Eckstein v. Sonoco Prods. Co.

Decision Date04 December 2020
Docket NumberCase No. 7:20cv435
CourtU.S. District Court — Western District of Virginia
PartiesCRAIG DOUGLAS ECKSTEIN, Plaintiff v. SONOCO PRODUCTS COMPANY, Defendant.

By: Michael F. Urbanski Chief United States District Judge

MEMORANDUM OPINION

This matter is before the court on defendant Sonoco Products Company's ("Sonoco") motion to dismiss Counts Two, Three, Four, and Five of plaintiff Craig Douglas Eckstein's complaint. ECF No. 5. Sonoco argues that that Count Two, a wrongful termination claim, is barred by the Virginia Occupational Safety and Health Act ("VOSHA"), and that Counts Two, Three, Four, and Five are barred by the Virginia Worker Compensation Act ("VWCA"). Id. at 1. Sonoco argues in the alternative that Counts Two, Three, Four, and Five are insufficiently pled under Federal Rule of Civil Procedure ("FRCP" or "Rule") 12. Eckstein opposes the motion to dismiss Counts Three, Four, and Five of the complaint, contending that the VWCA does not bar his claims and that they are sufficiently pled to survive a Rule 12 motion. ECF No. 13. However, Eckstein voluntarily dismisses Count Two, conceding that VOSHA bars the claim. Id. at 6. The matter is fully briefed, and the court heard argument on October 22, 2020.

Because Eckstein has represented that he intends to drop his wrongful termination claim, the court DISMISSES with prejudice Count Two. Further, for the reasons set forth herein, the court GRANTS Sonoco's motion and DISMISSES with prejudice Three, Four, and Five of the complaint.

I.

This action arises out of an employment dispute between Eckstein, a former Global Safety Manager for Display and Packaging, and his former employer, Sonoco, an international packaging producer. Compl., ECF No. 1-1 at 1-3. Eckstein was employed with Sonoco from approximately March 5, 2018, until May 2, 2019. Id. at 1. During his tenure with Sonoco, Eckstein reported to Max Dillon, Director of U.S. Fulfillment, and was a peer of Jeff Tedder, Director of Manufacturing for the company's facilities in Winston-Salem, North Carolina, and York, Pennsylvania. Id. Eckstein's job involved regular visits to both locations. Id.

On October 3, 2018, Eckstein was visiting the Winston-Salem plant and, while discussing an OSHA compliance issue with his co-worker, was approached by Tedder. Eckstein alleges Tedder said: "Typical safety people. Standing around doing nothing. Get out on the floor." Id. at 3. Eckstein allegedly tried to correct what he perceived as Tedder's erroneous perception of his work ethic. Id. He claims that, in response, Tedder forcefully smacked Eckstein's rear with an open hand, causing Eckstein "physical injury, to-wit, redness, swelling, soreness, and bruising." Id. Eckstein states he told Tedder "to never touch him again," to which Tedder responded, "[d]on't say something you're going to regret, boy." Id.

Eckstein says he was shocked and reported the incident to the Winston-Salem police. Id. Eckstein claims he learned Tedder had a history of similar assaults on other coworkers and that the behavior was tolerated by Sonoco. Id. at 4. Eckstein indicated he reported the incident to Max Dillon, his supervisor, and Karyn Parker, a Human Resources employee. Id. Sonocoallegedly did not follow up after his initial complaint, did not discipline Tedder, and refused to provide Eckstein with reports or information about any investigation on his formal complaint. Id. Eckstein claims Dillon pressured him to continue working with Tedder in the future and that Sonoco did not offer him any alternative accommodations. Id.

After learning of the complaint, Tedder allegedly told Eckstein, "I hope you come back to work, Craig," which Eckstein perceived as a threatening statement. Eckstein claims Parker conceded that Tedder's communication was inappropriate. Id. at 5.

In January 2019, Eckstein conducted several routine visits to Sonoco facilities, during which he discovered "that untrained, unqualified employees were performing electrical work and entering live electrical cabinets," that managers were aware of this "long-standing practice," and that managers were lying about OSHA compliance in documents. Id.

Eckstein began to file formal reports about these discoveries, which, though initially encouraged, eventually became the source of conflict. Id. at 6. He claims management became angered by his decisions and that "false and retaliatory" reports were filed against him by Sonoco employees. Id. at 6. Eckstein claims these same employees collaborated with Tedder, who orchestrated a plan to get Eckstein fired. Id. at 6-7.

Eckstein was fired on May 2, 2019. Id. at 7. When informed about his termination, Eckstein provided a verbal rebuttal but was never provided a copy of the complaint against him, despite requesting a copy several times. Id. Sonoco claims Eckstein was terminated for being "difficult to deal with" and having "damaged [his] relationship [with Tedder]." Id. However, Eckstein claims he had consistently met the expectations of his employer and that this termination is retaliatory. Id.

