In and of itself, this is not sufficient as a matter of law to support a claim for constructive discharge.
Ms. Nunnally also claims that her immediate supervisor, Ms. Siekkinen, abruptly ended their relationship of trust, subjected her to open hostility, mistrust and unprecedented criticism. In the background section of her brief, Ms. Nunnally points to several pages of the deposition transcript of Ms. Siekkinen that were not provided to the court, including pages 53-56 and 85. Ms. Nunnally also points to a portion of Ms. Siekkinen's deposition where she stated that she was frustrated with Ms. Nunnally because she had "a negative attitude and a lot of reps didn't want to ask her for help because they didn't want to approach her." (Siekkinen Dep. 102:6-12.) Ms. Siekkinen also testified that she did not counsel Ms. Nunnally about her "negative attitude." (Siekkinen Dep. 103:4-11.) The record does not support Ms. Nunnally's assertion that she was subjected to "open hostility," "mistrust" or "unprecedented criticism." This allegation is therefore insufficient as a matter of law to support a claim for constructive discharge.
Ms. Nunnally next asserts that she was constructively discharged because employees refused to work with her and that this behavior was tolerated by management. Ms. Nunnally does not point to any evidence in the record about the refusal of certain employees to work with her and management's tolerance of these actions. It does appear that there were some instances where employees complained that Ms. Nunnally was not sufficiently responsive or was unavailable. (Declaration of Jean E. Huffington
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("Huffington Decl.") (Dkt. # 28), Ex. B.) This is not sufficient as a matter of law to support a claim for constructive discharge.
Ms. Nunnally also contends that she was isolated from employees who showed her respect. There are no citations to the record in this section of Ms. Nunnally's brief. As a result, the court is forced to guess as to what conduct this allegation relates. The allegation appears to relate to the cubicle move, which has been previously discussed. This alone is not sufficient as a matter of law to support a claim for constructive discharge.
Ms. Nunnally claims that she was denied a promotion (or transfer) to a position for which she was qualified and would have alleviated some of her concerns about retaliation. XO points out that Ms. Nunnally conceded that this would not have been a promotion but a change to a different position that involved working from home rather than in the office. (Nunnally Dep. 206:16-208:10.) Ms. Nunnally was interviewed for the position and was not hired. The court determines that under these circumstances the fact that Ms. Nunnally was not selected for one alternate position does not constitute constructive discharge.
Ms. Nunnally next argues that her complaints of retaliation were neither investigated or acknowledged. This is simply not correct. Ms. Nunnally sent an email to Mr. Wilcox on March 28, 2005, complaining of retaliation. (See Benton Decl., Ex. 1.) An internal investigation was conducted and Ms. Nunnally was interviewed on April 14, 2005. (See Benton Decl., Ex. 2.) In an April 25, 2005 investigation report, Susan Knorr concluded that there was no basis to Ms. Nunnally's complaints. (See id.) On June 1, 2005, Ms. Nunnally sent an email to Mr. Grivner, then the XO CEO, which alluded to retaliation. (See Nunnally Decl., Ex. 1.) She asked him to keep her concerns confidential because she did "not need anymore retaliation." (Id.) The email does not appear to raise
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issues that were different than those investigated by Protiviti and XO Human Resources. It is not clear what XO did, if anything, in response to this email. This by itself is not sufficient as a matter of law to support a claim for constructive discharge.
Relatedly, Ms. Nunnally states that she was denied the treatment promised in the company's policy regarding retaliation and investigation of employee complaints. Again, because Ms. Nunnally did not provide record citations in this section it is impossible to determine what evidence in the record she claims supports this statement. This, without more, is insufficient as a matter of law to support a claim for constructive discharge. Ms. Nunnally next contends that her supervisor, Ms. Siekkinen, sent an email to sales representatives that any appointments they wanted to make with Ms. Nunnally needed to go through Ms. Siekkinen. (Nunnally Decl. ¶ 16.) Ms. Nunnally does admit that after she pointed out that she alone had been singled out, a new email went out stating that all appointments with any sales engineer needed to go through Ms. Siekkinen. (See id.) Although this appears suspicious, it does not rise to the level of a constructive discharge.
