SAUNDRA BROWN ARMSTRONG, District Judge.
The parties are presently before the Court on Defendant NCR Corporation's ("NCR") motion for summary judgment or, in the alternative, partial summary judgment under Rule 56 of the Federal Rules of Civil Procedure. Dkt. 167. Plaintiff Terry Doubt ("Plaintiff") opposes the motion. Dkt. 175. Having read and considered the papers filed in connection with this matter and being fully informed, the Court hereby GRANTS NCR's motion, for the reasons stated below. The Court, in its discretion, finds this matter suitable for resolution without oral argument.
The Court finds the following facts undisputed. NCR is a hardware and electronics company that provides technical support for automated teller machines ("ATM") and point-of-sale ("POS") credit card machines at retail establishments (e.g., cash registers). NCR's services include maintaining and servicing ATM machines and POS devices.
At all relevant times, Plaintiff was employed by NCR as a customer engineer ("CE"). He was responsible for servicing and repairing ATMs and POS devices at customer locations in the counties of San Benito, Monterey, and Santa Cruz. He was part of a team of CEs known as the Monterey Team. Plaintiff did not report to an office. Instead, he received work assignments from a dispatcher through his hand-held device. After receiving his assignments, Plaintiff traveled to customer locations from his home, prioritizing his day according to his own discretion.
In 2007 and 2008, Plaintiff reported to Territory Manager Erick Aguilar ("Aguilar"). Aguilar reported to Field Operations Director John Foote, and then to Field Operations Director John Harvey beginning in spring 2008. Aguilar was responsible for the day-to-day management of the CEs in his territory, including evaluating their performance.
During the relevant time period, NCR measured the performance of CEs by their ability to meet certain objective, numerical performance targets in four primary metrics. The four metrics NCR used to measure CE performance were: (1) Service Level Agreements ("SLA") Response; (2) SLA Restoral; (3) First Visit Resolution; and (4) Closed Calls Per Day. The "SLA Response" metric measures the percentage of time that a CE responds to a service call within the time period required by a customer's contract.
NCR established objective performance targets for each of the four metrics, which were based primarily upon the performance of a CE's territory in the previous year. According to NCR, because CEs worked remotely at customer sites and their supervisors did not have frequent face-to-face contact with them, the numeric performance metrics were vital to its ability to evaluate CE performance and central to the performance evaluation ratings provided to CEs in their annual performance appraisals. In 2007, the objective performance targets became the primary focus of a CE's performance.
CE performance appraisals were typically completed by NCR's territory managers in February or March of each year. The performance appraisals evaluated a CE's performance for the prior year (e.g., a performance appraisal completed in February 2008 evaluated a CE's performance in 2007). Based on a territory manager's understanding of a CE's performance — primarily their ability to meet the four performance targets — territory mangers assigned them an overall rating of exceptional, successful, or needs improvement.
In 2007, Plaintiff missed each of his four performance targets
As a consequence, Aguilar gave Plaintiff a needs improvement rating in his 2007 performance appraisal.
In March 2008, NCR issued a directive stating that all employees who received a needs improvement rating were to be placed on a sixty-day Performance Improvement Plan ("PIP").
On April 1, 2008, Plaintiff was placed on a sixty-day PIP. Plaintiff's PIP stated that if he did not show "substantial and immediate improvement" in his performance during the sixty days the PIP was in effect — evidenced by meeting the performance targets — he would be terminated. In April 2008, Plaintiff missed three of the four performance targets. In May 2008, Plaintiff missed all four of the performance targets. Although it was initially determined by management that Plaintiff should be terminated as of June 2008 for failing to comply with his PIP, Plaintiff was afforded more time to improve his performance. However, despite the additional time, Plaintiff was unable to improve his performance, i.e., meet the performance targets. As a consequence, Plaintiff was terminated on September 16, 2008.
"A party may move for summary judgment, identifying each claim . . . or the part of each claim . . . on which summary judgment is sought. The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). A material fact is one that could affect the outcome of the suit under the governing substantive law.
