Redeker v. Collateral Specialists CA1/4

CourtCalifornia Court of Appeal
DecidedNovember 4, 2013
DocketA136291
StatusUnpublished

This text of Redeker v. Collateral Specialists CA1/4 (Redeker v. Collateral Specialists CA1/4) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redeker v. Collateral Specialists CA1/4, (Cal. Ct. App. 2013).

Opinion

Filed 11/4/13 Redeker v. Collateral Specialists CA1/4 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FOUR

JAMES A. REDEKER, Plaintiff and Appellant, A136291 v. COLLATERAL SPECIALISTS INC., (Marin County Super. Ct. No. CIV1100779) Defendant and Respondent.

Plaintiff James A. Redeker brought this case against his former employer, Collateral Specialists Inc. (CSI), for wrongful termination in violation of public policy and Labor Code section 1102.5, unfair business practices, and invasion of privacy. In this appeal, he challenges the trial court’s order granting CSI summary judgment. We affirm summary adjudication of Redeker’s claim for invasion of privacy, but we reverse summary adjudication of his other three claims. I. FACTUAL AND PROCEDURAL BACKGROUND CSI provides services to banks and other lenders by inspecting collateral used to secure loans. The inspections are performed by field representatives, whom CSI classifies as independent contractors. Beginning in December 2007, CSI employed Redeker as Operations Manager, and his duties included assigning work to field representatives. Redeker reported to Kevin Power, CSI’s Vice President of Operations.

1 James Jennings (J. Jennings) was President of CSI and co-owned the company with Brian Jennings (B. Jennings), the Executive Vice President. Redeker came to believe that CSI’s classification of the field representatives as independent contractors, rather than employees, might be wrong. In November 2009, he met with Power and J. Jennings to discuss his concern. The meeting’s participants recall the event differently. J. Jennings testified that he told Redeker CSI was aware of various state laws governing employee classification, that CSI made every effort to comply with those laws, and that an IRS audit had confirmed CSI was properly classifying the field representatives. J. Jennings and Power testified that they left the meeting believing Redeker’s concerns had been resolved. According to Redeker, however, J. Jennings acknowledged that CSI’s compliance was questionable and stated that reclassifying the field representatives as employees would be too expensive. J. Jennings said that CSI was legally protected, notwithstanding the company’s questionable compliance, because the field representatives contractually agreed to be independent contractors and CSI exploited “loopholes” in state laws. In the month following the meeting, Redeker received a pay raise. Redeker continued to spend time on the classification issue. On January 26, 2010, he wrote a long e-mail to Power memorializing his version of the November meeting. In it, he stated that he had further researched the classification issue and had contacted officials in three states to discuss CSI’s compliance. He also urged CSI to research state laws further to ensure that it was acting legally. Redeker conveyed his concerns to CSI’s outside counsel, Gabriel Levine. Power found the January 26 e-mail to be “really negative” and “kind of shocking,” since he had believed the issue was resolved. Upon receiving the e-mail, he forwarded it to the Jenningses, who decided to review Redeker’s other e-mails on the corporate servers. In reviewing Redeker’s e-mails, CSI discovered that Redeker had forwarded an electronic file containing a list of CSI’s field representatives (the field-representatives file) from his work e-mail account to his personal e-mail account in early January. CSI

2 considered the list of field representatives important and confidential: J. Jennings testified that it was one of CSI’s “two most prized possessions,” along with the company’s customer list. In a confidentiality agreement that Redeker had signed after CSI hired him, he agreed to “not, except in performing [his] duties, remove or copy any confidential information or materials . . . without [CSI]’s written permission.” Redeker had obtained the field-representatives file in December 2009 while he was working on a different project he had undertaken without CSI’s direction or permission. In that project, Redeker used the file to check the names of field representatives against names in publicly available sex-offender databases. The field- representatives file had been sent to Redeker at his request by CSI’s information technology manager. The day he received the file, Redeker and another employee, Lynda Harrison, began checking the names on the list against names in the sex-offender databases. Later that day, Redeker e-mailed Power, who was on vacation, to notify him that the search had resulted in three matches. On January 5, after Power had returned from vacation, Redeker again e-mailed Power to tell him that there were three matches with about half the list checked. The next day, at 8:27 a.m., Redeker e-mailed Power again and asked whether Redeker and Harrison should keep checking to finish the list. In that e-mail, Redeker noted that CSI had deactivated one of the three field representatives whose names were included in the sex-offender databases, but that the other two continued to receive assignments. At 10:51 a.m., Power responded, “Let’s hold off until I have discussed the situation with the Jennings [sic]. I’ll get back to you next week.” The parties agree that Power and Redeker then had a conversation about the project later the same day, but they disagree about what was said. Power says he told Redeker to stop the search. Redeker says that Power agreed to let him work on the project at home that evening. At 4:00 p.m., Redeker e-mailed Power again. He thanked Power “for handling these very sensitive issues with others in CSI’s senior management team.” He also wrote, “I recognize the need to discuss and fully evaluate at the appropriate time the critical business issue of background checking, but why would CSI not want to immediately

