Jaekel v. Aytu BioScience, Inc.

CourtDistrict Court, N.D. California
DecidedAugust 10, 2022
Docket3:20-cv-00340
StatusUnknown

This text of Jaekel v. Aytu BioScience, Inc. (Jaekel v. Aytu BioScience, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jaekel v. Aytu BioScience, Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT 6 NORTHERN DISTRICT OF CALIFORNIA 7 8 ROBERT DAVID JAEKEL, Case No. 20-cv-00340-TSH

9 Plaintiff, ORDER RE: DEFENDANTS’ MOTION 10 v. FOR SUMMARY JUDGMENT

11 AYTU BIOSCIENCE, INC., et al., Re: Dkt. No. 31 12 Defendants.

13 14 I. INTRODUCTION 15 Pending before the Court is a Motion for Summary Judgment or, in the Alternative, for 16 Summary Adjudication (“Motion for Summary Judgment”) filed by Defendants Aytu Bioscience, 17 Inc. (“Aytu”), Jarrett Disbrow, and Josh Disbrow (collectively “Defendants”). ECF No. 31. On 18 July 21, 2022, Plaintiff Robert Jaekel filed an Opposition. ECF No. 33. On July 28, 2022, 19 Defendants filed a Reply. ECF No. 34. The Court finds this matter suitable for disposition 20 without oral argument and VACATES the August 11, 2022 hearing. See Civ. L. R. 7-1(b). 21 Having considered the arguments made, the papers submitted in support thereof, and the record in 22 this case, the Court GRANTS IN PART AND DENIES IN PART Defendants’ Motion for 23 Summary Judgment.1 24 25 26 27 1 II. BACKGROUND2 2 A. Factual Background 3 In May 2016, Aytu hired Plaintiff Robert Jaekel as a Sales Manager, which required Jaekel 4 to sell ProstaScint and Natesto drugs in the United States. ECF No. 33-1, P’s Reply SUR3 Nos. 1, 5 3, 5. Within a year of his employment, Jaekel became a Regional Area Sales Manager and was 6 responsible for hiring and training. Id. Nos. 5-6. 7 In October 2017, Jaekel called his manager and expressed concerns over selling expired 8 ProstaScint. ECF No. 33-3, Jaekel Depo. (Exh. A) at 160: 13-25. Jaekel also reported another 9 employee’s alleged forgery in late 2017. P’s Reply SUR No. 32. On January 1, 2018, Jaekel’s 10 role changed from Regional Area Sales Manager to sales manager with no alteration to Jaekel’s 11 base salary. Id. No. 17. 12 After the role change, on approximately August 10, 2018, Jaekel reported an incident 13 involving an employee grabbing the crotch of another employee. ECF Nos. 33-3, Jaekel Depo. 14 (Exh. A) at 171: 4-23; 33-18, Porter August 10, 2018 Email (Exh. P). On October 4, 2019, Jaekel 15 filed a complaint with the Labor Commissioner regarding unpaid mileage, commissions, and 16 stock. P’s Reply SUR No. 44. On October 28, 2019, Jaekel’s employment with Aytu was 17 terminated. Id. No. 58. 18 B. Procedural Background 19 On December 4, 2019, Jaekel filed the instant action against Defendants Aytu, Josh 20 Disbrow, Jarrett Disbrow, Rick Nord, and DOES 1-50 in San Francisco Superior Court. ECF No. 21 1-5, Complaint (Exh. B). The complaint alleged the following causes of action: 1) Whistleblower 22 Retaliation (against all Defendants), 2) Retaliation (against all Defendants), 3) Failure to Take 23 Steps Necessary to Prevent Sexual Harassment or Retaliation (against Aytu), 4) Retaliation 24 (against Aytu), 5) Wrongful Termination in Violation of Public Policy (against Aytu), 6) 25 Defamation (against Josh Disbrow and Jarrett Disbrow), 7) Intentional Infliction of Emotional 26 Distress (IIED) (against all Defendants), and 8) Failure to Pay All Wages Due to Discharged 27 1 Employees (against Aytu, Josh Disbrow, and Jarrett Disbrow). Id. ¶¶ 47-100. On January 15, 2 2020, Defendants removed the action to federal court. ECF No. 1. On April 14, 2022, Jaekel 3 dismissed Defendant Nord from the action. ECF No. 13. 4 On July 7, 2022, Defendants filed a Motion for Summary Judgment. ECF No. 31. On July 5 21, 2022, Plaintiff Robert Jaekel filed an Opposition. ECF No. 33. On July 28, 2022, Defendants 6 filed a Reply. ECF No. 34. 