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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Exhibit 1
Drive - Suite 700
San Diego, CA 92121
Case No. 3:13-cv-01030-CAB-KSC
(858) 737-3100
000001
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1048 Page 2 of 15
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
San Diego, CA 92121 Case No. 3: 13-cv-Ol030-CAB-KSC
Exhibit 1
(858) 737-3100
000004
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1051 Page 5 of 15
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No.3: 13-cv-Ol 030-CAB-KSC
Exhibit 1
San Diego, CA 92121
(858) 737 -3100
000007
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1054 Page 8 of 15
1 packages free of charge. This was consistent with FedEx's Purple Promise which
2 is FedEx's customer service policy. A copy ofFedEx's Q&A explaining The
3 Purple Promise is attached to the Opposition as Exhibit 43. This document was
4 printed from FedEx's website (http://www.fedex.com/purplepromise/en/
5 materials/qa.pdf) on or about June 20,2014. The use of nonrevenue business
6 shipping to fulfill the Purple Promise at FedEx was always and through the end
7 of my employment remained a common practice among DSMs and other
8 management personnel.
9 32. FedEx did not pay itself for these nonrevenue shipping and freight
10 services, but the amounts were tracked on internal FedEx documents called
11 Budget Variance Reports ("BVRs"). The BVRs compile not just shipping freight
12 charges, but all operating expenses of each district. These operating expenses
13 include various items including employees' salaries, insurance, rent, utilities, and
14 postage and shipping charges.
15 33. BVRs were created and available monthly, as well as annually, for
16 each sales district.
17 34. During my employment at FedEx, I regularly reviewed BVRs for
18 my district and occasionally reviewed BVRs for other districts as well.
19 35. BVRs were generated for each district manager for each month, with
20 a yearly summary BVR generated each fiscal year. FedEx's fiscal year was June
21 1 through May 3 1.
22 36. Copies ofBVR reports that FedEx produced during discovery in
23 this action are attached to the Opposition as Exhibits 44 through 49, 56, and 57.
24 Exhibits 44 through 46 are my district's BVRs for fiscal year 2010 through fiscal
25 year 2012. Exhibits 47 through 49 are BVRs for Tim Chaplin's district for the
26 same fiscal years. As these BVRs clearly illustrate, I used my nonrevenue
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No_ 3:13-cv-01030-CAB-KSC
San Diego, CA 92121
(858) 737-3100 Exhibit 1
000008
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1055 Page 9 of 15
1 account for postage freight liberally over the years, and yet my usage paled in
2 comparison to Mr. Chaplin's. Exhibit 50 is a summary of the BVRs contained in
3 Exhibits 44 through 49.
4 37. I was never disciplined, or even verbally warned, for my nonrevenue
5 business shipping this activity over the years, as it was encouraged by FedEx and
6 part of the culture of satisfying customers under FedEx's Purple Promise.
7 38. Exhibit 56 contains annual BVRs for various other DSMs during
8 FedEx's fiscal years 2010-2012, with the postage freight amounts that exceeded
9 $1,000 per month highlighted.
10 39. Exhibit 57 contains additional examples of monthly and annual
11 BVRs for various DSMS during Fed Ex's fiscal years 2009-2013, with postage
12 freight amounts that exceeded $1,000 per month highlighted.
13 40. Exhibit 55 contains a summary of the BVRs contained in Exhibit 56
14 and 57.
15 41. Exhibit 59 contains annual BVRs for the Western Region for
16 FedEx's fiscal years 2010 through 2012. As these BVRs show, nonrevenue
17 business shipping routinely reached into the hundreds of thousands of dollars. It
18 was part of the culture at FedEx.
19 42. Nonrevenue account activity in the form of postage freight was
20 additionally documented by FedEx in the form of detailed invoices describing
21 each particular shipment. Copies of some examples of these backup invoices and
22 a FedEx spreadsheet summarizing nonrevenue account activity that FedEx
23 produced during discovery in this action are attached to the Opposition as
24 Exhibits 51 through 53, 54, and 58. Exhibits 51 through 53 are backup invoices
25 for Chaplin's nonrevenue postage freight during FedEx's fiscal years 2010-2012.
