Ohio Supreme Court Limits Federal Civil Rights Claims to Two Years.

Yesterday, the Ohio Supreme Court decided that Ohio Revised Code § 2305.10’s two year statute of limitations applied to federal civil rights claims – such as § 1983 claims -- which lack a federal statute of limitations. Nadra v. Mbah, 2008-Ohio-3918. Section 1983 claims are frequently brought against government entities, agencies, employees and officers by government employees and regular citizens alleging that the plaintiff’s federal civil rights were violated under color of state law.

In Nadra, Franklin County Children Services employees and the Columbus Police investigated plaintiff’s home and found her “nine-year-old son locked in the basement. On January 3, 2002,” defendant FCCS employees “filed a complaint alleging that Nadra punished her son by locking him in the basement, chaining him to a pole at times, withholding food from him, and making him use a bucket as a toilet. Consequently, the complaint asserted that Nadra’s son was abused, neglected, and dependent.” Custody was eventually awarded to the child’s father and a jury acquitted plaintiff of criminal charges filed in the matter. Thereafter – more than two years after the child had been removed from her home, the plaintiff filed suit against the children services employees alleging that they violated her civil rights under color of state law under § 1983.

Writing for the majority, Justice Stratton wrote that the court was “asked to determine which statute of limitations governs actions filed in Ohio under Section 1983, Title 42, U.S. Code. The Supreme Court has instructed that in Section 1983 actions, courts must apply a state’s general or residual statute of limitations that governs personal-injury actions. Owens v. Okure (1989), 488 U.S. 235, 109 S.Ct. 573, 102 L.Ed.2d 594. We hold that R.C. 2305.10, which contains a two-year limitations period, is Ohio’s general statute of limitations governing personal injury in Ohio. Therefore, we reverse the judgment of the court of appeals.”

The dissent and the Franklin County Court of Appeals had concluded that the four-year statute of limitations in O.R.C. § 2505.09 applied. R.C. 2305.09 provides in relevant part that: “An action for any of the following causes of action shall be brought within four years after the cause thereof accrued: * * * (D) For an injury to the rights of the plaintiff not arising on contract nor enumerated in sections, 2305.10 to 2305.12 * * * of the Revised Code.” In contrast, the statute which the Court found to apply provides in relevant part that “an action “for bodily injury or injuring personal property shall be brought within two years” after the cause of action accrues.”

Insomniacs can read the full decision at http://www.sconet.state.oh.us/rod/docs/pdf/0/2008/2008-Ohio-3918.pdf.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Ohio Supreme Court Limits Federal Civil Rights Claims to Two Years.

Yesterday, the Ohio Supreme Court decided that Ohio Revised Code § 2305.10’s two year statute of limitations applied to federal civil rights claims – such as § 1983 claims -- which lack a federal statute of limitations. Nadra v. Mbah, 2008-Ohio-3918. Section 1983 claims are frequently brought against government entities, agencies, employees and officers by government employees and regular citizens alleging that the plaintiff’s federal civil rights were violated under color of state law.

In Nadra, Franklin County Children Services employees and the Columbus Police investigated plaintiff’s home and found her “nine-year-old son locked in the basement. On January 3, 2002,” defendant FCCS employees “filed a complaint alleging that Nadra punished her son by locking him in the basement, chaining him to a pole at times, withholding food from him, and making him use a bucket as a toilet. Consequently, the complaint asserted that Nadra’s son was abused, neglected, and dependent.” Custody was eventually awarded to the child’s father and a jury acquitted plaintiff of criminal charges filed in the matter. Thereafter – more than two years after the child had been removed from her home, the plaintiff filed suit against the children services employees alleging that they violated her civil rights under color of state law under § 1983.

Writing for the majority, Justice Stratton wrote that the court was “asked to determine which statute of limitations governs actions filed in Ohio under Section 1983, Title 42, U.S. Code. The Supreme Court has instructed that in Section 1983 actions, courts must apply a state’s general or residual statute of limitations that governs personal-injury actions. Owens v. Okure (1989), 488 U.S. 235, 109 S.Ct. 573, 102 L.Ed.2d 594. We hold that R.C. 2305.10, which contains a two-year limitations period, is Ohio’s general statute of limitations governing personal injury in Ohio. Therefore, we reverse the judgment of the court of appeals.”

