Big Apple Tire, Inc. v. Telesector Resources Group, Inc.

476 F. Supp. 2d 314, 2007 U.S. Dist. LEXIS 10687, 2007 WL 489247
District Court, S.D. New York·Decided February 14, 2007·No. 05 Civ. 8870(SAS)·Published·Cited by 7 cases

Opinion

OPINION AND ORDER

SCHEINDLIN, Disrtict Judge.

Big Apple Tire, Inc. (“Big Apple”) is a fleet maintenance vendor which, for a period of time, serviced vehicles owned by the Verizon operating companies. Big Apple alleges that Telesector Resources Group, Inc; d/b/a Verizon Services Group (“Verizon”) discriminated against it on the basis of race and/or color because Big Apple’s President and Chief Executive Officer, Matthew Brown, is African-American. Plaintiffs Third Amended Complaint, which alleges discrimination in violation of 42 U.S.C. § 1981 (“section 1981”), seeks redress for Verizon’s discriminatory treatment, harassment and unlawful termination of its 2003 contract with Big Apple. 1 Verizon' disavows any discriminatory conduct and claims that it terminated its relationship with Big Apple solely based on poor performance. Verizon now brings a motion for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure seeking to dismiss plaintiffs action *316 in its entirety. For the following reasons, Verizon’s motion is granted and this case is dismissed.

1. BACKGROUND

A. Verizon’s Fleet Maintenance Operations

Telesector Resources Group is the contracting entity responsible for the acquisition and purchasing of services and products for Verizon’s operating companies. 2 Strategic Sourcing is a department within Telesector Resources Group that negotiates, awards, executes, administers, and terminates contracts with outside suppliers. 3 Walter Pylyp has been Verizon’s Sourcing Manager since 1995. 4 Fleet Operations is the internal Verizon organization responsible for approximately 53,000 vehicles located in approximately six hundred garages. 5

Stategic Sourcing entered into agreements with suppliers, such as Big Apple, to provide vehicle maintenance and repair services to Fleet Operations. 6 These suppliers hired and supervised employees to manage Verizon’s garages and were responsible for the completion of all repairs and maintenance work in a safe, timely, and cost-efficient manner. 7 Although certain tools and equipment were provided by Verizon, suppliers, typically provided their own mechanic handtools. 8 And while outside suppliers reported to first-level managers in Fleet Operations, Strategic Sourcing retained the responsibility for negotiating, awarding and terminating contracts. 9

B. The 2001 Contract

Near the end of 2000, Brown met Pylyp and William Lescohier,, both of whom are Caucasian, to discuss a potential business relationship between Big Apple and Verizon. 10 After negotiating with Lescohier, Brown secured Big Apple’s first fleet maintenance contract with Verizon in January 2001. 11 Before giving the contract to Big Apple, Verizon considered bringing in its own mechanics to staff its garages. 12 Pylyp and Lescohier provided Big Apple with this opportunity even though Big Apple was much smaller than the other vendors Verizon used, had no previous history with Verizon, and had no experience maintaining the type of sophisticated vehicles that made up part of Verizon’s fleet, such *317 as those with hydraulic equipment and aerial lifts. 13

The 2001 Contract, in effect from January 2001 through December 2002, was a month-to-month contract for a twenty-four month period. 14 Big Apple was the only fleet maintenance vendor given a month-to-month contract; no other fleet maintenance vendors were initially given month-to-month contracts. 15 Verizon awarded this type of contract to Big Apple, in part, because it was not sure Big Apple could perform satisfactorily. 16 Brown complained to Lescohier that a month-to-month contract made the employment and retention of high quality mechanics difficult and that a definite term contract would ease these problems. 17 Brown also asked Lescohier why Big Apple had to wait such a lengthy period of time before it was awarded a definite term contract when others did not. 18

Under the 2001 Contract, Big Apple contracted to provide labor, supervision, and fleet maintenance and repair services to approximately four hundred vehicles located in three Staten Island garages located at: 180 Edgewater Street, 2228 Arthur Kill Road, and 135 Johnson Street. 19 Before signing the 2001 Contract, Brown visited the garages at Edgewater Street and Arthur Kill Road but chose not to inspect the Johnson Street garage. 20

The Contract gave Verizon the right to terminate prior to expiration, with or without cause, upon thirty days advance written notice to Big Apple. 21 Big Apple completed its term under the 2001 Contract, although its performance was described by one Verizon employee as merely “okay.” 22

C. The 2003 Contract

Verizon eventually awarded Big Apple a five-year contract to take effect January 1, 2003. 23 Under the 2003 Contract, Big Apple continued to service the Staten Island garages plus four additional garages (with approximately 355 vehicles) located in Westchester County: 999 Nepperhan Avenue (“Yonkers”); 36 Beechwood Avenue (“New Rochelle”); 223 Marbledale Avenue (“Tuckahoe”); and 370 White Plains Road (“Eastchester”). 24 As with the 2001 Contract, Verizon could terminate the 2003 Contract without cause on thirty days *318 written notice. 25 In addition, the 2003 Contract expressly stated that “Verizon shall be the final authority for determining acceptable quality for the completed Services.” 26

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Big Apple Tire, Inc. v. Telesector Resources Group, Inc., 476 F. Supp. 2d 314, 2007 U.S. Dist. LEXIS 10687, 2007 WL 489247 (S.D.N.Y. 2007).

476 F. Supp. 2d 314 (Big Apple Tire, Inc. v. Telesector Resources Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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