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A federal judge in Georgia recommended that summary judgment not be granted to CrossCountry Mortgage LLC and one of its branch managers in a sexual harassment and retaliation lawsuit filed by a former employee.

In her report and recommendation issued Wednesday, U.S. Magistrate Judge Regina D. Cannon concluded that the evidence presented in the case thus far supports the allegations made by Christina Nielsen. Nielsen filed the lawsuit in May 2023 against CrossCountry Mortgage and Steven Bocca, the originating branch manager at the company’s Alpharetta, Georgia location.

Nielsen accuses Bocca, her supervisor, of sexually harassing her in various ways, including making unwanted sexual comments and groping her. She claims that her termination in July 2022 came after she reported the harassment to human resources.

Judge Cannon dismissed CrossCountry Mortgage’s argument that Nielsen’s Title VII sexual harassment claim should be dismissed based on her actions, such as discussing her sex life with Bocca’s girlfriend and Faith Helm, a non-originating branch manager.

“This evidence is, to be sure, testament to the camaraderie and occasional crudeness that prevailed at the Alpharetta branch — a point that is undisputed,” Judge Cannon stated. “Contrary to CCM’s urging, however, this evidence does not demonstrate that plaintiff welcomed the alleged harassment.”

The judge emphasized that there was no evidence to suggest that Nielsen had "instigated, solicited, reciprocated, or otherwise welcomed" Bocca’s actions. She further stated that a reasonable jury could conclude that Nielsen had experienced "objectively severe and pervasive harassment," given evidence such as Bocca’s sexual comments and instances of inappropriate touching.

CrossCountry Mortgage did not challenge Nielsen's claim that the company was directly liable for Bocca’s conduct, according to the judge. Additionally, the judge pointed out that evidence indicated the company had been notified about Bocca's alleged harassment of other female employees more than two years before Nielsen filed her lawsuit.

“Yet there is very little evidence that [the lender] took responsive action to prevent future harassment,” Judge Cannon stated. “Thus, a jury could find that CCM itself is directly liable for plaintiff's alleged injury.”

Judge Cannon also found that CrossCountry Mortgage could be vicariously liable for the hostile work environment created by Bocca. The judge highlighted that the company had been made aware of prior allegations against Bocca, including one from a former employee who planned to sue him for sexual harassment. Despite these complaints, the company failed to take corrective actions, such as adding harassment reports to Bocca’s personnel file.