26 Exhibit 54 is a spreadsheet that FedEx produced of the nonrevenue account
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MARKS, FINCH,
. DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3: 13-cv-Ol030-CAB-KSC
San Diego, CA 92121
(858) 737-3100
Exhibit 1
000009
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1056 Page 10 of 15
1 activity for some of the DSM's accounts for 2012 through 2014. Exhibit 58
2 contains backup invoices for postage freight nonrevenue activity for various
3 other DSMs- in the Western Region during fiscal years 2009-2013. These backup
4 invoices clearly show the non-FedEx senders and recipients of the nonrevenue
5 shipments, thereby refuting FedEx's defense that all nonrevenue shipping was
6 merely internal FedEx or to/from FedEx shipping.
7 43. Collier himself admitted in writing that FedEx nonrevenue account
8 usage was done to satisfy customers. For example, on or about June 24, 2008,
9 Collier sent an email to all DSMs in the Desert Pacific Region, including me,
10 acknowledging this. A copy of this email, which, FedEx produced during
11 discovery in this action, is attached to the Opposition as Exhibit 33.
12 44. I responded to Collier's email above by stating I had used the
13 nonrevenue number to diffuse customer situations. Collier did not discipline me
14 for this at any time or tell me to stop it. To the contrary, he said it was "not that
15 big a deal." A copy of this email exchange which FedEx produced during
16 discovery in this action is attached to the Opposition as Exhibit 34. A copy of a
17 similar email exchange between Collier and another DSM, Ryan Fisher, which
18 F edEx produced in this action is attached to the Opposition as Exhibit 31. Collier
19 acknowledges the substantial nonrevenue shipping use by a DSM, and says: "stay
20 the course."
21 45. During my employment at FedEx, I frequently communicated with
22 other DSMs in the Western Region. This was especially true with respect to
23 DSMs in the Desert Pacific Region, who were also supervised by Collier. For
24 example, Collier myself and the other DSMs Collier supervised participated in
25 weekly conference calls.
26 / / / / /
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3:13-cv-Ol030-CAB-KSC
San Diego, CA 92121
(858) 737 -3100 Exhibit 1
000010
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1057 Page 11 of 15
1 46. Tim Chaplin was the DSM for the FedEx sales district based in Las
2 Vegas during at least the last three years of my employment at FedEx. He was
3 also supervised by Collier and we were co-participants in the weekly conference
4 calls with Collier. I also met personally with Chaplin on multiple occasions.
5 47. Chaplin regularly used his nonrevenue account number for customer
6 satisfaction purposes, and I have known this for a long time because he told me.
7 He likewise told this to Collier and other DSMs during our weekly conference
8 calls. He said he used his nonrevenue account to allow disgruntled customers to
9 ship packages without charging them. He said he did this on many occasions.
10 As previously notes, FedEx BVRs and back-up invoices confirm this, and are
11 attached to the Opposition at Exhibits 47 through 49 and 51 through 53.
12 48. Chaplin was approximately 41 years old when I was terminated. I
13 am informed that after F edEx terminated me, F edEx promoted Chaplin to a
14 Managing Director position in Washington D.C.
15 49. Ryan Fisher, another DSM in the Desert Pacific Region under
16 Collier's supervision, also stated during weekly conference calls with Collier and
17 me that he used his nonrevenue account on more than one occasion to allow
18 disgruntled customers to ship packages without charging them. FedEx BVRs and
19 back-up documentation confirm this, and are attached at Exhibits 56, 57, and 58.
20 Ryan Fisher was approximately 39 years old when I was terminated.
21 50. Kim Nelson was another DSM in the Desert Pacific Region under
22 Collier's supervision. He also stated during our weekly conference calls with
23 Collier that he used his nonrevenue account on more than one occasion to allow
24 disgruntled customers to ship packages without charging them.
