to Karen in the restroom. Disturbed, Karen reported the incident and requested separation from Luis. The next day, Luis approached Karen with another unwanted gift. Karen reported this to multiple managers, who failed to act appropriately. Management’s inaction and ongoing harassment led Karen to consider reporting Kroger to the Bureau of Labor and Industries.

Instead of addressing the harassment, Kroger restricted Karen’s movements and eventually placed her on administrative leave for a $400 cash handling error, which occurred amidst the distress caused by Luis’s actions. Despite her clean work history, Karen was terminated on November 16, 2020.

Damages

Due to Defendant Kroger’s alleged retaliation, Plaintiff experienced economic loss estimated at up to $20,000, with the exact amount to be determined at trial.

As a result of Defendant’s actions, Plaintiff endured mental stress, emotional distress, humiliation, inconvenience, and loss of enjoyment of life. The non-economic damages are projected to reach up to $5,000,000, with the final amount decided at trial.

Defendants acted with willful, malicious intent and reckless disregard for Plaintiff’s protected rights. Plaintiff reserves the right to amend the Complaint under ORS 31.275 to include a claim for punitive damages.

Under ORS 20.107 and ORS 659A.885, Plaintiff is entitled to recover reasonable attorney’s fees, expert fees, costs, and disbursements.

Additionally, Plaintiff seeks equitable relief, specifically an injunction preventing Defendant Kroger from engaging in any discriminatory employment practices based on sex as outlined in this Complaint.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Karen Russell
    • Counsel for Plaintiff(s): Krista L Le Roux | Jennifer E. Vitello
  • Defendant(s): Fred Meyer Stores, Inc. | Jennifer Luis | Scott Peterson | Lois Shelton
    • Counsel for Defendant(s): Megan J Crowhurst | Bren Thomas | Christine Elizabeth Sargent | Randi Ensley

Claims

In the First Claim for Relief, Plaintiff alleged that Defendant Kroger created an intimidating and offensive work environment, which adversely affected her job performance and opportunities. This environment was based on sex discrimination, violating ORS 659A.030(1)(a) and (b).

For the Second Claim for Relief, Plaintiff claimed that Defendants Shelton, Peterson, and Luis aided and abetted Kroger’s unlawful practices. Their actions contributed to the discrimination and harassment, violating ORS 659A.030(1)(g).

In the Third Claim for Relief, Plaintiff asserted that Kroger retaliated against her for opposing discriminatory practices by terminating her employment, in violation of ORS 659A.030(1)(f).

The Fourth Claim for Relief involved the Plaintiff contending that Luis’s deliberate or reckless harassment caused her severe emotional distress.

In the Fifth Claim for Relief, Plaintiff argued that Kroger violated Oregon’s public policy by discharging her in retaliation for her complaints about sexual harassment, breaching ORS 659A.030, and other legal protections.

Defense

Defendants Fred Meyer Stores, Inc. (FMS), Scott Pettersen, and Lois Shelton denied the numerous allegations, including those related to harassment, retaliation, and the handling of complaints.

Jury Verdict

On March 26, 2024, the Oregon jury found that Plaintiff failed to prove that Fred Meyer discriminated against her by creating a sexually hostile work environment. Additionally, the jury found no basis for the retaliation claim and held that Fred Meyer had not retaliated against Russell by suspending and terminating her employment for complaining about sexual harassment. The verdict was in favor of the Defendant and no damages were awarded to the Plaintiff.

On April 17, 2024, Judge Alycia N. Sykora entered a final judgment consistent with the verdict and dismissed the case.

Court Documents:

Available upon request