Hugo v. Millennium Laboratories, Inc.

993 F. Supp. 2d 812, 2014 WL 37659, 2014 U.S. Dist. LEXIS 750
CourtDistrict Court, E.D. Tennessee
DecidedJanuary 6, 2014
DocketNo. 3:12-CV-167-TAV-HBG
StatusPublished
Cited by4 cases

This text of 993 F. Supp. 2d 812 (Hugo v. Millennium Laboratories, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hugo v. Millennium Laboratories, Inc., 993 F. Supp. 2d 812, 2014 WL 37659, 2014 U.S. Dist. LEXIS 750 (E.D. Tenn. 2014).

Opinion

MEMORANDUM OPINION

THOMAS A. VARLAN, Chief Judge.

Plaintiff has brought this action against his former employer claiming that Millennium discharged him (1) in retaliation for reporting or refusing to participate in illegal activities in violation of Tennessee common law and the Tennessee Public Protection Act; (2) to prevent him from appearing at a deposition in an unrelated Colorado lawsuit in violation of public poli[817]*817cy; and (3) because of his age in violation of the Tennessee Human Rights Act. This matter is before the Court on Defendant’s Motion for Summary Judgment [Doc. 31]. Plaintiff has responded [Doc. 40], The Court has carefully considered the motion and, for the reasons stated herein, finds that defendant’s motion for summary judgment should be granted.

I. Background

Millennium provides healthcare professionals with medication monitoring services, clinical tools, scientific data, and education, helping to personalize treatment plans to improve clinical outcomes and patient safety. Millennium utilizes technology and proprietary methodologies to provide medication monitoring and drug detecting results via both urine drug testing and oral fluid testing. Millennium promotes and sells its products and services directly to physician practices through a nationwide network of highly-trained sales professionals [Doc. 42-1].

Plaintiff was hired by Millennium in September 2010 as a Senior Sales Specialist assigned to a territory that included East Tennessee. As a Senior Sales Specialist, plaintiff was responsible for growing sample volumes in his assigned territory through ongoing account management and development of new customer accounts. At the time he was hired, plaintiff was over forty years old. Plaintiff received and signed a Code of Conduct that included Millennium’s Compliance Policy Manual, and received training on compliance throughout his employment. Plaintiff was paid a base salary formulated on his experience, plus commissions that were based on the number of urine and oral specimens generated for testing. Plaintiff was supported in his sales efforts by Customer Support Specialist (“CSS”) Brian Arnold. Id.

A CSS works with and below a Senior Sales Specialist. The CSS is responsible for scheduling and conducting customer in-service training for new accounts, ongoing customer education, as well as service and support of existing customers in a designated geographic territory. The CSS also helps the Sales Specialist develop new sales leads and open new accounts. Although Arnold did not report directly to plaintiff, he was primarily responsible for finding leads for plaintiff to pursue and then servicing existing accounts in plaintiffs territory. As a Senior Sales Specialist, plaintiff had direct supervisory authority over several Laboratory Services Assistants (“LSA’s”). An LSA is a Millennium employee assigned to work at a customer location to assist in tasks specifically related to the provision of Millennium’s testing services, primarily packaging and shipping patient urine samples to Millennium for testing. Id. As a Senior Sales Specialist, plaintiff was responsible for monitoring the LSA’s assigned to accounts in his territory and ensuring that those LSA’s complied with Millennium policy and state and federal laws regarding the scope of the LSA’s work and the potential for illegal inducement [Doc. 51].

Millennium’s LSA policy strictly prohibits LSA’s from performing tasks unrelated to Millennium’s laboratory services. Compliance with this policy is critical in the drug testing industry because the provision of services that do not directly relate to laboratory services could be seen as an illegal inducement in violation of state and federal anti-kickback laws. To minimize the risk that a physician practice might ask an LSA to perform tasks in violation of law or company policy, Millennium requires all accounts that are provided with an LSA to sign an agreement acknowledging the proper scope of the LSA’s duties and responsibilities [Doc. 42-1],

[818]*818Plaintiff states that Millennium did not enforce this policy at all times. Plaintiff was informed by at least one LSA that Arnold instructed the LSA to perform tasks outside the scope of the LSA’s employment when plaintiff was not around. Plaintiff further states that at least one LSA threatened to sue defendant because Arnold, in spite of plaintiffs instructions to the contrary, was directing the LSA to perform tasks not permitted under the law. Plaintiff states that Arnold admitted that during his employment with defendant, LSA’s were performing tasks such as marking specimens and calling back patients which are unrelated to defendant’s laboratory services. Id. Arnold was terminated by Millennium In October 2012, after it determined that Arnold had allowed improper LSA activity to happen. Id.

At all times during his employment with Millennium, plaintiff reported to Regional Sales Manager Jarrett Smith. Id. Several months after plaintiff was hired, Smith started receiving complaints from customers and co-workers about plaintiffs job performance. Specifically, Smith was informed by Arnold and others that plaintiff showed poor organizational skills, failed to appear for appointments on time, got lost on his way to meetings with customer accounts, and failed to complete paperwork and expense reports in a timely manner. These reports concerned Smith because providing customer service is a fundamental requirement of each and every Senior Sales Specialist. Plaintiff admits that Arnold communicated with Smith about plaintiffs job performance, but disputes that Smith ever talked to plaintiff about Arnold’s complaints. Plaintiff states that he only became aware of the complaints after his termination. Plaintiff admits that Smith discussed with plaintiff at least one incident in which plaintiff was late to an appointment with an account. Id.

In April 2011, Smith received several emails from a Millennium customer complaining that plaintiff lacked product knowledge, stayed in the customer’s office too long “chatting,” and caused other administrative difficulties. On June 9, 2011, the office manager of another Millennium account in plaintiffs territory asked Smith if their office could be serviced by Arnold instead of plaintiff because of the difficulties she was having with plaintiff. On August 8, 2011, that same account complained again that plaintiff arrived over an hour and a half late for a meeting and showed a lack of professionalism. That same day, Smith also received internal emails from other Millennium employees complaining about plaintiffs work habits, customer service, timeliness, and failure to complete administrative tasks necessary for his job. Id.

Plaintiff was on vacation the week of August 8, 2011, when he received a phone call from one of his LSA’s, Logan Norman. Norman reported that he had been asked by a customer to perform certain tasks that were illegal and against Millennium’s policies, including cleaning bathrooms and picking up cigarette butts. Plaintiff states that the day he returned from his vacation, a second LSA, Jennifer Caldwell, contacted him and said that she had been asked by a customer to file medical records, which would have violated Millennium’s policies and the LSA agreement that Millennium requires its customers to sign. Plaintiff mentioned to Smith that he “heard about Norman.” Smith responded that he was aware of the situation and had already handled it (Norman was terminated by Smith before plaintiff returned from vacation).

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Cite This Page — Counsel Stack

Bluebook (online)
993 F. Supp. 2d 812, 2014 WL 37659, 2014 U.S. Dist. LEXIS 750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hugo-v-millennium-laboratories-inc-tned-2014.