Vegas v. United Steelworkers, Local 12-591

73 F. Supp. 3d 1260, 2014 WL 7334826
CourtDistrict Court, D. Hawaii
DecidedDecember 18, 2014
DocketCivil No. 13-00641 SOM/RLP
StatusPublished

This text of 73 F. Supp. 3d 1260 (Vegas v. United Steelworkers, Local 12-591) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vegas v. United Steelworkers, Local 12-591, 73 F. Supp. 3d 1260, 2014 WL 7334826 (D. Haw. 2014).

Opinion

ORDER GRANTING MOTIONS FOR SUMMARY JUDGMENT

SUSAN OKI MOLLWAY, Chief Judge.

I. INTRODUCTION.

Plaintiff Michael Vegas alleges that he was wrongfully terminated by his employer and that his union did not fairly represent him in subsequent grievance proceedings. Defendants move for summary judgment, arguing that Vegas cannot demonstrate that his discharge was both contrary to the collective bargaining agreement and that his union breached its duty of fair representation.

This case involves what is known as a “hybrid” claim in the context of claims by unionized employees. The record includes evidence supporting Vegas’s employer’s determination that Vegas fraudulently claimed to have been sent wrong items in a company-sponsored incentive program, that Vegas returned the items and sought to exchange them for more expensive items, and that Vegas lied during the employer’s investigation of his actions. Vegas’s employer reasonably relied on FedEx packing slips indicating that the weights of the items shipped to Vegas differed greatly from the weights of the items he returned, and on the unavailability of the items returned in the shipper’s stock at the time the items were allegedly sent. Based on this same evidence, Vegas’s union, United Steelworkers, Local 12-591, rationally decided not to take Vegas’s grievance to arbitration, instead deeming it unlikely that Vegas would recover in an arbitration and opting to settle the matter. The court, concluding that Vegas identifies no triable issue as to his “hybrid” claim, grants summary judgment in favor of Defendants.

II. FACTUAL BACKGROUND.

Vegas began working for BHP at an oil refinery on the West side of Oahu on October 7, 1991. See Deposition of Michael Vegas at 75-76, ECF No. 65-2, Pa-gelD # s 472-73.

Tesoro bought BHP in the mid-1990s. Id. at 78, PagelD # 474. Vegas received Tesoro’s Code of Business Conduct, Doing the Right Thing. Id. at 79, PagelD # 475; ECF No. 65-2, PagelD # 491 (October 18, 2001, acknowledgment of receipt). This code expressed Tesoro’s “core values,” including honesty and integrity. Id., Pa-gelD #494. It required Tesoro employees to “Always obey the law and act in a professional, honest, and ethical manner when acting on behalf of or as a representative of the company.” Id., PagelD # 504. It also required Tesoro employees to “Cooperate and tell the whole truth when responding to an investigation or audit.” Id.

[1263]*1263Clayton Tamashiro, a human resources manager for Tesoro, stated that Tesoro had a “safety incentive program” called “LOKAHI,” which stood for “Leading Onward, Keeping All Employees Healthy & Industrious.” See Declaration of Clayton Tamashiro ¶¶ 1, 2, ECF No. 65-3, PagelD # 533. Through this program, Tesoro employees could earn points by completing approved safety activities, and the points could be redeemed for various rewards. The incentive program was run by an outside vendor, Inspiras, LLC, which provided for the online redemption of points. When a Tesoro employee redeemed points for merchandise, the merchandise was shipped directly to the employee by Inspi-ras, which was responsible for any return or exchange of the merchandise. Id. ¶¶ 2, 3, PagelD # 533-34.

On or about July 2, 2012, Colleen Umat-hum of Inspiras informed Tamashiro of a possible fraudulent return by Vegas. Umathum told Tamashiro that, in January 2012, Vegas had returned a Bissell vacuum cleaner and had claimed to have redeemed his points for a more expensive Dyson vacuum cleaner. Umathum also told Ta-mashiro that, in June 2012, Vegas had returned a Lasko fan, claiming that he had redeemed points for a more expensive Dyson fan.

