Walls v. Tennessee CVS Pharmacy, LLC

21 F. Supp. 3d 889, 2014 WL 1846223, 2014 U.S. Dist. LEXIS 63721
CourtDistrict Court, M.D. Tennessee
DecidedMay 8, 2014
DocketCase No. 3:12-cv-1152
StatusPublished

This text of 21 F. Supp. 3d 889 (Walls v. Tennessee CVS Pharmacy, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walls v. Tennessee CVS Pharmacy, LLC, 21 F. Supp. 3d 889, 2014 WL 1846223, 2014 U.S. Dist. LEXIS 63721 (M.D. Tenn. 2014).

Opinion

MEMORANDUM

ALETA A. TRAUGER, District Judge.

Defendant Tennessee CVS Pharmacy, LLC (“CVS”) has filed a Motion for Summary Judgment (Docket No. 19), to which plaintiff Michael Walls filed a Response in opposition (Docket No. 27), and CVS filed a Reply (Docket No. 40). For the reasons stated herein, the motion will be denied.

BACKGROUND

I. Procedural History

Michael Walls was employed by CVS from 1998 to 2011. Walls contends that, from 2008 through October 18, 2011, he observed and reported evidence of illegal activity at multiple CVS facilities. On November 9, 2011, CVS terminated Walls, ostensibly for having violated company policy by having his wife, who was not a CVS employee, assist him in moving items within his store’s storage warehouse two months earlier. Walls contends that CVS in fact terminated him for reporting illegal activity at CVS, in violation of (1) the Tennessee Public Protection Act (“TPPA”), Tenn.Code. Ann. § 50-1-304(b), and (2) Tennessee common law. CVS has moved for summary judgment on both claims.

II. Facts

A. Circumstances of Walls’ Termination

Walls began working for CVS in December 1998. In 2001, he was promoted to the position of store manager, a position he maintained at various CVS stores through his termination on November 9, 2011. As a store manager, Walls was responsible for an entire store, although each pharmacy was under the responsibility of a pharmacist.

In 2007, Walls became the store manager for a CVS store in Madison, Tennessee (the “Madison store”). Walls observed a pharmacist, Dr. Billy Warner, who was occasionally assigned to his store, suffering from some type of mental confusion and loss of cognition. Walls reported the issue to CVS management at a meeting of the district managers. According to Walls, several district managers expressed that they did not want that pharmacist in their respective stores. Nevertheless, Walls received no response concerning this issue.

While Walls served as the Madison store manager, CVS honored him as the so-called “Paragon nominee” within CVS’s [892]*892performance program. Walls’ District Manager at the time, Todd Mitchell, nominated him for the honor.

Approximately eight months after first raising the issue concerning Dr. Warner, Walls again raised the issue at a meeting of the district managers and in direct conversations with management. Approximately one week after this second complaint — apparently in or about September 2008 — CVS transferred Walls to a store in the Bordeaux area of Nashville, Tennessee (the “Bordeaux store”).

Within one week after Walls arrived at the Bordeaux store, Walls .and a CVS pharmacist discovered over 20,000 prescription medicines in the pharmacy that were past the expiration date printed on the bottle, including some bottles that were as many as four years past their expiration date. Given that many of the bottles were only partially full, Walls was seriously concerned that, prior to Walls’ arrival, the Bordeaux store’s pharmacy had been dispensing medicines to customers past the expiration date. The medications included pain medications, anti-rejection drugs, HIV medications, and medications provided to children on a regular basis for various health issues. Although Walls did not, and does not, know whether any customers actually received out-of-date prescription medicines before his September 2008 arrival at the Bordeaux store, it at least violated CVS company policy to have out-of-date medications at the store in the first place. In approximately October 2008, Walls also discovered morphine in a safe that should have been returned to the manufacturer, based on the manufacturer’s recall of the product several months earlier for improper dosage.

Upon discovering this “overwhelming” volume of out-of-date medications at the Bordeaux store, Walls and the store’s pharmacist removed all of the out-of-date medications from the pharmacy and packaged them separately, thereby ensuring that they would not be dispensed to customers. Also, immediately after identifying the issue, Walls reported his concerns to his superiors within the CVS hierarchy, including his District Manager, the supervising pharmacist, and the Regional Loss Prevention Supervisor.

Despite Walls’ numerous reports about these serious issues, no one at CVS discussed the matter with him or otherwise apprised him of any efforts (if there were any)’ by CVS to investigate Walls’ concerns.

In July -2010, having received no information concerning his numerous reports about the out-of-date medications, Walls sent a letter to Tom Ryan, CVS’s Chairman and Chief Executive Officer. Walls’ letter relayed his concerns about his discovery of the out-of-date medications at the Bordeaux store in September 2008. Unbeknownst to Walls, CVS conducted an investigation following Walls’ letter to CEO Ryan. Area Loss Prevention Director Donnie Dugger and Area Director of Human Resources Sue Vandersall investigated Walls’ reports of out-of-date prescription medications and found no reason to believe that any of the medications had actually been sold or dispensed to customers.1 CVS apparently did not inform Walls of this investigation, let alone involve him in it.

Unsatisfied with the lack of a direct response from CVS, Walls also began making calls in August 2010 to a CVS “ethics hotline” maintained by a third-party provider on behalf of CVS. Walls claims that [893]*893he made seven calls to the hotline between August 2010 and October 18, 2011.

Having received no information from CVS after sending the July 2010 letter, Walls continued to investigate the issue of CVS stores dispensing out-of-date medications. In January 2011, Walls contacted the ethics hotline to report that, rather than returning the out-of-date medications to the company warehouse, CVS had transferred over $100,000 in out-of-date medications from a store on Thompson Lane (in Nashville, Tennessee) to a store on Nolensville Road (also in Nashville, Tennessee). On April 2011, Walls also discovered that, the Bordeaux store (which he was still managing) had received out-of-date medications directly from CVS’s Knoxville warehouse in a regular drug shipment. According to Walls, one of those medications even bore a “Sharpie” mark on it, indicating that another store had marked it as out-of-date and returned it to the Knoxville warehouse, which apparently turned around and shipped it to the Bordeaux store. About two weeks later, Walls again found an out-of-date medication within a shipment from the Knoxville distribution center. On both of these occasions, the pharmacist showed Walls the drugs, and Walls advised the pharmacist to report the issue to the Pharmacy District Manager, who in turn reported to the District Manager.

In approximately May 2011, Arturo Cla-vijo became Walls’ District Manager. Shortly after becoming District Manager, Clavijo scheduled a store visit with Walls at the Bordeaux store. At the end of the meeting, Walls gave Clavijo a manila envelope containing a list of all the out-of-date medications discovered in the pharmacy upon Walls’ arrival in September 2008, plus a copy of Walls’ July 2010 letter to CEO Ryan about the issue. Walls and Clavijo offered conflicting testimony as to what happened next.

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Bluebook (online)
21 F. Supp. 3d 889, 2014 WL 1846223, 2014 U.S. Dist. LEXIS 63721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walls-v-tennessee-cvs-pharmacy-llc-tnmd-2014.