NOEL L. HILLMAN, District Judge.
This case concerns various federal and state employment discrimination claims, as well as state common law claims, relating to the termination of Plaintiff's employment with Defendants. Currently before the Court is Defendants' Motion to Dismiss the Second Amended Complaint ("Motion to Dismiss") and Plaintiff's opposition, as well as various letters relating to a release allegedly signed by Plaintiff. Also before the Court is Defendants' Motion to Seal and Plaintiff's request for leave to amend and to strike. For the reasons that follow, this Court will grant Defendants' Motion to Dismiss, in part, and deny it, in part; grant, in part, and deny, in part, Defendants' Motion to Seal; deny, without prejudice, Plaintiff's requests to strike and for leave to amend.
This Court takes its facts from Plaintiff's Second Amended Complaint ("SAC"). Plaintiff is Theodore R. Scott, an African-American over the age of forty who was an employee of Defendant Schindler Elevator Corporation ("Schindler") for over twenty-two years. Defendants Dave Durant, a superintendent, Kyle Rainwater, a district manager, and Joe Zeilman, a district service manager (collectively, "Individual Defendants"), were also involved in Plaintiff's employment at Schindler.
In 1989, Plaintiff was hired by Defendant Schindler to work as an elevator mechanic. During that time, it appears that Plaintiff worked in New Jersey. In 2011, Defendant Schindler is alleged to have laid off Plaintiff due to lack of work. Thereafter, Plaintiff filed a civil rights complaint against Defendant Schindler before the New Jersey Department of Civil Rights ("NJDCR"). Plaintiff claimed that he was not laid off due to lack of work, but due to discrimination on the basis of his race and age. Those claims, according to Plaintiff, were settled. (Pl.'s SAC ¶ 33.) After settling the claims, Defendant Schindler rehired Plaintiff. Plaintiff "work[ed] briefly in New Jersey." (Pl.'s SAC ¶ 9.) Then, according to Plaintiff, he was transferred to "The Mellon Bank Center building located at 1735 market Street, Philadelphia Pennsylvania." (Pl.'s SAC ¶ 10.) He worked there for eighteen months before he was terminated.
The events giving rise to the current claims center around two areas: access to a company vehicle and access to water.
As for access to water, when Plaintiff started work in Philadelphia the building contained water fountains. But, these were removed by building management and a water cooler was placed in Defendant Schindler's onsite office. Although Defendant Schindler provided the water cooler, it did not provide any water. Without water, Plaintiff asked a building employee where he could get a water jug. The employee led Plaintiff to believe he could take water jugs from a storage area in the building. Plaintiff took those water jugs and used them — and so did other onsite Schindler employees. Plaintiff estimates this occurred between one and five times.
On May 29, 2014, Plaintiff was told to report to Defendant Schindler's main office in Moorestown, New Jersey. When he arrived, he was confronted by Individual Defendants and he was told that he had been seen stealing water jugs. Plaintiff admitted he had replaced a water jug in the manner indicated
Thereafter, Plaintiff filed discrimination charges before the NJDCR and the Equal Employment Opportunity Commission ("EEOC") on July 16, 2014. After 250 days of investigation, Plaintiff withdrew all claims on March 23, 2015. Defendant Schindler allegedly appeared in the administrative action and fully participated. Plaintiff received a notice of his right to sue from NJDCR, but never received — and has never received — a notice of a right to sue from the EEOC. Plaintiff "was told by the Director of NJDCR that it would not be forthcoming from the EEOC agency because the later [sic] did not investigate the claim." (Pl.'s SAC ¶ 25.)
In May 2016, Plaintiff initially filed a complaint in the New Jersey Superior Court, Law Division, Camden County which was dismissed. It was reinstated on April 6, 2017. Defendant Schindler removed the renewed case to this Court on April 26, 2017. Defendant Schindler answered this complaint on May 16, 2017. Discovery began. Plaintiff moved for leave to amend on December 15, 2017. After full briefing, Magistrate Judge Karen M. Williams granted in part and denied in part Plaintiff's first Motion for Leave to Amend on May 23, 2018. Plaintiff filed a second Motion for Leave to Amend on June 29, 2018 and Plaintiff filed his First Amended Complaint on June 30, 2018. Defendant Schindler filed its Motion to Dismiss Plaintiff's First Amended Complaint on July 30, 2018.
