Justia Contracts Opinion Summaries

After Plaintiff twice lost out on a promotion, she sued Union Pacific for discrimination. The question is whether a dispute over the interpretation of a collective-bargaining agreement required dismissal. Union Pacific to sought dismissal under the Railway Labor Act, see 45 U.S.C. Section 151, et seq., which requires disputes over the interpretation of a collective-bargaining agreement to go to arbitration. The district court granted the motion to dismiss.   The Eighth Circuit affirmed. The court explained that the parties agree that this case does not involve an attempt to “form” or “secure” a collective-bargaining agreement, so it does not fall into the major-dispute category. In a failure-to-promote case like this one, Plaintiff must establish that (1) she “was a member of a protected group; (2) she was qualified and applied for a promotion to a position for which the employer was seeking applicants; (3) she was not promoted; and (4) similarly situated employees, not part of the protected group, were promoted instead.” The sticking point is whether she actually applied for either promotion: she says she did, but Union Pacific disagreed. Whether faxed resumes count as applications under the collective-bargaining agreement is something she will have to prove to establish her prima-facie case. Perhaps the best evidence of its importance was the prominent role it played at trial, especially in the questioning by Plaintiff’s attorney. In these circumstances, the issue is one for the National Railroad Adjustment Board to decide. View "Nancy Avina v. Union Pacific Railroad Co." on Justia Law

The Supreme Court affirmed the judgment of the circuit court awarding attorneys' fees after a medical doctor sued and lost against a hospital following its revocation of the doctor's medical staff and surgical privileges, holding that the circuit court did not err or abuse its discretion.Doctor, a surgeon, sued Hospital after his termination stemming from allegations that Doctor provided care that fell short of standard surgical practice. After a remand, all of Doctor's claims were dismissed. Thereafter, the circuit court awarded Hospital attorneys' fees and costs. The Supreme Court affirmed, holding (1) the motion for attorneys' fees was timely filed; and (2) Doctor was not entitled to relief on his remaining allegations of error. View "Williams v. Baptist Health" on Justia Law

The Supreme Court affirmed the order of the superior court denying Petitioner's petition for a writ of mandamus and dismissing his complaint pursuant to Sup. Ct. R. Civ. P. 12(b)(1) and 12(b)(6), holding that the superior court did not err.Plaintiff, a former employee of the City of East Providence, attempted to rescind an agreement he made with the City regarding, among other things, his retirement benefits and the issuance of a corrected W-2 to reflect his injured-on-duty status. The trial judge entered judgment for the City. Plaintiff then filed a complaint and petition for a writ of mandamus against his union asking the superior court to abrogate agreement regarding the period of his injured-on-duty status. The trial court granted Defendants' motion to dismiss. The Supreme Court affirmed, holding (1) several of Plaintiff's arguments were waived; and (2) this case was barred by res judicata. View "Jenkins v. City of East Providence" on Justia Law

The Supreme Court reversed the judgment of the court of appeals in this employment discrimination suit ruling that an arbitration agreement was unconscionable and affirming the order of the trial court denying the employer's motion to compel arbitration, holding that the court of appeals erred in ruling that the evidence supported the trial court's finding that the arbitration agreement was unconscionable.After Petitioner terminated Respondent's employment Respondent sued for race discrimination and retaliation under federal and state law. Petitioner moved to compel arbitration based on the arbitration agreement signed by Respondent when he was hired. Respondent opposed the motion, arguing that the agreement was unconscionable. The trial court denied the motion to compel, and the court of appeals affirmed. The Supreme Court reversed, holding that there was insufficient evidence to prove that the agreement was unconscionable. View "Houston AN USA, LLC v. Shattenkirk" on Justia Law

