Lam-Quang-Vinh, Jennifer v. Springs Window Fashions, LLC

CourtDistrict Court, W.D. Wisconsin
DecidedAugust 16, 2021
Docket3:20-cv-00384
StatusUnknown

This text of Lam-Quang-Vinh, Jennifer v. Springs Window Fashions, LLC (Lam-Quang-Vinh, Jennifer v. Springs Window Fashions, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lam-Quang-Vinh, Jennifer v. Springs Window Fashions, LLC, (W.D. Wis. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WISCONSIN - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - JENNIFER R. LAM-QUANG-VINH, OPINION AND ORDER Plaintiff, 20-cv-384-bbc v. SPRINGS WINDOW FASHIONS, LLC, Defendant. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Plaintiff Jennifer R. Lam-Quang-Vinh alleges that her former employer, defendant Springs Window Fashions, LLC, terminated her employment after she identified and reported what she reasonably believed were defendant’s violations of tariff laws. She brought this suit under the False Claims Act, 31 U.S.C. § 3730(h), contending that defendant retaliated against her in violation of the Act. Defendant has filed three motions that are now before the court. First, defendant filed a motion for summary judgment, contending that it fired plaintiff because of her poor performance and not because of any protected conduct. Dkt. #28. Because plaintiff has not submitted evidence from which a reasonable jury could conclude that defendant retaliated against her because of her protected conduct, defendant’s motion will be granted. Second, defendant filed a motion relating to depositions and the schedule, dkt. #41, which will be denied as moot, now that her motion for summary judgment will be denied. Third, defendant filed a motion seeking sanctions against plaintiff and her counsel on the ground that plaintiff had allegedly disclosed privileged documents to her counsel. Dkt. #23. I agree with defendant that plaintiff should have sought the documents at issue through the discovery 1 process, and should not have removed them from defendant’s offices without permission. However, I am not persuaded that the court should sanction either plaintiff or her counsel in this case. Despite defendant’s arguments to the contrary, it is likely that plaintiff would have been able obtain these documents through discovery. The documents are relevant to one of the

elements of plaintiff’s retaliation claim, as they support plaintiff’s argument that she engaged in protected conduct by offering an opinion about defendant’s tariff obligations that was supported by outside counsel. Defendant has not shown that it suffered unfair prejudice by plaintiff’s disclosure of the documents.

UNDISPUTED FACTS From the parties’ proposed findings of fact and the record, I find the following facts to be undisputed unless otherwise noted.

A. The Parties Defendant Springs Window Fashions, LLC manufactures and distributes window coverings. Defendant imports fabrics and materials from suppliers around the world, and has manufacturing facilities in Mexico. In 2019 and 2020, defendant employed more than 5,000 employees worldwide, including approximately 500 at its Middleton, Wisconsin headquarters. Plaintiff Jennifer R. Lam-Quang-Vinh formerly worked as an import specialist with United States Customs and Border Protection, and has extensive training and experience with

international trade, tariffs, customs regulations and inventory management. Defendant hired plaintiff as its senior manager of global trade and customs in January 2019. In that position, 2 plaintiff was responsible for managing defendant’s import and export customs and trade compliance programs.

B. The Previous Senior Manager of Global Trade and Customs

Before plaintiff was hired, Jennifer Sharkey had been defendant’s senior manager of global trade and customs. Like plaintiff, Sharkey was formerly employed as a United States Customs Officer, and had considerable knowledge about global trade and customs compliance. In spring 2018, Sharkey gave a presentation to defendant’s senior leadership about supply chain, trade and duty issues, and how recent changes to trade and customs laws from the Trump administration could affect defendant’s budget. Defendant’s chief executive officer, Eric Jungbluth, asked several questions about Sharkey’s presentation. Cuyler Cunningham, defendant’s vice president of procurement, dismissed Sharkey’s analysis as a “doomsday

scenario.” During a subsequent conference call about the financial impact of recent tarriffs on goods originating in China, Jungbluth asked Sharkey why defendant could not just ship goods to Taiwan to avoid the tariffs. Sharkey told Jungbluth that doing so would be illegal. In spring 2018,Sharkey was asked to prepare a comprehensive financial impact analysis of recent Trump administration tariff orders and a recent United States Customs ruling issued to one of defendant’s suppliers, TehYor, related to the classification, origin and NAFTA status of cellular fabric blankets used to make defendant’s window shades. Sharkey concluded that certain TehYor fabrics should be designated as originating in China, even though a China

designation would require defendant to pay higher tariffs. In late September 2018, Sharkey learned that new laws were going to have a further 3 negative impact on defendant’s solar roller shade business. Sharkey promptly advised defendant’s chief financial officer, Chris Nagel, and apologized for not having seen the change sooner. Sharkey prepared a new financial impact analysis for consideration by defendant’s senior management. She also notified management that, in light of NAFTA’s treatment of

cellular blinds made with TehYor supplied blankets, and a United States Customs ruling issued to TehYor, she believed that the base fabric originated in China, and that defendant needed to change its NAFTA status on certain colors within its cellular blinds product line. In October 2018, Nagel notified Sharkey that CEO Jungbluth had directed him to issue her a letter of reprimand. In November 2018, Sharkey resigned from her position with defendant.

C. Plaintiff’s Employment with Defendant

1. CAM-FRN inventory discrepancy In January 2019, plaintiff was hired to fill Sharkey’s vacant position. In March 2019, plaintiff learned about a significant inventory discrepancy problem at defendant’s Mexican facilities. The various inventory systems used at the facilities were not integrated properly, leading to ongoing discrepancies between import and export inventories. Defendant referred to the problem as the “CAM-FRN” inventory discrepancy problem, and considered it to be a serious problem. If the Mexican government audited defendant and found the problem, defendant could receive fines and penalties and lose trade privileges.

It is likely that the CAM-FRN problem had been occurring for several years when plaintiff learned about it. Chris Nagel, defendant’s chief financial officer and plaintiff’s direct 4 supervisor, told plaintiff to oversee the creation of a plan to fix the inventory discrepancy problems. In April 2019, plaintiff projected that under best case scenario, the CAM-FRN problem could be fixed at all three Mexican locations by June 2020. Under the worst case scenario, the problem would not be fixed until December 2020 at one or more locations.

Nagel left the company in May 2019. Before leaving, he told plaintiff that he was satisfied with her job performance and offered to provide her a positive job reference if she needed one in the future. Between June and September 2019, plaintiff reported directly to Eric Jungbluth, defendant’s chief executive officer. Plaintiff prepared a list of strategic initiatives for which she was responsible and provided it to Jungbluth. The first item on the list was the CAM-FRN inventory problem, with a “target completion date” of June 2020. Plaintiff and Jungbluth met privately to discuss her goals and objectives and his ongoing concerns about international trade

and tariff-related issues that could affect defendant financially.

2.

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Lam-Quang-Vinh, Jennifer v. Springs Window Fashions, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lam-quang-vinh-jennifer-v-springs-window-fashions-llc-wiwd-2021.