T. S. Ellis, III, United States District Judge
Plaintiff, in this False Claims Act ("FCA")
Plaintiff, Jeffry Irving, is a resident of Alexandria, Virginia who formerly worked for defendant, PAE Government Services Inc. ("PAE"), a California-based government contractor that provides support services to U.S. government entities both domestically and internationally.
Defendant first hired plaintiff in 2010 as PAE Company International Security Manager/Chief of Security. In December 2014, plaintiff was hired as Deputy Program Manager ("DPM") on the BAS Contract based in Kabul, Afghanistan. Pursuant to the BAS Contract, defendant, in association with two subcontractors — GardaWorld and Olive Group North American ("OGNA"), provided mobile and static security services for the Department of State ("DOS"). In plaintiff's role as DPM, plaintiff was responsible for overseeing defendant's subcontracts, managing a group of employees who reported to him, and ensuring compliance with DOS contract requirements and other laws and regulations.
At issue in this case are four sets of reports that plaintiff made to his supervisors during his employment as DPM of the BAS Contract, including: (i) reports concerning allegedly noncompliant body armor; (ii) reports concerning the use of government vehicles to transport alcohol; (iii) reports concerning the arming of BAS Contract employees; and (iv) reports concerning false time reporting on the BAS Contract. Each of these reports is addressed in turn.
Plaintiff's reports with respect to body armor began in 2015. In early May 2015, OGNA conducted a field test on the body armor OGNA used on the BAS Contract and determined the body armor did not comply with OGNA's subcontract with defendant. In response to these test results, defendant directed OGNA to replace the body armor through a Corrective Action Request. Later that month, on May 19, 2015, plaintiff met with Janice Pfundheller ("Pfundheller"), defendant's Vice President of Governance and Institutional Development, and Devin Reynolds ("Reynolds"), defendant's BAS Static Security Chief, to discuss plaintiff's concerns about the OGNA body armor and the possibility of loaning defendant's body armor to OGNA. Plaintiff, Reynolds, and Pfundheller discussed the fact that defendant might need to obtain approval pursuant to International Traffic in Arms Regulation ("ITAR") prior to loaning defendant's body armor to OGNA. The day after the meeting, plaintiff, without first obtaining the ITAR approval, directed Reynolds to loan defendant's body armor to OGNA. After the loan of defendant's body armor to OGNA, plaintiff sought authorization from Brad Baldwin ("Baldwin"), defendant's BAS Senior Operations Specialist, for the body armor loan.
Shortly after loaning defendant's body armor to OGNA, plaintiff developed concerns about defendant's body armor, as well. Specifically, plaintiff was concerned that the body armor was not certified by the National Institute of Justice ("NIJ") pursuant to what plaintiff believed the
In addition to plaintiff's reports about defendant's body armor, plaintiff reported to his supervisors that defendant's BAS Contract staff was using government-funded equipment — vehicles — to transport alcohol. Plaintiff also reported to his supervisors that members of the BAS Contract staff were not armed even though plaintiff believed that the BAS Contract required those staff members to be armed. Finally, plaintiff reported to his supervisors that he saw some contractors sitting in the courtyard during the workday and therefore was concerned that the contractors' billing might not be accurate. It appears from the record that plaintiff never examined or reviewed any time records and that plaintiff reported concerns about billing because he was concerned about defendant's reputation and profits. See Pl. Dep. at 264:7-14.
On July 29, 2015, Easley arranged a meeting with plaintiff to discuss plaintiff's performance in his role as DPM. After the meeting, Easley formally documented and sent to plaintiff a list of plaintiff's performance issues including:
See Doc. 46 Ex. 35 at 1-2. Thereafter, on September 14, 2015, Mark Hunter, BAS Mobile Security Chief, sent Easley an email, complaining about plaintiff. Easley forwarded Hunter's complaint to LaTanya D'Antignac ("D'Antignac"), a member of defendant's Human Resources Department, who conducted an investigation into the allegations in the complaint. As a part of the investigation, D'Antignac interviewed plaintiff and several of his subordinates, including: Hunter, Reynolds, Ralph Brugueras, Al Gopez, and Florencio Cortez. D'Antignac also interviewed two other DPMs, Mark Kennedy and Jon Dobre.
On October 12, 2015, after concluding her investigation, D'Antignac submitted her interview notes and investigative summary
See Easley Decl. Ex. 8 at 39-40. Ultimately, D'Antignac concluded that defendant should terminate plaintiff. Based on D'Antignac's report, Easley, Long, and Pfundheller jointly made the decision to terminate plaintiff.
