Doyle v. Galderma, Inc.

BRUCE DOYLE, Plaintiff, v. GALDERMA, INC., Defendant.

Case No. 19-cv-05678 (TSH)

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

April 30, 2021

ORDER RE: MOTION FOR SUMMARY JUDGMENT OR, IN THE ALTERNATIVE, PARTIAL SUMMARY ADJUDICATION

Re: Dkt. Nos. 26

I. INTRODUCTION

Pending before the Court is Defendant Galderma Laboratories, L.P.'s ("Galderma's") February 4, 2021 Motion for Summary Judgment, or, in the Alternative, Partial Summary Adjudication ("Summary Judgment Motion"). ECF No. 26.

Plaintiff Bruce Ian Doyle ("Doyle") sued Galderma in Alameda County Superior Court on July 5, 2019. Doyle asserts three causes of action: (1) Age Discrimination in violation of California's Fair Employment and Housing Act ("FEHA"); (2) Wrongful Termination in Violation of Public Policy; (3) Breach of Implied Contract Not to Terminate Without Good Cause. ECF No. 1, Galderma's Notice to Federal Court of Removal of Civil Action ("Removal Notice"), Ex. A, Complaint ("Complaint"). Doyle also seeks an award of punitive damages. Id.

On September 9, 2019, Galderma removed to federal court based on diversity jurisdiction pursuant to 28 U.S.C. 1332(a).

Having considered the parties' positions, relevant legal authority, and the record in this case, the Court GRANTS Galderma's Summary Judgment Motion.

II. BACKGROUND

The following facts are taken from the Summary Judgment Motion, the Opposition to Summary Judgment Motion ("Opposition" or "Opp."), ECF No. 29, and the Reply to the Opposition ("Reply"), ECF No. 32, and are set forth for purposes of background.

A. Doyle's Employment History With Galderma

Doyle was hired by Owen Labs in April of 1989 as a district sales manager. Declaration of Demery Ryan in Support of the ("ISO") Summary Judgment Motion ("Ryan Decl.") ¶ 2, Ex. A, September 9, 2020 Deposition of Bruce Ian Doyle ("Doyle Dep.") 13:8-16. In the early 1990s, Owen Labs was acquired by Galderma (Doyle Dep. 13:21-23), a pharmaceutical manufacturer of prescription and over-the-counter dermatological products. Declaration of Edith Flores ISO Summary Judgment Motion ("Flores Decl.") ¶ 2.

Doyle became a Regional Sales Manager ("RSM") for Galderma in 1999, which was equivalent to the current Area Director position. Doyle Dep. 14:4-6. Doyle returned to the district sales manager position in 2007. Doyle Dep. 15:1-9. In approximately 2014, Doyle's position was renamed Senior Regional Sales Manager ("Senior RSM") (Doyle Dep. 15:10-22), a position he held until his termination (Doyle Dep. 26:14-19) in April 2019 at age sixty-four. At all times from at least 1999 until his termination, Doyle was an at-will employee. As he himself admitted in his deposition, there was no employment contract. Doyle Dep. 18:16-23.

Doyle claims in his declaration, and supports with "a chronological sampling of the [sic] some of the awards, raises, and bonuses I received during the course of my career" that: between 1989 and 2015, Doyle earned multiple awards including District Sales Manager of the Year awards in 1990 and 1994, RSM of the Year award in 2003, Five Inner Circle Awards (top 10% in sales), 13 President's Awards (top 20% in sales), over 15 merit salary increases, and received twenty-nine consecutive favorable annual performance reviews in which he was rated as meeting expectations or higher. Declaration of Bruce Ian Doyle in Opposition to Galderma's Summary Judgment Motion ("Doyle Decl."), ¶¶ 2-4.

From approximately 2014 to the end of his employment at Galderma, Doyle managed a sales team of prescription pharmaceutical sales representatives in the West and Northwest. Doyle Dep. 28:15-25. In the last two to three years of Doyle's employment, the team Doyle managed focused on a portfolio of prescription products for acne and rosacea, which included Soolantra, Epiduo Forte, and Oracea. Doyle Dep. 29:1-30:5. Doyle's supervisor from October 2016 until theend of his employment was Ken Curley ("Curley"). Doyle Dep. 27:10-12; 27:21-28:3; Ryan Decl. ¶ 3, Ex. B, First Deposition of Ken Curley, September 14, 2020 ("Curley Dep. 1") 59:2-22; Declaration of Ken Curley ISO Summary Judgment Motion ("Curley Decl.) ¶ 2.

From 2016-2019, Curley was the Area Sales Director and the Senior Area Sales Director of the West Area, one of the three regions in the Galderma Prescription Sales Business Unit ("Rx Business Unit") (Curley Decl. ¶¶ 2-3), the other two being the Central and East regions. Ryan Decl. ¶ 4, Ex. C, Deposition of Chad Collins December 2, 2020 ("Collins Dep.") 12:4-21. One of the regions in the West Area was the San Francisco region, managed by Doyle in his role as Senior RSM in the Rx Business Unit. Curley Decl. ¶ 3. As of January 2019, Curley supervised six RSMs, who in turn supervised approximately fifty sales representatives. Declaration of Robert Wallace in Support of the Opposition ("Wallace Decl.") ¶ 11, Ex. 10, Curley Dep. 1 63:4-17. During the time Curley supervised Doyle from October 2016 through May 1, 2019, Curley did not have power to manage high level corporate affairs and had no authority to influence or affect corporate policy. Curley Decl. ¶ 13. During all times relevant to this action, Curley was not an officer or director of Galderma. Id.