Thereafter, Judge Williams granted Plaintiff's second Motion for Leave to Amend on August 13, 2018. Plaintiff filed his SAC on August 20, 2018. The SAC contains seven counts: (1) for retaliation under federal and state discrimination laws and the federal and New Jersey constitutions; (2) for creation of a hostile work environment and retaliation (the basis in law is unclear); (3) for discrimination against Plaintiff on the basis of age under the Age Discrimination in Employment Act ("ADEA"); (4) for wrongful termination (the basis in law is unclear); (5) for racial discrimination, under the New Jersey Law Against Discrimination ("NJLAD") and federal and state constitutions;
(6) for New Jersey common law breach of contract; and (7) "wrongful discharge as a result of negligent investigation" (the basis in law is unclear).
It is the SAC which is the subject of Defendants' (here including both Defendant Schindler and Individual Defendants) Motion to Dismiss presently before the Court, and filed on September 7, 2018. Plaintiff opposed Defendants' Motion to Dismiss. Defendants filed a reply on October 9, 2018, under seal. Attached to that reply is a document entitled "Negotiated Settlement Agreement and General Release" (the "Release"), which was purportedly signed by the parties in June 2012 and concerns the first charge of discrimination brought by Plaintiff after he was laid off in 2011. It is this document that is the subject of Defendants' Motion to Seal, filed on October 23, 2018, Plaintiff's November 3, 2018 letter requesting the Court to strike this document from the record, and various other letters filed by both parties. As all of these matters have been fully briefed by the parties, they are ripe for adjudication.
This Court has subject matter jurisdiction over the case pursuant to 28 U.S.C. §§ 1331 and 1367.
When considering a motion to dismiss a complaint for failure to state a claim upon which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6), a court must accept all well-pleaded allegations in the complaint as true and view them in the light most favorable to the plaintiff.
"While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the `grounds' of his `entitle[ment] to relief' requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do . . . ."
A district court, in weighing a motion to dismiss, asks "not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claim."
Defendants make several arguments
The threshold issue for the NJLAD claims is simply stated: may Plaintiff seek relief under it or not. The arguments of the parties can also be stated quite simply: Defendants argue that Plaintiff worked in Pennsylvania at the time of the alleged discriminatory conduct while Plaintiff argues discriminatory conduct was ongoing — stemming back pre-2011 — and occurred mostly while he was in New Jersey, with the final termination occurring only after he worked in Pennsylvania briefly. But, the facts are slightly more complicated than the parties indicate.
It is best to start with the undisputed facts. In 1989, Plaintiff was hired by Defendant as an elevator mechanic. He was laid off, allegedly for lack of work, in 2011. Thereafter, Plaintiff filed a civil rights complaint. Before the civil rights complaint reached state or federal court, Defendant rehired Plaintiff. Plaintiff alleged that "Defendant settled that claim." (Pl.'s SAC ¶ 33.) Both of these events occurred at some point in 2012. Plaintiff may have worked briefly in a New Jersey casino, apparently for just a couple of weeks,
There are also significant disputed facts, which complicate the legal analysis here. The most important disputed facts relate to the Release, purportedly signed in June 2012. Defendants assert this was signed by Plaintiff in June 2012 and that it means, for this case, that any allegations pre-2011 have been waived and cannot be considered. The legal implications of this fact is central to Defendants' argument, as presented. Plaintiff asserts, through his opposition brief and in a separate letter
Of course, the Court agrees, "
But, disregarding those facts which this Court finds legally irrelevant — Plaintiff's residence, Defendant Schindler's headquarters, and where the decision to terminate was made or occurred — the Court cannot dismiss the NJLAD claims. Reading Plaintiff's SAC in the light most favorable to Plaintiff, the SAC does appear to allege Defendant's discriminatory conduct pre-dated 2011 and continued through Plaintiff's time in Pennsylvania. (Pl.'s SAC ¶¶ 9, 10, 12, 26, 31, 34, 38, 59.) Thus, whether that conduct should or should not be considered by the Court in determining the application of NJLAD could tip the scales in favor of either Plaintiff or Defendants.
The question of whether the pre-2011 conduct may be considered depends entirely — according to Defendants — upon whether the release was executed by Plaintiff and the legal ramifications of that execution. Plaintiff disputes that he ever signed the release and also presents argument as to why — even if he signed it — it should have no legal significance upon this case. This is a question of law where the facts matter, and those facts are disputed. While it may be improbable that Plaintiff did not sign the release, it is neither implausible nor impossible. Because that is the case, the Court finds, considering the current procedural posture of the case and the factual assertions of both parties in the SAC, briefs, letters, and attachments, it must deny Defendants' motion to dismiss on this point. However, if after appropriate discovery the undisputed facts support Defendants' argument that Plaintiff may only assert claims arising from his Philadelphia workplace Defendants may move for summary judgment on Plaintiff's NJLAD claims.
