Callie V. S. Granade, SENIOR UNITED STATES DISTRICT JUDGE.
This matter is before the Court on Defendant's motion for judgment on the pleadings as to claims for individual relief and jury demand (Doc. 26), Plaintiff's opposition thereto (Doc. 31), and Defendant's reply (Doc. 34). For the reasons explained below, the Court finds that judgment on the pleadings should be denied.
Plaintiff Equal Employment Opportunity Commission ("EEOC") filed this action alleging that Defendant Austal USA, LLC ("Austal") discriminated against Jimmy Cooper by failing to provide him leave as a reasonable accommodation in violation of the ADA. (Doc. 1). According to the complaint, Mr. Cooper began working at Austal in 2007 as a Warehouseman. (Doc. 1, ¶ 14). In 2008, Cooper was diagnosed with Type II Insulin-Dependent Diabetes which sometimes required him to be absent or
Austal moved for judgment on the pleadings asserting that Cooper waived any right to recover individual relief from Austal via releases he executed on April 17, 2015. (Doc. 26). Austal attached copies of the releases to its motion. The first release, titled "SETTLEMENT AGREEMENT AND APPLICATION FOR APPROVAL OF AGREED SETTLEMENT UNDER LHWCA SECTION 8(i)(1)" (hereinafter "LHWCA Settlement Agreement"), states that the parties agree "to settle all issues and claims between themselves whether arising under the AWCA, the LHWCA, or any other statute or law ..." (Doc. 26-1, ¶ J). The USDOL approved the LHWCA Settlement Agreement on May 7, 2015. (Doc. 26-4). The second release, titled "AGREEMENT AND GENERAL RELEASE" (hereinafter "General Release"), included the following:
(Doc. 26-3, ¶¶ 1-3).
Rule 12(c) of the Federal Rules of Civil Procedure provides that "[a]fter the pleadings are closed—but early enough not to delay trial—a party may move for judgment on the pleadings." The pleadings are closed for purposes of Rule 12(c), "when a complaint and answer have been filed." Lillian B. ex rel. Brown v. Gwinnett Cty. Sch. Dist., 631 Fed. Appx. 851, 853 (11th Cir. 2015). Pleadings include complaint, answers, and affirmative defenses. FED. R. CIV. P. 7(a). A Rule 12(c) motion "provides `a means of disposing of cases when ... a judgment on the merits can be achieved by focusing on the content of the competing pleadings....'" Perez v. Wells Fargo N.A., 774 F.3d 1329, 1336 (11th Cir. 2014) (quoting 5C CHARLES ALAN WRIGHT & ARTHUR R. MILLER, FEDERAL PRACTICE AND PROCEDURE § 1367 (3d ed. 2004)) (emphasis in original).
The standard for granting a Rule 12(c) motion for judgment on the pleadings is identical to that of a Rule 12(b)(6) motion to dismiss. Thomas v. Nat'l Union Fire Ins. Co. of Pittsburgh, PA, 2019 WL 1573702, at *1 (M.D. Ala. Apr. 11, 2019) (citation omitted). In "determining whether a party is entitled to judgment on the pleadings, we accept as true all material facts alleged in the non-moving party's pleading, and we view those facts in the light most favorable to the non-moving party." Perez, 774 F.3d at 1335. "If a comparison of the averments in the competing pleadings reveals a material dispute of fact, judgment on the pleadings must be denied." Id. A judgment on the pleadings is appropriate "when there are no material facts in dispute, and judgment may be rendered by considering the substance of the pleadings and any judicially noticed facts." Horsley v. Rivera, 292 F.3d 695, 700 (11th Cir. 2002).
Austal contends judgment on the pleadings should be granted based on the LHWCA Settlement Agreement and the General Release. Generally, the Court may not consider matters outside the pleadings without converting the motion into a motion for summary judgment. FED. R. CIV. P. 12(d). However, "[a] copy of a written instrument that is an exhibit to a pleading is a part of the pleading for all purposes." FED. R. CIV. P. 10(c). Also, the Court may consider an extrinsic document if it is "(1) central to the plaintiff's claim, and (2) its authenticity is not challenged. SFM Holdings, Ltd. v. Banc of Am. Sec., LLC, 600 F.3d 1334, 1337 (11th Cir. 2010) (citations omitted). "In this context, `undisputed' means that the authenticity of the document is not challenged." Day v. Taylor, 400 F.3d 1272, 1276 (11th Cir. 2005) (citation omitted).