Thereafter, on October 19, 2015, Easley, Long, and Pfundheller met with plaintiff in Virginia and informed plaintiff that his employment would be terminated. During the October 19 meeting, Easley, Long, Pfundheller, and plaintiff discussed the terms of a severance package for plaintiff. All parties agreed that the severance package would be reduced to writing for the parties' signatures. The next day — on October 20, 2015 — Long sent plaintiff a copy of a severance agreement for review and signature and officially terminated plaintiff's employment. There is no dispute that the parties agreed in the October 19 meeting that defendant would reduce the severance agreement to writing and present it to plaintiff the following day. Plaintiff contends that agreement on all severance terms was reached at the October 19 meeting and that the written agreement presented to plaintiff the next day did not reflect that agreement.
On December 30, 2016, plaintiff filed the complaint in this action. The complaint's remaining claims
In its motion for summary judgment, defendant argues that summary judgment is appropriate because (i) plaintiff's various complaints to his supervisors concerning body armor, alcohol transports, weapons, and time reporting did not constitute protected activity; (ii) defendant had no notice of any protected activity; and (iii) plaintiff was not terminated because of any protected activity. Instead, defendant contends that plaintiff was terminated for a legitimate, non-retaliatory reason — plaintiff's poor management and interpersonal skills — and that there is no record evidence showing a triable issue of fact on whether that reason is pretextual. With respect to the breach of contract claim, defendant argues that there was no enforceable agreement between plaintiff and defendant as of the October 19 meeting because the parties clearly intended for any agreement to be reduced to writing. Plaintiff does not dispute that the parties intended to reduce the agreement to writing, but claims that all material terms of the severance agreement were orally agreed to at the meeting. These issues have been fully briefed and argued and are ripe for disposition.
The familiar standard for review of a summary judgment motion is too well-settled to warrant extended discussion. Under Rule 56, Fed. R. Civ. P., summary judgment is appropriate only where there is "no genuine dispute as to any material fact" such that the moving party "is entitled to judgment as a matter of law." Celotex v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A genuine dispute exists if "there is sufficient evidence on which a reasonable jury could return a verdict in favor of the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In evaluating this question, courts must "view the evidence in the light most favorable to ... the nonmovant." Dennis v. Columbia Colleton Med. Ctr., Inc., 290 F.3d 639, 645 (4th Cir. 2002). The nonmovant, however, cannot rely on "mere allegations;" rather, the nonmovant "must set forth specific facts that go beyond the mere existence of a scintilla of evidence." Glynn v. EDO Corp., 710 F.3d 209, 213 (4th Cir. 2013) (internal quotations and citations omitted).
The FCA's retaliation provision prohibits retaliation "because of lawful acts done by [an] employee ... in furtherance of an action under this section or other efforts to stop 1 or more violations of this subchapter." 31 U.S.C. § 3730(h)(1). To establish a prima facie case of retaliation under this provision, a plaintiff must show by a preponderance of evidence that: "(1) [plaintiff] engaged in protected activity; (2) the employer knew about the activity; and (3) the employer took adverse action against [plaintiff] as a result." Smith v. Clark/Smoot/Russell, 796 F.3d 424, 433 (4th Cir. 2015) (citing Glynn, 710 F.3d at 214).
With respect to the first prong of the prima facie case, the FCA establishes two categories of protected activity: (1) activities taken "in furtherance of an action" under the FCA, and (2) "other efforts to stop [one] or more" FCA violations. 31 U.S.C. § 3730(h)(1). The Fourth Circuit has evaluated the first category of protected activity by considering whether an employee's actions raised a "distinct possibility" of FCA litigation. Mann v. Heckler & Koch Defense, Inc., 630 F.3d 338, 344 (4th Cir. 2010). To meet this standard, a plaintiff need not actually file a qui tam suit;
The second prong of a prima facie case of FCA retaliation requires that the employer knew about the employee's protected activity. In the Fourth Circuit, "once an investigation involves [false or fraudulent] claims and the employee expresses concern to his employer that there actually is a likelihood of fraud or illegality, then the notice requirement is met." Eberhardt, 167 F.3d at 868. To establish the final prong of a prima facie FCA retaliation case, the plaintiff must show that there is a causal nexus between the plaintiff's protected activity and the adverse employment action.
Once the plaintiff establishes a prima facie case of retaliation, the burden of production shifts to the defendant to produce evidence of a legitimate, non-retaliatory reason for the adverse action. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973).
