Sam A. Virciglio v. Work Train Staffing LLC

674 F. App'x 879
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 30, 2016
Docket15-10421
StatusUnpublished
Cited by9 cases

This text of 674 F. App'x 879 (Sam A. Virciglio v. Work Train Staffing LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sam A. Virciglio v. Work Train Staffing LLC, 674 F. App'x 879 (11th Cir. 2016).

Opinion

JULIE CARNES, Circuit Judge:

Plaintiff Sam Virciglio was fired from his job and thereafter sued his employer for retaliation, in violation of the Age Discrimination in Employment Act (“ADEA”) and Title VII, and for failure to notify Plaintiff of his rights under the Comprehensive Omnibus Budget Reconciliation Act (“COBRA”). The district court granted summary judgment to Plaintiff on the COBRA claim and a jury found for him on the retaliation claim. Thereafter, the district court entered judgment consistent with its earlier ruling and with the jury’s verdict. Defendants now appeal this judgment. After careful review of the record, and with the benefit of oral argument, we affirm.

BACKGROUND

I. Factual Background

This case arises out of Plaintiffs employment with and subsequent termination from Defendants Work Train USA and Work Train Staffing (collectively, ‘Work *883 Train” or “Defendants”). 1 Work Train is in the staffing business. It earns revenues by hiring staffing employees whom it then uses to provide services to Work Train clients and by claiming federal tax credits for its hiring of these staffing employees. Defendant Petrusnek is one of the owners of Work Train. He hired Plaintiff in September 2010 as a sales manager for Work Train. In addition to a salary, Plaintiffs compensation included employer-paid health insurance with family coverage through Blue Cross Blue Shield.

According to Defendants, Plaintiff failed to meet sales expectations during his first year of employment. As a result, in November 2011, Defendants changed Plaintiffs compensation to a commission-based system and informed him that he would have to start paying the full premium for his health insurance in January 2012. Defendants also assigned Plaintiff a monthly sales quota, effective immediately.

Plaintiff failed to meet his December 2011 sales quota, and he took leave during the last few days of that month to spend time with his wife, who was terminally ill and being treated for cancer. When Plaintiff returned to work on January 3, 2012, Petrusnek met with him to discuss his performance and to determine whether Plaintiff was anticipating any upcoming sales. Plaintiff claims that he gave Petrus-nek a letter during the January 3 meeting accusing Defendants of age and gender discrimination.

On January 4, 2012, the day after his meeting with Petrusnek, Plaintiff filed an EEOC charge alleging gender discrimination. Two days later, on January 6, 2012, Petrusnek met with Plaintiff again and this time fired him, allegedly for performance reasons. Construing the facts in favor of Plaintiff, Petrusnek had by that date received Plaintiffs letter alleging age and gender discrimination, but was not yet aware of Plaintiffs EEOC charge.

During this January 6 termination meeting, Petrusnek informed Plaintiff that part of his January 2012 insurance premium had been deducted from his final paycheck, and that Defendants would pay the remaining portion. Consistent with this information, Plaintiffs final paycheck included a $467 deduction for “Health.” Based on this conversation with Petrusnek, Plaintiff therefore believed he had insurance coverage through January 2012, and that he did not need to obtain alternative coverage until February 2012. Defendants never notified Plaintiff, either during the January 6 meeting or at any other time prior to this lawsuit, of his right under COBRA to continuation of coverage.

Defendants received notice of Plaintiffs EEOC charge in mid-January 2012. 2 A few weeks later, Petrusnek contacted Blue Cross and requested that Plaintiffs health insurance be canceled retroactive to January 1, 2012. Petrusnek’s request was honored, and Work Train received a refund of $1,904 from Blue Cross for Plaintiffs first .quarter premium. Defendants did not offer *884 to reimburse Plaintiff for the $476 part of the premium that had been deducted from his final paycheck until after Plaintiff filed this lawsuit.

Plaintiffs wife died in March 2012. The following month, Plaintiff learned that Defendants had retroactively canceled his insurance, which meant he had no medical coverage for the month of January 2012. Although Plaintiff had purchased alternative insurance that began on February 1, 2012, he had incurred in January more than $60,000 in medical expenses, primarily for his wife’s cancer treatments. These expenses had been initially paid by Blue Cross, but it subsequently rebilled Plaintiff for payment and ultimately sent the billing to collections. At some point during this litigation, Defendants requested reinstatement of Plaintiffs health insurance for January 2012, .and the bills were then paid.

II. Procedural History

After his termination and subsequent discovery of the retroactive cancellation of his insurance, Plaintiff filed this lawsuit alleging: (1) a violation of his COBRA notice rights, (2) age and gender discrimination in violation of the ADEA and Title VII, (3) retaliation in violation of the same statutes; and (4) fraud and misrepresentation in violation of various state laws. Following discovery, the parties filed cross-motions for summary judgment.

The district court granted summary judgment to Defendants on Plaintiffs age and gender discrimination claims, but found that questions of fact precluded summary judgment on Plaintiffs retaliation claims, as well as on some of his state law claims. With respect to the COBRA claim, the court granted summary judgment to Plaintiff, finding as a matter of law that: (1) Defendants did not qualify for the small-employer exception to COBRA; (2) Plaintiffs termination was a qualifying event that triggered COBRA’s notice requirement; (3) Defendants failed to provide the required notice; and (4) Defendants did so in bad faith, warranting a penalty under COBRA. The court advised Defendants that it would determine at trial the amount of the penalty to be imposed.

The district court subsequently held a jury trial on Plaintiffs remaining claims. At the close of Plaintiffs evidence, Defendants moved for judgment as a matter of law, arguing that there was insufficient evidence to support those claims and further that Defendant Work Train USA was not subject to any liability because it was not Plaintiffs employer at the time of his termination. Plaintiff did not oppose the motion as to his state law claims, and the district court dismissed those claims. The court, however, declined to enter judgment as to the other claims, and it submitted the case to the jury.

The jury returned a verdict for Plaintiff based on Defendants’ retaliatory' cancellation of Plaintiffs insurance and awarded him $76,000 in compensatory damages. The jury also found that the retaliation was willful under the ADEA, resulting in an additional $76,000 award to Plaintiff. Finally, it awarded $176,000 in punitive damages under Title VII. For its part, and in accordance with its earlier grant of summary judgment to Plaintiff on the COBRA notice claim, the district court imposed a $3,300 penalty based on that claim. 3

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Bluebook (online)
674 F. App'x 879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sam-a-virciglio-v-work-train-staffing-llc-ca11-2016.