The moving party's burden on summary judgment depends on whether it bears the burden of proof at trial with respect to the claim or defense at issue. When, as here, the nonmoving party bears the burden of proof at trial, the moving party need only point out through argument that the nonmoving party does not have evidence to support the nonmoving party's case.
Once the moving party has met its burden, the burden shifts to the nonmoving party to designate specific facts showing a genuine issue for trial.
To carry its burden, the nonmoving party must show more than the mere existence of a scintilla of evidence,
It is not the court's task "to scour the record in search of a genuine issue of triable fact."
In connection with the instant motion, Plaintiff filed a request for judicial notice. Plaintiff requests the Court take judicial notice of the parties' "joint letter to Magistrate Spero constituting plaintiff's motion to compel the production of documents, in particular pages 49-53 containing legal argument in support of plaintiff's claims." NCR objects to Plaintiff's request on the ground that the legal arguments made by Plaintiff in the joint letter are not the proper subject of judicial notice. Further, NCR asserts that Plaintiff's request appears to be an improper attempt to augment his opposition brief beyond the twenty-five page limit set forth in the Civil Local Rules. The Court concurs.
While the Court recognizes the existence of the joint letter, it does not consider any of the legal arguments presented therein because they are subject to reasonable dispute.
The operative complaint alleges nine claims for relief against NCR. On August 15, 2013, Plaintiff's fourth claim for relief was dismissed with prejudice. NCR now moves for summary judgment on each of the remaining claims. NCR's arguments are discussed below.
Plaintiff's seventh claim for relief, age discrimination based on disparate treatment, alleges that Plaintiff was placed on a PIP in April 2008 and was terminated in September 2008 for alleged job performance failings, even though substantially younger CEs in the 750B Territory had committed similar or even more "severe" job performance failings and were not placed on a PIP or terminated.
"`Disparate treatment' is intentional discrimination on prohibited grounds.
In disparate treatment age discrimination claims under FEHA, plaintiffs can prove their cases in either of two ways: by direct or circumstantial evidence.
California has expressly adopted the
If plaintiff establishes a prima facie case, the employer must rebut the presumption of age discrimination that arises by presenting a legitimate, nondiscriminatory reason for the adverse action.
A plaintiff can prove pretext in two ways: (1) indirectly, by showing that the employer's proffered explanation is `unworthy of credence' because it is internally inconsistent or otherwise not believable, or (2) directly, by showing that unlawful discrimination more likely motivated the employer.
NCR contends that summary judgment is appropriate because Plaintiff cannot satisfy the first prong of the
In response, Plaintiff did not cite any direct evidence of intentional discrimination, such as comments demonstrating discriminatory animus. Further, Plaintiff does not argue that he was performing competently in his position when he was terminated in 2008. Instead, Plaintiff "invokes the direct method of making a prima facie case, through the use of circumstantial evidence — NCR's desire to get rid of higher earning CEs who were older in favor of lower paid CEs who were younger." However, because Plaintiff failed to proffer evidence demonstrating that he was performing competently as a CE when he was terminated, and because the undisputed evidence in the record demonstrates that he was not meeting the objective performance targets established by NCR, Plaintiff has not established a prima facie case of age discrimination under FEHA.
Furthermore, even assuming that Plaintiff proffered sufficient evidence to establish a prima facie case of age discrimination, NCR has offered a legitimate, nondiscriminatory reason for terminating Plaintiff (i.e., poor performance),
To the extent Plaintiff seeks to incorporate by reference the twenty-three page "Statement of Facts" section
Plaintiff's sixth claim for relief, age discrimination based on disparate impact, alleges that the salary level of long-term CEs was a motivating factor in NCR's decision to terminate Plaintiff's employment, which resulted in NCR firing CEs who were substantially older than "relatively recently hired" lower earning CEs who were retained by NCR.
A disparate impact claim is a claim that "a facially neutral employer practice or policy, bearing no manifest relationship to job requirements . . . ha[s] a disproportionate adverse effect on members of the protected class [regardless of motive]."
