Race Discrimination Claim Dismissed Against Woodforest Bank

On January 21, 2011, District Court Judge Sharion Aycock entered an Opinion and Order dismissing the race discrimination claim that had been filed by Carol Vaughn against her former employer Woodforest Bank. Vaughn was the branch manager of Woodforest’s Starkville, Mississippi location, and had been employed with the bank since 2008.  On February 20, 2009, Woodforest terminated Vaugh by claiming she had “made inappropriate comments in the presence of employees and customers that created a perception of racial discrimination and uncomfortable environment due to lack of confidentiality.”  Specifically, Woodforest claimed that Vaughn had made statements that where racial in nature.

Woodforest conceded that Vaughn could show a prima facie case of race discrimination; however, it argued and the Court agreed that Vaughn could not show pretext.  Vaughn did not deny the alleged comments took place, but argued they were not racial in nature.  The Court seemed to agree that it would be a stretch to find Vaughn’s claims to be racial in nature, but found that to not be enough to show pretext.  Vaughn gave numerous examples she believed also showed race discrimination; however, the Court found they were not “nearly identical” circumstances.  Vaughn may appeal to the Fifth Circuit for review.  This case may be an interesting one to watch if it is appealed.  The Court found that even if the comments by Vaughn were really not racist comments that it alone could not show pretext.  This finding seems to be contrary on its face to the whole notion of showing pretext.  The bank claimed it terminated Vaughn for making racial comments, and it appears that while Vaughn made the comments that it would be a stretch to claim they were based on race.  So instead of finding the bank could have been lying about its reason for termination, the Court assumes the only possibility for the error was a good faith mistake by the bank.  Moreover, it would seem somewhat obvious that the only way Vaughn’s comments could even appear to be racist was because she was not black. So Vaughn’s race would most likely had to have been a consideration for her termination.

Vaughn was represented by Jim Waide and Ron Woodruff.

Woodforest was represented by Paula Ardelean and Carlyle White.