Latest 2 Cases: Amedee v. Shell Chemical, L.P. (Civil Rights), Mitchell v. State Farm Fire & Casualty Co. (Class Action)

Local Control: Massachusetts Law Provides Stronger Protection Against Sexual Harassment than Federal Law

JOANNA L. GROSSMAN

SMU Dedman School of Law professor Joanna L. Grossman comments on a recent decision by a federal district court applying Massachusetts law that demonstrates the power of tough state antidiscrimination laws. Grossman describes the facts of the case and the differences between Massachusetts and federal law and explains why robust state laws have the power to hold institutions liable when they delegate authority to those who abuse it.

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Amedee v. Shell Chemical, L.P.

Docket: 19-30525

Opinion Date: March 30, 2020

Judge: Jerry E. Smith

Areas of Law: Civil Rights, Family Law, Labor & Employment Law

The Fifth Circuit affirmed the district court's grant of summary judgment in favor of Shell in an action brought by plaintiff under the Family Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA). In this case, the day after Shell formally disciplined plaintiff for violating its attendance policy, she missed her scheduled shift because she got arrested for drunk driving and wrecked her truck. The court held that employees cannot immunize themselves from legitimate termination by taking FMLA leave. In regard to plaintiff's FMLA retaliation claim, the court held that Shell produced evidence that plaintiff would have been lawfully terminated had she not taken leave, and thus she had no right to return to work. The court held that plaintiff failed to make a prima facie case under the ADA because she did not present admissible evidence establishing that she was disabled or that Shell regarded her as disabled. Even if plaintiff had made a prima facie case, her argument failed for the same reasons her FMLA retaliation claim failed.

Mitchell v. State Farm Fire & Casualty Co.

Docket: 18-60776

Opinion Date: March 30, 2020

Judge: E. Grady Jolly

Areas of Law: Class Action, Insurance Law

The term "Actual Cash Value" is ambiguous with respect to the withholding of labor depreciation in Mississippi homeowners insurance policies that provide no further definition of ACV. The Fifth Circuit affirmed the district court's denial of State Farm's motion to dismiss with respect to plaintiff's breach of contract claim. The court found that, in the context of a Mississippi homeowners policy that refers to "Actual Cash Value" without further definition, both interpretations are reasonable. Therefore, the court held that the contract was ambiguous and the court applied Mississippi's interpretive canons, which provides that an ambiguous insurance contract is interpreted against the insurance company. The court reversed the district court's denial of State Farm's motion to dismiss with respect to plaintiff's tort claims. The court explained that, because the law on this question of interpreting "Actual Cash Value" in Mississippi was unsettled, State Farm had an arguable basis to depreciate labor costs. The court also found that the district court did not abuse its discretion in certifying a class of Mississippi State Farm policyholders similarly situated to plaintiff, who received "Actual Cash Value" payments in which labor was depreciated and whose contracts similarly did not define "Actual Cash Value."