To establish a prima facie case, a plaintiff must: "(1) identify the specific employment practice[] . . . being challenged; (2) show disparate impact; and (3) prove causation. . . ."
If the plaintiff establishes a prima facie case, the burden shifts to the defendant, who may either discredit the plaintiff's statistics or submit its own statistics which show that no disparity exists.
NCR contends that summary judgment is appropriate because there is no evidence that it had an employment practice of terminating CEs based on their rate of pay. NCR further contends that, even assuming that it had such a practice, summary judgment is appropriate because Plaintiff cannot offer any statistical proof that the practice caused a disparate impact on workers protected under FEHA on the basis of age. In response, Plaintiff failed to offer any specific legal analysis regarding this claim. Instead, after discussing why NCR's motion for summary judgment on his disparate treatment theory of age discrimination should be denied, Plaintiff simply contends that he "has made a sufficient showing for the jury to weigh" whether he suffered discrimination based on disparate impact. In support of his position, Plaintiff asserts, without elaboration or analysis, that NCR's "tally of those CEs in the 750 B terrigory [sic] fired over a 10 month period, shows that only those over 50 were fired; four men, out of a population of 20 or so CEs."
The Court finds that Plaintiff's showing is inadequate to survive NCR's motion for summary judgment. Plaintiff has failed to establish a prima facie case of age discrimination based on disparate impact. Plaintiff has not proffered any competent evidence demonstrating that NCR had a facially neutral practice or policy, bearing no manifest relationship to job requirements, which had a disparate impact on employees over forty years old. Plaintiff did not provide any legal or statistical analysis whatsoever in support of this claim, let alone statistical proof showing a "stark pattern of discrimination unexplainable on grounds other than age."
Plaintiff's first and second claims for relief are predicated on his disparate treatment and disparate impact age discrimination claims under FEHA. California law allows a discharged employee to "maintain a tort action and recover damages traditionally available in such actions" when an employer's discharge of that employee "violates fundamental principles of public policy."
Plaintiff's third claim for relief alleges that Plaintiff was wrongfully terminated in retaliation for his complaints concerning his excessive workload. According to Plaintiff, NCR's conduct violated California Labor Code §§ 6310 and 232.5.
Section 6310(b) provides that "[a]ny employee who is discharged . . . because the employee has made a bona fide oral or written complaint . . . of unsafe working conditions, or work practices, in his or her employment or place of employment . . . shall be entitled to reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer." Cal. Lab. Code § 6310(b). Section 232.5 provides that "[n]o employer may . . . [r]equire, as a condition of employment, that an employee refrain from disclosing information about the employer's working conditions." Cal. Lab. Code § 232.5.
Retaliatory discharge claims brought under California common law are analyzed under the burden shifting framework of
NCR contends that summary judgment is appropriate because there is no evidence that Plaintiff engaged in a protected activity, i.e., complained about unsafe working conditions or work practices to anyone employed by NCR. In addition, NCR contends that summary judgment is appropriate because Plaintiff has no evidence that there is a nexus between any purported complaints about unsafe working conditions or practices and his termination. In response, Plaintiff failed to address NCR's arguments, which the Court construes as a concession by Plaintiff that summary judgment in favor of NCR is appropriate with respect to this claim. That aside, the Court finds that summary judgment is warranted on the merits.
With respect to § 6310, Plaintiff failed to demonstrate that a triable issue of fact exists as to whether he was unlawfully terminated for complaining about his "excessive workload." Plaintiff has made no showing that an employee's complaints about his excessive workload constitute protected activity within the meaning of the statute. Nor has Plaintiff shown a causal link between his complaints and his termination. Further, even assuming for the sake of argument that Plaintiff made a sufficient showing to establish a prima facie case, Plaintiff failed to cite specific and substantial evidence demonstrating that NCR's stated reason for discharge (i.e., poor performance) was untrue or pre-textual, or that his discharge was otherwise the result of retaliatory animus. Accordingly, NCR's motion for summary judgment on Plaintiff's third claim for relief predicated on a violation § 6310 is GRANTED. Plaintiff has failed to show the existence of elements essential to his claim on which he bears the burden of proof at trial.