The dissent and the Franklin County Court of Appeals had concluded that the four-year statute of limitations in O.R.C. § 2505.09 applied. R.C. 2305.09 provides in relevant part that: “An action for any of the following causes of action shall be brought within four years after the cause thereof accrued: * * * (D) For an injury to the rights of the plaintiff not arising on contract nor enumerated in sections, 2305.10 to 2305.12 * * * of the Revised Code.” In contrast, the statute which the Court found to apply provides in relevant part that “an action “for bodily injury or injuring personal property shall be brought within two years” after the cause of action accrues.”

Insomniacs can read the full decision at http://www.sconet.state.oh.us/rod/docs/pdf/0/2008/2008-Ohio-3918.pdf.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Sixth Circuit: USERRA Claims Subject to Arbitration Clause in Employment Agreement.

Today, the Sixth Circuit held that an optometrist’s claims that he was discriminated against in violation of USERRA was subject to the arbitration clause he signed when he was hired. In Landis v. Pinnacle Eye Care LLC, 07-6204 (6th Cir.), when the plaintiff optometrist signed his employment agreement upon being hired in 1995, it contained an arbitration clause where he promised “to ‘resolve any controversy, dispute or disagreement arising out of or relating to [the] Agreement’ through negotiation or, if negotiation proved unsuccessful, through arbitration governed by the American Arbitration Association.” He claims that he negotiated revised terms of employment in 2004 when he was called up by the National Guard to serve in Afghanistan. However, when he returned to work in 2005, the defendant employer refused to honor the alleged modified terms of employment and allegedly “threatened that any further
involvement with the military would adversely affect his career.”

When the plaintiff optometrist filed suit over the breach of the modified agreement and threats about his military career, the district court stayed the action on account of the arbitration clause in his employment agreement and referred the entire matter (including the claims against the individual defendants) to arbitration. The Sixth Circuit agreed because the plaintiff’s claims “fall within the scope of the employment agreement since Article VIII, Section 8.7 of the agreement states that ‘[t]his Agreement constitutes the entire agreement between Practice and Optometrist pertaining to the employment relationship between Practice and Optometrist.’ Therefore, any termination or modification of employment necessarily relates to ‘the employment relationship’ and is subject to the arbitration clause.” Moreover, the claims against the individual defendants (who were not parties to the employment agreement) “were subject to the arbitration clause of the employment agreement. These parties were employers within the meaning of USERRA, 38 U.S.C. § 4303(4)(A), and the claims against them arose in their capacities as managers” of the employer’s offices. Finally, although a few district courts in other jurisdictions disagreed, the Sixth Circuit found that there was nothing in the statutory language of USERRA or its history to indicate that it was not subject to the Federal Arbitration Act to the same extent as Title VII, the ADEA and other federal employment statutes.

Insomniacs can read the full decision at http://www.ca6.uscourts.gov/opinions.pdf/08a0285p-06.pdf.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Franklin County Court of Appeals Upholds Termination of County Employee For Inappropriate Conduct at Reynoldsburg Tomato Festival.

In July, the Franklin County Court of Appeals affirmed the termination of a county employee for engaging in distasteful and inappropriate behavior towards, and mistreatment of, members of the public while representing the county at the Reynoldsburg Tomato Festival. Maurer v. Franklin County Treasurer, 2008-Ohio-3468 (7/10/08). In particular, evidence showed that, while he had been assigned to staff the county office’s fair booth, he sat in the chairs of the adjacent church booth, played with the children’s toys and then – over their protests -- wiped his hands on the skirts, thighs and calves of the two young women staffing the church booth. The women reported his conduct, which was then investigated. His termination followed a previous one-day suspension and mandatory sexual harassment training for giving a co-worker a candy valentine saying “big boobs.”

Following an investigation of his misconduct, he was informed that it was being recommended that he be terminated because "it has been alleged that you acted and spoke inappropriately and thus sexually harassed two women at the Reynoldsburg Tomato Festival." The letter further informed [the employee] that his conduct violated R.C. 124.34(A) because "it constitutes immoral conduct, discourteous treatment of the public, mistreatment of the public and sexual harassment * * *." His conduct also violated internal office policies. Indeed, “because [his] mistreatment of the public was a major offense in [the office’s] progressive discipline policy that permitted [his] immediate discharge from employment, the court concluded [his] conduct toward [the two young women[ warranted termination of his employment.”