The releases here were not attached to any pleading. The General Release was reportedly submitted by Austal to the EEOC on May 20, 2015 and Austal contends it is part of the EEOC's administrative record. The Complaint references the EEOC Charge but does not mention any release or settlement of Cooper's claims. Courts have found that an EEOC charge attached to a motion to dismiss may be considered where it was central to a complaint brought by a charging party and the authenticity of the charge was not disputed. See e.g. Cochran v. Southern Co.,
Austal contends that the documents at issue can be judicially noticed by this Court. EEOC charges and related documents have been found to be public records of which a court may take judicial notice in ruling on a motion to dismiss without having to convert the motion into one for summary judgment. See e.g. Hicks v. City of Alabaster, Ala., 2013 WL 988874, at *7 n.5 (N.D. Ala. Mar. 12, 2013) ("when considering a motion to dismiss, the court may take judicial notice of the contents of relevant public records, which include EEOC Charges and Right to Sue Letters" (citations omitted)). However, it is questionable whether the agreements at issue are part of the administrative record. The EEOC argues that the release document was not verified or otherwise authenticated and that Austal's report that it sent the release to the EEOC does not make it part of the EEOC's administrative record for purposes of judicial notice.
The EEOC argues that even if the Court takes judicial notice of the Release and Settlement Agreement, the Court should not assume that the statements contained in the documents are accurate and undisputed. The EEOC does not dispute that Cooper signed the agreements. (Doc. 31, p. 5 n.3). However, the EEOC argues that the Court does not have to take as true statements in the documents that the agreements were knowingly and voluntarily assented to after having had time to consider the releases and consult with an attorney, that the compensation was adequate, or that the agreements were not procured by duress. Since Austal has the burden of proof on its waiver and
The Southern District of Florida has ruled that at the dismissal stage a release would not support a defendant's motion to dismiss. Duvall v. Sun-Sentinel Co., 2013 WL 3310073 (S.D. Fla. July 1, 2013). In Duvall, the court reasoned as follows:
Duvall, 2013 WL 3310073, at *2. The Court finds the Duvall court's reasoning to be persuasive. Extrinsic documents "may only be considered to show their contents, not to prove the truth of matters asserted therein." Oxford Asset Mgmt., Ltd. v. Jaharis, 297 F.3d 1182, 1188 (11th Cir. 2002). Because the LHWCA Settlement Agreement and the General Release were not mentioned in the complaint the Court has no facts before it regarding the circumstances of their execution or of the veracity of the statements contained therein.
The Duvall case was brought by the charging party who claimed he did not know he was waiving any federal statutory claims and that the defendant essentially pulled a bait-and-switch by not expressly telling him so. Duvall, 2013 WL 3310073, at *2. The current case is complicated by the fact that it is brought by the EEOC, not the charging party. Austal argues that the EEOC does not have standing to challenge the knowingness and voluntariness of Cooper's execution of the settlement and release since the EEOC was not a party to the agreements.
The Supreme Court discussed the effects of a settlement between a charging party and his employer in E.E.O.C. v. Waffle House, Inc., 534 U.S. 279, 122 S.Ct. 754, 151 L.Ed.2d 755 (2002). In Waffle House, the Court found that an arbitration agreement signed by the charging party did not limit the remedies available to the EEOC. In other words, the EEOC was not required
Id. at 297-98. While the Waffle House case is instructive and discusses at length the authority of the EEOC and the remedies it has available, the case does not answer the question whether the EEOC can challenge a charging party's settlement agreement, nor does it fully explain the effect such a settlement, if binding, would have on the EEOC's claim.
In the Waffle House case, the Supreme Court indicated that the EEOC does not stand in the shoes of the employee in all instances. If the EEOC was found not to stand in the shoes of the employee with regard to a settlement or release agreement, that might limit its ability to challenge Cooper's agreements here since the EEOC is not a party to those agreements. However, the Waffle House case also instructs that we must look to the statutes that grant the EEOC's authority.
