Sheridan v. Caesars Enterprise Services LLC

District Court, D. Nevada·Decided September 27, 2021·No. 2:20-cv-00126·Unknown

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 JULIE SHERIDAN, Case No.: 2:20-cv-00126-APG-DJA

4 Plaintiff Order Granting Defendant’s Motion for Summary Judgment and Denying 5 v. Plaintiff’s Motion for Partial Summary Judgment 6 CAESARS ENTERPRISE SERVICES LLC, [ECF Nos. 39, 43] 7 Defendant

8 Plaintiff Julie Sheridan sues her former employer, defendant Caesars Enterprise Services 9 LLC, for breach of an employment contract. Sheridan alleges that Caesars did not have cause to 10 fire her as that term is defined in the contract, and she therefore is entitled to a severance 11 payment for termination without cause. The parties each move for summary judgment. Caesars 12 argues there is no genuine dispute that it reasonably believed it had cause to terminate Sheridan 13 following a night of “drunken shenanigans” during a corporate-sponsored team meeting in Las 14 Vegas. ECF No. 39 at 2. Sheridan argues that Caesars never gave her a reason for her 15 termination at the time, and its post hoc explanations do not justify her termination for cause as it 16 is defined in the parties’ written contract. I grant Caesars’ motion and deny Sheridan’s motion 17 because no reasonable jury could find that Caesars breached the employment contract. 18 I. BACKGROUND 19 A. The Contract 20 In 2017, Sheridan and Caesars entered into an employment contract with a three-year 21 term. ECF No. 40-1. Caesars could terminate Sheridan without cause but would have to pay her 22 a severance if it did so. Id. at 2, 8-9. Under section 9(b) of the contract, Caesars could terminate 23 Sheridan without paying severance if it had “reasonable belief” that Sheridan “committed an act 1 (or has failed to act in a manner) which constitutes Cause.” Id. at 7. As relevant here, section 2 9(b) defined cause to include: 3 B. Employee’s failure to responsibly manage complimentary expenses entrusted to the Employee, as determined in the reasonable exercise of discretion 4 by the Company; C. any act of willful or gross misconduct, insubordination or dishonesty 5 on the part of the Employee which causes or threatens to cause harm to the Company or any of its affiliates, as determined in the reasonable exercise of 6 discretion by the Company; D. the use by Employee of illegal drugs, non-prescribed controlled 7 substances, and/or the abuse of legally-prescribed controlled substances or the use of alcohol to an extent that it interferes with the performance of Employee’s 8 duties under this Agreement, as determined in the reasonable exercise of discretion by the Company; 9 . . . H. a breach by Employee of any material provision of this Agreement, . . . 10 or of the rules contained in the Company’s Employee Handbook or Code of Conduct, departmental rules and procedures, or other Company rules and 11 regulations.

12 Id. at 7-8. 13 Caesars’ code of conduct provided that the company typically used a progressive 14 discipline process, but it warned employees that “violations of more than one Conduct 15 Standard in a single act will result in increased or multiple disciplinary steps up to and 16 including immediate separation.” ECF No. 40-6 at 2. It also advised employees that 17 “some misconduct or performance may be so severe that the Company may issue a Final 18 Written Warning or Separation of Employment upon the first offense without prior 19 progressive discipline.” Id. The list of conduct standards included not using “obscene or 20 profane language . . . with intention or desire to harm another.” Id. It advised employees 21 to be “honest and forthcoming in all communication,” and to not knowingly “omit 22 pertinent information, particularly regarding investigations or reports.” Id. It required 23 employees not to violate Caesars’ alcohol policy. Id. at 3. And it advised employees to 1 “use professional judgment and . . . refrain from acts of gross misjudgment, carelessness, 2 [and] negligence in the performance of one’s job.” Id. 3 Caesars’ alcohol policy stated that “occasionally, alcohol is served at social events 4 sponsored by the Company. Only the moderate and limited use of alcohol is acceptable. 5 [Employees] are expected to remain responsible, professional and sober at all times.”

