Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

Larry Lawson, former CEO of Spirit AeroSystems, Inc., retired and entered into a Retirement Agreement with Spirit, which allowed him to continue vesting in long-term incentive stock awards as if he were an active employee. This agreement was conditioned on his compliance with a non-competition covenant from his original Employment Agreement. Lawson later engaged with a hedge fund, Elliott Management, which was involved in a proxy contest with Arconic, a competitor of Spirit. Spirit deemed this a violation of the non-competition covenant and ceased payments and stock vesting under the Retirement Agreement.The United States District Court for the District of Kansas held a bench trial and found that Lawson had not violated the non-competition covenant, ruling in his favor. Spirit appealed, and the Tenth Circuit reversed, holding that Lawson had breached the covenant and remanded the case to determine the enforceability of the covenant under Kansas law.On remand, the district court found the non-competition covenant enforceable without applying the reasonableness test from Weber v. Tillman, concluding that the covenant was a condition precedent to the receipt of future benefits, not a traditional non-compete. The court severed the injunctive enforcement mechanism from the covenant, leaving only the condition precedent.The United States Court of Appeals for the Tenth Circuit affirmed the district court's judgment, predicting that the Kansas Supreme Court would not apply the Weber reasonableness test to a non-competition condition precedent to the receipt of future benefits. The court also denied Lawson's motion to certify the question to the Kansas Supreme Court, finding it unnecessary to resolve the issue. View "Lawson v. Spirit Aerosystems" on Justia Law

Stacie Culp and Stephanie Peters, both servers at Remington of Montrose Golf Club, LLC, alleged they were sexually harassed by bartender Jason DeSalvo. They filed claims under Title VII of the Civil Rights Act of 1964 and the Colorado Anti-Discrimination Act (CADA) for sexual harassment and retaliation. Remington's management conducted a limited investigation, resulting in DeSalvo's suspension and demotion. Culp claimed her hours were reduced in retaliation, leading to her resignation. Peters alleged inadequate investigation and retaliation, including being scheduled to work with DeSalvo post-suspension, leading to her departure.The United States District Court for the District of Colorado granted summary judgment for Remington on Peters's retaliation claim but allowed other claims to proceed to trial. The jury found against Peters on her remaining claims and returned inconsistent special verdicts on Culp's claims, awarding her punitive damages under Title VII despite finding no violation of her rights.The United States Court of Appeals for the Tenth Circuit affirmed the district court's summary judgment on Peters's retaliation claim, holding that neither the inadequate investigation nor the scheduling with DeSalvo constituted materially adverse actions. However, the court found the jury's verdict on Culp's claims irreconcilably inconsistent and vacated the verdict, remanding for a new trial on her harassment and retaliation claims. The court upheld the district court's evidentiary rulings, noting that objections to the admission of certain evidence were not properly preserved for appeal. View "Culp v. Remington of Montrose Golf Club" on Justia Law

HollyFrontier Cheyenne Refining, LLC transitioned a petroleum refinery into a renewable diesel production facility in 2021. During this transition, HollyFrontier reassigned work from hourly workers to salaried employees with higher education and technical expertise. The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union Local 11-574 filed a grievance, alleging that this reassignment violated their collective bargaining agreement (CBA). An arbitrator ruled in favor of HollyFrontier on the reassignment issue but also decided that salaried employees should be included in the bargaining unit, an issue not submitted for arbitration.The United States District Court for the District of Wyoming reviewed the case and granted HollyFrontier's petition to vacate the arbitrator's decision regarding the inclusion of salaried employees in the bargaining unit. The court reasoned that the arbitrator exceeded his authority by deciding an issue that was not submitted for arbitration.The United States Court of Appeals for the Tenth Circuit reviewed the district court's decision. The Tenth Circuit affirmed the district court's vacatur of the arbitration award. The court held that the arbitrator exceeded his authority by addressing an issue not submitted for arbitration. The parties had only submitted the issue of whether HollyFrontier's reassignment of work violated the CBA, and the arbitrator's decision to include salaried employees in the bargaining unit was beyond the scope of the submitted issue. The court emphasized that arbitration is limited to the issues the parties agree to submit, and the arbitrator must stay within those bounds. View "HollyFrontier Cheyenne Refining, LLC v. United Steel Paper" on Justia Law