25 51. Ron Gonsalves, a DSM in the Western Region, also told me that he
26 used his nonrevenue account on more than one occasion to allow disgruntled
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3: 13-cv-0l030-CAB-KSC
San Diego, CA 92121
(858) 737 -3100 Exhibit 1
000011
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1058 Page 12 of 15
1 customers to ship packages without charging them. FedEx BVRs and back-up
2 documentation confirms this, and are attached at Exhibits 54, 57, and 58. Ron
3 Gonsalves was in his 40s when I was terminated.
4 52. Ben Williamson, a DSM in the Western Region, also told me that he
5 used his nonrevenue account on more than one occasion to allow disgruntled
6 customers to ship packages without charging them. FedEx BVRs and back-up
7 documentation confirms this, and are attached at Exhibits 54, 57, and 58. Ben
8 Williamson was in his 40s when I was terminated.
9 53. Theresa Rubinoff, a DSM in the Western Region, also told me that
10 she used her nonrevenue account on more than one occasion to allow disgruntled
11 customers to ship packages without charging them. FedEx BVRs and back-up
12 documentation confirms this, and are attached at Exhibits 54 and 57. Theresa
13 Rubinoff was in her 40s when I was terminated.
14 54. Chris Baugh, a DSM in the Western Region, also told me that he
15 used his nonrevenue account on more than one occasion to allow disgruntled
16 customers to ship packages without charging them. FedEx BVRs and back-up
17 documentation confirms this, and are attached at Exhibits 54 and 57. Chris
18 Baugh was in his 40s when I was terminated.
19 55. Tom Prucha held the position ofDSM for the North San Diego
20 district immediately before me, and has since been promoted to Regional
21 Director for the Mountain West Region. Prucha told me that he used his
22 nonrevenue account to allow customers to ship packages without charging them.
23 Prucha was at least 10-15 years younger than me at the time of my termination.
24 56. In about 2011, Vet Stem, a FedEx customer in the North San Diego
25 district, was victimized by computer fraud and its FedEx shipping account
26 number was stolen.
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3: 13-cv-Ol030-CAB-KSC
San Diego, CA 92121
(858) 737-3100
Exhibit 1
000012
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1059 Page 13 of 15
57. In response to Vet Stem's request to correct this issue, FedEx issued
2 Vet Stem a new account number.
3 58. To make sure that Vet Stem's customers received Vet Stem's new
4 FedEx account number, in about February 2012, FedEx caused a letter and five
5 labels with VetStem's new account number to be sent to each of Vet Stem's
6 customers totaling about 523 in number. Throughout my employment at FedEx,
7 FedEx routinely provided free shipping and supplies like this to its customers
8 and, as described above, DSMs and other FedEx personnel regularly "comp'ed"
9 shipping in this manner to fulfill "The Purple Promise" customer satisfaction
10 policy and to save business.
11 59. This Vet Stem bulk endeavor should have been recorded as
12 approximately $2,500-$3,500 in postage freight on my BVR. However, as a
13 result of a computer glitch in FedEx's bulk shipping process, this recorded as
14 about $10,000.00 under the postage freight portion of my BVR for February
15 2012.
16 60. I told Collier about the pricing error on multiple occasions between
17 February 2012 and my termination. I tried to have the invoicing error corrected,
18 but FedEx refused to change it. A copy of an email exchange between my
19 assistant Paola Schick, myself, and another FedEx employee in this regard is
20 attached to the Opposition as Exhibit 40.
21 61. I spoke with or corresponded via email with Collier approximately
22 ten times about the VetStem issue between January 2012 and Apri12012. Copies
23 of some emails between Collier and myself in this regard are attached to the
24 Opposition as Exhibits 28 and 29. A copy of an email between myself and
25 Collier's assistant is attached to the Opposition as Exhibit 30.
26 / / / / /
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3:13-cv-Ol030-CAB-KSC
San Diego, CA 92121
(858) 737-3100 Exhibit 1
000013
Case 3:13-cv-01030-CAB-KSC Document 38-2 Filed 08/04/14 PageID.1060 Page 14 of 15
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MARKS, FINCH,
DECLARATION OF RICHARD KERRIGAN IN OPPOSITION TO DEFENDANT'S
THORNTON & BAIRD, LLP
4747 Executive
MOTION FOR SUMMARY JUDGMENT
Drive - Suite 700
Case No. 3:13-cv-Ol030-CAB-KSC
San Diego, CA 92121
(858) 737-3100 Exhibit 1
000015