Schultz v. Soo Line R.R. Co.

Lance Schultz, Plaintiff, v. Soo Line Railroad Company d/b/a Canadian Pacific Railway, Defendant.

Civil No. 14-1096 ADM/JJK

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

September 24, 2015

MEMORANDUM OPINION AND ORDER

Timothy M. Phillips, Esq., Joshua R. Williams, PLLC, Minneapolis, MN, on behalf of Plaintiff.

Tracey H. Donesky, Esq., Stinson Leonard Street LLP, Minneapolis, MN, on behalf of Defendant.

I. INTRODUCTION

On June 25, 2015, the undersigned United States District Judge heard oral argument on Defendant Soo Line Railroad Company d/b/a Canadian Pacific Railway's ("Soo Line") Motion for Summary Judgment [Docket No. 22]. Plaintiff Lance Schultz ("Schultz") asserts claims for violations of the Family Medical Leave Act ("FMLA"), 29 U.S.C. §§ 2601-54, and the Minnesota Whistleblower Statute, Minn. Stat. § 181.932(1). For the reasons set forth below, Soo Line's motion is granted.

II. BACKGROUND

A. Parties and the FLM Training Team

Soo Line provides freight rail transportation services in several states including Minnesota. Cobb Decl. [Docket No. 28] ¶ 3. Soo Line is a wholly owned U.S. subsidiary of the Canadian Pacific Railway Company ("CP"), whose headquarters are in Calgary, Canada. Id.

Schultz began his employment with Soo Line in March 2012 as a Frontline Manager Trainer ("FLM Trainer"). Phillips Decl. [Docket No. 36] Ex. 2. Schultz's primary duty as a FLM Trainer was to train frontline managers (trainmasters, assistant trainmasters, and general managers) on the use of Soo Line's computer applications at CP sites in the United States and Canada. Donesky Decl. [Docket No. 32] Ex. A ("Schultz Dep. I") at 207-08. During Schultz's period of employment, the FLM Trainer team was comprised of approximately 10-12 individuals. Schultz Dep. I at 47. Only Schultz was based in the United States; the remainder of the FLM Trainers were based in Canada. Phillips Decl. Ex. 1 ("Schultz Dep. II") at 319. Unlike most of the FLM Trainers, Schultz had no prior experience in the railroad industry or with railroad operations. Schultz Dep. I at 159, 205, 215. He was also the least senior employee on the FLM Trainer team. Id. at 206.

The FLM Trainers primarily provided "over-the-shoulder" training to frontline managers, meaning that training was provided to the managers while the managers were performing their duties at their desks. Id. at 106. At busier rail yards, managers were trained away from their desks. Id. at 107. When FLM Trainers were not training managers, the trainers were expected to be at their computers to answer emails, phone calls, and instant message questions from employees. Id. at 107-08.

From March 2012 to November 2013, the FLM Training team was supervised by CP manager Lucky Strauss ("Strauss"). Strauss Decl. [Docket No. 29] ¶ 2. Strauss served as Schultz's direct supervisor during this time. Id. After Strauss transferred to a different position in December 2013, Greg Burley ("Burley") began managing the FLM Training team. Burley Decl. [Docket No. 30] ¶ 2.

B. Schultz's Job Performance

Schultz's position required 100% travel on seven work days in a row, followed by seven days off. Schultz Dep. I at 6-7. Schultz typically traveled on Mondays and returned home on Sundays. See Burley Decl. Ex. A. Although he traveled on Sundays, Schultz was expected to complete several hours of scheduled work at the rail yard on those days before leaving to travel home. See id.

In April 2013, Strauss reviewed Schultz's travel itineraries and discovered multiple instances of Schultz leaving to travel home before completing his scheduled work hours. Strauss Decl. ¶ 4; Donesky Decl. Exs. B-F. In an April 4, 2013 email, Strauss told Schultz that "[y]ou cannot go and make your own hours. It's inaccurate (from my standpoint as I show coverage in a yard you didn't even go in that day) and unfair to the other trainers within the team." Donesky Decl. Ex. F. Strauss instructed Schultz to send his future travel itineraries to Strauss for the next few months. Id. Schultz failed to comply with this requirement on multiple occasions. Schultz Dep. I at 254-56; Donesky Decl. Exs. G-I.

In July 2013, Strauss conducted a mandatory performance review with Schultz. Schultz Dep. I at 259. In the review, Strauss addressed several items of concern with Schultz, including issues of trust, reliability, inappropriate booking of flights, not providing itineraries, and unauthorized leave from his work location. Donesky Decl. Ex. H; Schultz Dep. I at 260-61. Strauss informed Schultz that this was unacceptable. Donesky Decl. Ex. H; Schultz Dep. I at 260. Strauss also raised her concern over an incident where Schultz took a dinner break instead of helping to locate a lost rail car containing hazardous materials. Donesky Decl. Ex. H; Schultz Dep. I at 261.

