McBride v. Peak Wellness Center, Inc.

688 F.3d 698, 34 I.E.R. Cas. (BNA) 228, 19 Wage & Hour Cas.2d (BNA) 757, 2012 WL 3156325, 2012 U.S. App. LEXIS 16335, 96 Empl. Prac. Dec. (CCH) 44,580, 115 Fair Empl. Prac. Cas. (BNA) 1185
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 6, 2012
Docket11-8037
StatusPublished
Cited by45 cases

This text of 688 F.3d 698 (McBride v. Peak Wellness Center, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McBride v. Peak Wellness Center, Inc., 688 F.3d 698, 34 I.E.R. Cas. (BNA) 228, 19 Wage & Hour Cas.2d (BNA) 757, 2012 WL 3156325, 2012 U.S. App. LEXIS 16335, 96 Empl. Prac. Dec. (CCH) 44,580, 115 Fair Empl. Prac. Cas. (BNA) 1185 (10th Cir. 2012).

Opinion

TYMKOVICH, Circuit Judge.

Lisa McBride is an accountant who worked as Peak Wellness Center’s business manager for about nine years. Peak terminated her in 2009, citing job performance and morale issues. McBride, however, claims she was terminated in retaliation for bringing various accounting improprieties to the attention of Peak’s Board of Directors.

McBride brought several federal and state-law claims against Peak, among them (1) whistleblower retaliation under the federal False Claims Act (FCA); (2) violations of the federal Fair Labor Standards Act (FLSA); (3) breach of employment contract; (4) breach of implied covenant of good faith and fair dealing; (5) defamation; and (6) a federal sex discrimination claim under Title VII of the Civil Rights Act. After discovery, Peak moved for summary judgment on all claims, and the district court granted the motion. McBride appeals the grant of summary judgment, arguing that significant issues of material fact remain unresolved and that her claims should proceed to trial. She also appeals the district court’s denial of an evidentiary motion.

Finding no error in the district court’s decision, we AFFIRM its grant of summary judgment in favor of Peak.

I. Background

McBride, a certified public accountant, served for nine years as the business manager of Peak, a non-profit drug rehabilitation center in Laramie County, Wyoming. Peak received much of its funding from federal and state grants, and one of McBride’s job responsibilities was to ensure that Peak’s use of grant money complied with applicable accounting principles.

McBride was also responsible for coordinating periodic audits performed by external private entities. McBride claims she notified Peak regarding possible improprieties in the use of grant money, but that her efforts to address these concerns were met with resistance and retaliation.

The record indicates that McBride did not get along with some of her coworkers. Emails among Peak employees reveal that some viewed McBride as meddlesome; for example, one coworker became angry when McBride contacted one of Peak’s vendors regarding deficiencies in invoices the vendor had submitted to the coworker. Other emails included personal insults directed at McBride behind her back.

McBride also experienced friction in her relationship with her supervisor, Dr. Birney, who was Peak’s executive director. According to Birney, McBride failed to *703 bring her concerns regarding grant money accounting to him. Instead, McBride went over his head and raised her concerns directly in front of the Board of Directors. Birney was also concerned about McBride’s job performance and her impact on employee morale.

In the years leading up to her termination, McBride received several négative performance reviews. These reviews included suggestions for improvement, but subsequent reviews did not reflect any progress. Peak ultimately terminated McBride in January 2009.

About two months after she was terminated, McBride requested a Board of Directors review of her termination. Her request also included allegations of fraud committed by other Peak employees, including Birney. The Board commenced an internal investigation, but found no evidence of fraud. After concluding its investigation, the Board decided not to re-hire McBride.

McBride sued Peak, bringing the aforementioned claims under federal and state law. The district court granted summary judgment in favor of Peak on all claims.

II. Discussion

A, Standard of Review

“We review the district court’s summary judgment decision de novo, applying the same standard as the district court.” Brammer-Hoelter v. Twin Peaks Charter Acad., 602 F.3d 1175, 1184 (10th Cir.2010). “In applying this standard, we examine the factual record and draw reasonable inferences therefrom in the light most favorable to the nonmoving party,” that is, McBride. Id. (quoting Clinger v. N.M. Highlands Univ. Bd. of Regents, 215 F.3d 1162, 1165 (10th Cir.2000)).

In addition to the grant of summary judgment, McBride appeals the district court’s denial of expanded discovery. “We review the district court’s discovery order for abuse of discretion. A district court abuses its discretion where it commits a legal error or relies on clearly erroneous factual findings, or where there is no rational basis in the evidence for its ruling.” Trentadue v. FBI, 572 F.3d 794, 806 (10th Cir.2009) (citations and quotation marks omitted). The moving party— McBride—bears the burden of showing the district court abused its discretion.

B. McBride’s Claims

McBride challenges the district court’s dismissal of six distinct causes of action.

1. False Claims Act Whistleblower Retaliation

McBride first claims Peak terminated her because Peak believed McBride was considering bringing an FCA qui tam suit against Peak. McBride argues this constituted illegal retaliation under the whistle-blower provisions of the FCA.

The FCA imposes liability on any person who “knowingly presents, or causes to be presented, to an officer or employee of the United States Government ... a false or fraudulent claim for payment or approval,” 31 U.S.C. § 3729(a)(1), or “knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the Government,” § 3729(a)(2). The FCA authorizes individuals to bring qui tam suits on behalf of the government and keep a percentage of any monies recovered.

Since employees will often be in the best position to report frauds perpetrated by their employers, the FCA includes “whistleblower” provisions protecting employees who do so from retaliation. Whistleblowers are entitled to reinstatement, double back pay, and litigation costs and *704 attorneys’ fees. § 3730(h)(2). An employee need not actually file a qui tam action to qualify for whistleblower protection, but “the activity prompting plaintiffs discharge must have been taken ‘in furtherance of an FCA enforcement action.” United States ex rel. Ramseyer v. Century Healthcare Corp., 90 F.3d 1514, 1522 (10th Cir.1996).

In addition, a plaintiff claiming retaliatory discharge under the FCA “has the burden of pleading facts which would demonstrate that defendants had been put on notice that plaintiff was either taking action in furtherance of a private qui tam action or assisting in an FCA action brought by the government.” Id.

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688 F.3d 698, 34 I.E.R. Cas. (BNA) 228, 19 Wage & Hour Cas.2d (BNA) 757, 2012 WL 3156325, 2012 U.S. App. LEXIS 16335, 96 Empl. Prac. Dec. (CCH) 44,580, 115 Fair Empl. Prac. Cas. (BNA) 1185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcbride-v-peak-wellness-center-inc-ca10-2012.