April Ryniewicz v. Clarivate Analytics

CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 9, 2020
Docket19-1161
StatusUnpublished

This text of April Ryniewicz v. Clarivate Analytics (April Ryniewicz v. Clarivate Analytics) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
April Ryniewicz v. Clarivate Analytics, (6th Cir. 2020).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 20a0139n.06

No. 19-1161

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED APRIL RYNIEWICZ, ) Mar 09, 2020 ) DEBORAH S. HUNT, Clerk Plaintiff-Appellant, ) ) ON APPEAL FROM THE v. ) UNITED STATES DISTRICT ) COURT FOR THE EASTERN CLARIVATE ANALYTICS, ) DISTRICT OF MICHIGAN ) Defendant-Appellee. ) )

BEFORE: BOGGS, SUHRHEINRICH, and WHITE, Circuit Judges.

BOGGS, Circuit Judge. This is an appeal from a district-court order granting a motion to

dismiss an action for breach of contract and defamation brought by April Ryniewicz (“Ryniewicz”)

against her former employer, Clarivate Analytics (“Clarivate”). For the reasons set forth below,

we affirm the district court.

I. BACKGROUND

Ryniewicz was employed by Thomson Reuters for seven years until the sale of its IP &

Science Division to Clarivate in 2016, when Ryniewicz became the Finance Director for IP

Management of Clarivate’s Master Data Center, Inc. (“Master Data Center”). In September 2017,

Clarivate advised Ryniewicz that it was exploring the sale of the Master Data Center and offered

Ryniewicz a Retention Agreement, which Ryniewicz signed the same month. The Retention

Agreement set forth incentives to encourage Ryniewicz’s active participation in the change in

control, including: (1) a Retention Bonus; (2) an Annual Incentive Plan award; and (3) Severance

Pay. No. 19-1161, Ryniewicz v. Clarivate Analytics

In December 2017, Ryniewicz reviewed Master Data Center’s balance sheet and submitted

it to Clarivate’s management. Thereafter, Clarivate’s CFO discovered about $12 million in

“unbilled revenue,” which prompted an internal investigation by Clarivate’s outside counsel,

Latham & Watkins. At a meeting with the CFO and outside counsel on December 10, 2017,

Ryniewicz, unaware of the internal investigation, was confronted with this large accounting

discrepancy and accused of manipulating financial documents as well as embezzling $11.3 million.

Ryniewicz denied any wrongdoing and at the end of a seven-hour-long meeting was placed on

paid administrative leave. She denied wrongdoing also at two subsequent meetings on December

22, 2017 and January 5, 2018.

In mid-December 2017, the director of the private-equity firm that owns Clarivate informed

Clarivate’s sale agency that the sale of Master Data Center had been aborted due to Ryniewicz’s

suspected embezzlement. Over the following months, Clarivate made similar statements to

potential buyers as it called the sale off. The sale of Master Data Center never occurred. Following

completion of the internal investigation, Ryniewicz was terminated, without a cause being given,

on January 26, 2018. She did not receive the payments contemplated by the Retention Agreement

and in April 2018 she sued Clarivate for breach of contract and defamation. The district court

granted Clarivate’s motion to dismiss, and Ryniewicz timely appealed.

II. ANALYSIS

A. Standard of Review

We review de novo the district court’s grant of a Rule 12(b)(6) motion to dismiss for failure

to state a claim upon which relief can be granted. See Brent v. Wayne Cty. Dep’t of Human Servs.,

901 F.3d 656, 675–76 (6th Cir. 2018). “To survive a motion to dismiss, a complaint must contain

sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’”

-2- No. 19-1161, Ryniewicz v. Clarivate Analytics

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544,

570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows

the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.”

Ibid. In reviewing the district court’s order, we “must construe the complaint in the light most

favorable to the plaintiff and accept all allegations as true.” Keys v. Humana, Inc., 684 F.3d 605,

608 (6th Cir. 2012). The court may affirm a decision of the district court for any reason supported

by the record, including grounds not considered below. U.S. Postal Serv. v. Nat’l Ass’n of Letter

Carriers, AFL–CIO, 330 F.3d 747, 750 (6th Cir. 2003).

B. Breach of the Retention Agreement

Ryniewicz alleged that Clarivate breached the Retention Agreement by withholding

payments due her under the Retention Agreement.

Although Ryniewicz did not attach the Retention Agreement to her Amended Complaint,

her claim of breach of contract concerns the Agreement, which is referenced throughout that

Complaint and is attached to Clarivate’s Second Motion to Dismiss. “In evaluating a motion to

dismiss, we ‘may consider the complaint and any exhibits attached thereto, public records, items

appearing in the record of the case and exhibits attached to defendant’s motion to dismiss so long

as they are referred to in the complaint and are central to the claims contained therein.’” Luis v.

Zang, 833 F.3d 619, 626 (6th Cir. 2016) (quoting Kreipke v. Wayne State Univ., 807 F.3d 768, 774

(6th Cir. 2015)). It is therefore proper for us to refer not only to the Amended Complaint but also

to the Retention Agreement itself when reviewing de novo the district court’s order dismissing the

breach of contract claim.

-3- No. 19-1161, Ryniewicz v. Clarivate Analytics

1. Termination Without Cause

The Amended Complaint did not challenge the legality of Ryniewicz’s termination without

cause. But since termination without cause was addressed in the district-court order dismissing

the action, as part of the breach-of-contract claim on appeal, and in Ryniewicz’s opposition to

Clarivate’s Second Motion to Dismiss, we consider it when relevant to the issue of the alleged

withholding of payments under the Retention Agreement.

Ryniewicz submits that her termination without cause constituted a breach of the Retention

Agreement by Clarivate and therefore relieved her of any obligation to perform conditions

precedent to her payments under the Retention Agreement.

The Retention Agreement sets forth conditions under which Ryniewicz may be terminated.

First, the Agreement specifies that “[t]hrough the date that you may begin employment with a

purchaser of the Business, you will continue to be employed by a subsidiary of Clarivate Analytics

under the terms of your offer letter . . . except as modified herein.” Ryniewicz did not bring claims

under her original offer letter of hiring, only under the Retention Agreement. Second, the

Retention Agreement provides that “[t]he Clarivate Analytics subsidiary that employs you may in

its sole discretion determine that your services are no longer required prior to the change in

control.” By the terms of the Retention Agreement, Ryniewicz’s employment was at will prior to

the sale of Master Data Center. Ryniewicz was terminated before any sale of the business

occurred.

To make it even more clear that Ryniewicz could properly be terminated without cause,

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