To satisfy the first prong of an FCA retaliation claim, plaintiff must adduce facts showing that plaintiff engaged in protected activity under either or both of the FCA standards. Plaintiff here alleges that plaintiff engaged in protected activity when he made reports to his supervisors concerning (i) body armor; (ii) alcohol transports; (iii) weapons; and (iv) time reporting.
To begin with, no reasonable juror could conclude that plaintiff's report about OGNA's body armor constituted protected activity under either the "distinct possibility" or "reasonable belief" standard. Importantly, that report did not involve any allegations of fraud on the part of defendant; indeed, it concerned only the subcontractor's body armor. The undisputed factual record discloses no evidence suggesting that defendant charged the government for its subcontractor's body armor or that plaintiff knew anything about how OGNA's body armor was purchased. The Fourth Circuit has made clear that "[w]ithout fraud, there can be no FCA action" and thus there can be no FCA-protected activity. Carlson, 657 Fed.Appx. at 174 (quoting Mann, 630 F.3d at 345-46). Because there is no allegation that defendant made any representations with respect to OGNA's body armor, let alone fraudulent representations, plaintiff's reports about OGNA's body armor cannot be protected activity under either FCA standard.
Plaintiff's reports about defendant's body armor similarly do not fall within the first category of protected activity as those reports did not raise a "distinct possibility" of FCA litigation. Mann, 630 F.3d at 344. The Fourth Circuit has recognized that "[s]imply reporting [a] concern ... to a supervisor does not suffice to establish that [plaintiff] was acting in furtherance of a [False Claims Act] action." Zahodnick v. Int'l Bus. Machines Corp., 135 F.3d 911, 914 (4th Cir. 1997) (internal quotation marks omitted). Instead, a plaintiff must adduce some evidence that the plaintiff "initiated, testified for, or assisted in the filing of a [False Claims Act] action during his employment." Id. Here, there is no evidence that plaintiff initiated, testified for or assisted with an FCA action related to defendant's body armor; plaintiff simply informed his supervisors of potential problems with defendant's body armor and asked that defendant resolve those problems. Merely reporting concerns to supervisors, absent additional evidence that plaintiff initiated or assisted in an FCA action, does not show that plaintiff acted "in furtherance" of an FCA action. See id.
A careful review of the record suggests that a closer question exists as to whether plaintiff's reports about defendant's body armor satisfy the "reasonable belief" standard for the second category of protected activity.
Plaintiff's complaints about the alcohol transports on defendant's base do not fall into either of the categories of FCA protected activity because those complaints did not concern fraud on the part of defendant. The Fourth Circuit has made clear that to be protected activity under either FCA standard, an employee's activity "must concern false or fraudulent claims." Glynn, 710 F.3d at 214 (internal quotations omitted). The undisputed factual record discloses no evidence that defendant ever submitted a claim to the government with respect to the use of government-funded vehicles for alcohol transports. And, importantly, none of plaintiff's supervisors condoned the alcohol transports.
Next, no reasonable juror could conclude that plaintiff's reports concerning defendant's failure to arm certain personnel constituted protected activity under either the "distinct possibility" or the "reasonable belief" standard as those reports
Plaintiff's complaints about time reporting on the BAS Contract also fall short of falling within either category of protected activity. Plaintiff's complaints were not "in furtherance of" an FCA action because plaintiff's reports did not in occur in a context where FCA litigation was a "distinct possibility." Mann, 630 F.3d at 344. The Fourth Circuit has recognized that complaints "clearly couched in terms of concerns or suggestions, not threats or warnings of FCA litigation" do not raise a reasonable possibility of FCA litigation. United States ex rel. Parks v. Alpharma, Inc., 493 Fed.Appx. 380, 389-90 (4th Cir. 2012).
The time reports do not fall within the second category of protected activity
In any event, given the current record, it is appropriate to assume without deciding that plaintiff's complaints concerning defendant's body armor were protected activity. None of plaintiff's other reports, however, satisfy the requirements of protected activity.