6 ECF No. 41-13 at 3. 7 B. Events Leading Up to Termination 8 Sheridan was employed as Director of Strategic Account Management (SAM). 9 ECF No. 40-1 at 2. Sheridan arranged for a SAM team meeting in Las Vegas for August 10 5-8, 2019. ECF No. 40-2 at 11-12. The meeting was a corporate event and Caesars paid 11 the expenses through complimentary expenses charged to the participants’ rooms. Id. at 12 15, 39; ECF No. 40-7 at 3-4. 13 On August 7 around 5:20 p.m., the team gathered for dinner at a restaurant called 14 Burro Borracho at the Rio, which is a Caesars property. ECF No. 40-2 at 15. There were

15 14 team members at the dinner and 43 drinks were ordered, including 14 shooters of 16 Fireball whisky. ECF No. 40-3 at 27, 29. Sheridan charged the dinner and drinks to her 17 room. Id. at 27; ECF No. 41-3. 18 After dinner, the team went to a comedy show then to the Lobby Bar at the Rio. 19 ECF No. 40-3 at 16. At approximately 8:53 p.m., Sheridan was photographed in the 20 Lobby Bar with a bottle of Fireball whisky in her mouth. ECF Nos. 40-2 at 13, 16; 41-1 21 at 2. The bottle still had the cap on, so Sheridan was not drinking the whisky in this 22 photo. ECF No. 40-2 at 13-14. Sheridan explained that some of her team members were 23 formerly associated with a different team at Caesars known as In Market East or IME. Id. 1 at 14. Sheridan believed that IME had a tradition or inside joke related to drinking 2 Fireball out of the bottle, so she was pretending to do the same as part of a team building 3 exercise. Id. at 14, 16, 30, 35-36. The picture was taken by team member Steve Ramey, 4 who then sent it to other SAM and IME team members. Id. at 14. Ramey charged 11 5 alcoholic beverages from the Lobby Bar to his room. ECF Nos. 40-3 at 28; 41-4; 41-5. It

6 was against policy for employees to charge alcohol to their rooms. ECF No. 40-8 at 3-4. 7 Sheridan and some of the SAM team members later gathered at the lobby bar in 8 the Cromwell hotel, another Caesars property. ECF No. 40-2 at 28, 45. At this bar, at 9 approximately 9:49 p.m., Sheridan took a bottle of Fireball from the bartender and posed 10 for a video in which she pretended to take a shot from the Fireball bottle. Id. at 28-30; 11 ECF No. 42 (manually filed Ex. 11). She states that she did not drink any whisky, 12 though, because she put her tongue on the bottle opening so that no liquid would go into 13 her mouth. ECF No. 40-2 at 35. In the video, Sheridan stated “Fuck IM East.” ECF No. 14 43-5 at 38-39; ECF No. 42 (manually filed Ex. 9). That video was posted to a group chat

15 that was viewable by 24 other employees in the IME team. ECF No. 43-5 at 38. Sheridan 16 thereafter poured eight shots of Fireball out of the same bottle she had just put to her 17 mouth. ECF Nos. 40-2 at 37-8; 42 (manually filed Ex. 16). 18 Sheridan offered shots to the bartenders, who declined. ECF Nos. 40-2 at 43-45; 19 42 (manually filed Ex. 17). Sheridan explained that offering shots to the bartenders was 20 just “in fun,” and she had “no expectations the bartenders would do a shot” while 21 working. ECF No. 40-2 at 45. Caesars’ bartenders are not allowed to drink while 22 working. Id. at 45-46. 23 1 Sheridan also sent drinks to two other team members who were sitting a short 2 distance away in the same bar. ECF No. 40-3 at 3-4. One of those team members flipped 3 off Sheridan, who returned the gesture. ECF Nos. 40-3 at 4-6; 42 (manually filed Ex. 18). 4 Sheridan stated it was all in good fun and not insubordinate behavior that she needed to 5 address. ECF No. 40-3 at 7-8.

6 At approximately 10:38 p.m., Sheridan closed out the bill at the bar by charging 7 everything to her room. ECF No. 40-3 at 11-12.

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