Lastly, Ms. Nunnally states that XO management discussed with Ms. Nunnally's peers their specific intention to make Ms. Nunnally leave XO because of her ethics hotline complaints. This appears to relate to Ms. Murchison's declaration where she states that "[Ms. Siekkinen] told me the reason they wanted to be rid of [Ms. Nunnally] was that [Ms. Nunnally] had lied about them, had said bad things that were not true in an effort to get them into trouble"; "I was cautioned during a ‘welcome' conversation with Matt Fassnacht, a more senior level regional manager of XO Communications, that [Ms. Nunnally] was ‘trouble,' and that I should stay away from her"; and "[m]ore than one of the conversations with [Ms. Siekkinen] about [Ms. Nunnally] occurred in the presence of Paul Merritt, the General Manager of XO Communications' Seattle Office." (Murchison
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Decl. ¶¶ 11-12, 14.) As discussed earlier, these allegations are troubling and seem to confirm at least some of what Ms. Nunnally believed was happening.
The complaints articulated by Ms. Nunnally in isolation seem innocuous and even when considered as a group do not raise a genuine issue of material fact regarding whether Ms. Nunnally was constructively discharged. However, when Ms. Nunnally's declaration is considered along with Ms. Murchison's declaration, a genuine issue of material fact is raised. Particularly concerning is Ms. Murchison's statement that Ms. Nunnally's supervisor asked Ms. Murchison to monitor Ms. Nunnally's behavior and that XO was looking for any way to terminate Ms. Nunnally. The court determines that there is a genuine issue of material fact regarding whether Ms. Nunnally was constructively discharged. Because a genuine issue of material fact exists, the court declines to grant summary judgment with respect to the constructive discharge element of the public policy claim.
XO also argues that Ms. Nunnally fails to show any connection between the alleged hostile conduct and her resignation in January 2006. It contends that the identified incidents occurred in the Spring and Summer of 2005 and are not close enough in time to her resignation to be connected. In her deposition Ms. Nunnally stated that the incidents of which she complained continued to the time that she departed XO. (Nunnally Dep. 220:8-221:3.) Based on Ms. Nunnally's testimony, the court rejects XO's argument.
B. Violation of Public Policy
XO contends that even if Ms. Nunnally can establish constructive discharge, her public policy claim still fails because Ms. Nunnally cannot satisfy the jeopardy element of the claim. Ms. Nunnally asserts that she has provided evidence demonstrating each of the elements of a constructive discharge in violation of public policy claim. XO is
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correct, Ms. Nunnally cannot establish the jeopardy element because, as a matter of law, the other means for promoting the public policy at issue are adequate.
An "at will" employment contract may generally be terminated by either the employer or employee at will. There is no dispute here that Ms. Nunnally was an "at will" employee. Washington courts have recognized an exception to this general rule when an employee is discharged in violation of public policy. Hubbard v. Spokane County, 50 P.3d 602, 606 (Wash. 2002). Public policy tort actions have been allowed in four different situations: "(1) where employees are fired for refusing to commit an illegal act; (2) where employees are fired for performing a public duty or obligation, such as serving jury duty; (3) where employees are fired for exercising a legal right or privilege, such as filing workers' compensation claims; and (4) where employees are fired in retaliation for reporting employer misconduct, i.e., whistleblowing." Gardner v. Loomis Armored Inc., 913 P.2d 377, 379 (Wash. 1996). "To establish liability for the tort, a plaintiff must prove (1) the existence of a clear public policy (the clarity element); (2) that discouraging the conduct would jeopardize the public policy (the jeopardy element); (3) that this conduct caused the discharge (the causation element); and (4) (if the employer presents evidence its conduct was justified) that the justification was invalid or pretextual (absence of justification element). Korslund v. Dyncorp Tri-Cities Servs., Inc., 88 P.3d 966, 977 (Wash. Ct. App. 2004).
Because it is dispositive in this case, the court will first analyze the jeopardy element. "To establish the jeopardy element, a plaintiff must show that he or she engaged in particular conduct, and the conduct directly relates to the public policy, or was necessary for the effective enforcement of the public policy. This requires the plaintiff to argue that other means for promoting the policy are inadequate." Hubbard, 50 P.3d at 609 (internal citations and quotation marks omitted). A plaintiff must also show how the
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threat of dismissal will discourage others from engaging in the protected conduct. Id. "While the question whether the jeopardy element is satisfied generally involves a question of fact, the question whether adequate alternative means for promoting the public policy exist may present a question of law, i.e., where the inquiry is limited to examining existing laws to determine whether they provide adequate alternative means of promoting the public policy." Korslund v. Dyncorp Tri-Cities Servs., Inc., 125 P.3d 119, 126 (Wash. 2005) ("Korslund II").