The second prong of the prima facie FCA retaliation case is satisfied here. Defendant clearly knew about plaintiff's protected activity because plaintiff reported his concerns about the body armor directly to both his supervisors and the government COR. The government COR then discussed the body armor issue with Easley, asking Easley for documentation of the body armor's compliance with the contract. See Reilly Decl. ¶¶ 13-14. Because a fact finder could conclude that these actions "would put the employer on notice that [FCA] litigation [was] a reasonable possibility,"
Despite satisfying the first two prongs of the prima facie retaliation case, plaintiff fails to show a genuine dispute of fact demonstrating the final prong, namely that plaintiff was terminated as a result of plaintiff's protected activity. To begin with, defendant complained about the body armor in May 2015 but was not terminated until October 2015. In the Fourth Circuit, a substantial gap in time "weighs against a finding that it is more likely than not that the alleged protected activities played a role in [plaintiff's] termination." Feldman v. Law Enfor't Associates Corp., 752 F.3d 339, 348-49 (4th Cir. 2014). And, in retaliation cases, the courts in this circuit have found that a gap of three months, let alone the five-month gap at issue here, is too long to infer a causal nexus on the basis of timing alone.
Furthermore, the undisputed factual record reveals that plaintiff was not disciplined or threatened because of his complaints about body armor. Indeed, defendant continued to employ plaintiff for several months after plaintiff reported the body armor issues, and the undisputed
In an attempt to overcome this undisputed record, plaintiff argues (i) that defendant did not treat Easley and Hunter in the same way when complaints were brought against those individuals; and (ii) that two of plaintiff's subordinates and the COR believed plaintiff was terminated because of the body armor incident. Neither of these arguments is a bar to summary judgment.
To begin with, Easley and Hunter are not valid comparators to plaintiff. The complaints against those individuals were neither as frequent nor as severe as the complaints made against plaintiff. The complaints against plaintiff were numerous detailed and led to a formal investigation that validated those complaints. See Easley Dep. at 28:8-19; 115:11-123:12. By contrast, the complaints against Easley and Hunter were isolated and minor. Specifically, plaintiff and Reynolds each complained about Easley once, expressing concerns about Easley's impartiality before his trip to Kabul. See Doc. 46 Ex. 44, 49. Significantly, neither plaintiff nor Reynolds reiterated this complaint after Easley's trip, suggesting their concerns had been resolved. The contrast with plaintiff is even more striking with respect to Hunter. Specifically, plaintiff sent one email to Easley about Hunter's lack of engagement at work in August 2015. See Doc. 46 Ex. 50.
Plaintiff next points to the opinions of three individuals, Reilly, Reynolds and Christine Trostle,
In sum, plaintiff has not demonstrated that defendant terminated plaintiff as a result of plaintiff's protected activity. Accordingly, plaintiff has not established a prima facie case, and defendant is entitled to judgment as a matter of law on plaintiff's FCA retaliation claim.
Even assuming, arguendo, that plaintiff could establish a prima facie FCA retaliation case, plaintiff does not satisfy the McDonnell Douglas burden-shifting framework. Specifically, defendant has provided legitimate, non-retaliatory reasons for plaintiff's termination, and plaintiff has failed to identify record evidence demonstrating that those reasons are pretextual.
Defendant here offers ample record evidence of the legitimate, non-retaliatory reasons for plaintiff's termination, including plaintiff's poor management and interpersonal skills, insubordination, and unprofessional conduct. As the undisputed factual record shows, Easley and Pfundheller received complaints throughout 2015 about plaintiff's difficulty managing people and plaintiff's negative interactions with other teams. In May 2015, plaintiff committed what Easley and Pfundheller testified would ordinarily be a terminable offense by directing the destruction body armor without the express approval of his PAE supervisors. See Easley Dep. at 105:13-105:8; see also Pfundheller Dep. at 134:1-19. Almost two months later, on July 29, 2015, Easley formally documented plaintiff's performance issues and identified five chief areas of concern, including plaintiff's negative interactions with other teams and poor treatment of subordinates. A month and a half later, Easley received yet another complaint from one of plaintiff's subordinates. Thereafter, the Human Resources Department conducted a formal investigation and ultimately recommended plaintiff's termination based on his management failures and lack of interpersonal skills. Thus, this record provides extensive support for defendant's legitimate and
Importantly, plaintiff has not met his burden of establishing these reasons for plaintiff's termination are pretextual. Plaintiff offers three pieces of evidence in an attempt to demonstrate pretext: (i) the fact that defendant had only one email memorializing any formal complaint against plaintiff; (ii) an assertion that the investigation into plaintiff was biased; and (iii) the affidavits of three co-workers who believed defendant did not actually suffer from performance issues. Ultimately, plaintiff's evidence falls far short of that needed to overcome summary judgment.
