Ashok K. Gupta, a native of India, was employed at Lightbridge, Inc. as a credit analyst from November 10, 1999, until his discharge on August 20, 2001. Lightbridge operates a telephone call center where sellers of cellular telephones obtain credit checks on prospective customers. Guptas responsibilities included answering calls and running credit checks. Lightbridges customer service procedures explicitly state that [a]ny incidences, i.e. disconnecting calls, not answering calls, unprofessional conduct while on the phoneor anything that causes an adverse business impact on Lightbridge, Inc. (complaint from client or agent, financial loss or client loss, etc.) may result in corrective action.

Gupta had been the subject of two complaints from callers. The first incident occurred after a dealer asked Gupta to repeat himself. Gupta replied, [w]hat do you mean Im speaking to you in English, and disconnected the call, after ignoring the dealers request to speak with a supervisor. Gupta received a verbal warning and an Employee Corrective Action Form admonishing that he would be subject to disciplinary action for [a]ny further infractions of this or any other company policy.

The second warning came after a different dealer called Lightbridge crying and reporting that Gupta had been rude and uncooperative. Gupta was again spoken to and received another corrective action form, which noted that [a]ny further violations of this company policy or any other company policies will result in additional disciplinary action up to and including termination. Gupta had signed both disciplinary forms.

On August 17, 2001, a caller referred to Gupta as [y]ou stupid Indian. Gupta replied, Hold on you idiot. He then placed the caller on hold and attempted to locate a supervisor. Unable to find a supervisor, he returned to the call, but it had been disconnected. A short time later, the same dealer called again, but upon hearing Guptas voice the dealer said, Jesus, and hung up. Lightbridge lost a customer as a result. Gupta was terminated, and he applied for unemployment. The state denied his benefits because he had willfully disobeyed workplace rules.

Discuss:

Gupta filed suit to collect his unemployment benefits.

Is he entitled to them?

Explain why the state decided as it did and what the appeals court should do.