Defendants argue that Plaintiff's ADEA claim must be dismissed for failure to exhaust administrative remedies. Defendants specifically argues that Plaintiff cannot bring an ADEA claim in federal court without first filing a charge with the EEOC. Plaintiff admits that he "did not explicitly specify age discrimination in his 2014 claim" before the EEOC. (Pl.'s Opp'n Br. 14.) Plaintiff thereafter argues that
(Pl.'s Opp'n Br. 14.) In other words, Plaintiff presents two arguments: (1) because the actions are a continuing violation related to a previously filed administrative complaint there is no need to re-file and (2) a right-to-sue letter is not required by the ADEA to file a claim in federal court.
Defendants are correct and Plaintiff has not presented any argument to the contrary. Generally, a plaintiff asserting an ADEA claim "must file a charge with the EEOC within 180 days of the alleged employment action."
Plaintiff's first argument fails based on its own reasoning. While Plaintiff may not be required to refile if he was asserting the same claim a second time, the Plaintiff is not doing so in this case. The Court notes Plaintiff would like the Court to consider the previous actions of Defendants in determining the merits of Plaintiff's instant claim. Even if the Court did so here, Plaintiff's claim is categorically different. Plaintiff is alleging a new adverse action under new circumstances. To allow Plaintiff to subvert the administrative process in this way, which is statutorily prescribed by Congress to encourage mediation and settlement in lieu of litigation, would open an unintended loophole in the law. The Court will not do so here.
Plaintiff's second argument is a red herring. Whether Plaintiff needs a right-to-sue letter is irrelevant, as Plaintiff never specified an age discrimination claim in his administrative complaint, which is a requirement separate and apart from the right-to-sue letter. Thus, the Court will dismiss Plaintiff's ADEA claim, with prejudice, for failure to exhaust administrative remedies.
Defendants argue the Title VII claims brought by Plaintiff must be dismissed for failure to exhaust administrative remedies — specifically a failure to receive a right-to-sue letter.
Plaintiff states he dual-filed a complaint with the NJDCR and the EEOC on July 15, 2014. However, "[o]n March 23, 2015, 251
The case law is clear. As explained in
No. 09-5964 (RBK/JS), 2011 U.S. Dist. LEXIS 16610, at *14 (D.N.J. Feb. 17, 2011). This is undoubtedly the case here, so the Court must dismiss Plaintiff's Title VII claims in their entirety.
While Plaintiff is correct that a litigant lacking a right-to-sue letter who is otherwise entitled to one has exhausted administrative remedies, Plaintiff has failed to show he was entitled to a right-to-sue letter. This narrow exception is meant to allow litigants to proceed to federal court even when the EEOC may be slow in completing its obligations. As shown by the case law above, one is not entitled to a right-to-sue letter if one has withdrawn his claim before receiving a right-to-sue letter.
Accordingly, this Court will dismiss all Title VII claims to the extent they are asserted in Plaintiff's SAC, with prejudice. Specifically, the Court finds they have been asserted in Count II. As a result, this Court will not consider Defendants' argument concerning whether those same claims are adequately pled. (Def.'s Mot. for Summ. J. 15-18.)
Defendants argue that Plaintiff's state and federal constitutional claims, asserted in Counts I and V, must be dismissed because Defendants are not state actors. Defendants argue that the law demands dismissal whether the claim is based on federal, New Jersey, or Pennsylvania law. Plaintiff provides no argument in opposition to Defendants' assertion.
It appears in Count I that Plaintiff is claiming, in part, a violation of the federal and New Jersey constitutional rights for retaliatory and racial discrimination. (Pl.'s SAC ¶ 28.) Under what provisions of these constitutions Plaintiff claims rights or alleges violations is unclear. In Count V, it is clear that Plaintiff is asserting Defendants have violated his federal and state constitutional rights — here the states being Pennsylvania and New Jersey — under an equal protection clause theory. (Pl.'s SAC ¶ 56.)
