Gray v. Heritage-Crystal Clean, LLC
2:23-cv-00569
S.D.W. VaOct 31, 2024Background
- Michael Gray was employed by Heritage-Crystal Clean, LLC (HCC) as Charleston branch manager from 2012 until his termination in April 2023.
- Gray created a personal business, Steam Works, and used his own equipment and a subordinate employee to fulfill a power washing job for an HCC customer, later invoicing HCC under the name "Steamworks."
- HCC had a written Ethics Code prohibiting undisclosed personal business conflicts and requiring prior approval for employees engaging in business with HCC.
- Gray did not obtain prior written approval or follow the bid/third-party vendor process required by company policy.
- After an internal investigation triggered by emails and a social media post, HCC terminated Gray citing violation of the Ethics Code; Gray then sued HCC under the West Virginia Human Rights Act (WVHRA) for age and disability discrimination and retaliation, while HCC counterclaimed for breach of loyalty.
- The matter came before the court on defendant’s motion for summary judgment on both plaintiff’s claims and its counterclaim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicability of the WVHRA | HCC meets WVHRA's employer definition (12+ WV employees) | HCC does not meet 12+ WV employee threshold | Genuine issue; issue survives summary judgment |
| Age Discrimination (WVHRA) | Termination was pretext for age discrimination | Termination was legit, for Ethics Code violation | No evidence of pretext; summary judgment for defendant |
| Disability Discrimination (WVHRA) | Termination (after back surgery) was based on disability | No ongoing disability after restrictions lifted, plus legit reason | No viable claim; no evidence of disability-based pretext |
| Retaliation (WVHRA) | Termination was in retaliation for disability accommodation | No causal link; 3-month gap; legit reason for termination | No temporal or causal link; summary judgment for defendant |
| Breach of Loyalty (counterclaim) | No improper competition/benefit; no harm to HCC | Gray used position for undisclosed self-dealing, violated fiduciary duty | Undisputed breach; summary judgment for defendant |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard)
- McDonnell Douglas Corp. v. Green, 411 U.S. 792 (burden-shifting framework for discrimination)
- St. Mary's Honor Center v. Hicks, 509 U.S. 502 (proof and pretext in discrimination)
- Texas Dep't of Cmty. Affs. v. Burdine, 450 U.S. 248 (burden of production in Title VII)
- King v. Rumsfeld, 328 F.3d 145 (retaliatory discharge and causation timeline in discrimination)