Matthews v. Herc Rentals, Inc.

District Court, E.D. North Carolina·Decided November 27, 2023·No. 7:21-cv-00089·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA SOUTHERN DIVISION No. 7:21-CV-89-BO

DUSTIN MATTHEWS, ) Plaintiff, ) V. ORDER HERC RENTALS INC., Defendant. )

This cause comes before the Court on plaintiffs motion for sanctions under Fed. R. Civ. P. 37(e) and defendant’s motion for summary judgment pursuant to Fed. R. Civ. P. 56. Also pending is plaintiffs motion/objection to evidence filed in support of defendant’s motion for summary judgment and defendant’s motion for leave to manually file exhibit. The appropriate responses and replies have been filed, or the time for doing so has expired, and the motions are each ripe for ruling. For the reasons that follow, plaintiff's motions are denied and defendant’s motions are granted. BACKGROUND Plaintiff began his employment with defendant (“Herc”) in February 2016 when he was hired as a tractor-trailer driver. Plaintiff worked for Herc at its Wilmington, North Carolina branch. While plaintiff was employed by Herc, he was supervised by the Wilmington branch manager, Richard Markuson. The regional manager when plaintiff began working for Herc was Jason Glover, and at the time plaintiff's employment was terminated it was Rob Jones. Jeremy Palmatier was a shop supervisor at the Wilmington branch. While working for Herc, plaintiff made deliveries to Herc customers and worked with a coordinator to schedule deliveries as well as load and unload equipment. As a part of their duties,

plaintiff and other drivers were required to conduct pre-and post-trip inspections of their tractors and complete a Daily Vehicle Inspection Report (“DVIR)” for both their tractor and trailer. DVIRs were to be completed daily and submitted to the branch, and were to include inspections of tires, safety equipment, and various systems. Drivers, including plaintiff, would also keep a notepad in their vehicles to make note of any additional issues. In his complaint, plaintiff alleges that he made multiple workplace safety complaints to Herc. In May 2016, plaintiff alleges he reported a problem regarding an illegal tire tread to Markuson, who told plaintiff to operate the vehicle despite the tire problem. Plaintiff called Herc’s human resources 1-800 number and was told by a safety official not to operate the vehicle. Compl. 4 18. In June 2017, plaintiff alleges he made a report to Markuson regarding a co-worker smoking in a Here vehicle, which was against policy. Plaintiff then reported the issue to Glover, who addressed the issue. Plaintiff alleges that Markuson berated plaintiff thereafter for “going over his head.” Jd. 19. In May 2018, plaintiff discovered a piece of broken equipment that was set to be transferred from one customer to another. After being told by a Herc salesman to not tell the customer and leave it at the job site, plaintiff again reached out to Glover, and Markuson again allegedly berated plaintiff for “trying to get [him] fired.” Jd. J 20. Plaintiff makes other, similar allegations regarding needed repairs, plaintiff reporting the issue on his DVIR or contacting Glover, and Markuson berating plaintiff for “going over his head.” Jd. JJ 21-23. In plaintiff's 2018 annual review, Markuson found that plaintiff was a good driver but that he had issues with his attitude and problems with co-workers. Plaintiff alleges that his poor performance review resulted in his receiving a lower annual raise than other employees. In October 2019, plaintiff was seen by Palmatier driving a forklift without wearing a seatbelt, in violation of Herc policy. According to Herc’s Employee Handbook, operating equipment without a safety belt

is a serious offense. [DE 52-10 p. 34 of 84]. Plaintiff contends that the seatbelt was broken. Also in October 2019, Palmatier discovered plaintiff had clocked in for work before he actually arrived at the Here facility. Plaintiff contends that he did not falsify his timecard and that he had been instructed to perform work on his way to the facility. In March 2020, plaintiff reported a safety violation to the Department of Transportation (DOT)/Truck Safety Manager, Ralph Treece, after Markuson permitted Palmatier to drive a truck for which he did not, on information and belief, have the proper medical examiner’s certificate (medical card). Compl. § 28. In May 2020, plaintiff complained to Markuson and Jones, who had replaced Glover, about not receiving personal protective equipment (PPE) which was being provided due to the COVID- 19 pandemic. /d. § 27. Plaintiff alleges that in mid-May 2020, he was asked to work extra hours and when he submitted his overtime to James Lordo, a senior sales and operations coordinator, he was told he would not be paid overtime. In June 2020, plaintiffs co-worker Joe Marino reported to Palmatier, Markuson, and Lordo that plaintiff had told him (Marino) that he “looked like George Floyd.” The next day, Palmatier emailed Markuson to express his concerns for his own safety and the safety of other employees based upon plaintiff's conduct. Herc initiated an investigation of plaintiff's behavior through its Senior Director of Corporate Security. Plaintiff was suspended pending the investigation, and his employment was terminated on June 26, 2020. Plaintiff initiated this action on May 14, 2021. He alleges two claims for relief: violation of North Carolina’s Retaliatory Employment Discrimination Act (REDA), N.C. Gen. Stat. § 95- 240, et seq., and wrongful discharge in violation of North Carolina public policy. Plaintiff alleges that Herc retaliated against him due to his complaints of workplace safety violations pursuant to the Occupational Safety and Health Act of North Carolina and overtime wage violations pursuant

to the North Carolina Wage and Hour Act. Plaintiff alleges that Herc also violated public policy when it terminated him following his complaints about workplace safety and wage and hour violations. DISCUSSION I. Motion for sanctions The Court addresses first plaintiff's motion for sanctions pursuant to Rule 37(e) for spoliation of evidence. Spoliation of evidence is “the destruction or material alteration of evidence or... the failure to preserve property for another’s use as evidence in pending or reasonably foreseeable litigation.” Silvestri v. Gen. Motors Corp., 271 F.3d 583, 590 (4th Cir. 2001) (citation omitted). A party seeking sanctions based on spoliation must establish four threshold requirements: (1) the information should have been preserved, (2) the information was lost, (3) the information was lost because a party failed to take reasonable steps to preserve it, and (4) the information cannot be restored or recovered through additional discovery. Eshelman v. Puma Biotechnology, Inc., 2017 U.S. Dist. LEXIS 87282, at *13 (E.D.N.C. June 7, 2017) (citation omitted); Knight v. Boehringer Ingelheim Pharm., Inc., 323 F. Supp. 3d 837, 844-45 (S.D.W. Va. 2018) (citation omitted); Fed. R. Civ. P. 37(e). If those elements are met, the district court has broad discretion in choosing an appropriate sanction “both for the purpose of leveling the evidentiary playing field and for the purpose of sanctioning the improper conduct.” Silvestri, 271 F.3d at 590 (quoting Vodusek v. Bayliner Marine Corp., 71 F.3d 148, 156 (4th Cir. 1995)).

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Matthews v. Herc Rentals, Inc., (E.D.N.C. 2023).

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