To the extent Plaintiff attempts under Counts I or V to assert a federal, Pennsylvania, or New Jersey constitutional claim, the Court must dismiss those claims. Defendants are correct that both New Jersey and federal law require a state actor for such a claim.
In Plaintiff's opposition, Plaintiff asserts he has adequately alleged a § 1981 claim. Defendants assert he has not, stating that the SAC contains no § 1981 cause of action. Of note, Defendants state Plaintiff attempted to assert a § 1981 cause of action in a proposed complaint that was rejected by Judge Williams and that the complaint filed, the SAC, does not contain that claim. (
But, that does not mean Plaintiff may not or cannot assert one. "When used as parallel bases for relief or companion remedies, Title VII and 42 U.S.C. §§ 1981 and 1983 require the same elements for their causes of action and courts incorporate the same standards when assessing the employment discrimination claims."
For that reason, this Court will grant Defendants' Motion to Dismiss on these grounds, but notes Plaintiff may move for leave to amend and add a § 1981 claim.
Defendants argue Plaintiff's common law claims must be dismissed because they are statutorily preempted and are artificial causes of action
Before it does so, the Court will examine the wrongful termination claims. The first wrongful termination claim, asserted in Count IV of the SAC, appears to be based upon discrimination. There, Plaintiff states that his "request for increased responsibility and benefits that were comparable to his level of seniority and in comparison, to his white co-workers was met with disapproval and retaliation." (Pl.'s SAC ¶ 53.) The Court construes these allegations as claiming wrongful termination either on the basis of race or by retaliation. Both of these bases are claimed in the SAC under the NJLAD.
The second wrongful termination claim, asserted in Count VII, appears to also be based upon discrimination. There, Plaintiff claims his termination was "based upon a `false allegation.'" (Pl.'s SAC ¶ 72.) Although the allegations are not a model of clarity, Plaintiff is more detailed in briefing. There, Plaintiff states that his "wrongful termination in conjunction with the ongoing differential treatment are sufficient to meet the standard for a Hostile Workplace claim" when discussing whether he has "allege[d] sufficient facts to support a claim of negligent investigation and hence a claim of hostile workplace." (Pl.'s Opp'n Br. 24, 26.) Based on those statements, the Court finds Count VII is based upon a hostile workplace claim.
First, Defendants argue that both the wrongful termination claims must be dismissed because they are statutorily pre-empted by New Jersey law. The law in this District holds that no "supplementary common law cause[s] of action" is allowed "where the NJLAD provides a remedy for the wrong."
Second, Defendants argue that both the wrongful termination claims must be dismissed because they are statutorily pre-empted by Pennsylvania law. Because the PHRA provides a statutory remedy for the wrongful termination claims brought by Plaintiff, the "common law action designed to redress the same injury is rendered superfluous."
Moreover, it appears Defendants are also correct that — even if these claims were not preempted — Pennsylvania law does not recognize the wrongful discharge claims asserted by Plaintiff. Pennsylvania only permits wrongful discharge claims under the following circumstances:
Accordingly, for the reasons stated
Alternatively, if the Court allows the NJLAD claims to proceed, any common law claims based on New Jersey law are pre-empted. The Pennsylvania common law claims, on the other hand, are clearly not recognized and thus do not state a cause of action no matter whether the claims in this case arise under Pennsylvania or New Jersey law. In other words, regardless of whether the PHRA is applicable, these claims are not cognizable.
Defendants argue Plaintiff has failed to adequately allege a breach of contract claim under New Jersey common law. Defendants argue that the combination of the facts that (1) Plaintiff was an at-will employee, (2) Plaintiff has failed to point to a contract, and (3) that unfair discipline is legally insufficient to state a breach of contract claim requires this Court to dismiss it. Plaintiff argues because he was a part of a union, he had an express contract and that the employee manual in concert with the implied covenant of good faith and fair dealing are enough to constitute a breach of contract claim here.
Before addressing Defendants' argument, it is important to describe what Plaintiff's SAC actually alleges. Plaintiff's SAC bases the breach of contract claim on Defendant Schindler's "policies and/or its practices regarding the terms of his employment and the implementation of those policies with respect to him and his co-workers." (Pl.'s SAC ¶ 62.) Nowhere in Plaintiff's SAC — at least nowhere this Court can find — does Plaintiff allege that he was a union employee with an express contract. Reading Plaintiff's SAC in a light most favorable to Plaintiff only allows this Court to find Plaintiff is basing his breach of contract claim upon the employee manual. Moreover, the only "contract" Plaintiff attaches to his brief are Defendant Schindler's employment policies. (Pl.'s Opp'n Br., Ex. E.) Thus, this Court will not consider whether there was an express union contract that was breached.
