Owens v. American National Red Cross

673 F. Supp. 1156, 2 I.E.R. Cas. (BNA) 1145, 1987 U.S. Dist. LEXIS 10754, 1987 WL 3574
CourtDistrict Court, D. Connecticut
DecidedJune 22, 1987
DocketCiv. H-84-1254 (JAC)
StatusPublished
Cited by22 cases

This text of 673 F. Supp. 1156 (Owens v. American National Red Cross) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owens v. American National Red Cross, 673 F. Supp. 1156, 2 I.E.R. Cas. (BNA) 1145, 1987 U.S. Dist. LEXIS 10754, 1987 WL 3574 (D. Conn. 1987).

Opinion

RULING ON DEFENDANTS’ MOTIONS FOR SUMMARY JUDGMENT

JOSÉ A. CABRANES, District Judge:

Background

This is a diversity action alleging wrongful discharge from employment and breach of contract. The separate motions for summary judgment filed by the two defendants present questions as to whether defendant American National Red Cross (“National”) should be considered plaintiffs employer; whether the practices and written policies of defendant American Red Cross Greater Hartford Chapter and Blood Center 1 (“Greater Hartford”) as embodied in its employee handbook and other documents created an enforceable contract that was breached when plaintiff was discharged; and whether its discharge of plaintiff was violative of public policy. The plaintiff was employed at Greater Hartford between October 1975 and December 1982. Her work during this period was apparently satisfactory. However, on Friday, November 19, 1982, under confused circumstances, plaintiff took half a personal day to attend the unemployment hearing of a former employee of Greater Hartford. At that hearing she was apparently forced into the position of declaring herself as a representative of either her employer or of the former employee. She elected to identify herself as a representative of the employer. Soon afterward, she was terminated. The stated grounds for her termination were that she was:

untrustworthy, divisive within the department and undermining of management, also on November 23rd employee misrepresented the Red Gross at an unemployment appeals hearing. The relationship between the employee and the employer has deteriorated into irreconci-liable differences.

Termination Document (dated Dec. 7, 1982) attached to Plaintiff’s Memorandum in Opposition to Defendant Greater Hartford Chapter’s Motion for Summary Judgment (filed June 17, 1986) (“Plaintiffs Memorandum in Opposition to Greater Hartford”). However, in dismissing Greater Hartford’s appeal from a grant of unemployment compensation to plaintiff, the Appeals Referee of the Employment Security Appeals Division of the State of Connecticut concluded that plaintiff was terminated for attending the unemployment compensation hearing, not for repeated wilful misconduct, and that her actions in attending the hearing did not constitute wilful misconduct under the circumstances. See Decision of the Appeals Referee (dated Feb. 10, 1983) at *1158 tached to Plaintiffs Memorandum in Opposition to Greater Hartford.

I.

National’s Motion for Summary Judgment

National pleads as an affirmative defense that it was not plaintiff's employer and has moved for summary judgment on this ground.

In order to grant a motion for summary judgment, the court must find that there is no “genuine issue of material fact” and that “the moving party is entitled to judgment as a matter of law.” Rule 56(c), Fed.R.Civ.P. In determining whether there is a material issue of fact, the court must “resolve all ambiguities and draw all inferences against the moving party.” Schwabenbauer v. Board of Education, 667 F.2d 305, 313 (2d Cir.1981). However, the party opposing summary judgment “ ‘may not rest upon mere conclusory allegations or denials’ as a vehicle for obtaining a trial,” but instead “must bring to the district court’s attention some affirmative indication that his version of relevant events is not fanciful.” Quinn v. Syracuse Model Neighborhood Corporation, 613 F.2d 438, 445 (2d Cir.1980) (quoting SEC v. Research Automation Corporation, 585 F.2d 31, 33 (2d Cir.1978)). Where the motion is properly supported, “the non-moving party may not rest upon mere allegations or denials of his pleading, but ... must set forth specific facts showing that there is a genuine issue for trial.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986).

A. The Facts

The following facts regarding the relationship of National and Greater Hartford are undisputed, based upon the parties’ written submissions or acknowledgements at the oral argument held on July 2, 1986. No members of National’s Board of Governors serve on Greater Hartford's Board of Directors. No officer of National is an officer of Greater Hartford. National and Greater Hartford have separate budgets. Greater Hartford receives no funds from National. Greater Hartford has its own set of bylaws. Greater Hartford acts autonomously with regard to hiring, firing and compensation of employees. The personnel handbooks upon which plaintiff predicates her claims were issued and prepared entirely by Greater Hartford.

It is also undisputed that the advertisement plaintiff responded to when she applied for her employment referred to “The American Red Cross,” not Greater Hartford. Furthermore, the words “American National Red Cross” or “American Red Cross,” appear prominently on all public documents distributed by Greater Hartford. Greater Hartford has voluntarily enrolled its employees in the American National Red Cross Retirement system; however, Greater Hartford was not required to enroll its employees in this system. Greater Hartford also makes all contributions on behalf of these employees, without any funding or financial assistance from National.

B. The Legal Standard

Inasmuch as the parties agree as to all the facts concerning the relationship between National and Greater Hartford, the sole question presented is the legal conclusion to be drawn from these facts, which in turn depends upon the legal standard to be applied. In support of its position that it was not plaintiffs employer, National relies upon criteria originally developed by the National Labor Relations Board (“NLRB") and endorsed by the Supreme Court in Radio and Television Broadcast Technicians Local Union 1264 v. Broadcast Service of Mobile, Inc., 380 U.S. 255, 256, 85 S.Ct. 876, 877,13 L.Ed.2d 789 (1965) (per curiam) ("Radio and Television Broadcast Technicians”), to determine whether two or more apparent entities are actually a single entity in its relationship to employees. Under the “four-factor test” developed by the NLRB to answer this question in cases arising under the National Labor Relations Act (“NLRA”) a court considers:

1. functional interrelation of operations;
2. centralized control of labor relations;
*1159 3. common management; and
4. common ownership or financial control.

See Radio and Television Broadcast Technicians, supra, 380 U.S. at 256, 85 S.Ct. at 877.

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Bluebook (online)
673 F. Supp. 1156, 2 I.E.R. Cas. (BNA) 1145, 1987 U.S. Dist. LEXIS 10754, 1987 WL 3574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-v-american-national-red-cross-ctd-1987.