Williams v. Extra Space Storage, Inc.

CourtDistrict Court, N.D. Illinois
DecidedJuly 9, 2019
Docket1:16-cv-03313
StatusUnknown

This text of Williams v. Extra Space Storage, Inc. (Williams v. Extra Space Storage, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Extra Space Storage, Inc., (N.D. Ill. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION JOHN WILLIAMS, ) ) Plaintiff, ) ) v. ) No. 16-cv-3313 ) EXTRA SPACE STORAGE, INC., Judge John J. Tharp, Jr. ) ) Defendant.

MEMORANDUM OPINION AND ORDER This case presents the not-uncommon question of whether an employee was fired for misconduct or on account of his race. Plaintiff John Williams alleges that his former employer, Defendant Extra Space Storage, Inc. (“Extra Space”), which operates self-storage facilities, terminated him from his position as a Store Manager because he is African American. Extra Space maintains that it terminated Williams because he violated company policy by failing to require a customer to sign a rental agreement in connection with her use of a storage unit, not because of Williams’ race. Williams says that he was properly exercising his managerial discretion to assist the customer, so the company’s explanation is a pretext. Firing Williams for trying to accommodate a customer may, or may not, have been a good business decision, but that is not the issue. The question here is whether the company fired Williams on account of his race. And because Williams has not provided any evidence upon which a reasonable jury could conclude that its policy was enforced against him because of his race, Extra Space’s motion for summary judgment is granted. BACKGROUND1 Storage USA, a storage company, hired Williams in 2001. In 2005, Extra Space acquired Storage USA from General Electric. At the time of the acquisition, Williams worked as a manager at Storage USA’s (and later Extra Space’s) Joliet facility. In June 2006, Extra Space offered Williams the position of Store Manager at Extra Space’s Wabash facility, which was only 15

minutes from his home; Williams accepted and remained in that position until September 2015, when the events relevant to this lawsuit occurred. As Store Manager, Williams had more responsibility than his assistant managers and was responsible for the daily operation of the store. On September 17, 2015, Williams granted an existing customer’s request to store items temporarily in a vacant unit she was not renting or leasing while she rearranged the items in her rented unit. Williams left a tag on the vacant unit to signify that the unit was vacant and ready to be rented, left the unit unlocked, and asked the customer to lock it when she was done using it. Williams did not require the customer to sign a new rental agreement for the additional unit she was using and did not create any other record documenting her use of the unit or the items she was storing in it. Nor did Williams know what items the customer was storing in the additional unit.

Williams did not ask his supervisor, Mitchell Pope, if he could allow the customer to store items in the vacant unit. Pope discovered that Williams had allowed the customer to use the storage unit without a rental agreement and subsequently terminated Williams’ employment on September 24, 2015. Williams says that initially, neither Pope nor Extra Space’s human resources representative could

1 Because this is Extra Space’s motion for summary judgment, the facts are construed in a light most favorable to Williams. See Johnson v. Advocate Health and Hospitals Corp., 892 F.3d 887, 893 (7th Cir. 2018). identify a specific policy that Williams violated, but Pope later issued a “final employee counseling form” explaining the reason for terminating Williams, which read as follows: John Williams violated [Extra Space] policy by allowing a customer to store items in a vacant unit without obtaining a lease, nor renting the unit to the customer. The customer’s items remained in the unit until 9/18/15 when the customer asked the assistant manager on duty to remove the lock from the unit so she could retrieve her belongings. The unit was locked with an Extra Space company lock and displayed a QC tag indicating the unit was cleaned and ready to rent. In order to maintain a consistently high-quality, professional working environment, the Company expects employees to adhere to certain general business practices that support the basic philosophies and principles of operation. Def.’s Statement of Material Facts (“DSOF”) ¶ 19, ECF No. 93. Pope’s supervisor and Extra Space’s human resources department agreed with and approved of Pope’s decision to terminate Williams. Pope also testified that “allowing a customer to store his or her belongings in a storage unit without a rental agreement violates Extra Space policy,” and that he terminated Williams because he allowed a customer to store items in a unit without a rental agreement. DSOF ¶¶ 20– 21, Ex. 4, Pope Decl. ¶ 4, ECF No. 93-5.2 According to Pope, “getting a rental agreement is so fundamental to [Extra Space’s] business” because “[i]t’s the primary protection for Extra Space and for customers, and it really governs the relationship that [Extra Space] ha[s] with [its] customers.” DSOF ¶ 25, Ex. 2, Pope Dep. 118:13–119:7, ECF No. 93-3. Pope’s supervisor,

2 Williams testified that Pope told the customer that Williams was not discharged for allowing the customer to use the empty storage unit but rather for “something else.” Pl.’s Statement of Additional Material Facts (“PSOF”) ¶ 12, ECF No. 102; PSOF, Ex. A, Williams Dep. 285:2- 15, ECF No. 102-2. Although the statement from Pope to the customer is likely not hearsay, see Fed. R. Evid. 801(d)(2)(D), the second layer of hearsay—the statement from the customer to Williams—is inadmissible as an out-of-court statement offered for the truth of the matter asserted, see Fed. R. Evid. 801(a)–(c), 802, 805. “A party may not rely upon inadmissible hearsay to oppose a motion for summary judgment.” Gunville v. Walker, 583 F.3d 979, 985 (7th Cir. 2009). Divisional Vice President Matthew Walker, testified that “[a]llowing a customer to store belongings in a storage unit without a rental agreement or a lease not only violates the basic tenets of Extra Space’s business, but it also exposes Extra Space to potentially significant liability.” Def.’s Resp. to PSOF ¶ 4, ECF No. 107; DSOF Ex. 5, Walker Decl. ¶ 6, ECF No. 93-6. Williams does not dispute that he allowed a customer to use the unit without a rental

agreement. He also admits that he violated Extra Space policy by leaving the vacant storage unit in which he allowed the customer to store her items unlocked. DSOF ¶ 27, Ex. 1, Williams Dep. 164:10-17, 166:6-8, ECF No. 93-2. He argues, nevertheless, that his actions were permitted by company policy. Denying the customer’s request to store her items in the vacant unit, Williams contends, would have been a bad idea, as the customer would then have been forced to place her property in a walkway or aisle instead, which would have blocked other customers from accessing their units and created a fire hazard. Extra Space’s Operations Manual that was in effect in September 2015 provides that “Extra Space is always searching for additional ways to make storing easier and more convenient for our customers. Some markets will require that we do the

additional service at little or no cost and others will be able to support a fee for the service. Most importantly, your supervisor must approve any fees charged for these services.” PSOF ¶ 6, Ex. A, Williams Dep. Ex. 5, PageID # 1182, ECF No. 102-2. The Employee Handbook in effect at the time calls for Store Managers to provide exceptional service for customers and take necessary steps to ensure the customers’ satisfaction. The Operations Manual further provides that “[w]hen a customer has a problem the Store Manager should attempt to resolve it.

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Bluebook (online)
Williams v. Extra Space Storage, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-extra-space-storage-inc-ilnd-2019.