XO argues that because Ms. Nunnally could have pursued her claim using the framework provided under Sarbanes-Oxley she cannot establish the jeopardy element. 18 U.S.C. § 1514A(a) provides in relevant part:
No company . . . or any officer, employee, contractor, subcontractor, or agent of such company, may discharge, demote, suspend, threaten, harass or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the employee--(1) to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders, when the information or assistance is provided to or the investigation is conducted by--(C) a person with supervisory authority over the employee (or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct) . . . .
The act further provides that a person who alleges discharge or discrimination by any person in violation of subsection (a) may seek relief by filing a complaint with the Secretary of Labor or, if the Secretary fails to issue a decision within 180 days of the filing of the complaint and the complainant has not caused the delay, the person may file an action in the appropriate United States District Court. See 18 U.S.C. § 1514A(b)(1). Remedies include "all relief necessary to make the employee whole." 18 U.S.C. 1514A(c)(1). This relief may take the form of reinstatement at the same level of seniority, back pay with interest, and compensation for any special damages sustained
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including litigation costs, expert witness fees and reasonable attorney fees. 18 U.S.C. § 1514A(c)(2).
On September 16, 2005, Ms. Nunnally filed a "Complaint for Retaliation Against Whistleblower" pursuant to 18 U.S.C. §1514A and 29 C.F.R. § 1980.103. (See Nunnally Decl. ¶ 20, Ex. 2.) In that action Ms. Nunnally alleged many of the same acts that form the basis of this complaint including:
a. Nunnally experienced a hostile work environment involving, among other things, hostility and accusations about contacts to the ethics officer, accusations of insubordination, interference with Nunnally's proper discharge of work duties, and isolation of Nunnally from account executives.
b. Commencing in March 2005 and continuing unabated to the date of this Complaint, Nunnally was subjected to new and overt hostile treatment by Angela Thomas and subtle hostility from Albena Inglesbe and Dylan Fraser. Nunnally's complaints about this treatment were not taken seriously and the treatment continued.
c. May 11, 2005, Miina Siekkinen, working with Paul Merritt, announced a realignment of account executives to sales engineers (including Nunnally), some assignments of which were likely and intended to interfere with the performance by Nunnally of her job duties.
d. On July 22, 2005, Miina Siekkinen issued a disciplinary Verbal Warning to Nunnally based upon new, changed standards of performance never previously announced or enforced against Nunnally, applied unequally to Nunnally and not to comparator employees who engaged in the same or similar conduct.
e. On July 25, 2005, Eesa Thompson and Miina Siekkinen changed the procedure applicable to scheduling appointments with Nunnally so as to require Siekkinen's personal involvement in any appointment request involving Nunnally. The change applied only to Nunnally and not her counterpart.
f. On July 25, 2005, Miina Siekkinen announced that Nunnally's office was being moved to a cubicle located as close as possible to Siekkinen's office, apparently for purposes of permitting Siekkinen's closer scrutiny of Nunnally's job performance.
g. On August 3, 2005, despite a purported hiring freeze, Siekkinen announced the hiring of an additional sales engineer (in the same position as Nunnally) who had previously worked for XO Communications and
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had quit without notice . . . This hire gave Nunnally additional reason to believe her own employment was at risk.
h. During the week of August 8, 2005, Siekkinen was seen more than once rifling the top and the contents of Nunnally's desk, behavior which was commented upon by Nunnally's co-workers because such conduct was unusual.
(Nunnally Decl., Ex. 2.) An investigation was conducted by OSHA which determined that "no protected activity on the part of the complainant contributed to any of the adverse actions she alleges." (Benton Decl., Ex. 7.) Ms. Nunnally did not appeal this determination.
Ms. Nunnally identifies the public policy at issue here as "supporting employee whistle-blowing activities, particularly as [they] relate to the subject of financial improprieties or dishonesty by publicly traded corporations." (Resp. at 13.) The provisions of 18 U.S.C. § 1514A provide protection for "whistle-blowers" like Ms. Nunnally who report what they believe to be financial improprieties and remedies if they face retaliation. Here, Ms. Nunnally started to take advantage of this process by filing an administrative complaint but failed to file an appeal when she received an adverse decision.
