Murphy v. Fedex Nat. Ltl, Inc.

582 F.Supp.2d 1172

Susan A. MURPHY, Plaintiff(s), v. FEDEX NATIONAL LTL, INC., Defendant(s).

No. 4:07CV01247 JCH.

United States District Court, E.D. Missouri, Eastern Division.

October 8, 2008.

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Robert G. Johnson, John D. Lynn, Sedey Harper, St. Louis, MO, for Plaintiff.

William E. Grob, Ford & Harrison, Tampa, FL, for Defendant.

MEMORANDUM AND ORDER

JEAN C. HAMILTON, District Judge.

This matter is before the Court on the Motion for Summary Judgment of Defendant FedEx National LTL, Inc. ("FedEx" or "Defendant"), filed July 15, 2008. (Doc. No. 19). The matter is fully briefed and ready for disposition.

BACKGROUND

Plaintiff's Employment

Plaintiff Susan A. Murphy ("Plaintiff") and her husband, Paul Murphy, were employed as truck drivers by Watkins Motor Lines ("Watkins"), beginning in June 1998. (Defendant's Statement of Uncontroverted Material Facts ("DSUMF"), Doc. No. 21, ¶ 1). Plaintiff's and her husband's supervisor at Watkins was Jeff Karnes. (DSUMF, ¶ 2). Between May and August 2006, Watkins told its employees that it was being purchased, in part, by FedEx. (DSUMF, ¶ 3). Employees also received a memorandum and newsletter explaining the transition from Watkins to FedEx. (DSUMF, ¶ 3). On August 1, 2006, FedEx sent offers of employment to most active Watkins employees, including Plaintiff and Paul Murphy, in anticipation of the closing of the Asset Purchase Agreement between Watkins and FedEx. (DSUMF, ¶ 4). Neither the newsletter nor the offer letter addressed how Watkins employees, who were not active as of the date of the closing of the sale to FedEx would be treated with respect to their leave or their potential employment with FedEx. (DSUMF, ¶ 7). Plaintiff and her husband received and accepted offers of employment and completed their preemployment paperwork, which they received on August 2, 2006. (DSUMF, ¶ 4).

The Asset Purchase Agreement between Watkins and FedEx closed on September 3, 2006. (DSUMF, ¶ 18). Plaintiff never received a copy of the Asset Purchase Agreement. (Plaintiff's Statement of Additional Facts ("PSOAF"), Doc. No. 27, ¶ 3).¹

Due to his illness, Paul Murphy's last day of work was August 15, 2006. (DSUMF, ¶ 12). Paul Murphy went on FMLA leave on August 17, 2006. (DSUMF, ¶ 13). Plaintiff went on FMLA leave on August 28, 2006 to care for her husband. (DSUMF, ¶¶ 13-14). After requesting approval for FMLA leave, Plaintiff and Paul Murphy received a letter designating the terms of their FMLA leaves of absence from Watkins. (DSUMF, ¶ 16). The FMLA designation provided that their "failure to work on the first workday following the expiration of your FMLA leave for any reason will constitute a voluntary resignation by you unless the Company has approved an alternative arrangement prior to the expiration of your FMLA leave." (DSUMF, ¶ 17).

Although it was anticipated that he would be released from the hospital, Paul Murphy died suddenly on September 7, 2006. (PSOAF, ¶ 15). Plaintiff and her husband had been married for 22 years. (PSOAF, ¶ 16). That same day, Plaintiff called and notified Karnes of her husband's death. (PSOAF, ¶ 17). Karnes e-mailed Kim Witt, a human resources representative for FedEx, and said "Susan is worried about several things regarding benefits. Since she is crying I told her I would take [care] of this for her." (PSOAF, ¶ 17). Plaintiff claims that, on September 11, 2006, Karnes called her and told her that she would not have to reapply to FedEx to work. (PSOAF, ¶ 19). Karnes asked her how much additional time she would need before returning to work. (Id.) Plaintiff asked for an additional 30 days "to take care of things." (Id.) Karnes told Plaintiff that an additional 30 days was "not a problem" and said he would let human resources know. (Id.) Plaintiff testified that she understood that she and Karnes were discussing how much longer her FMLA leave would continue, and she believed that her FMLA leave was approved for an additional 30 days. (PSOAF, ¶¶ 20-21). Karnes told Plaintiff he would send her a bid sheet for October, and he did so. (PSOAF, ¶ 19). Karnes testified that, when he spoke to Plaintiff after the death of her husband, she was often crying and seemed "very sad." (PSOAF, ¶ 22). Defendant never asked for any additional medical certification to demonstrate that Plaintiff suffered from a "serious medical condition." (PSOAF, ¶¶ 23-25).

