Duncan v. Costco Wholesale Corporation

District Court, D. Oregon·Decided October 10, 2023·No. 3:23-cv-00172·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

THOMAS DUNCAN, No. 3:23-CV-00172-HZ

Plaintiff, OPINION & ORDER

v.

COSTCO WHOLESALE CORPORATION,

Defendant.

Michael R. Fuller Emily Templeton OlsenDaines US Bancorp Tower 111 S.W. Fifth Avenue, Suite 3150 Portland, OR 97204

Attorneys for Plaintiff

Helen M. McFarland Heriberto Alvarez, Jr. Seyfarth Shaw LLP 999 Third Avenue Suite 4700 Seattle, WA 98104

Attorneys for Defendant HERNÁNDEZ, District Judge: This matter comes before the Court on Defendant’s Motion for Summary Judgment, ECF 20. For the reasons that follow, the Court grants Defendant’s Motion. BACKGROUND Defendant Costco Wholesale Corporation (“Costco”) is membership-only club.

Richardson Decl., ECF 21, ¶ 2. In order to become a member and shop in Costco’s stores, an individual must pay a membership fee and agree to specific terms and conditions including that “[i]f a member threatens the safety of any employee or other member . . . or engages in other behavior [Defendant] find[s] inappropriate, [Defendant] [may] ask [the individual] to leave [the] property.” Id. ¶ 5. Defendant occasionally seeks the assistance of law enforcement to remove individuals from Defendant’s property. McFarland Decl., ECF 25, Ex. G at p. 29; Ex. H at 52. In 2021 and 2022 Defendant experienced an increase in “pushouts,”1 at its Roseburg store. Richardson Decl., ¶ 7. For example, in the week between December 30, 2021 and January 5, 2022, there were three pushouts at that store. Richardson Decl., ¶ 8. In an attempt to reduce the

number of pushouts Defendant’s General Manager of the Roseburg store, Randy Richardson, implemented a loss prevention action plan in January 2022. As part of the loss prevention action plan, Richardson asked employees to be “observant of merchandise in the areas where potential theft has occurred” and Defendant trained “employees to look for suspicious behavior and provided parameters about when a Costco employee could make a stop” of a customer. Id. ¶ 9. In January 2022 Richardson also hired Jeff Willis as a part-time Loss Prevention Specialist. Willis

1 In a typical “pushout,” one or more individuals enter the store, select high-priced items, and run out of the store through an emergency exit door without paying. Richardson Decl. ¶ 7. Individuals doing a pushout often have a driver positioned outside of the store to quickly load the merchandise and drive away. Richardson Decl., ¶ 7. “reviews [Defendant’s] security footage, monitors the warehouse floor for any irregular shopping behavior (often in an ‘undercover’ manner [when he] act[s] as a shopper and blend[s] in with [Defendant’s] members . . .), and prepares loss prevention communications.” Id. ¶ 10. The Roseburg store had fewer pushouts in 2022, but on November 22, 2022, the store experienced a pushout through an emergency exit door and Defendant was, therefore, “on high

alert for pushouts in the days following this incident.” Richardson Decl., ¶ 11. November 25, 2022 Plaintiff entered the Roseburg store at 8:30 a.m., went to the electronics department, and placed “high-price gaming computer equipment and multiple computer monitors” in his cart. Id. ¶ 12. Pursuant to the loss prevention action plan, Richardson “took note of the high value items” in Plaintiff’s cart. Id. Richardson states in his Declaration that Plaintiff “began heading towards one of the emergency exit doors” and as a “precautionary measure,” Richardson “went to stand in front of the emergency exit door.” Id. ¶¶ 13-14. Richardson also instructed employees “to be by the emergency exit doors on both sides of the” store. McFarland Decl., Ex. B (Richardson Depo.) at 127.

