Sussberg v. K-Mart Holding Corp.

463 F. Supp. 2d 704, 25 I.E.R. Cas. (BNA) 449, 2006 U.S. Dist. LEXIS 86110, 88 Empl. Prac. Dec. (CCH) 42,614, 2006 WL 3313766
CourtDistrict Court, E.D. Michigan
DecidedNovember 15, 2006
Docket05-70378
StatusPublished
Cited by2 cases

This text of 463 F. Supp. 2d 704 (Sussberg v. K-Mart Holding Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sussberg v. K-Mart Holding Corp., 463 F. Supp. 2d 704, 25 I.E.R. Cas. (BNA) 449, 2006 U.S. Dist. LEXIS 86110, 88 Empl. Prac. Dec. (CCH) 42,614, 2006 WL 3313766 (E.D. Mich. 2006).

Opinion

MEMORANDUM AND ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

COHN, District Judge.

I. Introduction

This is an employment case. Plaintiff Ronald Sussberg (Sussberg) was a buyer for Defendant K-Mart Holding Corporation (K-Mart), which operates retail department stores nation-wide. Sussberg claims K-Mart terminated his employment in violation of the whistle-blower provision of the Sarbanes-Oxley Act, 18 U.S.C. § 1514A et seq., in retaliation for informing his superiors that his supervisor may have been accepting bribes and kickbacks from clothing vendors. Before the Court is K-Mart’s motion for summary judgment. For the following reasons, the motion will be granted.

II. Background 1

Sussberg began working as a buyer for K-Mart in October, 1996. 2 He was responsible for K-Mart’s swimwear and acti-vewear apparel lines during the relevant time period. From the beginning, Suss-berg generally received satisfactory performance reviews. However, Sussberg’s supervisors noted that he sometimes had strained working relationships with co-buyers and assistants. For example, Rocco Ingemi, Sussberg’s supervisor during the 1999 fiscal year, wrote that Sussberg “meets performance expectations,” but commented that Sussberg “must continue to refine his approach with the development of staff. More patience and sensitivity is needed with staff members that are on a learning curve with new assignments.” Likewise, in his 2001 fiscal year review, Rick Putnam (Putman), Sussberg’s manager at the time, commented to Suss-berg that: “you need to become more engaged with co-buyers and other support team functions so you understand what they do and what they in turn need from you,” and “you need to do a better job of leading and informing your team and all support teams,” and “need to work on improving morale and motivation of all team members.” Even with these comments, Sussberg’s job performance was deemed “effective” overall, and he was rated outstanding in some categories. 3

B.

In May, 2002, Michael Lewis (Lewis), the Vice President of Ladies Wear, became Sussberg’s direct supervisor. Suss-berg says that Lewis had a reputation for accepting kickbacks and that at some point Lewis pressured him to buy from Mocean, a vendor that Sussberg says had previously owned a different company that had gone bankrupt and had failed to fulfill contractual obligations it had with K-Mart.

In September, 2002, Rachel Bradford (Bradford), a K-Mart Human Resources Director, called Sussberg and asked him about the leadership in his division because there were concerns about Putnam’s performance. Sussberg says Bradford also asked about Lewis’ performance during the call. Sussberg says that he told *707 Bradford that Lewis had a reputation for accepting kickbacks and pushing Buyers to purchase apparel from specific vendors who were Lewis’ friends even when those vendors had negative reputations. Bradford asked for specific details regarding the allegations; Sussberg provided only third-hand information. Sussberg says that Bradford expressed disbelief at the allegations.

In October, 2002, Sussberg says he followed up with Bradford by asking if she needed additional information on the kickback allegations, but Bradford again expressed disbelief that Lewis had a reputation for accepting kickbacks.

In June, 2003, Sussberg sent an anonymous letter to K-Mart president Julian Day. The letter stated:

Dear Mr. Day,
A “heads up” that it is widely believed that Mike Lewis (Ladieswear) [sic] is “on the take” (Graft). I would pass along that it has long been common knowledge.
Please investigate to arrive at your own conclusion.

K-Mart’s Director of Investigations, Joseph Sinischo (Sinischo), was assigned to investigate the allegations against Lewis. Lewis had no knowledge of the investigation, and he testified at his deposition that he first learned of the allegations in December, 2004.

Also during the summer of 2003, Lewis prepared Sussberg’s fiscal year 2002 performance review. There are three versions of this review in Sussberg’s employment file. Lewis says that the first two versions were drafts. Lewis says he prepared the first version (Review # 1) sometime in late June or early July, 2003, and rated Sussberg “unsatisfactory” in five of the eight categories, and “unsatisfactory” overall. Lewis says he sent the draft to Bradford who made numerous, undated, hand-written comments on it, including: “retaliation for sending email to JD [Julian Day] ... timing ... need to get past the email.” Bradford’s notes asked Lewis to reduce the number of “unsatisfactory” ratings to three. Bradford says that she wrote the notes because Lewis had not yet discussed his concerns with Sussberg and she was worried that Sussberg would interpret the negative rating as retaliation for an email Sussberg had written to Bradford and Day relating to K-Mart’s polices toward homosexuals. 4

Lewis says that he prepared a second version (Review #2) incorporating Bradford’s suggestions. Review # 2 rated Sussberg “effective” overall, and “unsatisfactory” in three categories. Bradford made additional comments on this draft and sent an email to Lewis on July 23, 2003, outlining additional recommendations for changes to the review.

The third and final review (Review # 3) was completed in August, 2003. Sussberg received an “effective” rating overall. Review # 3 stated that Sussberg “is not team oriented. I’ve received complaints from two key support staff departments and recently have had two co-buyers refuse to work with him.” It further stated that Sussberg was viewed as not “having full control of his business,” “does not always encourage a team atmosphere,” is “very abrupt with support groups and staff,” and “needs to be more patient and a better list[e]ner.” Sussberg’s rating for “Building Effective Teams” was unsatisfactory.

*708 Sussberg disputes Lewis and Bradford’s version of the chronology and says that the first two reviews were prepared in the reverse order. He says that Bradford was retaliating against him by altering his performance review from “effective” to “unsatisfactory” because he complained to her about Lewis and he sent the anonymous letter to Day. Sussberg however, admits that he been told that one co-buyer did not want to work with him, but says that he was not given an explanation of the circumstances. He also says that he knew of another complaint from a computer support person who felt that Sussberg had not gotten data to him soon enough. Sussberg explains that he was short-staffed at that time.

C.

Sometime in July, 2003, Sinischo concluded that Sussberg had likely sent the anonymous letter by comparing the handwriting on the letter with Sussberg’s job application after he learned of Sussberg’s earlier discussion with Bradford.

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463 F. Supp. 2d 704, 25 I.E.R. Cas. (BNA) 449, 2006 U.S. Dist. LEXIS 86110, 88 Empl. Prac. Dec. (CCH) 42,614, 2006 WL 3313766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sussberg-v-k-mart-holding-corp-mied-2006.