Plaintiff's argument that defendant relies on only one email to support defendant's proffered reasons for termination mischaracterizes the record. In fact, the record reveals that although Easley may have only formally documented plaintiff's performance issues once, Easley received several informal complaints about plaintiff, including the complaint that prompted the HR investigation. See Easley Dep. at 28:2-19; 115:11-123:12. Moreover, D'Antignac conducted a formal investigation in which she interviewed several of plaintiff's subordinates, colleagues and plaintiff himself. The results of D'Antignac's interviews fully corroborated the areas for improvement identified in Easley's July counseling email.
Recognizing this fact, plaintiff argues that D'Antignac's investigation was biased. Yet, plaintiff fails to identify any record evidence that persuasively supports that allegation. Plaintiff points simply to the fact that Easley forwarded D'Antignac Easley's July counseling email, arguing that email improperly biased D'Antignac. But importantly, in that very same email, Easley reiterates that he appreciates D'Antignac's "unbiased opinion on the issue." Doc. 46 Ex. 15 at 1. Plaintiff also suggests the fact that D'Antignac interviewed the individuals Easley flagged demonstrates D'Antignac's bias. But this allegation ignores the fact that D'Antignac also independently interviewed both plaintiff himself and Reynolds, one of the subordinates who filed complaints against Easley and consistently supported plaintiff. See Doc. 46 Ex. 41 at 2-7. D'Antignac's interview list thus suggests thoroughness and not bias. See Elkharwily, 823 F.3d at 471 (finding plaintiff failed to demonstrate poor performance was pretext for retaliation where "evaluations were confidential, based on feedback from
Finally, plaintiff relies on the affidavits of two of his subordinates and the COR to argue that plaintiff did not, in reality, suffer from any performance issues. This evidence does not create a triable issue of fact on whether defendant's legitimate non-retaliatory reasons are pretext for retaliation; as the Fourth Circuit has made clear, it is the decision-maker's evaluation of plaintiff's job performance that matters, not the plaintiff's evaluation of his own job performance or the evaluation of the plaintiff's coworkers. See Hawkins, 203 F.3d at 280 (citing DeJarnette, 133 F.3d at 298-99). In Hawkins v. PepsiCo Inc., the Fourth Circuit rejected the argument that a plaintiff's self-evaluation could create an issue of fact, noting that "it is the perception of the decision maker which is relevant [to a retaliation claim]." Id. Specifically, the Hawkins Court rejected the plaintiff's argument because "instead of producing evidence that [the employer's] assessment of [the plaintiff's] performance was dishonest or not the real reason for her termination ... [plaintiff] disputes the merits of [defendant's] evaluations." Id. Here, plaintiff's argument that plaintiff was a good manager does just that — it merely disputes the defendant's evaluation without showing that defendant's assessment of plaintiff's performance was dishonest. Accordingly, this evidence does not create a genuine dispute of fact that defendant's reasons for terminating plaintiff were pretextual.
In sum, defendant has met its burden to produce a legitimate, non-retaliatory reason for discharging plaintiff, and plaintiff has failed to show that defendant's stated reasons are pretext for retaliation. Accordingly, defendant is entitled to summary judgment on plaintiff's FCA retaliation claim.
The only remaining issue is plaintiff's breach of contract claim. Under Virginia law,
The undisputed facts here show that plaintiff and defendant entered into an agreement to agree at the October 19 meeting and thus plaintiff cannot enforce the terms discussed at that time. Specifically, although plaintiff argues in his opposition to summary judgment that he believed he was entering into a contract at the meeting, plaintiff admits in his deposition that Easley, Long and Pfundheller told plaintiff that "a severance agreement would be offered to [plaintiff] the next day...." Id. at 45:9-14. Indeed, plaintiff acknowledged that he expected to receive a written agreement to sign because "[Easley, Long, and Pfundehller" told [plaintiff] that they would send [him] one." Pl. Dep. 1 at 47:2-6. Because the parties intended to reduce the agreement to writing for signature the day after the October 19 meeting, there is a strong presumption that no oral contract was formed at the meeting. Yet, plaintiff offers no evidence to overcome that strong presumption, arguing only that Easley had authority to enter into a contract as defendant's agent. The mere fact that an agent has authority to enter into a contract, does not mean that the agent actually has entered into a contract. In sum, plaintiff offers no evidence to overcome the strong presumption that no contract was formed during the October 19 meeting.
Because there was no legally enforceable contract formed between defendant and plaintiff during the October 19 meeting, there can be no breach. Accordingly, defendant is entitled to summary judgment on plaintiff's breach of contract claim.
An appropriate order will issue.