7 III. LEGAL STANDARD 8 Summary judgment is proper where the pleadings, discovery and affidavits demonstrate 9 that there is “no genuine dispute as to any material fact and [that] the movant is entitled to 10 judgment as a matter of law.” FED. R. CIV. P. 56(a). The party moving for summary judgment 11 bears the initial burden of identifying those portions of the pleadings, discovery and affidavits that 12 demonstrate the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 13 317, 323 (1986). Material facts are those that may affect the outcome of the case. Anderson v. 14 Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). 15 Once the moving party has met its burden, the burden shifts to the non-moving party to 16 “designate ‘specific facts showing that there is a genuine issue for trial.’” Celotex Corp., 477 U.S. 17 at 317. To carry this burden, the non-moving party must “do more than simply show there is some 18 metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio 19 Corp., 475 U.S. 574, 586 (1986). The opposing party must set forth specific facts showing that 20 there is some genuine issue for trial in order to defeat the motion. FED. R. CIV. P. 56(e); Anderson, 21 477 U.S. at 250. “The mere existence of a scintilla of evidence . . . will be insufficient; there must 22 be evidence on which the jury could reasonably find for the [nonmoving party].” Anderson, 477 23 U.S. at 252. 24 The Court must view the evidence in the light most favorable to the nonmoving party and 25 draw all justifiable inferences in its favor. Id. at 255. “Credibility determinations, the weighing of 26 the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those 27 of a judge.” Id. However, it is not the Court’s task to scour the record in search of a genuine issue 1 nonmoving party to identify with reasonable particularity the evidence that precludes summary 2 judgment.” Id. Thus, the Court “need not examine the entire file for evidence establishing a 3 genuine issue of fact, where the evidence is not set forth in the opposing papers with adequate 4 references so that it could conveniently be found.” Carmen v. S.F. Unified Sch. Dist., 237 F.3d 5 1026, 1031 (9th Cir. 2001). If the nonmoving party fails to make this showing, “the moving party 6 is entitled to a judgment as a matter of law.” Celotex, 477 U.S. at 323 (internal quotations 7 omitted). 8 IV. DISCUSSION 9 Defendants move for summary judgment on all of Jaekel’s claims. ECF No. 31. The 10 Court addresses each cause of action accordingly. 11 A. First Cause of Action: Whistleblower Retaliation (Cal. Lab. Code § 1102.5(b)) 12 “Section 1102.5 provides whistleblower protections to employees who disclose 13 wrongdoing to authorities.” Lawson v. PPG Architectural Finishes, Inc., 12 Cal. 5th 703, 709 14 (2022). “An employer . . . shall not retaliate against an employee for disclosing information . . . if 15 the employee has reasonable cause to believe that the information discloses a violation of state or 16 federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation . 17 . . .” Cal. Lab. Code § 1102.5(b). To prevail on a claim of whistleblower retaliation, the plaintiff 18 must establish, “by a preponderance of the evidence, that retaliation for an employee’s protected 19 activities was a contributing factor in a contested employment action.” Lawson, 12 Cal. 5th at 718 20 (citing Cal. Lab. Code § 1102.6). “Once the plaintiff has made the required showing, the burden 21 shifts to the employer to demonstrate, by clear and convincing evidence, that it would have taken 22 the action in question for legitimate, independent reasons even had the plaintiff not engaged in 23 protected activity.” Id.

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Jaekel v. Aytu BioScience, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jaekel-v-aytu-bioscience-inc-cand-2022.