From approximately January 2016 to January 2020, Chad Collins ("Collins") was Vice President of Sales of Galderma's Rx Business Unit. Declaration of Chad Collins in Support of Galderma's Summary Judgment Motion, ("Collins Decl.") ¶ 1; Doyle Dep. 39:5-7. He was Curley's direct supervisor from 2016 through Doyle's termination. Doyle Dep. 38:11-15; Curley Dep. 1 58:23-59:1. As such, Collins supervised three Area Directors, over twenty RSMs, including Doyle, and between one hundred twenty-five to one hundred seventy-five sales representatives throughout the entire country. Wallace Decl. ¶13, Ex. 12, Collins Dep. 14:5-17:22. Collins had no power to manage high level corporate affairs nor authority to influence or affect corporate policy. Collins Decl. ¶ 2. Collins was not an officer or director of Galderma at any time. Id.

Doyle was an at-will employee throughout his employment at Galderma. Doyle Dep. 17:18-18:11; 18:16-23. Doyle's 1999 promotion letter, the applicable Galderma Employee Handbook, and the language of Doyle's PIP demonstrate Doyle's at-will status. Doyle Dep. 16:23-19:14, Ex.1; 98:25-99:14, Ex. 15; Flores Decl., Ex. A. Nevertheless, Doyle asserts that,"based upon Galderma's conduct over his 30-year career, Mr. Doyle understood that Galderma needed good cause to fire him." Doyle Decl. ¶ 24.

B. Measurement of RSMs' Performance, Setting Sales Quotas, and Sales Bonus Payments

Doyle stated in his deposition the most important metric of job performance for RSMs is their sales results. Doyle Dep. 64:7-9. Galderma primarily measured Doyle's performance as an RSM based on how his team performed compared to product quotas set for each of the products in his region's portfolio. Doyle Dep. 30:6-13. During 2014-2019, RSMs were also measured by their success at deploying money Galderma allocated to them for Peer to Peer education programs and extended selling events, that is, informational events outside the health care providers' places of business. Doyle Dep. 34:23-37:4. During the last couple of years of Doyle's employment, Galderma also measured the performance of RSMs, including Doyle, by sales call cycle frequency and the quantity and quality of field coaching reports, collectively known as Management by Objectives ("MBOs"). Doyle Dep. 34:6-35:1. Call cycle frequency means that the team conducts a certain number of sales calls on a select group of doctors in a prescribed period of time, and field coaching reports are written feedback and suggestions drafted by an RSM to provide to direct reports (sales representatives whom the RSM supervises) after accompanying them on sales calls. Doyle Dep. 36:3-15.

In 2017, 2018, and 2019, Doyle worked with Galderma's Sales Compensation Manager, Tonia Moseley ("Moseley"), on setting quotas in his region's portfolio. Doyle Dep. 30:6-31:12; Ryan Decl., ¶ 5, Ex. D, December 16, 2020 Deposition of Tonia Moseley ("Moseley Dep.") 10:20-11:3. Moseley helped manage the process of developing commission plans and setting sales quotas. Moseley Dep. 12:9-14. In setting quotas, she worked with different levels of the Galderma sales organization, worked with data vendors, and verified sales professionals' performance against their quotas. Moseley Dep. 13:10-18; 17:3-22; 24:2-7; 25:16-19; 33:2-13. Galderma's quotas are crafted carefully. Moseley Dep. 22:11-24:1; 46:4-12. Performing above goal with key brands and increasing share with promoting strategic topical products was a goal for Doyle every year. Doyle Dep. 64:2-6.

Moseley testified in her declaration that "bonus payments did not equate to excellence insales." Supplemental Declaration of Tonia Moseley ("Supp. Moseley Decl.") ¶ 2. She explained that "[a]ll Galderma sales professionals receive commission incentive payments (also known as bonus payments) based on the amount of units of product sold in their territory." Id. An "RSM such as Doyle received a bonus payment for their direct reports; sales starting when that RSM reached [a certain percentage] of their quota," meaning that "sales professionals, including Doyle, who did not meet their quota or were bottom performers could and did receive bonus payments." Id.

C. Doyle's Mixed Performance History, Particularly in Sales

Doyle received a rating of "developmental opportunity," the lowest rating on a Galderma performance review for behavioral competencies (Doyle Dep., 40:18-41:13; 43:8-14; Ex. 4, p. 1), for sales results in four out of five years from 2014-2018. The relevant aspects of Doyle's sales performance are as follows:

2014: Doyle received a rating of developmental opportunity from his prior manager (i.e., not Curley) for achievement in sales results and was advised to "achieve or exceed national performance levels." Doyle Dep. Ex. 4 at p. 5. Doyle himself...