The employee attempted to defend his behavior by arguing that it had been welcomed. In particular, he testified that the women had likewise wiped their hands off on his shorts and laughed when he, in turn, wiped his hands off on their skirts. However, the ALJ from the SPBR found his testimony to be inconsistent and, thus, not as credible as the testimony of the two women.

Insomniacs can read the full decision at http://www.sconet.state.oh.us/rod/docs/pdf/10/2008/2008-ohio-3468.pdf.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Ohio Appeals Court: Employers Should Sometimes Leave Competing Former Employees Well Enough Alone.

In early July, the Ohio Court of Appeals in Stark County not only affirmed the trial court’s refusal to enforce the plaintiff-employer’s non-competition agreement against a competing, former employee, but the court also affirmed a significant damage award of $180,000 against the employer and in favor of the former employee on the employee’s unfair competition claim. United Studios of America v. Laman, No. 2007CA00277, 2008-Ohio-3497 (7/7/08). The basis for the employee’s successful counter-claim was that the employer only brought the non-competition lawsuit to cause the employee to incur legal fees.

In Laman, the employer operated a mobile photography studio which provided portraits at grocery stores and shopping malls, etc. in several states. Since at least 2000, the employer required all employees to sign an employment agreement which contained the following non-competition clause:

“Employee acknowledges that Company will expend considerable time, effort and expense in the training of employee and the methods used by Company; that Employee will acquire confidential and valuable knowledge and information as to Company's accounts, customers and business patrons, as well as confidential and valuable knowledge and information concerning the methods and forms developed and used by Company; and that Employee will acquire such knowledge and experience that upon leaving Company's employment for any reason, his engaging directly or indirectly, either alone or in association with any other person or firm, in the family portrait photography business will cause unfair disclosure of such valuable knowledge and information, irreparable harm and financial loss to Company."

The defendant employee signed such a clause when he was hired and he was later promoted to Vice President of the Company. Nonetheless, he eventually resigned from the plaintiff employer and formed his own photography business in Colorado. He then obtained a contract to provide portraits to customers of Safeway of Colorado. There is no discussion in the court’s opinion whether the plaintiff employer operated in Colorado or whether the employee competed against the employer in other states.

The court explains that the plaintiff employer filed suit against the former employee for breach of his non-competition agreement. The lawsuit apparently only sought monetary damages and did not seek equitable relief. When the employee failed to respond to the complaint, the employer moved for default judgment. However, on the same date, the employee requested and later obtained permission to not only file an answer to the complaint, but to file counter claims against the plaintiff employer for, among other things, unfair competition. The trial court granted summary judgment to the employee on the non-competition claims and on his counterclaims. Following a damages hearing, the court awarded damages to the employee in the amount of $180,260.39, including $116,468 in punitive damages and $58,234 in attorney fees.

The employer argued on appeal that the trial court erred in dismissing its non-competition claim on the grounds that the employer failed to prove that it suffered any damage from the breach of the non-competition clause. After all, according to the employer, the contract itself acknowledged that the employer would suffer harm from any breach of the non-competition provision. The court was unmoved:

“A contractual provision acknowledging harm will occur in the event of a breach, without more, is insufficient to withstand summary judgment. Where, as here, a party makes a claim for money damages, the party must demonstrate actual damages. [The employer] filed the within action alleging claims for breach of contract, breach of fiduciary duty, breach of Ohio Trade Secrets Act and intentional interference with contractual relationships. [The employee] moved the trial court for summary judgment on all of the above claims alleged in the complaint, and for summary judgment as to its counterclaim for unfair competition. [The employee’s] motion for summary judgment raises the issue that [the employer’s] claims must fail because Appellant has no evidence demonstrating damage or injury resulting from [the employee’s] actions. In response, [the employer] merely cites the contract provision stipulating damage to[the employer]. The contract did not include a provision for liquidated damages. While the contract provision stipulating to damages and irreparable harm may well provide grounds for an equitable injunction, we find [the employer’s] claims require proof of actual damages, and [the employer] failed to meet the burden.”

In contrast, the court affirmed the employee’s damage award because the employee “presented admissible evidence establishing [the employer’s] motives in filing the instant action were to cause [the employee] to incur legal fees and costs. Accordingly, the trial court properly granted summary judgment in favor of” the employee on his counterclaim for unfair competition against the plaintiff employer.

Insomniacs can read the court’s decision in full at http://www.sconet.state.oh.us/rod/docs/pdf/5/2008/2008-ohio-3497.pdf.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.