Umathum said that the shipping weights of the boxes sent to Vegas via FedEx were different from the shipping weights of the boxes returned by Vegas to Inspiras. For example, the box with the fan sent to Vegas weighed about 15 pounds, but the box with the fan Vegas returned weighed 4.5 pounds. Id. ¶ 4, PagelD # 53; ECF No. 68-3, PagelD #325 (email from Umathum to Tamashiro). According to Umathum, FedEx records indicated that box with the vacuum cleaner sent to Vegas in January 2012 weighed 9.9 pounds, but the box he returned weighed 4.4 pounds. See ECF No. 63-8, PagelD # 326. Umat-hum told Tamashiro that neither the Las-ko fan nor the Bissell vacuum cleaner returned by Vegas was carried by Inspirus’s distribution center. See ECF No. 63-8, PagelD #325. Inspiras appears to have offered some Lasko fans and Bissell vacuum cleaners, see ECF No. 81-2, PagelD # 639 and 649 (copy of Inspiras’s online catalog), but there is no evidence in the record that Inspiras carried the models Vegas returned or that those models were in stock at the relevant times. Umathum stated that, nevertheless, when the distribution center received the Bissell vacuum cleaner as a return from Vegas, it sent Vegas a Dyson vacuum cleaner. Id.

Tamashiro says that, based on the information from Inspiras, Tesoro initiated an investigation into possible misconduct by Vegas. See Tamashiro Deck ¶ 4, ECF No. 65-3, PagelD # 534.

On July 5, 2012, Tamashiro met with Vegas and Clyde Foreman, Tesoro’s regional security manager, regarding Vegas’s redemption of points and the return of the Lasko fan and the Bissell vacuum cleaner. See Tamashiro Decl. ¶5, ECF No. 65-3, PagelD # 535. Asked about the differences in shipping weights, Vegas had no explanation other than to suggest that someone at Inspiras or FedEx may have switched the merchandise. In July 2012, Vegas was placed on administrative leave with pay pending further investigation. Id. Vegas says he grieved this suspension, although the court does not have before it an initial grievance document relating to the suspension. See Vegas Deck ¶ 14, ECF No. 81, PagelD # 632.

Article 19 of Tesoro’s collective bargaining agreement governs the grievance process. Section 19.01 establishes a “Worker’s Committee” with not more than five Tesoro employees. See ECF No. 63-20, PagelD # 409. Under section 19.05 of the CBA, an employee is required to “seek [1264]*1264direct adjustment with his/her supervisor” in a process called “Step One.” Id. If the grievance is not resolved by the supervisor to the employee’s satisfaction, a “Step Two” grievance may be instituted within 15 days of the supervisor’s decision through a request by the Worker’s Committee for a meeting with local management to discuss the grievance. Id. “The time and place of the meeting [would] be designated by the Local Management,” which was to issue a written decision within 14 days of the meeting. Id., PagelD # 410. Within thirty days of that decision, the union could request arbitration, which would be “Step Three” of the grievance process. Id.

At some point after Vegas’s suspension, Umathum told Tamashiro that Inspiras had asked FedEx to look into Vegas’s claim that the wrong box had been delivered. FedEx responded that it found no evidence of tampering or of Vegas’s receipt of the wrong fan. Umathum sent copies of the FedEx labels for the shipping and return of the fans to Tamashiro. Id. ¶ 6, PagelD # s 535-36. The FedEx tracking label for the fan sent to Vegas indicates that the box weighed 14.3 pounds. See ECF No. 63-8, PagelD # 335; ECF No. 81-3, PagelD # 645 (better copy of same). The tracking label for the fan returned by Vegas indicates that it weighed 9.5 pounds.

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Bluebook (online)
73 F. Supp. 3d 1260, 2014 WL 7334826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vegas-v-united-steelworkers-local-12-591-hid-2014.