Gaspar v. Turn Technologies Inc
2:23-cv-01274
| W.D. Wash. | Dec 22, 2023Background
- Brian Gaspar, former Chief Product Officer of Turn Technologies Inc., alleges wrongful termination and related claims after he reported concerns about the company's consumer reporting practices to management.
- Gaspar claims Turn Technologies outsourced background checks to third-party consumer reporting agencies and failed to provide legally required disclosures to employees before procuring consumer reports.
- Following his whistleblowing regarding these practices, Gaspar alleges he was terminated by defendant Rahier Rahman within twelve hours.
- Gaspar also asserts claims for breach of contract related to 3.5% equity and a $50,000 bonus, as part of his compensation for two promotions.
- Additional claims include violations of the Fair Credit Reporting Act (FCRA), the Washington Fair Credit Reporting Act (WFCRA), wrongful discharge in violation of public policy, and wage withholding under Washington law.
- Defendants moved to dismiss all claims; the court ruled on their motion, providing Gaspar leave to amend certain claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FCRA Violation | Turn used third-party CRAs without required disclosure or authorization. | Turn acts as its own CRA; no third-party report, and did not violate FCRA. | Motion to dismiss denied; Gaspar stated a claim. |
| WFCRA Violation | Turn failed to provide notice as required by WFCRA; willful violation claimed. | Should be dismissed for lack of causation and insufficient WFCRA claim. | Motion to dismiss denied; Gaspar stated a claim. |
| Wrongful Discharge | Terminated for whistleblowing against public policy violations. | Gaspar's investigation was unreasonable; wrongdoing minimal; private interest. | Motion to dismiss denied; Gaspar stated a claim. |
| Breach of Contract (Shares) | Entitled to 3.5% shares as part of compensation agreement. | No specific terms for the shares—type of stock not alleged; indefinite terms. | Dismissed without prejudice; allowed to amend. |
| Breach of Contract (Bonus) | Entitled to $50,000 bonus based on promotion and company funding. | Claim is invalid as employment ended before funding was received. | Motion to dismiss denied; Gaspar stated a claim. |
| Wage Withholding | Wages and bonus withheld willfully after termination. | No allegation defendants intended to deprive him of compensation. | Dismissed without prejudice; allowed to amend. |
| Personal Liability (Rahman) | Rahman personally participated in firing; liable for wrongful discharge. | Individual supervisor not liable under Washington law for wrongful discharge. | Motion to dismiss denied; claim against Rahman allowed. |
Key Cases Cited
- Syed v. M-I, LLC, 853 F.3d 492 (9th Cir. 2017) (willful FCRA violation for procuring a consumer report without a stand-alone disclosure)
- Dicomes v. State, 113 Wn.2d 612 (Wash. 1989) (standards for wrongful discharge in violation of public policy)
- Farnam v. CRISTA Ministries, 116 Wn.2d 659 (Wash. 1991) (clarifies the threshold for employer wrongdoing in public policy discharge claims)
- Karastetter v. King Cnty. Corr. Guild, 193 Wn.2d 672 (Wash. 2019) (pleadings should be construed to do substantial justice in wrongful discharge claims)