Marci Walkingstick Dixon, a Native American woman and member of the Cherokee Nation, worked at Northeastern State University (NSU) in the Information Technology Services Department. After being supervised by Dr. Richard Reif, she reported experiencing discriminatory comments and actions based on her race and sex. Following her complaint to NSU's Title IX officer, she faced increased hostility from Dr. Reif. In 2018, after a dispute over compensatory time and subsequent reprimand, she formally complained about a hostile work environment. NSU then began characterizing her time report as falsified and eventually terminated her employment, citing poor job performance and improper timekeeping.The United States District Court for the Eastern District of Oklahoma granted summary judgment in favor of NSU and Dr. Reif on Dixon's claims of Title VII sex and race discrimination, Title VII retaliation, and FMLA retaliation. The court found that Dixon failed to establish a prima facie case of discrimination or retaliation and could not show that NSU's reasons for her termination were pretextual. The court also concluded that Dr. Reif was not Dixon's employer under the FMLA.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court reversed the district court's summary judgment on Dixon's Title VII sex and race discrimination claims and her Title VII retaliation claim, finding that she had established a prima facie case and presented sufficient evidence of pretext. However, the court affirmed the summary judgment in favor of Dr. Reif on the FMLA retaliation claim, agreeing with the lower court's application of the economic reality test to determine that Dr. Reif was not Dixon's employer under the FMLA. View "Dixon v. Regional University System of the Oklahoma Board" on Justia Law

Spirit AeroSystems, Inc. implemented a reduction-in-force (RIF) that resulted in the termination of 271 employees. Several of these former employees filed a collective action lawsuit against Spirit, alleging age discrimination. To succeed, they needed to demonstrate a pattern or practice of age discrimination. They presented documentary evidence and testimony to support their claims, while Spirit contended that the RIF aimed to eliminate underperformers regardless of age.The United States District Court for the District of Kansas granted summary judgment in favor of Spirit, concluding that the plaintiffs failed to establish a pattern or practice of age discrimination. The court found that the evidence did not support the claim that Spirit's actions were motivated by ageism.The United States Court of Appeals for the Tenth Circuit reviewed the case de novo. The court examined the evidence, including lay testimony, documentary evidence, and expert opinions. The court found that the evidence, individually or collectively, did not support an inference of a standard operating procedure to eliminate older employees. The court noted that some evidence might suggest individual instances of age discrimination but did not establish a company-wide policy or practice.The Tenth Circuit affirmed the district court's grant of summary judgment, holding that the plaintiffs did not present sufficient evidence to create a triable issue of fact regarding an unlawful pattern or practice of age discrimination. The court also addressed the exclusion of expert declarations and found no error in the district court's decisions. The court concluded that the plaintiffs failed to show that Spirit's RIF or refusal to rehire older workers was motivated by age discrimination. View "Raymond v. Spirit AeroSystems Holdings" on Justia Law

Newton Jones, the President of the International Brotherhood of Boilermakers, was removed from office and expelled from the Union by the Union’s Executive Council after it was determined that he had misused Union funds. Jones challenged the disciplinary proceedings in the United States District Court for the District of Kansas, arguing that the proceedings violated the Union Constitution and his due-process rights under the Labor-Management Reporting and Disclosure Act (LMRDA). He also claimed that the district court erred by not allowing him sufficient time to respond to the motion for summary judgment and by not permitting discovery.The district court granted partial summary judgment in favor of the Vice Presidents who had acted against Jones, affirming their decision to remove him from office. The court ruled that the Executive Council’s decision was binding and entitled to full effect. Jones then appealed the district court’s summary judgment.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court’s summary judgment. The appellate court held that the Executive Council did not violate the Union Constitution in removing Jones from office. The court deferred to the Union’s interpretation of its constitutional provisions, concluding that the Council’s interpretations were not unreasonable. The court also found that Jones had not shown any violation of the LMRDA or any error by the district court in conducting the summary-judgment proceedings.The Tenth Circuit concluded that Jones received a full and fair hearing under the LMRDA and that the district court did not err in setting an expedited briefing schedule or in not allowing additional time for discovery. The court affirmed the district court’s order granting summary judgment. View "International Brotherhood of Boilermakers v. Jones" on Justia Law

Ngozi Iweha, a Black woman born and educated in Nigeria, was hired as a staff pharmacist at Larned State Hospital (LSH) in Kansas. She alleged that she faced a hostile work environment, disparate treatment, and retaliation in violation of Title VII. Incidents included exclusion from projects, insensitive comments about Nigeria, and a confrontation with a coworker involving "slave trade beads." She was eventually placed on administrative leave and terminated following an investigation into her workplace conduct.The United States District Court for the District of Kansas granted summary judgment in favor of the defendants. The court found that the incidents described by Iweha did not amount to a hostile work environment as they were not sufficiently severe or pervasive. The court also determined that Iweha failed to show that her termination was pretextual. The court noted that the employer's progressive discipline policy was discretionary and that the investigation into Iweha's conduct was independent and thorough. Additionally, the court found that Iweha did not establish a prima facie case of retaliation, as her complaints did not specifically allege discrimination based on race or national origin.The United States Court of Appeals for the Tenth Circuit affirmed the district court's judgment. The appellate court agreed that the incidents described by Iweha were not severe or pervasive enough to create a hostile work environment. The court also found that Iweha failed to demonstrate that the reasons for her termination were pretextual. The court noted that the investigation into her conduct was independent and that the decision to terminate her was based on legitimate, non-discriminatory reasons. The court also upheld the finding that Iweha did not establish a prima facie case of retaliation. View "Iweha v. State of Kansas" on Justia Law