On October 31, 2013, when visiting a control tower, Strauss discovered that Schultz was temporarily missing from his assigned post. Schultz Dep. I at 288. That same day, Strauss reprimanded Schultz for not being available online to answer questions from trainmasters at other locations. Id. at 285-286; Donesky Decl. Ex. M.

On September 12, 2013, nearly two months before requesting FMLA leave, Schultz acknowledged that Strauss was consistently dissatisfied with his performance, stating in an instant message to a colleague: "[t]he only time I hear from Lucky at all its [sic] never good." Wahl Decl. [Docket No. 31] Ex. A.

C. The FLM Training Team's Change in Focus and Restructuring

On June 16, 2013, Strauss notified the FLM Training team by email that Soo Line would be shifting away from on-site training at managers' desks and placing more emphasis upon classroom instruction. Phillips Decl. Ex. 5. Strauss wrote "I think we all agree that time away from the desk and classroom training is the way we want to proceed going forward" and that "it is our goal to finish locations by the end of this year." Id. Strauss discounted the notion that the FLM Trainers would be eliminated altogether but did state that the "team will definitely still exist . . . . it may look a bit different ie. LESS travelling [sic] more classroom etc. . . ." Id. (ellipses and emphasis in original).

At the time the email was sent, Schultz was already aware of the impending changes and had expressed concern to coworkers that his position would be eliminated. In a June 15, 2013 instant message to a colleague, Schultz stated: "I have no place in this company to go back to[.] There r not enough people to train in the states to have me sit on the payroll to teach a class once a month or less[.] I have not been in on any classroom planning or prep stuff, I think I knowwhere I stand[.]" Wahl Decl. Ex. B. at CPLS 0001578. On the same day, Schultz emailed another coworker, stating: "Not enough work. They don't have enough new employees to keep me on every week. They will fly someone else in." Id. Ex. C. When the email recipient accused Schultz of being a "dark cloud," he replied, "Not being dark, just realistic." Id. Schultz began applying for jobs outside of Soo Line in August 2013. See id. Ex. F. He continued to search for new employment even after his FMLA leave began on November 11, 2013. See id.

Although Schultz had known since at least June 2013 that focus of the FLM Training team was shifting from "over-the-shoulder" training at managers' desks to classroom training, Schultz informed Strauss in October 2013 that he was not comfortable conducting classroom training sessions on his own and stated that he would prefer to teach classroom sessions with the support of another trainer. See Donesky Decl. Ex. K; Burley Decl. Ex. C.

In addition to restructuring where the FLM Training team conducted training, the substance of the training also changed. By January 2014, the FLM Training team no longer trained employees on systems, and instead trained employees how to run a rail yard. Burley Decl. ¶ 4; Ex. B. Schultz acknowledges that he was one of only two trainers who did not have prior railroad experience. Schultz Dep. I at 105, 205, 272.

D. Schultz's FMLA Leave and Termination

On November 6, 2013, Schultz's physician recommended Schultz take leave for anxiety he was experiencing. Donesky Decl. Ex. Q. Soo Line approved Schultz's FMLA leave beginning on November 11, 2013 for an unspecified period of time. Id. Ex. R; Phillips Decl. Ex. 27. Schultz admits he received all of the FMLA leave he sought, during which time he continued to receive employment benefits. Schultz Dep. I at 298-99.

On January 10, 2014, Soo Line's General Manager of Operation Performance, Jeff Edwards, asked Burley and Strauss in an email for an overview of Schultz's situation. Phillips Decl. Ex. 11. Burley replied: "There were some performance issues and Lucky put pressure on him to improve. He then went off on stress leave." Id. Edwards responded: "Do we have any options with a person like this? I am assuming I can't now let him go for performance issues?" Id.

In late January 2014, Burley recommended releasing Schultz based on his poor job performance and the concern that Schultz lacked the skill set needed to perform the FLM Training team's new role of training employees to properly run a rail yard. Burley Decl. Ex. D. Burley recommended that Schultz's position not be refilled and that the TLM Training team be reduced from 8 to 7 positions. Id.

On February 10, 2014, Schultz returned to work from his FMLA leave. Phillips Decl. Ex. 18. In a letter from Burley to Schultz dated February 13, 2014, Schultz was informed of his department's restructuring and notified of his termination. Phillips Decl. Ex. 19 at 1-2; Schultz Dep. I at 318-20. The letter stated that Schultz's position was "being eliminated due to a reduction in force/restructuring in the US Operations Analysis Department." Phillips Decl. Ex. 19 at 1. On an application for unemployment benefits to the Railroad Retirement Board dated March 31, 2014, Schultz listed as the reason he was no longer working, "position eliminated due...