Plaintiff testified that she intended to return to work at FedEx at the end of her 30 day leave, as granted by Karnes. (PSUMF, ¶ 56). On September 15, 2006, however, Karnes notified Plaintiff that she had been "separated" from the company. (PSOAF, ¶ 26). Karnes filled out the paperwork which stated that FedEx terminated Plaintiff on September 12, 2006. (Id.) There was no paperwork from Watkins terminating Plaintiff's employment. (PSOAF, ¶ 27).

Life Insurance

Plaintiff and her husband had life insurance coverage from Watkins in the amount of $15,000 for employees and $5,000 for spouses. (PSOAF, ¶ 30). Supplemental life insurance coverage for Plaintiff and her husband from Watkins was $80,000 for employees and $40,000 for spouses. (Id.) For FedEx employees, basic life insurance was one and one-half (1 ½) times the basic annual earnings rounded to the nearest $1000, and for spouses was $5000. (PSOAF, ¶ 31). In 2005, Mrs. Murphy's annual earnings from Watkins were $65,027.95 and her husband's earnings were $65,585.06. (Id.) Supplemental life insurance coverage for each of the Murphys while they were FedEx employees was $200,000 in employee coverage and $100,000 in spouse coverage. (Id.) Plaintiff and her husband timely submitted their FedEx Term Life Insurance Enrollment Forms. (PSOAF, ¶ 32).

Watkins submitted Plaintiff's life insurance claim for her husband's and her spousal benefits. (DSUMF, ¶ 43). Plaintiff received payment in the amount of $140,000 pursuant to this life insurance claim. (DSUMF, ¶ 49). Plaintiff also accepted payment from Watkins for three days of bereavement leave. (DSUMF ¶ 45). The FedEx Plan Administrator denied Plaintiff's claim for life insurance benefits under the FedEx policy. (DSUMF, ¶ 67). Plaintiff claims that she is owed an additional $264,000, plus interest, under the FedEx plan. (DSUMF, ¶ 49).

SUMMARY JUDGMENT STANDARD

The Court may grant a motion for summary judgment if "the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The substantive law determines which facts are critical and which are irrelevant. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Only disputes over facts that might affect the outcome will properly preclude summary judgment. Id. Summary judgment is not proper if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Id.

A moving party always bears the burden of informing the Court of the basis of its motion. Celotex Corp., 477 U.S. at 323, 106 S.Ct. 2548. Once the moving party discharges this burden, the nonmoving party must set forth specific facts demonstrating that there is a dispute as to a genuine issue of material fact, not the "mere existence of some alleged factual dispute." Fed.R.Civ.P. 56(e); Anderson, 477 U.S. at 248, 106 S.Ct. 2505. The nonmoving party may not rest upon mere allegations or denials of his pleading. Anderson, 477 U.S. at 258, 106 S.Ct. 2505.

In passing on a motion for summary judgment, the Court must view the facts in the light most favorable to the nonmoving party, and all justifiable inferences are to be drawn in his favor. Celotex Corp., 477 U.S. at 331, n. 2, 106 S.Ct. 2548. The Court's function is not to weigh the evidence but to determine whether there is a genuine issue for trial. Anderson, 477 U.S. at 249, 106 S.Ct. 2505.

DISCUSSION

I. Defendant's Motion for Summary Judgment on Plaintiff's FMLA Claim

Plaintiff has brought a claim for violation of the FMLA based upon Defendant's termination of her in contravention of her FMLA rights. Plaintiff alleged that Defendant terminated Plaintiff "because she was on FMLA leave." (Second Amended Complaint, Doc. No. 4, ¶¶ 25-28). To prevail on a FMLA interference claim, a plaintiff must establish that 1) he or she is an "eligible employee;" 2) the defendant is an "employer;" 3) the employee was entitled to leave under the FMLA; 4) the employee gave the employer notice of his or intention to take FMLA leave; and 5) the employer denied the employee benefits to which he or she was entitled. Hoge v. Honda of Am. Mfg., Inc., 384 F.3d 238, 244 (6th Cir.2004). Defendant claims it is entitled to summary judgment on Plaintiff's claim because Plaintiff cannot establish the elements of an FMLA claim as a matter of law.

A. Was FedEx Plaintiff's Employer?

The crux of Plaintiff's claim for relief is that she was an employee of FedEx at the time of the termination of her employment because she and her husband had accepted FedEx's offers of employment and completed all of the conditions precedent to employment. (Plaintiff's Memorandum in Opposition to Defendant's Motion for Summary Judgment ("Memorandum in Opposition"), Doc. No. 26, pp. 2-5). In Defendant's Reply Brief in Support of Motion for Summary Judgment ("Reply"), it argues that Plaintiff and her husband did not satisfy all of the conditions precedent to become employees of FedEx pursuant to their offer letters. (Reply, Doc. No. 30, pp. 2-3). Defendant claims that Plaintiff and her husband did not satisfy the condition precedent in the offer letters that if Plaintiff's and her husband's "performance remain[ed] satisfactory, the effective date of your employment [would] be the closing date of the transaction...