II.

As a preliminary matter, the court must decide which body of law governs Eckstein's tort claims. At the hearing on October 22, 2020, the court questioned the parties about the applicability of the VWCA to an injury that occurred in North Carolina during the course of Eckstein's employment. At the time of the hearing, neither party had disputed the statute's applicability. Eckstein filed a complaint with the Virginia Department of Labor under VOSHA to exhaust his administrative remedies and filed this action in Virginia. ECF No. 1-1 at 8. Sonoco has consistently argued the VWCA applies. Even Eckstein's opposition to Sonoco's motion to dismiss does not dispute the applicability of the VWCA to Eckstein's and Sonoco's employment relationship generally but argues it does not cover the conduct alleged. The court ordered the parties to file supplemental briefing to demonstrate that the VWCA applied to the conduct at issue.

In its supplemental brief, Sonoco argues that the VWCA still controls. For the VWCA to apply, the contract of employment must have been made in the Commonwealth, the employer's place of business must be in the Commonwealth, and the contract of employment cannot be for services rendered exclusively outside of the Commonwealth. ECF No. 23 at 2; see also Va. Code § 65.2-508. Sonoco contends—and Eckstein does not refute—that the contract was executed in Virginia, Sonoco maintains several locations of business in Virginia, and that Eckstein executed his work for Sonoco in part from his home in Virginia. Sonoco also argues that, even if the North Carolina Worker's Compensation Act ("NCWCA") applies, Eckstein's claims are still barred.

In response, Eckstein argues for the first time that the NCWCA is operative. ECF No. 24 at 5. Eckstein does not rebut Sonoco's application of Virginia Code § 65.2-508 in determining the extraterritorial reach of the VWCA. He instead argues that, under North Carolina law, its own Worker's Compensation Act should apply. Id.; see also N.C.G.S. § 97-2. Eckstein also argues that under either the VWCA or the NCWCA, his claims are not barred. ECF No. 24 at 6-8.

The court finds Eckstein's arguments inapposite and agrees with Sonoco that the VWCA governs the injuries in this case. A district court located in Virginia must apply Virginia's choice of law rules to decide this issue. See Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496 (1941). "In considering whether [Eckstein's] tort action is barred, the first question is whether Virginia, as the forum state, would extend coverage of its own Workers' Compensation Act." Kelly v. Guyon Gen. Piping, Inc., 882 F.2d 108, 109 (4th Cir. 1989). Virginia traditionally applies lex loci delicti, or the law of the place of the wrong, to tort actions like this one. See, e.g., Jones v. R.S. Jones and Assoc., Inc., 431 S.E.2d 33, 34 (Va. 1993); Buchanan v. Doe, 431 S.E.2d 289, 291 (Va. 1993). However, "[j]urisdiction over workers' compensation claims in Virginia is governed by statute." Pro-Football Inc. v. Paul, 569 S.E.2d 66, 70 (Va. App. 2002). As Sonoco argued, the court must look to Virginia Code § 65.2-508(A) to determine whether the VWCA applies.

The court finds that the facts of this case satisfy the three-pronged requirements of Virginia Code § 65.2-508(A), "bearing in mind that the Workers' Compensation Act is remedial in nature and is to be construed in the light most favorable to the employee." Worsham v. Transpersonnel, Inc., 426 S.E.2d 497, 498 (Va. App. 1993). The VWCA appliesif (1) the contract of employment was made in Virginia and (2) the employer's place of business is in Virginia, though the law provides an exception for contracts expressly for services provided exclusively outside of the Commonwealth. Id. As Eckstein is a Virginia employee working from home, the contract was made in Virginia. "The place where the last act necessary to give validity to the contract occurs is the place where the contract was made." Pro-Football Inc., 569 S.E.2d at 71 (quoting United States Steel Corp., Gary Works v. Industrial Comm'n, 510 N.E.2d 452, 455 (Ill. Dec. 1987)). Eckstein was hired by Sonoco to work from home, periodically traveling to Sonoco worksites. Thus, the last act necessary to give effect to his contract was beginning work pursuant to his employment from his residence in the Commonwealth. Next, it is undisputed that Sonoco has multiple locations in the Commonwealth from which it conducts its business. Contra CLC Const., Inc. v. Lopez, 456 S.E.2d 155, 158 (Va. App. 1995) (finding an out of state corporation with no offices or facilities in Virginia and that did not pay licensing fees in Virginia did not have its "place of business" in the Commonwealth). Finally, the contract was not for services exclusively rendered outside the Commonwealth. Although Eckstein traveled out of state for his role, he was hired predominantly as a work...

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