Angelo Brock, an independent distributor for Flowers Baking Co. of Denver, LLC, filed a class-action lawsuit alleging wage and hour violations under the Fair Labor Standards Act and Colorado labor law. Brock claimed that Flowers misclassified its delivery drivers as independent contractors to avoid paying proper wages. Flowers moved to compel arbitration based on an Arbitration Agreement within the Distributor Agreement between Brock and Flowers. The district court denied the motion, leading to this appeal.The United States District Court for the District of Colorado found that Brock fell within the "transportation workers exemption" under § 1 of the Federal Arbitration Act (FAA), which exempts certain transportation workers from arbitration. The court concluded that Brock's class of workers, who deliver Flowers goods intrastate, are engaged in interstate commerce because they play a direct and necessary role in the flow of goods across state lines. The court also determined that the Arbitration Agreement did not allow for arbitration under Colorado law, as it was inconsistent with the FAA.The United States Court of Appeals for the Tenth Circuit affirmed the district court's decision. The Tenth Circuit agreed that Brock's class of workers is engaged in interstate commerce, as their intrastate deliveries are part of a continuous interstate journey of goods. The court found that Flowers retains significant control over Brock's operations, indicating that the goods' delivery to retail stores is the final leg of an interstate route. The court declined to review Flowers's argument that the Distributor Agreement is not a contract of employment, as it was not raised in the lower court. Additionally, the court determined it lacked jurisdiction to review the district court's denial of arbitration under Colorado law. View "Brock v. Flowers Foods" on Justia Law

In this case, the plaintiff, MVT Services, LLC (MVT), purchased a workers’ compensation and employers’ liability policy (WC/EL Policy) from Great West Casualty Company (Great West) for coverage from January 1, 2013, to January 1, 2014. MVT also entered into a Staff Leasing Agreement with OEP Holdings, LLC (OEP) and purchased a non-subscriber insurance policy from Crum & Forster Specialty Insurance Company (C&F). On August 13, 2013, MVT terminated its Texas coverage under the WC/EL Policy, effective September 16, 2013. On September 15, 2013, a day before the termination, MVT’s semi-tractor trailer crashed, killing driver Lawrence Parada. Parada’s widow filed a lawsuit against MVT. Great West denied coverage, leading MVT to seek defense under the C&F Policy.The United States District Court for the District of New Mexico found that Great West breached its duty to defend MVT, causing MVT to incur damages. The court awarded MVT damages and attorney fees. Great West appealed, arguing that the district court erred in finding that the Parada lawsuit would have resolved within the policy limit and that the breach did not proximately cause the damages.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court held that the district court did not clearly err in its factual findings that MVT would have invoked the Exclusive Remedy defense and that the gross negligence claim would have resolved within the policy limit. The court also found that the district court did not err in awarding damages for the $250,000 retention under the C&F Policy, the $250,000 MVT contributed to the settlement, and $41,476.84 in attorney fees. The court affirmed the district court’s award of attorney fees, concluding that Great West failed to show the district court committed legal error or clearly erred in its fact findings. The Tenth Circuit affirmed the district court’s judgment. View "MVT Services v. Great West Casualty Company" on Justia Law

Plaintiffs M.S. and L.S. sought insurance coverage for mental health treatments for their child, C.S., under a health benefits plan provided by M.S.'s employer, Microsoft Corporation. The plan, administered by Premera Blue Cross, is subject to ERISA and the Parity Act. Premera denied the claim, stating the treatment was not medically necessary. Plaintiffs pursued internal and external appeals, which upheld the denial. Plaintiffs then sued in federal district court, alleging improper denial of benefits under ERISA, failure to produce documents in violation of ERISA’s disclosure requirements, and a Parity Act violation for applying disparate treatment limitations to mental health claims.The United States District Court for the District of Utah granted summary judgment to Defendants on the denial-of-benefits claim but ruled in favor of Plaintiffs on the Parity Act and ERISA disclosure claims. The court found that Defendants violated the Parity Act by using additional criteria for mental health claims and failed to disclose certain documents required under ERISA. The court awarded statutory penalties and attorneys’ fees to Plaintiffs.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court vacated the district court’s grant of summary judgment on the Parity Act claim, finding that Plaintiffs lacked standing to bring the claim. The court reversed the district court’s ruling that Defendants violated ERISA by not disclosing the Skilled Nursing InterQual Criteria but affirmed the ruling regarding the failure to disclose the Administrative Services Agreement (ASA). The court upheld the statutory penalty for the ASA disclosure violation and affirmed the award of attorneys’ fees and costs to Plaintiffs. View "M.S. v. Premera Blue Cross" on Justia Law