GARCIA v. VERTICAL SCREEN, INC.

Procedural entryThis page is a short order in GARCIA v. VERTICAL SCREEN, INC.. Read the opinion of the Court — 387 F. Supp. 3d 598
District Court, E.D. Pennsylvania·Decided March 21, 2022·No. 2:19-cv-03184·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

WILLIAM GARCIA, : CIVIL ACTION : NO. 19-3184 Plaintiff : v. : : VERTICAL SCREEN, : : Defendant. : M E M O R A N D U M

EDUARDO C. ROBRENO, J. March 21, 2022 TABLE OF CONTENTS I. INTRODUCTION .............................................. 2 II. BACKGROUND ................................................ 3 III. LEGAL STANDARD .......................................... 6 IV. DISCUSSION ................................................ 7 A. Vertical Screen’s Motion ................................ 7 1. Discrimination Claims .................................. 8 2. Retaliation Claims .................................... 16 a. ADA & PHRA Retaliation ................................ 17 b. FMLA Retaliation ...................................... 18 c. Title VII Retaliation ................................. 23 3. FMLA Interference ..................................... 23 4. Failure to Pay Wages under the WPCL ................... 25 5. Punitive and Liquidated Damages ....................... 26 B. Vertical Screen’s Amended Counterclaims ................ 27 1. Breach of Contract .................................... 28 2. Trade Secret Claims under the DTSA and PUTSA .......... 29 C. Garcia’s Motion ........................................ 30 1. Breach of Contract .................................... 31 2. Misappropriation of Trade Secrets ..................... 32 3. Garcia’s WPCL Claim ................................... 38 V. CONCLUSION............................................... 40 I. INTRODUCTION Plaintiff William Garcia brings this action against his former employer, Defendant Vertical Screen Inc. (“Vertical Screen”), claiming that Vertical Screen discriminated and

retaliated against him when it terminated his employment. Garcia asserts claims pursuant to the Americans with Disabilities Act (“ADA”), the Family and Medical Leave Act (“FMLA”), Title VII of the Civil Rights act of 1964 (“Title VII”), and the Pennsylvania Human Relations Act (“PHRA”). Garcia also brings a claim for failure to pay wages owed under Pennsylvania’s Wage Payment and Collection Law (“WPCL”). Vertical Screen asserts counterclaims against Garcia for breach of contract and misappropriation of trade secrets. The parties have filed cross motions for summary judgment. For the reasons set forth below, both motions will be granted in part and denied in part. Specifically, Vertical

Screen’s motion will be granted as to Garcia’s claims under the ADA, the FMLA, Title VII, the PHRA, and as to Garcia’s request for punitive damages. It will be denied as to Garcia’s WPCL claim and Vertical Screen’s counterclaims. Garcia’s motion will be granted as to his WPCL claim and as to Vertical Screen’s request for exemplary damages and attorneys’ fees pursuant to its trade secret claims and denied as to the remainder of Vertical Screen’s counterclaims. II. BACKGROUND1 Vertical Screen is one of the world’s leading employment applicant screening companies2 and is headquartered in Warminster, Pennsylvania. Garcia was an employee at Vertical

Screen for five years until he was terminated on October 2, 2018.3 Garcia started as a Public Records Researcher and was later promoted to Public Records Team Leader. As part of his promotion, Garcia’s supervisors promised him a $.50/hour raise, which he never received. During the final year of his employment with Vertical Screen, Garcia’s supervisors were Katherine Denis, Michael Hanna, Alison Graham, Samuel Twardowski, and Yahne Johnson. Garcia alleges that he suffered from disabilities during his time at Vertical Screen, including rheumatoid arthritis (originally misdiagnosed as Lupus) and anxiety. As a result of these disabilities, Garcia took periodic time off from work. He

further claims that in response to his taking periodic time off, Johnson told him on several occasions that he “shouldn’t be

1 As required at the summary judgment stage, the Court views the facts “in the light most favorable” to the nonmoving party and draws “all reasonable inferences” in that party’s favor. Young v. Martin, 801 F.3d 172, 174 n.2 (3d Cir. 2015). 2 As a screening company, Vertical Screen contracts with companies to verify the identity, past employment history, education, and relevant background of prospective applicants. 3 Garcia is also lead plaintiff in a putative collective action involving FLSA overtime violations that is currently pending before Judge Brody. See Garcia v. Vertical Screen, Inc., No. 18-cv-4718. calling out,” or that Johnson would “take [his] position away from [him].” Pl’s Stmt. of Facts ¶ 43, ECF No. 76. Garcia asserts that he informed Hanna, Graham, and

Twardowski of his disabilities. He claims further that after he informed his supervisors of his disabilities, Hanna disclosed that Garcia was disabled to other co-workers. Hanna denies ever disclosing Garcia’s medical conditions to anyone other than Marcine Schiehser, Vice President of Human Resources at Vertical Screen, or Twardowski, who was Hanna’s direct supervisor. Garcia also claims that a co-worker falsely told other employees that she and Garcia had a sexual relationship. He felt this was sexual harassment and complained verbally to Twardowski and asked him to communicate the complaint to the company’s human resources department. On September 17, 2018, Garcia requested necessary materials

to request FMLA leave from Vertical Screen’s human resources department. He did not fill out the paperwork or otherwise submit his FMLA request to Vertical Screen. On October 2, 2018, Vertical Screen terminated Garcia’s employment. Vertical Screen claims that he was terminated because he violated the company’s confidentiality policy when he allegedly sent a series of emails, one of which contained a document titled “Courts Tier Training Spreadsheet” (the “Spreadsheet”), from his work email to his personal email account. According to Vertical Screen, the Spreadsheet included information that was not only confidential, but amounted to protectable trade secrets. Several Vertical Screen employees

testified that the decision to terminate Garcia was made solely by Tim Gaudreau, the company’s chief operating officer. See Gaudreau Dep. at 14:18-20, ECF No. 69-2; Schiehser Dep. at 46:14-17, ECF No. 69-12, Hanna Dep. 33:3-34:22, ECF No. 69-10. Garcia denies ever sending himself any of the emails in question. According to Vertical Screen’s IT Security Analyst Neelay Patel, the company’s email security system triggered an alert that Garcia had sent the Spreadsheet, which was at least partially encrypted, to his personal email. See Patel Decl., ECF No. 69-18. A subsequent investigation into the event led Patel to conclude that the Spreadsheet had left the company’s servers and had reached Garcia’s personal email account. See id.

However, Vertical Screen later performed a forensic analysis of Garcia’s personal devices and email account and found no trace of the Spreadsheet. Garcia’s Amended Complaint contains five counts: (I) disability discrimination and retaliation in violation of the ADA; (II) interference and retaliation in violation of the FMLA; (III) retaliation in violation of Title VII; (IV) failure to pay wages owed under the WPCL; and (V) discrimination and retaliation in violation of the PHRA. Vertical Screen asserts three counterclaims against Garcia: (I) breach of contract; (II) violation of the Defend Trade Secrets Act, 18 U.S.C. § 1836, et seq. (the “DTSA”); and (III)

violation of the Pennsylvania Uniform Trade Secrets Act, 12 Pa. Cons. Stat. Ann. § 5301, et. seq. (the “PUTSA”). III.

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