Plaintiff is the former Vice President of Program and Community of the Eugene and Agnes E. Meyer Foundation. She received largely positive feedback during her tenure, but less than two years after she was hired, the CEO of the Foundation fired her for purported interpersonal and communication-related issues. Plaintiff, who is African-American, believes these stated reasons were pretext to mask discriminatory animus. Plaintiff and the Foundation signed a severance agreement, under which Plaintiff agreed to release employment-related claims against the Foundation and its employees, and which contained a mutual non-disparagement clause. But roughly a month after Plaintiff was fired, the CEO told another leader in the non-profit space that Plaintiff was let go because she was “toxic,” created a “negative environment.” Plaintiff sued the Foundation and its CEO for breaching the severance agreement, for doing so in a racially discriminatory manner in violation of 42 U.S.C. Section 1981, and for defaming her. The district court dismissed all three claims.   The DC Circuit held that the district court erred in dismissing all three claims. As to Plaintiff’s breach of contract claim, the non-disparagement clause could reasonably be interpreted to preclude the Foundation from disparaging Plaintiff, and dismissal under Federal Rule of Civil Procedure 12(b)(6) is therefore inappropriate. As to her Section 1981 claim, the court found that she has plausibly alleged a prima facie case that the Foundation, through the CEO, breached the severance agreement due to racial animus. And lastly, the CEO’s statements are not protected by the common interest privilege, which requires a showing of good faith on the part of the speaker. View "Terri Wright v. Eugene & Agnes E. Meyer Foundation" on Justia Law

Consolidated appeals stemmed from an employment dispute between Dr. Margot G. Potter and her former employer, Women's Care Specialists, P.C. ("Women's Care"), and out of a dispute between Potter and three Women's Care employees: Dr. Karla Kennedy, Dr. Elizabeth Barron, and Beth Ann Dorsett ("the WC employees"). In case no. CV-21-903797, Potter alleged claims of defamation, tortious interference with a business relationship, and breach of contract against Women's Care. In case no. CV-21-903798, Potter alleged claims of defamation and tortious interference with a business relationship against the WC employees. After the trial court consolidated the cases, Women's Care and the WC employees filed motions to compel arbitration on the basis that Potter's claims were within the scope of the arbitration provision in Potter's employment agreement with Women's Care and that the arbitration provision governed their disputes even though Potter was no longer a Women's Care employee. The trial court entered an order denying those motions. Women's Care and the WC employees separately appealed; the Alabama Supreme Court consolidated the appeals. In appeal no. SC-2022-0706, the Supreme Court held that Potter's breach of-contract claim and her tort claims against Women's Care were subject to arbitration. The Court therefore reversed the trial court's order denying Women's Care's motion to compel arbitration. In appeal no. SC-2022-0707, the Supreme Court held that Potter's tort claims against the WC employees were subject to arbitration. The Court therefore reversed the trial court's order denying their motion to compel arbitration, and remanded both cases for further proceedings. View "Women's Care Specialists, P.C. v. Potter" on Justia Law

The First Circuit reversed the judgment of the district court dismissing Plaintiff's breach of contract claim against Defendant, a digital health company, and affirmed the district court's dismissal of all other claims against Defendant and three of its board members, holding that Plaintiff plausibly stated a claim for entitlement to severance benefits.Plaintiff worked for Defendant as its CEO for one year. Thereafter, Defendant decided that it no longer wished to continue its relationship with Plaintiff, as defined in her one-year, automatically renewable employment agreement, and, after she left, refused to pay severance benefits under the agreement. In response to Plaintiff's ensuing lawsuit, Defendant argued that it did not terminate Plaintiff's employment because it merely exercised its right not to renew the agreement. The district court agreed and granted Defendant's motion to dismiss for failure to state a claim. The First Circuit (1) reversed the dismissal of Plaintiff's breach of contract claim, holding that the complaint adequately alleged that Defendant obligated itself to pay severance benefits by ending her employment under the agreement without cause before the end of the one-year term; and (2) affirmed the dismissal of all other claims against Defendant and its three board members, holding that the district court did not otherwise err. View "Sullivan v. etectRx, Inc." on Justia Law

