MICHAEL J. DAVIS, Chief Judge.
Based upon the Report and Recommendation of United States Magistrate Judge Leo I. Brisbois, and after an independent review of the files, records and proceedings in the above-titled matter,
That Plaintiff's Motion to Strike [Docket No. 13] is
LEO I. BRISBOIS, United States Magistrate Judge.
This matter came before the undersigned United States Magistrate Judge upon Plaintiff's Motion to Strike. The motion has been referred to the undersigned Magistrate Judge for report and recommendation pursuant to 28 U.S.C. § 636(b)(1) and Local Rule 72.1. The Court recommends that Plaintiff's motion to strike be granted as more fully described herein.
The Equal Employment Opportunity Commission (Plaintiff) brings this action under the Americans with Disabilities Amendments Act of 2008 and the Civil Rights Act of 1991 "to correct unlawful employment practices on the basis of retaliation and to provide appropriate relief to Adam Breaux, III ("Breaux") who was adversely affected by such practices." (Am. Compl. [Docket No. 7] at 1). It alleges that Mr. Breaux was improperly terminated in retaliation for a request to accommodate a leave and in retaliation for having participated as a witness in an EEOC investigation of a charge of discrimination filed by a former employee of Defendant Product Fabricators, Inc. (PFI). (Id. ¶¶ 14-15). Additionally, Plaintiff alleges that Defendant PFI was sold to M & M Manufacturing, Inc. (M & M) and asserts a successor liability claim. (Id. ¶ 19). Plaintiff alleges that PFI was owned by Michael Murphy, Sr. and that M & M was owned and operated by Michael Murphy, Jr. and Mark Murphy, the sons of Michael Murphy, Sr. (Id. ¶¶ 20-22).
Adam Breaux (Plaintiff-Intervenor) asserts claims for violation of the ADA, a retaliatory discharge in violation of Minn. Stat. § 176.82, subd. 1, and refusal to offer continued employment in violation of Minn. Stat. § 176.82, subd. 2. (Compl. of Plaintiff-Intervenor Adam Breaux [Docket No. 30] ¶¶ 16-29).
In their answer to the Amended Complaint, Defendants raise several affirmative defenses that Plaintiff argues "are unavailable as a matter of law, and/or cannot be established by plausible facts in Defendants' pleading." (Mem. in Supp. of EEOC's Rule 12(f) Mot. [Docket No. 15] at
Federal Rule of Civil Procedure 12(f) permits the Court to "strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Because such relief is an "extreme measure," however, motions under Rule 12(f) are viewed with disfavor in the Eighth Circuit and are infrequently granted. Stanbury Law Firm, P.A. v. Internal Revenue Serv., 221 F.3d 1059, 1063 (8th Cir.2000); Daigle v. Ford Motor Co., 713 F.Supp.2d 822, 830 (D.Minn.2010). Nevertheless, the Court has "liberal discretion" under the rule, Stanbury, 221 F.3d at 1063, and a motion to strike should be granted "if the result is to make a trial less complicated or otherwise streamline the ultimate resolution of the action." Daigle, 713 F.Supp.2d at 830.
"A motion to strike a defense will be denied if the defense is sufficient as a matter of law or if it fairly presents a question of law or fact which the court ought to hear." Lunsford v. United States, 570 F.2d 221, 229 (8th Cir.1977). However, where the defense asserted is "foreclosed by prior controlling decisions or statutes," the Court may strike it as legally insufficient. Holt v. Quality Egg, LLC, 777 F.Supp.2d 1160, 1169 (N.D.Iowa 2011). In that regard, "[t]he motion closely resembles a motion to dismiss in that all well plead allegations in the affirmative defense must be accepted as true and the Court must find that the defense at issue is legally insufficient." United States v. NHC Health Care Corp., 2000 WL 33146581, at *1 (W.D.Mo. Dec. 29, 2000).
The Minnesota Worker's Compensation Act provides that "[t]he liability of an employer prescribed by this chapter is exclusive and in the place of any other liability...." Minn.Stat. § 176.031.
Plaintiff argues that "Defendants' contention that EEOC's suit is barred by the exclusivity provision of the Minnesota Workers Compensation Act ignores the Supremacy Clause of the United States Constitution and the explicit provisions for damages in the federal laws under which the EEOC is proceeding." (Mem. in Supp. of EEOC's Rule 12(f) Mot. at 2). The Court agrees.
Defendants argue that the Minnesota Supreme Court "has conclusively held that the Minnesota Workers' Compensation Acts exclusivity provision precludes any additional employer liability for disability discrimination under the Minnesota Human Rights Act." (Defs.' Resp. to Pl.s' Rule 12(f) Mot. [Docket No. 23] at 2) (citing Karst v. F.C. Hayer Co., Inc., 447 N.W.2d 180 (Minn.1989)). Here, the Plaintiff has brought an action under federal law, specifically, the Americans with Disabilities Act (ADA) — not under the Minnesota Human Rights Act. The Minnesota Supreme Court's decision that the exclusivity provision of the Minnesota Workers' Compensation Act bars any subsequent actions under the Minnesota Human Rights Act is inapposite to the present case.