Plaintiff's breach of contract claim, as pled, fails. It appears Plaintiff's claim is that Defendant Schindler's policy created an implied contract which Defendant Schindler thereafter breached. This type of claim, an exception to the general presumption of at-will employment in New Jersey, was first recognized in
A necessary pre-requisite for a so-called
Finally, Defendants moves on two separate grounds to dismiss claims, to the extent asserted, against the Individual Defendants. First, Defendants argue that to the extent this Court dismisses claims against Defendant Schindler, the Court should also dismiss claims against Individual Defendants. Second, Defendants argue that Plaintiff has not alleged NJLAD claims against Individual Defendants because Plaintiff has not alleged a claim of aiding and abetting. Plaintiff does not offer any argument in opposition.
Because the grounds for dismissal of the claims against Defendant Schindler are neither based on its legal status (a corporation) nor on its actions, this Court will dismiss all claims dismissed against Defendant Schindler on the same grounds and with the same affect against Individual Defendants.
The Court also finds that Plaintiff has not alleged an aiding and abetting claim against any of the Individual Defendants. The only mechanism available to a plaintiff to assert individual liability for a supervisor "for acts of discrimination or for creating or maintaining a hostile environment" is aiding and abetting.
Defendants request this Court to permanently seal docket item 68-2, the Release. Plaintiff has filed opposition, through multiple letters, essentially stating he will not consent to the sealing because he disputes the authenticity of the document. Plaintiff does not object to the sealing of this document except on those limited grounds.
Defendants have shown how its Motion to Seal satisfies Local Rule 5.3(c). First, the document to be sealed is purportedly a confidential settlement agreement and release. Second, the alleged parties to the release, assuming its authenticity, both agreed to maintain its confidentiality. Thus, each party allegedly has a private contractual interest in its continued confidentiality. Third, the serious injury that would result would allegedly be breach of the release by the parties. Fourth, a less restrictive means — including redaction — is unavailable because, allegedly, the parties are contractually obligated to maintain the entire document in confidence. Thus, Defendants have satisfied Local Rule 5.3(c).
Even so, Defendants satisfy Local Rule 5.3(c) only if the document is authentic. Accordingly, while the Court awaits a possible determination of this document's authenticity, it will remain under seal. To permanently seal it would attest to its authenticity just as unsealing it would attest to its inauthenticity. The Court is not able to rule on this issue at this time. Thus, the Court will maintain the document under temporary seal. If the Court later determines the document is not genuine, Plaintiff may make an appropriate motion to unseal it. Similarly, Defendant may make a motion to permanently seal it if the Court finds it genuine. For those reasons, this Court will grant Defendant's Motion to Seal, in part, and deny it, in part.
Plaintiff has also requested, in a document entitled "Letter Memorandum in Opposition to Defendant's Introduction of a Purported Waiver as Evidence" that this Court strike the release from the record. The basis for Plaintiff's Motion to Strike is that the release is fraudulent. Since discovery is not yet complete on this issue and the parties have wholly divergent views of the issue, the Court will not grant Plaintiff's request to strike the release as Plaintiff's factual basis is deficient. The Court will deny Plaintiff's request, without prejudice. As with the Motion to Seal, if Plaintiff hereafter acquires a sufficient basis it may re-file a Motion to Strike at any appropriate time.
Plaintiff has requested leave to amend. While the Court recognizes that leave to amend shall be freely given and that it is particularly applicable to civil rights cases, the Court has dismissed most claims challenged with prejudice. Amendment of those claims would be futile. Some claims were dismissed without prejudice, but are contingent upon a possible future decision of the Court or Plaintiff's ability to properly plead them. Thus, at this time, the Court will deny Plaintiff's request for leave to amend, without prejudice. If Plaintiff determines that filing a motion for leave to amend is appropriate under the Local and Federal Rules, Plaintiff may do so at that time.
For the foregoing reasons, the Court will grant, in part, and deny, in part, Defendant's Motion to Dismiss; will grant Defendant's Motion to Seal, in part and deny it, in part; will deny, without prejudice, Plaintiff's request to strike and for further leave to amend. Plaintiff may make a separate motion to strike or for leave to amend at any appropriate time and it will be considered in due course.
An appropriate Order will be entered.