After years of what the Los Angeles Unified School District (LAUSD) viewed as unsatisfactory teaching performance by a certificated teacher, LAUSD served the teacher with a Notice of Intent to Dismiss and a Statement of Charges, which included notice that the employee was suspended without pay. The teacher brought and prevailed on a motion for immediate reversal of suspension (MIRS) and thus received pay during the pendency of the dismissal proceedings. LAUSD ultimately prevailed in those proceedings. LAUSD then sought a writ of administrative mandamus in the superior court seeking to set aside the order granting the MIRS and to recoup the salary payments it had made to the teacher during the pendency of the proceedings. The trial court denied the writ, holding that the MIRS order is not reviewable. The court also ruled (1) LAUSD cannot recover the payments to the teacher under its cause of action for money had and received and (2) LAUSD’s cause of action for declaratory judgment is derivative of its other claims. The trial court entered judgment against LAUSD in favor of the teacher.   The Second Appellate District affirmed. The court explained that LAUSD has failed to show that in adding the MIRS procedure, the Legislature intended school districts to be able to recover payments to subsequently dismissed employees. The court wrote that if LAUSD believed such recovery should be permitted through judicial review of MIRS orders or otherwise, it should address the Legislature. View "L.A. Unified School Dist. v. Office of Admin. Hearings" on Justia Law

While working for Adnet, Inc. (“Adnet”), Defendants learned of a subcontract that Adnet was attempting to win. Thereafter, Defendants, through their own company, submitted a bid for that same subcontract. After Defendants won the subcontract, Adnet brought claims against them for breach of the duty of loyalty, tortious interference with a business relationship, and business conspiracy. The district court granted Defendants’ motion for summary judgment, concluding that Defendants did not compete against Adnet, that Adnet did not have a business expectancy in the subcontract, and that, without proof of an underlying tort, there was no business conspiracy. Adnet appealed.   The Fourth Circuit reversed the district court’s grant of summary judgment to Defendants on Adnet’s claims for breach of the duty of loyalty and tortious interference with a business relationship. Further, the court vacated the district court’s grant of summary judgment to Defendants on Adnet’s business conspiracy claim and remanded. The court explained that there is sufficient evidence of a direct competition for the subcontract between Adnet and Defendants while they were working for Adnet to bar a grant of summary judgment to Defendants. A reasonable juror could conclude that employees, like Defendants, breach their duty of loyalty to their employer when they learn of a potential business opportunity through their employment and then participate in direct competition with their employer for that opportunity while still employed. View "Adnet, Inc. v. Rohit Soni" on Justia Law

Plaintiff, an African American woman, worked as a conductor for Amtrak National Railroad Passenger Corporation (Amtrak). During her employment, she belonged to a division of the Sheet Metal, Air, Rail and Transportation Workers (SMART) union, which maintained a collective bargaining agreement (CBA) with Amtrak. Plaintiff brought the instant lawsuit pro se. She named Amtrak and the company’s director of employee relations as Defendants, along with three other Amtrak colleagues. Plaintiff asserted state-law claims of breach of contract and tort, as well as a federal claim of racial discrimination in violation of Title VII. Defendants moved to dismiss, and Plaintiff moved for summary judgment as well as for leave to amend her complaint. The district court granted Defendants’ motion and denied Plaintiff’s two motions. The district court held that Plaintiff’s claims were subject to arbitration under the Railway Labor Act (RLA).   The Fourth Circuit affirmed. The court explained that it declines to unwind a statutory scheme without a clear congressional directive to do so. Plaintiff argued that at least her particular claim is not a minor dispute. The mere fact that Plaintiff’s claim arises under Title VII does not disqualify that claim from being a minor dispute within the RLA’s ambit. The thrust of Plaintiff’s Title VII claim is that Amtrak deviated from its policies when dealing with her. While Plaintiff’s allegations as to her own treatment are factual, those concerning Amtrak’s policies directly implicate the relevant CBA between Plaintiff’s union, SMART, and Amtrak. That some of Plaintiff’s interpretive disagreements concern the Drug-Free Program does not alter the character of her claim. View "Dawn Polk v. Amtrak National Railroad Passenger Corporation" on Justia Law