The EEOC's authority to bring suit arises from 42 U.S.C. § 2000e-5(f), which states that the EEOC may bring a civil action after a charge is filed with the Commission "if the Commission has been unable to secure from the respondent a conciliation agreement
Austal cites three cases, none of which are in the Eleventh Circuit, to support its argument that the EEOC cannot challenge Cooper's settlement and release of his claims. In E.E.O.C. v. CVS Pharmacy, Inc., 809 F.3d 335 (7th Cir. 2015), the Court found that Title VII did not give the EEOC broad powers to sue without engaging in conciliation or even alleging that the employer engaged in discrimination. In CVS Pharmacy, the agreement at issue was not the employer's conciliation to a charge that was filed, but a severance agreement that the employee entered into prior to filing a charge of discrimination. The employee filed a charge alleging he had been fired on the basis of his race and sex after entering into the severance agreement. Id. at 337. The EEOC dismissed the employee's discrimination charge but filed suit against the employer alleging that the employer had engaged in a pattern and practice of discouraging the filing of EEOC charges by offering the termination agreement to employees which included a waiver of claims. Id. at 338. The EEOC did not allege that the employer engaged in discrimination or retaliation. Id. The Seventh Circuit held that the district court correctly found that the EEOC's suit should be dismissed because the EEOC had not followed the pre-suit procedural requirements of Section 707(a) and because the EEOC did not allege any discrimination or retaliation.
In EEOC v. Goodyear Aerospace Corp., 813 F.2d 1539 (9th Cir. 1987), an employee filed an EEOC charge against Goodyear for discriminatory promotion practices. The EEOC brought suit seeking injunctive relief and back pay for the charging party. Id. at 1541. Goodyear subsequently promoted the charging party and the charging party signed a settlement agreement that, in consideration for having been promoted and for the employer's promise not to retaliate, released the employer from "any and all actions ..., including any claim for attorneys' fees," and requested that the EEOC dismiss the lawsuit. Id. at 1541-42. The Ninth Circuit held that a charging party's settlement with her employer did "not moot the EEOC's right of action seeking injunctive relief to protect employees
Id. at p. 1543, n.2.
The last case Austal cites is EEOC v. Pan American World Airways, Inc., 897 F.2d 1499 (9th Cir. 1990). In Pan American, the EEOC filed suit on behalf of two employees and any others who were similarly situated. Id. at 1500. The case went to trial but settled just before closing arguments. Id. at 1503. The proposed settlement agreement awarded damages to the 106 claimants in the case and provided injunctive relief. Id. Two former employees who had not previously been involved in the lawsuit filed motions seeking inclusion in the settlement class. Id. The district court denied their motions, finding that both of the employees had received notice of the lawsuit from one source or another and that the EEOC enforcement action terminated their individual right to bring suit. Id. at 1502, 1503. The Ninth Circuit affirmed the district court's ruling, finding that the notification procedures adopted by the EEOC were sufficient to satisfy the requirements of due process and that the settlement did not prejudice their rights because their right to file individual claims was already barred upon the EEOC's filing of the lawsuit. Id. at 1507. "The objectors had no right to participate in the EEOC's lawsuit because they expressed their interest too late in the day." Id. at 1509. This Court finds that the Pan American case does not support Austal's argument. The case has nothing to do with the EEOC's rights to challenge a charging party's settlement. The individual objectors in Pan American had lost their right to assert their individual claims long before
The parties have not presented (and this Court has not found) any binding caselaw that determines what right, if any, the EEOC has to challenge a charging party's settlement and release of his ADA claims. After considering the parties' arguments, the Court finds the EEOC has statutory authority to challenge Cooper's settlement agreement. Accordingly, the Court concludes that the LHWCA Settlement Agreement and the General Release cannot serve as a basis to grant judgment on the pleadings. Whether Cooper knowingly and voluntarily released his right to the individual relief the EEOC seeks here on his behalf will have to be resolved on summary judgment or at trial.
For the reasons stated above, Defendant's motion for judgment on the pleadings (Doc. 26), is
42 U.S.C.A. § 12117(a).