State Farm Faces Racial Discrimination Lawsuit from Former Attorney After Judge Sends Case Back to California State Court

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A former State Farm litigation attorney has secured an early procedural win in her racial discrimination and retaliation lawsuit, as a federal judge sent the case back to California state court—widely seen as a more favorable venue for employees in workplace discrimination claims.

Case: Kymberly Aleem Duncan v. State Farm

Court: California Northern District Court

Case No.:3:24-cv-08528

The Plaintiff: Duncan v. State Farm

Kymberly Aleem Duncan, a former litigation attorney in State Farm’s Pleasanton, California office, alleges she was the only African-American woman among 21 attorneys in her department and endured a pattern of discrimination, retaliation, and harassment that ultimately forced her resignation in May 2023.

The Defendants: Duncan v. State Farm

State Farm Mutual Automobile Insurance Company – Duncan’s former employer.

Jeanette Nicole Little – Current managing attorney at State Farm’s Pleasanton office, and one of Duncan’s supervisors.

History of the Case: Duncan v. State Farm

According to Duncan, her troubles started under former managing attorney Philip Anderson. Anderson allegedly blocked Duncan's promotion in favor of a white male employee and later made comments suggesting he had become "more open" to hiring people of color.

When Little took over as managing attorney in 2021, Duncan alleges the discriminatory treatment intensified. Her lawsuit claims she was:

  • Given less qualified support staff, which negatively affected her work performance.

  • Assigned an unfairly heavy workload to set her up for poor reviews.

  • Denied management training and promotional opportunities despite her qualifications.

  • Labeled “abrupt and confrontational,” which she argues played into the “angry Black woman” stereotype.

  • Deliberately excluded from workplace events, including a team lunch and a colleague’s funeral.

  • Duncan alleges these actions created an intolerable work environment, amounting to a constructive discharge. She filed her lawsuit in Alameda County Superior Court in 2024, alleging racial discrimination, retaliation, hostile work environment, and failure to prevent discrimination under California’s Fair Employment and Housing Act (FEHA).

The Allegations: Sufficient to State a Harassment Claim?

State Farm moved the case to federal court, claiming that Little—a California resident—was fraudulently joined to block diversity jurisdiction. The company argued that Little’s conduct amounted to routine personnel management decisions, not harassment.

However, Judge Joseph C. Spero disagreed, finding Duncan’s allegations sufficient to state a harassment claim under California law. The judge ruled that the case should be heard in the California state court, as complete diversity did not exist.

Main Question in the Case: Duncan v. State Farm

Did State Farm and managing attorney Jeanette Nicole Little engage in racially discriminatory and retaliatory conduct that generated a hostile work environment?

FAQ: Duncan v. State Farm

Q: Why is the Duncan v. State Farm ruling significant?

A: By keeping the case in California state court, Duncan will pursue her claims in a venue generally viewed as more favorable to employees in discrimination cases.

Q: What does “fraudulent joinder” mean in connection to this lawsuit?

A: It’s when a defendant argues that another defendant was added to the lawsuit solely to defeat federal jurisdiction. The court rejected State Farm’s claim of fraudulent joinder in this case.

Q: What laws is the plaintiff suing under?

A: California’s Fair Employment and Housing Act (FEHA) prohibits workplace discrimination, harassment, and retaliation.

If you have faced workplace discrimination, retaliation, or harassment in California, you may have legal options under FEHA. Contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP today. Our California employment law attorneys represent workers statewide, including Los Angeles, San Diego, San Francisco, Sacramento, and Riverside, and we fight to hold employers accountable for violating employee rights.