Defendants also argue that Plaintiff has not provided any "precedential case law from the Eighth Circuit conclusively holding that the Minnesota Workers' Compensation
Defendants attempts to distinguish Karcher by highlighting that, as the court in Karcher even stated, the Missouri exclusivity provision did not bar recovery under the Missouri Human Rights Act. As already explained above, the Court finds irrelevant the interplay between a state's workers' compensation statute and that state's human rights act when considering whether the exclusivity provision of the state workers' compensation statute bars a federal cause of action under the Americans with Disabilities Act. This Court has previously held, in addressing preemption with respect to the Minnesota Workers Compensation Act and the United States Rehabilitation Act of 1973, that "the federal remedy for disability discrimination cannot be limited by a state workers compensation act." Smith v. Lake City Nursing Home, 771 F.Supp. 985, 987 (D.Minn.1991). The Court's holding in Smith is also applicable here.
Other courts addressing the issue have likewise unanimously found that a state workers' compensation statute cannot preempt a federal cause of action under the ADA. In Liss v. Nassau Cnty., 425 F.Supp.2d 335, 342 (E.D.N.Y.2006), addressing a defendant's argument that "the plaintiff may not seek damages under the ADA" in light of the exclusivity provision of the New York workers' compensation statute, the court stated that "the defendants' argument is without merit." "The New York State Worker's Compensation does not bar an employee from suing his employer under federal civil rights laws." Liss, 425 F.Supp.2d at 342. In Lopez v. S.B. Thomas, Inc., 831 F.2d 1184, 1190 (2d Cir.1987), the court held: "we do not read the workers' compensation law to deny relief under a federal statute." "Were state law to erect such a bar, it would clearly run afoul of the Supremacy Clause of the U.S. Const. Art. VI, cl. 2." Id.; see also Roberts v. Roadway Exp., Inc., 149 F.3d 1098,
For the reasons stated above, the Court finds that Defendants' affirmative defense that the Minnesota Workers' Compensation Act bars Plaintiff's [federal] claims under the Americans with Disabilities Act is insufficient as a matter of law and should be stricken pursuant to Rule 12(f).
Plaintiff argues that this affirmative defense fails as a matter of law for two reasons: 1) "The EEOC is Permitted to Disclose Information to Witnesses in an Investigation"; and 2) "Defendants' Failed to Allege Sufficiently Egregious Misconduct to Maintain an `Unclean Hands' Defense, and also Fail to Allege a `Direct Nexus' Between the Alleged Conduct and This Lawsuit." (Mem. in Supp. of EEOC's Rule 12(f) Mot. at 7-12). Each argument is addressed in turn.
As Plaintiff concedes, "Title VII limits the EEOC's ability to `make public' information it obtains during investigations of charges of discrimination." (Mem. in Supp. of EEOC's Rule 12(f) Mot. at 7).
29 C.F.R. § 1601.22. Relying on EEOC v. Associated Dry Goods, 449 U.S. 590, 101 S.Ct. 817, 66 L.Ed.2d 762 (1981), Plaintiff argues that any disclosure it made in the prior investigation was permitted by law. In Associated Dry Goods, in defining the word "public," the United States Supreme Court explained that some disclosure of information is necessary in certain circumstances. 449 U.S. at 601, 101 S.Ct. 817 ("limited disclosure enhances the Commission's ability to carry out its statutory responsibility to resolve charges through informal conciliation and negotiation.")
Although Plaintiff may be correct that the EEOC may in certain circumstances divulge information discovered through its investigation, whether the EEOC could disclose information because "disclosure [was] deemed necessary for securing appropriate relief," in this particular case, would require a further development of the record. Plaintiff admits that "[d]uring the investigation of a prior charge of discrimination, the EEOC disclosed the name of a charging party to various witnesses who worked for Defendants, including Adam Breaux." (Reply Mem. in Supp. of EEOC's Rule 12(f) Mot. [Docket No. 25] at 3). Given the general prohibition against disclosures of information obtained during the investigation, despite the express provision allowing disclosure in certain circumstances, at this stage in the litigation, the Court cannot say that this issue does not "fairly presents a question of law or fact which the court ought to hear"; however, as more fully discussed below, even if such a disclosure was made improperly, it does not change the Court's holding that the unclean hands affirmative defense should be stricken.