To the extent Plaintiff contends that he was wrongfully terminated in violation of the policy embodied in § 232.5, the Court finds that Plaintiff has failed to demonstrate that this claim survives summary judgment. Plaintiff has not shown that he engaged in a protected activity as defined by § 232.5. Moreover, even assuming that § 232.5 can form the basis of a claim for termination in violation of public policy, Plaintiff has not cited any evidence showing that NCR required him, as a condition of his employment, to refrain from disclosing information about its working conditions. Nor has Plaintiff cited any evidence showing that NCR's stated reason for discharge (i.e., poor performance) was untrue or pre-textual, or that his discharge was otherwise the result of retaliatory animus. Accordingly, NCR's motion for summary judgment on Plaintiff's third claim for relief predicated on a violation § 232.5 is GRANTED. Plaintiff has failed to show the existence of elements essential to his claim on which he bears the burden of proof at trial.
Plaintiff's fifth claim for relief, wrongful termination in violation of the fundamental public policy requiring the payment of overtime, alleges that a motivating factor for NCR's termination of his employment was the substantial amount of overtime that he was required to work. According to Plaintiff, his termination violated the fundamental policy of the State of California prohibiting retaliation against an employee in response to a complaint of unlawful conduct.
NCR contends that summary judgment is appropriate because Plaintiff has not alleged a cognizable legal theory. Additionally, NCR contends that summary judgment is appropriate because, even assuming that Plaintiff has alleged a cognizable legal theory, Plaintiff has no evidence demonstrating that he was terminated because he worked overtime or complained about working overtime. In response, Plaintiff states, without further explanation, that this claim is predicated on his wrongful discharge for working overtime. Further, Plaintiff argues, without elaboration, that summary judgment is inappropriate because NCR has failed to carry its burden as the moving party. The Court disagrees.
An employee establishes a claim for wrongful termination in violation of public policy if he proves that the employer "violated a policy that is (1) fundamental, (2) beneficial for the public, and (3) embodied in a statute or constitutional provision."
As an initial matter, Plaintiff has failed to proffer any authority supporting the proposition that California law recognizes a claim for wrongful termination in violation of public policy predicated on complaints about working overtime. Moreover, even assuming that Plaintiff's conduct constitutes protected activity (i.e., Plaintiff's claim involves a fundamental public policy of the type which will support a claim for tortious wrongful discharge), Plaintiff has failed to raise a triable issue demonstrating the existence of a causal link between such protected activity and his termination. Plaintiff has not directed the Court to any particular evidence in the record showing that he was terminated because he complained about working overtime. The evidence in the record reveals that Plaintiff sent his immediate supervisor, Aguilar, an email entitled "Overtime report burnout" in August 2008, and that Plaintiff mentioned to Aguilar in August 2007 that he was getting burned out from overtime. However, Plaintiff has not cited specific evidence showing that Aguilar told his supervisor, Field Operations Director Foote, or anyone else working for NCR that Plaintiff had complained about working overtime. Nor has Plaintiff cited any evidence showing that he complained about overtime to anyone other than Aguilar. Further, Aguilar testified that he opposed terminating Plaintiff and that Field Operations Director Foote was responsible for Plaintiff's termination. These facts evince a lack of causal connection between Plaintiff's comments to Aguilar about working overtime and his termination, particularly given the evidence in the record supporting NCR's contention that Plaintiff was terminated for poor performance. Plaintiff, for his part, has not proffered any evidence or legal analysis demonstrating that his comments to Aguilar about working overtime raise a triable issue of fact for trial.
Finally, even assuming that Plaintiff has made a sufficient showing of retaliatory termination based on complaints about working overtime, NCR has proffered evidence showing that there was a legitimate, nonretaliatory reason for his termination (i.e., poor performance), and Plaintiff has failed to cite specific "substantial responsive evidence" demonstrating that NCR's proffered reason for his termination was untrue or pretextual. Accordingly, NCR's motion for summary judgment on Plaintiff's fifth claim for relief is GRANTED. Plaintiff has failed to show the existence of elements essential to his claim on which he bears the burden of proof at trial.
