DeNardo v. Calista Corp.

111 P.3d 326, 2005 Alas. LEXIS 53, 95 Fair Empl. Prac. Cas. (BNA) 1380, 2005 WL 928147
CourtAlaska Supreme Court
DecidedApril 22, 2005
DocketS-11183
StatusPublished
Cited by29 cases

This text of 111 P.3d 326 (DeNardo v. Calista Corp.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeNardo v. Calista Corp., 111 P.3d 326, 2005 Alas. LEXIS 53, 95 Fair Empl. Prac. Cas. (BNA) 1380, 2005 WL 928147 (Ala. 2005).

Opinions

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Plaintiff filed three state and federal lawsuits against his former employer. After the first two actions were dismissed, the superior court dismissed his third, holding it was barred by res judicata and the judicial policy against claim splitting. Plaintiff appeals. Because the stipulated terms of the dismissal in the first state court action preserved the plaintiffs non-federal claims, neither res ju-dicata nor the doctrine against claim splitting bars the third action. We therefore vacate the dismissal order in the third action and remand for further proceedings.

II. FACTS AND PROCEEDINGS

Daniel DeNardo filed three state and federal lawsuits against his former employer, Alaska Newspapers, Inc., (ANI) and its majority shareholder, Calista Corporation. ANI had employed DeNardo as an advertising sales representative from October 1999 until his termination in July 2000. It is the superior court’s dismissal of the last-filed of these three lawsuits, on grounds of res judi-cata and the policy against claim splitting, that leads to this appeal.

First lawsuit. DeNardo filed his first lawsuit against ANI, Calista, and eight former co-workers in state superior court in July 2000. His complaint in Case No. 3AN-00-8753 Cl alleged numerous claims, including breach of contract, retaliation for filing claims with the Department of Labor and the Equal Employment Opportunity Commission, and negligent and intentional infliction of emotional distress based on harassment by, and favoritism toward, some of ANI’s female employees. DeNardo amended his complaint on August 7, 2000, but the changes are not material for purposes of this appeal.

Second lawsuit. In October 2000 DeNar-do filed his second lawsuit against Calista and ANI. He brought this action in federal court in Case No. A00-309-CV, and based his claims on the same facts asserted in his state court action. The federal complaint alleged state law claims of negligent and intentional infliction of emotional distress and federal law claims of gender discrimination and sexual harassment under 42 U.S.C. § 2000(e)-2000(e)(17) (Title VII).

Calista and ANI removed Case No. 3AN-00-8753 Cl, the state court action, to federal court in November 2000, where it became Case No. A00-351-CV; in December defendants moved for consolidation of the two federal cases. United States District Judge H. Russel Holland ordered consolidation, but in April 2001 remanded Case No. A00-351-CV to state court while retaining jurisdiction over Case No. A00-309-CV.

Following this remand, DeNardo offered to dismiss his now-remanded state court action, Case No. 3AN-00-8753 Cl. The defendants accepted his offer, and on April 27, 2001, the parties signed a three-paragraph stipulation prepared by defense counsel for dismissal of Case No. 3AN-00-8753 Cl with prejudice.1 In May 2001 Superior Court Judge Elaine M. Andrews signed defense counsel’s proposed order granting “the Stipulation to Dismiss With Prejudice.”

Calista and ANI then moved for dismissal of the remaining federal action, Case No. A00-309-CV, contending that as tribal entities they could not be sued under Title VII, [329]*329because neither was an “employer.” The United States District Court granted their motion in November 2001. Judge Holland’s memorandum dismissal order stated, however, that because the court had no original jurisdiction over the Title VII claim, it “declines to exercise supplemental jurisdiction over plaintiffs state law claim for the infliction of emotional distress.” The order also stated that it “is without prejudice to pursuit of any state law claims plaintiff may have in state court.” The United States Court of Appeals for the Ninth Circuit affirmed the dismissal in 2002.

Third lawsuit. In December 2001, after his first state action and his federal action were dismissed, DeNardo commenced his third lawsuit by filing a superior court complaint in Case No. 3AN-01-12484 Cl against Calista and ANI. This complaint was based on the same facts alleged in the first state court action. It expressly asserted a claim of discrimination by Calista and ANI against him in violation of AS 18.80. It indirectly asserted claims of negligent and intentional infliction of emotional distress.

Calista and ANI moved to dismiss Case No. 3AN-01-12484 Cl on the basis of res judicata and the doctrine against claim splitting. Superior Court Judge Phillip R. Vol-land granted their motion on those grounds. DeNardo requested withdrawal of the dismissal stipulation filed in Case No. 3AN-00-8753 Cl, but the superior court denied his request. DeNardo appeals the court’s dismissal of Case No. 3AN-01-12484 Cl and its denial of his request to withdraw his dismissal stipulation in Case No. 3AN-00-8753 CI.

Unless context dictates otherwise, we refer collectively to the appellees as “Calista.”

III. DISCUSSION

A. Standard of Review

Whether res judicata applies is a question of law, an issue that we review de novo.2 We interpret stipulations using the rules of contract interpretation.3 We review the interpretation of contracts, and thus stipulations, de novo.4

B. Res Judicata Does Not Bar DeNar-do’s Claims of Negligent Infliction of Emotional Distress, Intentional Infliction of Emotional Distress, and Discrimination.

The parties disagree about whether the dismissals entered in DeNardo’s two previous lawsuits bar his third lawsuit. Resolution of this issue requires us to consider the effect of the superior court dismissal stipulation and the federal court dismissal order.

1. Parties’ contentions

DeNardo argues that a stipulation will not be construed to give effect to a waiver of a right not plainly intended to be relinquished.5 He argues that a stipulation must be construed according to the parties’ intention as expressed in the document’s language.6 De-Nardo contends that the dismissal stipulation’s terms preserved the discrimination claim regardless of which court had jurisdiction over it. He argues that the federal court dismissed the discrimination claim because it lacked jurisdiction; he contends that jurisdictional dismissals have no res judicata [330]*330effect.7 He also seems to argue that his first state action did not include a discrimination claim under AS 18.80 and that therefore the dismissal in his first state court action cannot bar his current discrimination claim.

Calista argues that under the doctrine of res judicata, dismissal of the first state lawsuit bars the present lawsuit. It asserts that all elements are present to give res judicata effect to the stipulated dismissal. It states that a dismissal entered pursuant to a stipulation for dismissal of claims with prejudice has the same res judicata effect as a final judgment entered after trial.8 It therefore contends that the order granting the stipulation to dismiss with prejudice is a final judgment for res judicata purposes. It also argues that the superior court in the first state action had jurisdiction and that the same parties are involved in both state actions.

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Bluebook (online)
111 P.3d 326, 2005 Alas. LEXIS 53, 95 Fair Empl. Prac. Cas. (BNA) 1380, 2005 WL 928147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denardo-v-calista-corp-alaska-2005.