Mazer v. Safeway, Inc.

398 F. Supp. 2d 412, 36 Employee Benefits Cas. (BNA) 2475, 10 Wage & Hour Cas.2d (BNA) 1867, 2005 U.S. Dist. LEXIS 25802, 2005 WL 2839756
CourtDistrict Court, D. Maryland
DecidedOctober 27, 2005
DocketCIV.A. AW-03-3650
StatusPublished
Cited by14 cases

This text of 398 F. Supp. 2d 412 (Mazer v. Safeway, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mazer v. Safeway, Inc., 398 F. Supp. 2d 412, 36 Employee Benefits Cas. (BNA) 2475, 10 Wage & Hour Cas.2d (BNA) 1867, 2005 U.S. Dist. LEXIS 25802, 2005 WL 2839756 (D. Md. 2005).

Opinion

MEMORANDUM OPINION

WILLIAMS, District Judge.

Plaintiff Timothy Mazer (“Plaintiff’ or “Mazer”) has brought this suit against Safeway, Inc. (“Safeway” or “Defendant”), alleging that Safeway failed to pay Mazer compensation and benefits in violation of the Employment Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001-1461 (2005), and Maryland law. Currently pending before the Court is Defendant’s Motion for Partial Summary Judgment [37]. The Court has reviewed the entire record, as well as the Pleadings, with respect to the instant motion. No hearing is deemed necessary. See Local Rule 105.6 (D.Md.2004). For the reasons stated below, the Court will GRANT in part and DENY in part Defendant’s Motion for Summary Judgment.

FACTUAL & PROCEDURAL BACKGROUND

The following facts are taken in the light most favorable to the non-movant. Mazer was an employee at Safeway who has held several management positions. In 1996, Mazer became Safeway’s Director of Pricing for the Eastern Division.

Safeway’s Centralization and Layoffs

Sometime around late 2001 or early 2002, Safeway initiated a plan to centralize jobs, duties, and responsibilities to its corporate headquarters in California. To announce certain layoffs, Roger Herding (“Herding”), the Vice President of Marketing, and Donna Gwin (“Gwin”), the Director of Human Resources for the Eastern Division held a meeting with the employees that would be terminated. At that meeting, Mazer learned that Safeway planned to eliminate Mazer’s job as Pricing Director for the Eastern Division as part of this reorganization. Herding initially told Mazer that he would be laid off on July 5, 2002.

Herding and Gwin explained to the employees at this meeting what benefits and severance might be available to them. Although employees had to work through the initial layoff date to be eligible for any severance payments, the employees that left Safeway after that date would be eligible for severance pay as long as they gave Safeway two weeks notice. Herding and Gwin emphasized to these employees, however, that they would not be eligible for severance pay if Safeway terminated their employment for an involuntary reason. Herding and Gwin also distributed written materials summarizing this policy as well as the answer to questions related to benefits and severance to the discharged employees.

As Mazer’s July 5, 2002 layoff date drew near, Herding asked Mazer to continue his employment at Safeway until August 9, 2002. With the second layoff date approaching, Herding requested once again that Mazer continue his employment at Safeway. Mazer agreed to remain in his position as Safeway’s Director of Pricing for the Eastern Division until January 3, 2003.

At some point after Mazer learned that Safeway planned to eliminate his position, he asked Gwin whether he would be eligible for the 2002 bonus. To receive a bonus, an employee had to hold a “bonus eligible” position 1 on November 1, 2002. Gwin testified that she told Mazer that “he *416 would have to give two weeks’ [sic ] notice. And that if he [gave]... notice that he would be entitled to his bonus, any bonus that was earned .... [I]f there was any bonus earned, that he would be entitled to it.” Gwin Depo. at 38.

Mazer’s Termination

Realizing that his employment at Safeway would soon come to an end, Mazer began searching for other employment. Mazer applied for a pricing supervisor position at Safeway’s competitor, Giant Food, Inc. (“Giant”). Mazer interviewed with Giant in November 2002, and in December 2002, Giant offered Mazer the position of Pricing Supervisor. Mazer accepted the position at Giant and prepared to leave his employer, Safeway. Mazer submitted a letter of resignation to Safeway on December 19, 2002, giving two weeks notice. Mazer’s supervisors, however, decided that he should not work the two weeks from December 19, 2002 to January 2, 2002. At Safeway’s request, Mazer gathered his personal items and left the Safeway building with an escort on the afternoon of December 19, 2002.

The day after Mazer tendered his resignation, Safeway began an investigation of Mazer’s use of pricing information. Safeway’s computer system had filters in place that would identify files sent over the network that could contain potential pornographic or offensive material. Apparently, one of these filters stopped email sent by Mazer, which contained confidential pricing information. Mazer acknowledges that he attempted to email pricing information to his home computer on December 18, 2002. Mazer admits that he copied and attempted to send a list of approximately 1,100 items sold by Safeway. This list also included information related to each item’s cost, retail price, gross profit and sensitivity code. Because of the size of this file, Mazer had difficulty sending this data by email. Eventually, he copied the information onto a disk. Copying or sending email with company files to a home computer, Mazer contends, was common practice among Safeway management. Mazer also states that he needed this information to perform his normal duties, which included identifying, investigating and correcting erroneous entries on this price listing database.

On Monday, December 23, 2002, Mazer met with Safeway’s Eastern Division Security Director, Tom Harris, as well as Herding and Gwin. At this meeting, Harris questioned Mazer about his computer activities. In particular, Harris and Mazer discussed his treatment of the company’s confidential pricing information. Harris asked Mazer if he could go to Mazer’s house to retrieve any confidential pricing information there. Mazer agreed. When they reached the home, Mazer gave Harris diskettes and Mazer’s planner. Harris asked to enter the house to search Mazer’s personal computer, but Mazer responded that he had relatives in town and requested that Harris come back at another more convenient time.

Several days after this incident, Harris once again contacted Mazer. Harris inquired whether Mazer had any additional confidential Safeway information. In response, Mazer stated that he had collected other items and would return these items to Safeway. That day, December 27, 2002, Mazer met Harris in the Eastern Division parking lot and returned additional tapes, disks, and a CD-ROM containing Safeway’s business strategy in a competitive market. At the parking lot meeting, Harris gave Mazer two letters. The first letter stated that Safeway had terminated Mazer’s employment, effective December 23, 2002, for cause. The second letter alleged that Mazer misappropriated confi *417 dential company information. Specifically, this letter stated:

Based on investigation ... we believe that, prior to the termination of your employment with Safeway, you accessed and downloaded ... Safeway’s pricing database and related or derived pricing reports, including price sensitivity indicators, and other Confidential Information.
Your actions in misappropriating confidential information are unlawful and actionable, and directly violate the Maryland Uniform Trade Secrets Act and your Duty of Loyalty to the Company ...

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398 F. Supp. 2d 412, 36 Employee Benefits Cas. (BNA) 2475, 10 Wage & Hour Cas.2d (BNA) 1867, 2005 U.S. Dist. LEXIS 25802, 2005 WL 2839756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mazer-v-safeway-inc-mdd-2005.