Ms. Nunnally argues that she retained her right to file this lawsuit, citing 18 U.S.C. § 1514A(d), which provides: "Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any Federal or State law, or under any collective bargaining agreement." Ms. Nunnally's public policy argument is premised solely on federal law, Sarbanes-Oxley's protection for whistleblowers, and therefore the act does not take away a state cause of action but rather potentially gives Ms. Nunnally a state cause of action. Ms. Nunnally failed to take full advantage of the protections to which she was entitled under Sarbanes-Oxley. She is not now entitled to a second bite at the apple.
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Ms. Nunnally also argues that her state law claims seek damages that are not available under Sarbanes-Oxley. Ms. Nunnally does not explain how this renders inadequate the available administrative procedure for promoting the policy. This argument is also unpersuasive given Sarbanes Oxley's pronouncement that an employee "shall be entitled to all relief necessary to make the employee whole." 18 U.S.C. § 1514A(c)(1).
At oral argument, counsel for Ms. Nunnally further argued that the other means for promoting the public policy were inadequate and distinguishable from the situation presented in Korslund II 4 because there is no public posting requirement in Sarbanes- Oxley; Sarbanes-Oxley does not have a public hearing requirement; there was a 180-day statute of limitations at issue in Korslund II whereas under Sarbanes-Oxley the statute of limitations is 90 days; and the time given to the agency to make a determination was longer here than in Korslund II. The court is not persuaded that the differences between the statute at issue in Korslund II and Sarbanes-Oxley make the other means for promoting the public policy inadequate. Ms. Nunnally's primary concern seems to turn on the alleged "secrecy" of the proceedings initiated pursuant to Sarbanes-Oxley. Proceedings initiated pursuant to the whistle-blower provisions of Sarbanes-Oxley are not secret. If Ms. Nunnally was dissatisfied with the decision she received from the agency she had the opportunity to appeal to an administrative law judge and eventually to the United States Court of Appeals for the Ninth Circuit. See 29 C.F.R. § 1980.112. Ms. Nunnally has not cited to any statute or regulation that indicates that proceedings before the administrative law judge or the Ninth Circuit would be kept secret. The court is also
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not persuaded that the 90-day statute of limitations and the 180-day decision period make this alternate means for promoting the public policy inadequate.
Having considered and rejected Ms. Nunnally's arguments, the court determines, as a matter of law, that the jeopardy element of Ms. Nunnally's public policy claim cannot be established because the other means for promoting the public policy in Sarbanes-Oxley are adequate.5
C. Timely Appeal of OSHA Retaliation Claim
XO argues that Ms. Nunnally's wrongful discharge claim should be dismissed because her state law claim constitutes an untimely appeal of the 2006 dismissal of her OSHA claims. Because the court grants the motion with respect to the jeopardy element of the public policy claim, there is no need for the court to reach this issue.
D. Motion for Sanctions
XO has filed a motion for sanctions (Dkt. # 35) based on Ms. Nunnally's failure to timely file a pretrial statement. The court declines to impose sanctions.
III. CONCLUSION
For the foregoing reasons, the court GRANTS the motion for summary judgment and DENIES the motion for sanctions.
DATED this 15th day of January, 2009.
JAMES L. ROBART
United States District Judge
[ENDNOTES]
1 On December 9, 2008, this court entered a stipulation and order dismissing the claim for wage and hour violations. (See Dkt. # 31.)
2 There is an exchange during Ms. Nunnally's deposition that could be construed as an admission that the reason that she thought that she was being watched was because of something that Ms. Murchison told her after her employment ended. (See Nunnally Dep. 227:7- 228:5.) Because it is unclear and the issue is presented on summary judgment, the court, viewing the evidence in the light most favorable to Ms. Nunnally, concludes that the exchange does not conclusively demonstrate that Ms. Nunnally only came to believe that she was being watched after her employment ended.
3 It appears that subsequent to the time that Mr. McLeod was directed not to meet alone with Ms. Nunnally he told her, in what he characterized as his personal capacity, that she should keep accurate records of what was happening to her and hire an attorney. (McLeod Dep. 59:15-63:9.)
4 The Korslund II court held that the jeopardy element was not satisfied in that case because the Energy Reorganization Act contained remedies that were adequate to protect the public policy at issue. 125 P.3d at 127.
5 A recent Wisconsin Court of Appeals decision reaches a similar result. See Repetti v. Sysco Corp., 730 N.W. 2d 189 (Wis. Ct. App. 2007).