deBarros v. Walmart Stores, Inc.

857 F. Supp. 2d 1109, 2012 WL 787239
CourtDistrict Court, D. Oregon
DecidedMarch 9, 2012
DocketCiv. No. 11-6116-AA
StatusPublished
Cited by3 cases

This text of 857 F. Supp. 2d 1109 (deBarros v. Walmart Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
deBarros v. Walmart Stores, Inc., 857 F. Supp. 2d 1109, 2012 WL 787239 (D. Or. 2012).

Opinion

OPINION AND ORDER

AIKEN, Chief Judge:

Plaintiff, Lynda deBarros, brought an action against defendant, Wal-Mart Stores, Inc., for violation of the Family and Medical Leave Act (FMLA), 29 U.S.C. §§ 2615(a)(2) and (b). In response, defendant filed a counterclaim, asserting four claims for relief against plaintiff as follows: breach of contract, injunctive relief, attorney fees, and $6000 in damages, plus interest, for the twelve times plaintiff mentioned a settlement agreement in plaintiffs Complaint and First Amended Complaint. Plaintiff moves to dismiss defendant’s counterclaims under Fed.R.Civ.P. 12(b)(6). Plaintiffs motion to dismiss is GRANTED as to all four of defendant’s counterclaims.

BACKGROUND

On May 19, 2010, a private settlement agreement was reached between plaintiff and defendant. Plaintiff filed a lawsuit against defendant alleging she was terminated from her employment with defendant in violation of FMLA. After the terms of the settlement were agreed upon, the lawsuit was dismissed by plaintiff. The Confidential Settlement Agreement stipulated that defendant would reinstate plaintiff to her previous position of employment. Plaintiff stipulated that she would not mention the existence nor the terms of the Confidential Settlement Agreement to third parties and would maintain the confidentiality of the Settlement Agreement. Both parties stipulated to a $500 mandatory fine for each unauthorized disclosure of [1111]*1111the existence of the Confidential Settlement Agreement.

Pursuant to the terms of the Confidential Settlement Agreement, on June 7, 2010, plaintiff was reinstated to her position of employment. After her reinstatement, however, defendant issued a series of disciplinary actions against plaintiff, and on January 11, 2011, defendant once again terminated plaintiff from her employment. On April 4, 2011, plaintiff filed a claim alleging that defendant terminated plaintiff in violation of FMLA, 29 U.S.C. §§ 2615(a)(2) and (b). Specifically, plaintiff contends that despite the terms of the Confidential Settlement Agreement, defendant terminated plaintiffs employment in retaliation for plaintiffs previous lawsuit alleging that defendant violated FMLA.

On October 6, 2011, this Court granted defendant a Protective Order to govern the Confidential Settlement Agreement. The Protective Order was granted to keep the contents of the Confidential Settlement Agreement private and under seal from public view during the course of any court proceedings arising from plaintiffs Complaint. Accordingly, the Protective Order guarantees to the defendant that the only persons privy to the information contained in the Confidential Settlement Agreement are the parties to the Complaint, the parties’ attorneys, and court staff. However, even with this Protective Order in place, defendant has cross-claimed, alleging that plaintiff should be liable for mentioning the existence of the Settlement Agreement in her Complaint. Defendant first alleges that even by mentioning the Confidential Settlement Agreement, plaintiff violated the terms of confidentiality contained in the Confidential Settlement Agreement and breached the contract. Second, defendant alleges that plaintiff should be enjoined from making any further mention of the Confidential Settlement Agreement, even in further court proceedings. Third, defendant alleges that plaintiff should have to pay attorney’s fees because of her breach. Fourth, defendant seeks damages for the breach of contract in the amount of $6000, plus interest. Defendant points to a provision in the Confidential Settlement Agreement that stipulates that plaintiff will pay $500 for any disclosure of the agreement, and thus defendant alleges that $6000 is the amount plaintiff owes for the twelve times plaintiff mentioned the Confidential Settlement Agreement in her complaint.

STANDARDS

Under Fed.R.Civ.P. 12(b)(6), once a claim has been stated adequately, it may be supported by “showing any set of facts consistent with the allegations in the complaint.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). See also, Litchfield v. Spielberg, 736 F.2d 1352, 1357 (9th Cir.1984), cert. denied, 470 U.S. 1052, 105 S.Ct. 1753, 84 L.Ed.2d 817 (1985). The complaint must allege, however, “enough facts to state a claim to relief that is plausible on its face.” Twombly, 550 U.S. at 570, 127 S.Ct. 1955. For the purpose of the motion to dismiss, the complaint is liberally construed in favor of the plaintiffs, and its allegations are taken as true. Rosen v. Walters, 719 F.2d 1422, 1424 (9th Cir.1983).

DISCUSSION

Plaintiff moves to dismiss defendant’s four counterclaims: (1) breach of contract; (2) injunctive relief; (3) attorney fees; and (4) damages in the amount of $6000, plus interest. Defendant argues that plaintiff is liable for breach of contract and damages for mentioning the existence of the Confidential Settlement Agreement to the Court in plaintiffs Complaint, but plaintiff asserts that she could not avoid mention[1112]*1112ing the existence of the Confidential Settlement Agreement in the case at bar. PI. Memo. In Support of Mot. To Dismiss 2. Plaintiff argues that absolute privilege shields her from any liability that defendant has alleged against her, making defendant’s claims for relief implausible. Id. Thus, under this absolute privilege theory, plaintiff moves to dismiss defendant’s counterclaims.

I. Absolute Privilege from Liability Claims

Plaintiff has moved to dismiss defendant’s counterclaims based on absolute privilege, and defendant asserts four arguments in opposition. First, in contrast to plaintiffs assertions, defendant argues that not all statements made during judicial proceedings are equivocally protected by absolute privilege. Second, defendant argues that courts generally do not extend the privilege to statements made during judicial proceedings that involve breach of contract claims. Third, defendant alleges that plaintiff should not be afforded absolute privilege because plaintiff did not have a compelling reason to divulge the existence of the Confidential Settlement Agreement to the Court in the first place. Finally, defendant argues that it was unnecessary for plaintiff to reveal the existence of the Confidential Settlement Agreement and then invoke absolute privilege, as the terms of the contract provided plaintiff with the ability to publicize the existence of the Agreement so long as she provided 24 hour notice to the defendant of her intent.

A. Absolute Privilege Does Not Apply

This Court has held that if applicable, absolute privilege precludes a person from liability for making statements that would otherwise be defamatory. Martinez-Delacruz v.

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Bluebook (online)
857 F. Supp. 2d 1109, 2012 WL 787239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/debarros-v-walmart-stores-inc-ord-2012.