Plaintiff and her father visited defendant's gas station. After they pumped their gas, plaintiff went in to pay and purchase some other items. The cashier, Smith, demanded to see plaintiff's driver license and then refused service, saying that out-of-state licenses were not acceptable identification. Plaintiff argued with Smith, and Smith began to swear and insult her with racial epithets. Smith also knocked a case of beer off the counter towards plaintiff. Plaintiff left the store, but Smith then used the station's intercom system to continue yelling racial epithets and made obscene gestures through the window.
Plaintiff and her father used a pay phone outside to call defendant's customer service and complain about Smith's conduct. Plaintiff's father tried to enter the store to find out Smith's name, but she and another employee had locked the doors. Corbin, a district manager reviewed the silent security footage, concluded that Smith had acted inappropriately, and confronted Smith. Smith admitted to the claimed behavior, but did not suspend or fire Smith. Months later, Corbin learned that a protest was planned at the store, so she then transferred Smith to another store to protect her from potential violence. Plaintiffs sued defendant for its agent denying service based on race.
District court granted summary judgment to defendant, finding that Smith's acts were outside the scope of her employment.