Delaware Insurance Commissioner in Court Over Retaliation Lawsuit

Legal ramifications continue for harassment claims with the Delaware Department of Insurance.

Two years ago, the state government paid $440,000 to settle one of three lawsuits against Insurance Commissioner Trinidad Navarro and his administration in which a Black employee alleged that the elected official repeatedly commented on her height and weight and inappropriately touched her hair.

The 2019 lawsuit was filed by Fleur McKendell, former director of Consumer Life & Health Services. Two associates filed separate lawsuits alleging retaliation against Navarro for supporting efforts to investigate these complaints. One was released in 2022.

This week, his former human resources chief continues to pursue the latest federal lawsuit in this orbit. Jenifer Vaughn alleges that the commissioner and his chief of staff tried to influence the investigation into McKendell’s complaint and retaliated against her efforts to conduct it properly. The Delaware Department of Insurance, a defendant in the case, denies these claims.

Now a jury in U.S. District Court will decide.

The trial began Monday when Vaughn, a former human resources director and comptroller, is suing the state, naming both Navarro and Stuart Snyder, his department’s chief of staff, on Title VII retaliation grounds. Some of her original claims in the 2019 lawsuit were dismissed, including claims of personal discrimination, but the latest legal proceedings are only now heating up.

Here’s what you need to know from day one of your trial.

The state agency faces another lawsuit

Vaughn’s hostile workplace lawsuit seeks to show that Navarro and Snyder’s attempts to control the investigation into allegations of sexual and racial harassment of a subordinate resulted in the former human resources chief losing her job.

To accomplish this, Vaughn’s attorney must show that she engaged in activity protected under Title VII – or opposed activities that would be discriminatory in the workplace – and, as a result, faced adverse employment actions from her supervisors. In that civil case, Judge Todd Hughes explained to the nine-member jury that Vaughn’s team essentially had to prove that reality was “more likely than not.”

According to the pretrial order, Vaughn is now seeking back pay, anticipated advance pay and supplemental retirement insurance.

The goal of the state official and former New Castle County sheriff’s defense attorney is to convince the jury otherwise.

On Monday morning, the jury took shape for the first time. Opening statements and beginning depositions allow the two legal teams to begin painting different pictures of the spring of 2017-2018.

Trinidad Navarro Background:1 of 2 Delaware Insurance Commissioner Harassment Lawsuits Settled

Looking back at the allegations made against the Department of Insurance

Attorney Ron Poliquin called the case a “loyalty showdown.”

He said his client, Vaughn, had to choose between following the guidelines and remaining loyal to the politician.

Vaughn claims she was retaliated against for investigating her co-worker’s complaints of discrimination and harassment, considering her disability and leave requests, and having lunch with her outside of work. She claims the retaliation took the form of demotion, suspension and then termination for sharing her government software password with another employee.

Her legal team began painting this picture shortly after Commissioner Navarro was elected in 2016.

Vaughn alleges that the commissioner favored employees deemed “loyal” and, with rare exceptions, that often meant those he already knew from previous positions with the county or others in the office. He says this behavior will soon become more serious.

After the anonymous letter prompted Navarro and his leadership team to interview McKendell, the lawsuit says, she informally told Vaughn about her concerns. McKendell then, filing her first formal complaint, recounted the racial and sexual harassment in which she alleged Navarro and others were involved.

It fell to Vaughn.

Flashback for the Department of Insurance:State official charged in two harassment trials

He claims Navarro tried to intervene within days. Vaughn’s lawsuit says her boss stood in the doorway of her office and refused to move until he received a copy of McKendell’s complaint against him. She finally gave in, abandoning her attempts to refuse. Vaughn told the jury this was the first incident of abuse she had ever encountered.

Two months later, in May 2017, Vaughn was summoned to Navarro’s office. As her team told her, they had one question about the complaint – which he said she should “think really hard about” – “Whose side are you on? Was she on his side or Fleur’s?”

When she stated she would not take sides, Vaughn claims she was immediately vindicated and “forbidden” from participating in other conversations about her former colleague.

Vaughn claims in court documents that she had a social lunch with McKendell some time later – which Stuart Snyder, Navarro’s chief of staff, warned could “be a burden.” She claims Snyder also requested a copy of McKendell’s records as the investigation continued in 2018. Vaughn said he threatened her with disciplinary action and she complied.

Vaughn’s supervision of McKendell’s complaint was ultimately terminated. Later, her job responsibilities changed completely when the Navarro administration decided to strip Vaughn of all human resources responsibilities from her position as controller. This would mean a demotion and a pay cut for a public official with over 20 years of experience.

Vaughn claims this was due to her efforts to properly address McKendell’s claims. The defense says it was a change discussed before Navarro’s tenure and demanded as the demands of the position intensified.

Vaughn, her attorney’s first witness, only partially attended Monday’s testimony. Testimony from Fleur McKendell and others is still scheduled to be given during the estimated three-day trial.

Litigation in Wilmington continues

Vaughn’s attorney sent the jury email after email as he began to explain Vaughn’s case.

The defense tried to tell them one thing at least four times during opening arguments: “It’s not that complicated.”

The state’s legal team denied connections between Vaughn’s grievance work and her position in state government, from losing her seat on the planning board to separating HR from her role. Last year, the department, using outside legal counsel, has already collected more than $1 million in legal fees.

Vaughn’s lawsuit also points to her suspension after sharing her state billing system password with another employee to approve transactions on a limited basis. According to Vaughn, Alice Cabana was a longtime employee of the same department.

Both sides said Monday that Vaughn immediately admitted it, and was subsequently stripped of her access to the system, removed and blocked from her government email. State attorneys with Potter, Anderson & Carroon LLP said the leave was requested following an investigation into the violation. Vaughn was later fired for the same offense.

Vaughn’s lawsuit claims all of this includes the retaliation she faced in connection with McKendell’s complaint. In court documents and in Monday’s courtroom, the Delaware Department of Insurance denies the claims.

As Judge Hughes told the jury, their task will be to determine the truth this week.

From another courtroom in Wilmington:Did Hunter Biden “knowingly” lie on his gun sales form? The decision is up to the jury

Contact Kelly Powers at [email protected] or (231) 622-2191 and follow her at X @kpowers01.