Plaintiff's eighth claim for relief alleges a claim for breach of implied contract. Plaintiff alleges that NCR breached the terms of the parties' implied contract by terminating him without good cause.
In California, when an employee's term of employment is not specified in an employment contract or other document or oral agreement, it is presumed that the employment is terminable at-will with or without cause.
"To raise a triable issue of material fact and defeat an employer's motion for summary judgment based on the presumption of at-will employment, a plaintiff must produce competent evidence of an agreement that he or she could not be discharged without good cause."
NCR contends that summary judgment is appropriate because it did not engage in any conduct creating an implied-in-fact contract to terminate Plaintiff only for good cause. NCR further contends that, even assuming that such a contract existed, summary judgment is appropriate because Plaintiff was terminated for good cause. In response, Plaintiff argues that it is for a jury to decide whether an implied-in-fact contract to terminate for good cause existed. In support of his position, Plaintiff asserts that he was a long-time employee of NCR and that certain human resources and management personnel admitted that NCR had a policy to terminate for good cause. In addition, Plaintiff asserts that NCR's practices and progressive discipline program embodied in the PIP process created an implied-in-fact contract to terminate only for good cause.
The Court finds Plaintiff's showing insufficient to raise a triable issue of fact as to his at-will employment status. Plaintiff has not directed the Court to specific, competent evidence in the record rebutting the presumption of at-will employment. Significantly, Plaintiff has not proffered any evidence of an actual promise or assurance that he would be employed for a specific term or as long as he was doing a good job, or that he could only be terminated for good cause. Nor has Plaintiff provided the Court with any evidence reflecting practices in the industry in which he was employed, such as evidence showing that employees in his industry are terminated only for good cause. Further, to the extent Plaintiff argues that NCR had an unwritten policy or practice of terminating its employees only for cause, the Court rejects this argument. The deposition testimony relied upon by Plaintiff merely indicates that certain human resource and management employees understood that employees were typically terminated for cause, i.e., employees were terminated for a reason. However, such evidence does not raise a triable issue of fact as to whether NCR maintained an unwritten policy or practice of terminating employees only for good cause.
Additionally, contrary to Plaintiff's suggestion, employment longevity, without more, does not establish an implied-in-fact contract.
Furthermore, even assuming for the sake of discussion that an implied-in-fact contract was created in which Plaintiff could only be terminated for good cause, NCR has shown that good cause existed to terminate Plaintiff. California law defines "good cause" as "fair and honest reasons, regulated by good faith on the part of the employer, that are not trivial, arbitrary or capricious, unrelated to business needs or goals, or pretextual."
Plaintiff's ninth claim for relief alleges that NCR breached the implied covenant of good faith and fair dealing in the parties' implied-in-fact employment agreement by terminating his employment. NCR contends that summary judgment is appropriate because Plaintiff does not have an express or implied-in-fact employment contract. In addition, NCR contends that summary judgment is appropriate because, even if the parties entered into an employment contract that only allowed termination for good cause, Plaintiff was terminated for good cause. In response, Plaintiff failed to address NCR's arguments, which the Court construes as a concession by Plaintiff that summary judgment is appropriate with respect to this claim.
The above notwithstanding, the Court finds that this claim fails on the merits because "the implied covenant of good faith and fair dealing cannot supply limitations on termination rights to which the parties have not actually agreed."
In its reply, NCR makes numerous objections to the evidence submitted by Plaintiff in opposition to the instant motion. The Court declines to rule on NCR's evidentiary objections because even when the objected to evidence is considered, NCR is entitled to summary judgment.
For the reasons stated above, IT IS HEREBY ORDERED THAT:
1. NCR's motion for summary judgment is GRANTED.
2. The Clerk shall close the file and terminate all pending matters.