At some point before 9:00 a.m. Assistant General Manager Matt Reynolds looked for Richardson and was advised that Richardson was “on the floor watching a suspicious individual.” Reynolds Decl., ECF 22, at ¶ 4. Reynolds “started walking down an aisle without knowing who the suspicious individual was” and saw Plaintiff. Id. Reynolds states that Plaintiff “started aggressively staring at me, in a threatening manner for approximately six or seven seconds. It was the kind of stare that made me understand he wanted to hurt me. I was so afraid that I almost did not want to walk down the aisle.” Id. Nevertheless, Reynolds continued down the aisle and greeted Plaintiff. Reynolds states in his Declaration that “Plaintiff’s behavior scared [him]” and he “was alarmed by” Plaintiff. Id. ¶ 6. Reynolds located Richardson and informed him of his interaction with Plaintiff. At that point Richardson advised Reynolds that Plaintiff was the person that Richardson had been watching. Richardson then directed Reynolds to stand by an emergency exit in case of a pushout attempt. At some point when Reynolds was standing by the emergency exit door, Plaintiff walked by him while talking on his mobile phone and Reynolds heard Plaintiff say: “Yeah, they have all the doors blocked.” Id. ¶ 9; McFarland Decl., Ex. D

(Reynolds Depo.) at 28. Willis arrived at the store to begin his shift at 9:00 a.m., and was advised that Richardson was “watching someone in the ‘hardlines’ area of” the store. Willis Decl., ECF 23, ¶ 3. Willis was not given a description of the individual, but was advised that he had “high-dollar items in his cart.” Id. Willis located Plaintiff shortly thereafter and observed his shopping behavior. Willis noted Plaintiff “crisscrossed the warehouse from one side to the other and did not select any additional merchandise for a long time. He kept walking by emergency exit doors throughout the warehouse that were staffed by Costco employees.” Id. ¶ 4. “Based on [Plaintiff’s] behavior and [Willis’] experience in watching and preventing pushouts in the warehouse, along with [his]

experience as an Oregon State police officer, [Willis] was fairly confident that Plaintiff was planning to push out of an emergency exit door.” Id. Willis “tried to stay close to [Plaintiff] . . . and monitor[] his movements.” Id. At approximately 9:21 Plaintiff began following Willis. The video submitted by Plaintiff reflects that Plaintiff moved to the front of his cart and pulled the cart behind him while following Willis at a distance of about five feet. “When [Willis] stopped walking, Plaintiff stopped. When [Willis] continued walking, he kept pursuing [him].” Id. ¶ 5. Willis, posing as a customer, asked Richardson about a product and “Plaintiff waited with his cart for [Willis] to finish speaking and then began to” follow Willis again. Id. Willis heard Plaintiff speaking to someone on his phone and saying “that because [Willis] had followed [Plaintiff], he was following [Willis]. Plaintiff loudly stated, ‘it was kinda fun’ to follow [Willis].” Id. ¶ 6. Plaintiff states in his Declaration that he was on his phone with his mother and told her regarding Willis: “If he’s going to follow me, I’m going to follow him and see how he likes it.” Pl. Decl., ECF 32, ¶ 8. Plaintiff states that he followed Willis “for one or two aisles,” but then got bored and continued with his shopping. Id. “After several minutes” Plaintiff stopped

following Willis and Willis located Richardson and told him that Plaintiff had followed him. Willis Decl. ¶ 7. At 9:30 Plaintiff stopped his cart in front of or close to Willis’ cart. Willis states in his Declaration that Plaintiff “strongly addressed [him] and raised his hands up in the air. He said he had observed me looking at him from one of the aisles. He said in a loud and upset manner something to the effect of, ‘I’m a member, I have a credit card, and I’m shopping.’” Id. ¶ 8. Plaintiff states in his Declaration that “[a]fter I turned yet another corner and . . . Willis was there, I stopped where I was, and laughed and I asked him how much he was getting paid to follow me around. I gestured up and down the aisle. My tone was skeptical . .

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Duncan v. Costco Wholesale Corporation, (D. Or. 2023).

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