Benjamin Blackburn v. United Parcel Service, Inc. Patricia Knowles

179 F.3d 81, 15 I.E.R. Cas. (BNA) 318, 52 Fed. R. Serv. 607, 1999 U.S. App. LEXIS 11740, 1999 WL 360546
CourtCourt of Appeals for the Third Circuit
DecidedJune 7, 1999
Docket98-6075
StatusPublished
Cited by165 cases

This text of 179 F.3d 81 (Benjamin Blackburn v. United Parcel Service, Inc. Patricia Knowles) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benjamin Blackburn v. United Parcel Service, Inc. Patricia Knowles, 179 F.3d 81, 15 I.E.R. Cas. (BNA) 318, 52 Fed. R. Serv. 607, 1999 U.S. App. LEXIS 11740, 1999 WL 360546 (3d Cir. 1999).

Opinion

OPINION OF THE COURT

BECKER, Chief Judge.

In this diversity case, we are asked to review the District Court’s grant of summary judgment for defendant United Parcel Service (“UPS”), which was grounded on the view that the conduct of plaintiff Benjamin Blackburn did not constitute protected activity under the New Jersey “whistleblower” statute, the Conscientious Employee Protection Act (“CEPA”), N.J. Stat. Ann. §§ 34:19-1 to -8. Being doubtful of the correctness of this conclusion of the District Court, we will assume that Blackburn has met his burden of establishing a prima facie case of retaliation under CEPA. We will instead affirm the District Court’s judgment on the alternative ground that Blackburn has failed to offer sufficient admissible evidence to rebut UPS’s proffered legitimate justification for his discharge — his putative violation of UPS’s anti-nepotism, favoritism, integrity, and accountability policies. In order to reach the pretext issue, and so as to determine which evidence of Blackburn’s might be admissible at trial, we must consider the contours of a number of exceptions to the rule against admitting hearsay evidence. In particular, we must interpret the seldom-invoked exception for reputation evidence concerning family relationships, see Fed.R.Evid. 803(19), which bears on Blackburn’s defense to the nepotism charges. Ultimately, we conclude that an insufficient quantum of evidence would be *86 admissible at trial to rebut UPS’s proffered legitimate justification for discharging Blackburn; hence, we affirm.

I. Facts & Procedural History

Blackburn worked for UPS 1 for approximately eight years. He began work as a driver in June 1986, and was promoted several times, first becoming a manager in 1990. In early 1992, Blackburn was transferred to a division of the company that priced UPS products and services. His duties included development of a flexible pricing project, the Incentive Administration System (“IAS”). In September 1993, he was promoted to Marketing User Representative for the Marketing Information Group in Mahwah, New Jersey. In this position, his responsibilities included addressing, through the IAS or otherwise, UPS’s loss of accounts and significant amounts of business to a competitor, Roadway Package Service. His principal supervisor at that time was Gary Hopwood, who was based in Atlanta. Hopwood’s supervisor was Nicholas Bain, who was also Atlanta-based.

A. Blackburn’s Complaints to His Supervisors

In November 1993, Blackburn first expressed to the IAS project manager, Rich Cooley, his concerns regarding possible antitrust violations arising out of customer discounts given through the IAS. 2 Blackburn’s concerns allegedly intensified when, in early 1994, UPS began to modify its pricing system and combined ground contracts with air contracts, a “bundling” practice that he alleged allowed even unprofitable ground customers to be enticed with air discounts. Blackburn believed that the IAS project was generally falling apart because of inadequate resources and a lack of management and direction.

On March 22, 1994, Blackburn first put his concerns in writing, sending a memo to his supervisor, Hopwood. This memo stated, in relevant part:

As per our recent phone conversation, I’m detailing here areas where I believe that we may run into significant problems with respect to Anti-Trust issues going forward.
I would appreciate your running these by [UPS inhouse attorney] Joel Creamer in order to determine whether these issues will present legal obstacles.
1) No security check exists at present to authenticate or assure that the information entered by field users is either accurate or valid. As you know, it is important that user information be subject to some type of validation process or, the worst case scenario, we may be providing a discount level that could easily be interpreted as predatory in nature.
■ While I am unsure as to the extent of our obligation in this area, it seems to me that we must have some type of system in place that will authenticate, to some reasonable degree, the input data that our sales reps are entering in order to develop prices. To leave this to their discretion is, I believe, flirting with disaster under the present scenario.
Obviously, Creamer will have a much better sense about the company’s obli *87 gation here but to expound upon my concern a bit more, it occurs to me that a challenge to our pricing methodology cannot be defended merely by the company taking the position that it didn’t know what its sales reps were doing in developing discounts. That is to say, it is difficult for me to see where a posture of “see no evil, hear no evil ...” is especially wise given our current position in the Ground marketplace. I urge you to take action to determine whether this [is] as significant as I fear it may be down the road.
2) The present combination of Mark Matulavicus and Leslie Gilstrap working as representatives of the Strategic Cost groups causes me grave concerns as I have been unable, as you know, to get any real commitment from their manager as to the level of comfort we should have in determining whether their costing methodology is indeed in line with regularly accepted costing practices or whether the Incentive Administration System is intended to be built using trial methodology.

App. at 60 (ellipsis in original).

On April 18, 1994, Blackburn sent another memo to Hopwood about his discomfort with the status of IAS. He suggested that it could not be properly validated and that there were many internal failures, including the improper billing of hundreds of customers. He expressed concern that releasing IAS to customers in its present state could cause “significant” liability, and “we ought to try and get things straightened out before we end up having to explain ourselves to someone outside of our organization.” Id. at 62. On June 3, 1994, Blackburn wrote to Bain, expressing the view that the IAS project “will have gravely negative implications for the organization .... Both Rich Cooley and I have serious reservations as to whether the system we are building is indeed functioning properly and the potential outcome of this may be significant both internally and externally.” Id. at 63.

On June 15, 1994, Blackburn wrote another memo to Hopwood, stating that “I have serious concerns about the rate we are moving and what I believe to be the gross negligence of our group in assuring that the system works properly and, dare I say, within the confines of ordinary accepted business principles.” Id. at 64. He could not “in good conscience” sign off on the system without reasonable testing:

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179 F.3d 81, 15 I.E.R. Cas. (BNA) 318, 52 Fed. R. Serv. 607, 1999 U.S. App. LEXIS 11740, 1999 WL 360546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benjamin-blackburn-v-united-parcel-service-inc-patricia-knowles-ca3-1999.