Equal Employment Opportunity Commission v. Action Insulation CO.

CourtDistrict Court, S.D. Georgia
DecidedSeptember 5, 2025
Docket4:25-cv-00152
StatusUnknown

This text of Equal Employment Opportunity Commission v. Action Insulation CO. (Equal Employment Opportunity Commission v. Action Insulation CO.) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Action Insulation CO., (S.D. Ga. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF GEORGIA SAVANNAH DIVISION EQUAL EMPLOYMENT ) OPPORTUNITY COMMISSION, ) ) Plaintiff, ) ) v. ) CV425-152 ) ACTION INSULATION CO., ) ) Defendant. ) ORDER Defendant Action Insulation Co. (“Action Insulation”) moves for the imposition of sanctions against Plaintiff the United States Equal Employment Opportunity Commission (the “EEOC”) and its attorney, Marcus G. Keegan, “for their extrajudicial conduct in violation of Local Rule 11.2 and established case law of this Court.” Doc. 6 at 1. Plaintiff has responded, doc. 13, and Action Insulation has replied, doc. 15. The matter has been referred to the undersigned pursuant to 28 U.S.C. § 636 and is ripe for disposition. Background The EEOC filed this lawsuit against Action Insulation under Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991, alleging that Action Insulation subjected its former employee, Jessica Snyder, to a sexually hostile work environment, resulting in the

constructive discharge of her employment. See generally doc. 1. The Complaint identifies Action Insulation as a general contractor

specializing in insulation installation and asbestos abatement in the Chatham County, Georgia area. Id. at 3. Snyder is the company’s former Office Manager. Id. The Complaint alleges that Snyder reported directly

to the Company’s owner and founder and that he “subjected Snyder to sexual harassment in the form of unwanted jokes, statements, photos, and inappropriate touching.” Id. at 4; see also id. at 4-7 (describing

alleged acts of sexual harassment). Defendant’s owner’s name is not revealed in the Complaint. See generally id. Action Insulation’s Motion for Sanctions contends that after the

EEOC filed its Complaint, it issued a press release titled “EEOC Sues Action Insulation for Sexual Harassment” on its official government website. Doc. 6 at 2; see also doc. 6-1 (copy of press release, also available

at https://www.eeoc.gov/newsroom/eeoc-sues-action-insulation- sexual-harassment). According to Action Insulation, the press release “identifies Action Insulation by name, location, and type of business, and summarizes the allegations it makes in this lawsuit.” Doc. 6 at 2. It also includes a quote from EEOC Regional Attorney Marcus Keegan that

“[f]ederal law prohibits sexual harassment in the workplace . . . . The EEOC will take action when a company allows its highest-ranking

officials to continuously harass a female employee,” and a quote from EEOC District Director Darrell Graham that “[e]nsuring workplaces are free from sex discrimination and sexual harassment remains a top

priority for the EEOC. Our agency will hold employers accountable if they allow this type of inexcusable conduct to occur.” Id. at 2-3 (quoting doc. 6-1 at 2 (internal quotes omitted)). The press release was picked up

by a “national reporter with McClatchy News” and her article covering the lawsuit was published by several online news sources. Id. at 3-4; see also doc. 15 at 1-2.

Legal Standard Action Insulation invokes both Southern District of Georgia Local Rule 11.2 and the Court’s inherent authority to support its request for

sanctions. Doc. 6 at 4-7. Local Rule 11.2 provides: It is the duty of every lawyer or law firm associated with the case not to release or authorize the release of information or an opinion, which a reasonable person would expect to be disseminated by means of public communication, in connection with pending or imminent civil litigation with which he or his firm is associated, if there is a reasonable likelihood that such dissemination will interfere with a fair trial or otherwise prejudice the due administration of justice. S.D. Ga. L. Civ. R. 11.2. The Rule, by its express terms, only applies to lawyers and law firms associated with the case, and not to the parties directly. Id. A violation of this Local Rule can support the imposition of a sanction without a finding of bad faith on the part of the attorney. See

