Lewis v. Bay Industries, Inc.

51 F. Supp. 3d 846, 2014 U.S. Dist. LEXIS 138700, 2014 WL 4925483
CourtDistrict Court, E.D. Wisconsin
DecidedSeptember 30, 2014
DocketCase No. 12-C-1204
StatusPublished
Cited by4 cases

This text of 51 F. Supp. 3d 846 (Lewis v. Bay Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Bay Industries, Inc., 51 F. Supp. 3d 846, 2014 U.S. Dist. LEXIS 138700, 2014 WL 4925483 (E.D. Wis. 2014).

Opinion

WILLIAM C. GRIESBACH, Chief Judge.

Plaintiff Timothy Lewis brought this action against his former employer Bay Industries, Inc. (Bay) alleging unlawful retaliation in violation of Title VII of the Civil Rights Act of 1964 and wrongful discharge contrary to Wisconsin law. Lewis has also named as defendants AWS/gb Corporation, Bay’s parent company, and Schmidt Acquisition 114, Inc., an entity identified as Lewis’s employer on payroll and tax documentation. (Am. Compl. ¶¶ 3-4, ECF No. 7.) Lewis treats all entities collectively as his employer, and to simplify matters, all three defendants will be referred to collectively as “Bay.”

On November 1, 2013, Bay filed a motion for summary judgment. (ECF No. 22.) This was one day after Lewis filed a motion to compel seeking further information concerning Bay’s response to his request for production of emails and other [850]*850electronically stored information (ESI). The parties agreed to work out their differences and the Court stayed the deadline for Lewis’ response to Bay’s summary judgment motion until 14 days after the discovery was provided. Lewis withdrew the motion to compel on January 23, 2014. (ECF No. 43.)

Briefing on the motion for summary judgment was finally completed on April 23, 2014. On June 5, 2014, Lewis filed a motion for a stay of a decision on the summary judgment motion until after the Court decided a motion for sanctions against Bay for deleting emails and spoliation of evidence that Lewis intended to file. Unable to determine from the record then before it whether Lewis’ proposed motion had merit, the Court agreed to hold off deciding the pending summary judgment motion until after Lewis filed his motion for sanctions. Now, having considered the matter in its entirety, I conclude that Bay’s motion for summary judgment will be granted and Lewis’s motion for sanctions denied.

I. Background

Bay Industries, Inc., headquartered in Green Bay, is a family-run company primarily involved in the business of selling building materials. (Defs’ Proposed Findings of Fact (DPFOF) ¶ 1, ECF No. 29.) The company was founded by Arnold Schmidt and his wife in the 1970s, and Arnold served as President and CEO until October 2010 when his son Dan succeeded him. (Id. ¶ 9.) Bay hired Lewis, a certified public accountant, in May of 1997. (Lewis Decl. ¶ 1, ECF No. 58-1.)

Lewis contends that in early 2010, likely between January and March, Bay employee Kyla King informed him that she was hearing rumors about herself from others in the company. (DPFOF ¶ 78.) King, formerly a receptionist, had recently been promoted to the position of Travel Manager. In this position, King’s job was to manage the newly-created Travel Department and coordinate travel for Bay’s sales associates. (Id. ¶¶ 63-66.) Some administrative employees who had worked at Bay longer than King resented the promotion and spread rumors about King. (Id. ¶ 72.) The rumors consisted of tales that King would sit in Arnold Schmidt’s chair with her feet upon his desk, that she and Arnold had engaged in sex in his office, and that a newly purchased car she drove to work was purchased by Arnold. (Id. ¶ 79.) Some employees likened King to a former employee named Rose Jacobs, who in the past had also been rumored to have had an affair with Arnold Schmidt and to have received expensive gifts from him. (Decl. of Dawn Goddard ¶¶ 16, 21, ECF No. 58-10.) King also reported to Lewis that a manager named Tim Pendley had on one occasion pulled on her ponytail and told her he intended to list her name in his cellphone contacts as “Stupid.” (DPFOF ¶¶ 96-97.) Lewis subsequently informed Arnold Schmidt of the rumors. (Id. ¶ 85.) He also reported the hair pulling incident to Dan Schmidt. (D. Schmidt Dep. at 31:20-25, ECF No. 49-2.) Pendley claimed to have been acting in a playful manner, and Dan Schmidt took him at his word that he hád not intended his comments or behavior in a sexual way. (Id. at 32:4-11.)

In June 2010, Lewis e-mailed Arnold and Dan Schmidt concerning his belief that Human Resource Manager Carrie Mueller’s failures as the HR Manager were exposing the company to potential claims by disgruntled employees. (Id. ¶ 103.) He also stated he did not believe that either of them would want to be deposed about the “inappropriate and unethical” conduct that Mueller was allowing to exist. (Id. ¶ 104.) Lewis met with Arnold Schmidt again on July 13, 2010, and reiter[851]*851ated that he would testify truthfully if he were ever deposed. (Id. ¶ 109.)

In July 2013, King attempted to quiet the rumors by sending an email to General Manager Mike McClain, Human Resources Director Carrie Mueller, Dave Smits, and Arnold and Dan Schmidt. The email contained documents showing that she had purchased her own car, and it stated that King hoped the documents would “quell any and all rumors” that were being “created, spread, or commented upon” by the “above listed people” [email recipients] about her new car. (Id. ¶ 89.) Shortly after King sent the email, Dan Schmidt responded to King with a terse email calling her “pathetic” and an “insecure child” and informing her that she was “hated by everyone.” King went to Lewis’ office visibly upset and showed him a copy of the e-mail. (Lewis Decl. ¶ 5.)

Between August 3 and August 5, 2010, Lewis e-mailed Dan Schmidt and asked him to further investigate whether the hair pulling incident was “hostile,” as opposed to “playful,” as Pendley had previously characterized the incident. (Lewis Decl. ¶ 34, Ex. 5.) Lewis also met with Arnold and Dan Schmidt in early August 2010 and again expressed concerns over the company’s human resource practices. Lewis reiterated that if he were ever deposed “about any legal issue relating to the company” he would testify truthfully. Arnold and Dan Schmidt told Lewis they expected him to testify truthfully should he ever be called upon to answer questions. (DPFOF ¶¶ 112-13.) Arnold Schmidt ultimately decided to dissolve the Travel Department, which left King without a position in the company. Bay offered her a $250,000 severance package, and she accepted the offer. In doing so, she agreed to “destroy and render irretrievable all electronic communications ... in her possession.” (King Severance Agreement ¶ 8, ECF No. 49-8.)

Dan Schmidt succeeded Arnold as President and CEO on October 13, 2010. In the fall of 2010, Dan informed Arnold that he was considering eliminating Lewis’s position, and Arnold recommended that he not take that action. (Id. ¶¶ 123-24.) Dan initially heeded his father’s advice, but approximately six months later, Dan made the decision to eliminate Lewis’s position. (Id. ¶¶ 130, 135.) Dan Schmidt contends he eliminated the position as a cost-saving move in response to an economic downturn. (D. Schmidt Decl. ¶ 21, ECF No. 25.) Bay offered Lewis a $200,000 severance package, but he declined the offer and ultimately filed this action. (D. Schmidt Decl. ¶ 29.)

II. Summary Judgment Methodology

Summary judgment is proper if the pleadings, depositions, answers to interrogatories, and admissions on file, together with any affidavits, show that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c).

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Cite This Page — Counsel Stack

Bluebook (online)
51 F. Supp. 3d 846, 2014 U.S. Dist. LEXIS 138700, 2014 WL 4925483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-bay-industries-inc-wied-2014.