Plaintiff argues that "[b]ecause Defendants' unclean hands affirmative defense fails to allege that any government misconduct occurred in the investigation preceding this lawsuit, it lacks a direct nexus to the EEOC's acquisition of its right to bring this suit ... [and] fails as a matter of law." (Mem. in Supp. of EEOC's Rule 12(f) Mot. at 12) (emphasis in original).
Plaintiff concedes that a claim of unclean hands can be a basis for a defense against the EEOC, but argues that "[e]ven where courts have permitted unclean hands defenses against government agencies bringing enforcement actions, they have required that `the agency's misconduct be egregious and the resulting prejudice to the defendant rise to a constitutional level.'" (Mem. in Supp. of EEOC's Rule 12(f) Mot. at 11) (citing SEC v. Elec. Warehouse, Inc., 689 F.Supp. 53, 73 (D.Conn. 1988)).
The Court recently examined the applicability of an unclean hands affirmative defense in the context of an EEOC investigation. See E.E.O.C. v. Hibbing Taconite Co., 266 F.R.D. 260, 269 (D.Minn. 2009). "Unclean hands is an equitable defense which prevents a party from maintaining a suit in equity." Id. In addressing whether unclean hands is even available as an affirmative defense against the government, the Court noted that "[c]ourts have been hesitant to allow the defense of unclean hands against the Government when it acts in the interest of the public." Id. Nevertheless, it held that it "need not determine whether a defense of unclean hands should be unavailable, as a matter of
Id. (internal citations omitted). Thus, "for an unclean hands defense to succeed, the Government's improper action must be related to its acquisition of the right in suit that it seeks to enforce." Id.
In Hibbing Taconite, the defendant sought unsuccessfully to assert an unclean hands defense because "the EEOC [allegedly] obtained [information] during a confidential mediation session ... [and] the EEOC then [allegedly] employed the improperly collected information in order to issue its cause finding." Id. at 271. Here, in the present case, any possible nexus is much more attenuated from the Plaintiff's cause of action. Defendants' basis in the present case for asserting an unclean hands affirmative defense is Plaintiff's alleged identification of the charging party in a previous EEOC investigation to Adam Breaux, who was merely a witness in the prior investigation. (Defs.' Ans. to Am. Compl. [Docket No. 10] ¶ 23).
For the reasons stated above, the Court finds that Defendants' unclean hands affirmative defense should be stricken pursuant to Rule 12(f).
Defendants assert that "any damage suffered by Adam Breaux was caused by or contributed to by the carelessness, negligence, or other unlawful conduct of Breaux and/or other parties over whom [Defendants] had no control"; "the claims and damages alleged by Plaintiff may be barred, in whole or in part, by Adam Breaux's contributory negligence"; and "any damages alleged by Plaintiff may have been the result of risks primarily, voluntarily, knowingly, and contractually assumed by Adam Breaux." (Defs.' Ans. to Am. Compl. ¶¶ 24-26).
Plaintiff argues that "Defendants' affirmative defenses in paragraph[s] 24, 25, and 26 are traditional defenses to negligence," which are inapplicable in cases brought under the ADA's remedial scheme. The Court agrees.
The Complaint alleges that Defendant Product Fabricators, Inc. intentionally discriminated and retaliated against Mr. Breaux. In EEOC v. First Nat'l Bank of Jackson, 614 F.2d 1004, 1006 (5th Cir.1980), the court explained that an employer charged with discrimination in a Title VII action may not present affirmative defenses sounding in tort. There, the EEOC brought suit after its investigation revealed that there was reasonable cause to believe that the [defendant] had discriminated against African-Americans. First Nat'l Bank of Jackson, 614 F.2d at 1006. The defendant asserted an affirmative defense of malicious prosecution. Id. The court, in striking the affirmative defense pursuant to Rule 12(f), explained that even if "the bank's allegations of malicious prosecution are meritorious, they could not constitute an affirmative defense to alleged Title VII violations." Id. "The so-called affirmative defense of malicious prosecution and harassment did not relate to the primary issue in Title VII action whether the [defendant] unlawfully discriminated against blacks and black males." Id. Similarly, the contributory negligence defenses in the present case do not relate to the primary issues of whether Defendant Product Fabricators intentionally discriminated and retaliated against Mr. Breaux. It is a well-established general principle that contributory negligence is not a bar to recovery based on intentional acts. See Restatement (Second) of Torts § 481 (1965) ("The plaintiff's contributory negligence does not bar recovery against a defendant for a harm caused by conduct of the defendant which is wrongful because it is intended to cause harm to some legally protected interest of the
For the reasons stated above, the Court finds that Defendants' affirmative defenses of contributory negligence and assumption of the risk, (Defs.' Ans. to Am. Compl. ¶¶ 24-26), should be stricken pursuant to Rule 12(f).
Based on the foregoing, and all the files, records and proceedings herein,
1) Plaintiff's Motion to Strike [Docket No. 13] be
Dated: June 18, 2012.