Lott v. Estes, 2023 WL 4278688, at *5 (S.D. Ga. June 29, 2023) (“Although it is well settled that a federal court must make a finding of bad faith to sanction an attorney under its inherent powers . . . this Court has never

extended this requirement to sanctions imposed pursuant to Local Rule 11.2, and the Court declines to do so here.”). As for the Court’s inherent power, the Eleventh Circuit has

recognized that “‘[c]ourts of justice are universally acknowledged to be vested, by their very creation, with power to impose silence, respect, and decorum, in their presence, and submission to their lawful mandates.’”

Thomas v. Tenneco Packaging Co., 293 F.3d 1306, 1320 (11th Cir. 2002) (quoting Chambers v. NASCO, Inc., 501 U.S. 32, 43 (1991)). The Court may exercise this inherent authority to sanction a party, and not just an

attorney. See, e.g., Mai v. Nine Line Apparel, Inc., 2019 WL 5092478, at *3 (S.D. Ga. Oct. 10, 2019). “This power ‘must be exercised with restraint and discretion’ and used ‘to fashion an appropriate sanction for conduct

which abuses the judicial process.’” Purchasing Power, LLC v. Bluestem Brands, Inc., 851 F.3d 1218, 1223 (11th Cir. 2017) (quoting Chambers,

501 U.S. at 44-45). “A court may exercise this power to sanction the willful disobedience of a court order, and to sanction a party who has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.” Id.

(internal citations and quotation marks omitted). The key element to unlocking the court’s inherent ability to sanction is a finding of bad faith. Purchasing Power, 851 F.3d at 1223;

see also Thomas, 293 F.3d at 1320 (“[B]efore a court can impose sanctions against a lawyer under its inherent power, it must find that the lawyer’s conduct constituted or was tantamount to bad faith.” (internal quotation

and citation omitted)). Additionally, the Court’s imposition of any sanction must comport with due process by providing the individual subject to possible sanction with proper notice and an opportunity to be

heard. Thomas, 293 F.3d at 1320-21. Notice can come from the party seeking sanctions, from the court, or from both, and the accused must be given an opportunity to respond to the invocation of such sanctions and to justify his actions. In re Mroz, 65 F.3d 1567, 1575-76 (11th Cir. 1995). “In assessing whether a party should be sanctioned, a court examines the

wrongdoing in the context of the case, including the culpability of other parties.” Purchasing Power, 851 F.3d at 1225.

Analysis The Court first addresses Action Insulation’s contention that “Local Rule 11.2 explicitly prohibits the conduct of the EEOC and its attorney.”

Doc. 6 at 5. As an initial matter, Rule 11.2 is, as discussed above, only applicable to lawyers and law firms associated with the case, and not to the parties directly. The EEOC as a governmental agency is a party to

this litigation, and not subject to Rule 11.2. Therefore, only Marcus Keegan, who is identified as the EEOC’s Regional Attorney on the Complaint, see doc. 1 at 14, and is quoted in the press release, see doc. 6-

1 at 2, is even arguably covered by Rule 11.2’s prohibitions. A review of the EEOC’s press release, however, shows that no sanctions against Keegan under Rule 11.2 are appropriate. See generally doc. 6-1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Glatter v. Mroz
65 F.3d 1567 (Eleventh Circuit, 1995)
Clarence Thomas v. Tenneco Packaging Co., Inc.
293 F.3d 1306 (Eleventh Circuit, 2002)
Chambers v. Nasco, Inc.
501 U.S. 32 (Supreme Court, 1991)
Purchasing Power, LLC v. Bluestem Brands, Inc.
851 F.3d 1218 (Eleventh Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Equal Employment Opportunity Commission v. Action Insulation CO., Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-action-insulation-co-gasd-2025.