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Fired Wal-Mart manager deserves trial on wrongful termination suit, judges told Thursday, Mar 6, 2008 Arkansas News Bureau LITTLE ROCK - A former mid-level manager for Wal-Mart Stores Inc. was fired for reporting poor working conditions in Central American factories, his lawyer argued Wednesday in a wrongful termination case against the world's largest retailer. The state Court of Appeals heard arguments in the case of James W. Lynn, who is seeking to have his lawsuit against Bentonville-based Wal-Mart reinstated after a Benton County circuit judge threw it out of court. The company claims Lynn lost his job because of poor performance and for violating the company's fraternization policy. Lynn lawyer Shane Youtz told a three-judge appeals court panel Wednesday that Circuit Judge David Clingler erred when he dismissed the lawsuit. Clingler concluded there was a lack of evidence of wrongful discharge, breach of contract and libel. "If there are two separate hypotheses, and those two separate hypotheses are inconsistent, the plaintiff is allowed to take his case to jury if the plaintiff's case is substantiated by evidence that a reasonable person could conclude is true," Youtz argued. Wal-Mart lawyer Betsy Murray countered that Youtz's supervisors were unhappy with his work and that he was later found to be fraternizing with a co-worker. "There is no genuine issue of material fact," she said. Lynn, who worked nearly 10 years for Wal-Mart, including as global services manager in Costa Rica, was fired in 2002 after he admitted fraternizing with a female subordinate, a violation of company policy. In court Wednesday, Murray said Lynn's firing resulted from a report by a Wal-Mart loss prevention employee who followed Lynn and a co-worker to Guatemala. Lynn later sued Wal-Mart, claiming the report constituted libel and that Wal-Mart had planned to fire him for some time because he had caused problems in the factory certification process. Lynn's job was to inspect factories being used by Wal-Mart and to report on ways to improve conditions. Murray told appeals court judges Wednesday that Lynn inspected three factories before he was fired. Supervisors had been unhappy with his work, she said. Youtz argued that Lynn reported violations in three factories, including findings that women were fired for being pregnant and that employees were not allowed to leave their work stations or seek medical assistance. The lawsuit alleged Wal-Mart violated the state's Deceptive Trade Practices Act because the company's 2003 annual report to shareholders and customers states a commitment to ensure proper working conditions for workers in foreign factories. Judges who heard Wednesday's arguments questioned why the allegations of poor working conditions were made after Lynn's supervisors began expressing concern about his work habits. They also said the evidence suggested Lynn was an at-will employee and was not under contract. |