3 deactivate the other two reps who we’re pretty sure are convicted criminals?” He expressed concern that CSI was still sending the remaining two field representatives out on jobs, although he recognized that it was Power’s decision to make. At 4:47 p.m., Redeker e-mailed the field-representatives file to his personal e-mail account. The next morning, on January 7, Power responded to Redeker’s 4:00 p.m. e-mail from the previous day: “I agree, I actually spoke to [the Jenningses] yesterday and Brian will be deactivating these reps today . . . . I have spoken to [Harrison] and she will continue checking the remainder of our reps. We will be doing a search on all newly added reps and we will set up an annual process as well. [¶] Thank you for your efforts, they are greatly appreciated.” The review of Redeker’s e-mails revealed two other notable exchanges. In the first, Redeker told a new employee that “CSI isn’t concerned that it provides sex offender convicted felons to work for customers,” citing the fact that only one of the three field representatives whose names were included in the sex-offender databases had been deactivated. In the second, Redeker sent Harrison a link to a book excerpt “about the Death Spiral and weakening of the organizational immune system,” asking that she “let [him] know if [she had] ever seen such anywhere in real life.” Both Jenningses testified that these e-mails actually played little, if any, role in the decision to terminate Redeker. On the morning of March 15, 2010, Redeker used his CSI computer to send an e- mail from his personal account to his own attorney, seeking advice about the classification issue and expressing concern about possible retaliation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McDonnell Douglas Corp. v. Green
411 U.S. 792 (Supreme Court, 1973)
Stevenson v. Superior Court
941 P.2d 1157 (California Supreme Court, 1997)
Tameny v. Atlantic Richfield Co.
610 P.2d 1330 (California Supreme Court, 1980)
Turner v. Anheuser-Busch, Inc.
876 P.2d 1022 (California Supreme Court, 1994)
Hernandez v. Hillsides, Inc.
211 P.3d 1063 (California Supreme Court, 2009)
Sprague v. Equifax, Inc.
166 Cal. App. 3d 1012 (California Court of Appeal, 1985)
TBG Insurance Services Corp. v. Superior Court
117 Cal. Rptr. 2d 155 (California Court of Appeal, 2002)
Hanson v. Lucky Stores, Inc.
87 Cal. Rptr. 2d 487 (California Court of Appeal, 1999)
Jackson v. Ryder Truck Rental, Inc.
16 Cal. App. 4th 1830 (California Court of Appeal, 1993)
King v. United Parcel Service, Inc.
60 Cal. Rptr. 3d 359 (California Court of Appeal, 2007)
Loggins v. Kaiser Permanente International
60 Cal. Rptr. 3d 45 (California Court of Appeal, 2007)
Sisemore v. Master Financial, Inc.
60 Cal. Rptr. 3d 719 (California Court of Appeal, 2007)
Nazir v. United Airlines, Inc.
178 Cal. App. 4th 243 (California Court of Appeal, 2009)
Arteaga v. Brink's, Inc.
163 Cal. App. 4th 327 (California Court of Appeal, 2008)
Flait v. North American Watch Corp.
3 Cal. App. 4th 467 (California Court of Appeal, 1992)
Akers v. County of San Diego
116 Cal. Rptr. 2d 602 (California Court of Appeal, 2002)
Yanowitz v. L'OREAL USA, INC.
116 P.3d 1123 (California Supreme Court, 2005)
Guz v. Bechtel National, Inc.
8 P.3d 1089 (California Supreme Court, 2000)
Miller v. Department of Corrections
115 P.3d 77 (California Supreme Court, 2005)
Pioneer Electronics (USA), Inc. v. Superior Court
150 P.3d 198 (California Supreme Court, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
Redeker v. Collateral Specialists CA1/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redeker-v-collateral-specialists-ca14-calctapp-2013.