Gargano v. Diocese of Rockville Centre

888 F. Supp. 1274, 1995 WL 348193
CourtDistrict Court, E.D. New York
DecidedJune 13, 1995
Docket0:92-cv-05341
StatusPublished
Cited by7 cases

This text of 888 F. Supp. 1274 (Gargano v. Diocese of Rockville Centre) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gargano v. Diocese of Rockville Centre, 888 F. Supp. 1274, 1995 WL 348193 (E.D.N.Y. 1995).

Opinion

MEMORANDUM AND ORDER

BLOCK, District Judge:

This decision addresses the propriety of a jury’s finding that the Diocese of Rockville Center (“Diocese”) was an employer of Amelia Gargano (“Gargano”) while she taught at one of the Diocese’s parish schools, and the appropriate measure of damages and/or other remedies available to Gargano for a breach of an employment contract which the jury found existed between the Diocese and Gargano.

I.

PROCEDURAL BACKGROUND

On March 11, 1993, Gargano, a former teacher at the now-defunct St. Anthony of Padua Parish School (“St. Anthony”), filed an amended complaint against defendants Diocese, Trinity Regional School (“Trinity”) and others 1 asserting a federal claim for an al *1277 leged violation of the Age Discrimination in Employment Act of 1967 (“ADEA”), 29 U.S.C. § 623, and two claims under this Court’s supplemental jurisdiction, one for an alleged breach of an employment contract and the other for an alleged violation of New York State’s anti-discrimination in employment statute, NY. Executive Law § 296, which Gargano subsequently abandoned. Gargano’s claims arose from the closing of St. Anthony and the subsequent failure to hire or properly consider her for a position at Trinity, a new regional school which absorbed a number of local parish schools, including St. Anthony.

Beginning on February 28,1995, the Court conducted a jury trial over the course of five days. At the close of Gargano’s ease and again after defendants had rested, defendants moved for judgment as a matter of law pursuant to Fed.R.Civ.Pro. 50(a) on the ground, inter alia, that the Diocese was not Gargano’s employer. The Court denied these motions. On March 7, 1995, the jury returned a verdict against Gargano on the ADEA claim, but in favor of her on the breach of contract claim, concluding on a special verdict form that (i) the Diocese was Gargano’s employer, (ii) a teachers’ handbook constituted part of the employment contract existing between the Diocese and Gargano, and (iii) the Diocese breached certain provisions of the handbook. Trinity incurred no liability. The Diocese thereafter renewed its motion for judgment as a matter of law pursuant to Fed.R.Civ.Pro. 50(b), which the Court denied, and now seeks reargument contending once again that it was not as a matter of law Gargano’s employer and challenging each of the jury’s three factual findings. See Rule 3(j) of the Civil Rules for the United States District Court for the Eastern District of New York.

Apart from the Diocese’s request for reargument, the parties submitted at the Court’s request post-verdict memoranda discussing issues relating to the appropriate measure of damages and/or other remedies, if any, beyond a stipulated amount of damages to which the parties had agreed. The stipulation provided that Gargano would receive $83,300 if she proved successful on either her ADEA or breach of contract claim, as calculated from the day after Gargano’s last employment with St. Anthony until the date of the verdict. Gargano’s memorandum addressed these issues and argued for specific performance to compel Trinity to hire her or, in the alternative, “front pay” until Gargano reaches the age of 65 (she is currently in her late forties). The Diocese’s memorandum contained only two paragraphs on the issue of appropriate damages/remedies, devoting the remainder of its memorandum to discussing its reargument contentions.

Upon consideration of the parties’ various submissions, the Court grants reargument to the Diocese but, for reasons more fully set forth below, denies its request to set aside the verdict. Accordingly, the Court considers and resolves various issues relating to the proper measure of damages and/or other remedies.

II.

FACTUAL BACKGROUND

Prior to trial, the parties stipulated to a number of facts. In brief, they agreed that Gargano was employed by St. Anthony as a second grade teacher from 1969 until August 1992, when the school closed following the recommendations of several groups which had been organized for the purpose of studying whether to continue the Catholic elementary school system in its then-present form. Part of the recommendation was the formation of a Regional Planning Board organized from the six parishes within the geographic “region” in which St. Anthony was located. The Regional Planning Board recommended the closing of the schools within the region and the establishment of Trinity as a regional school in order to provide grade school children, who had formerly attended the parish schools, the best possible Catholic education.

As part of the staffing procedures for Trinity, guidelines were provided relative to the hiring of the faculty for the new school, who were to be drawn whenever possible from the ranks of those teachers that had formerly made up the faculties of the parish schools which were closing. Gargano, as part of the processing procedure, submitted to inter *1278 viewing as did 58 other candidates who where vying for 38 available faculty positions.

The interviews were conducted, prospective teachers were evaluated and, thereafter, Gargano was advised that she would not be hired as a member of the Trinity faculty. Gargano appealed this decision to the Diocese’s Superintendent of Education who declined to overrule it. After filing a claim with the Equal Employment Opportunity Commission, Gargano brought this lawsuit.

III.

DISCUSSION

A. Liability

As noted above, the Diocese challenges on reargument its liability for the breach of contract claim. More specifically, “it is [the Diocese’s] position that, as a matter of law, there was no employment relationship between [Gargano] and the Diocese.” Defendants’ Memorandum of Law (“Defs.’ Mem.”) at 1. The Diocese argues that the issue of whether such an employer-employee relationship existed was not a question for the jury, but rather one the Court should have determined in the Diocese’s favor. For the reasons that follow, the Diocese’s argument fails.

1. Employer-Employee Relationship

The Diocese argues that the jury verdict cannot stand because “[a] finding that the Diocese was the employer under the circumstances in effect pierced the corporate veil without justification or any rational basis.” Defs.’ Mem. at 6. “In order for the veil of corporate status to be pierced,” explains the Diocese, “one must establish that the corporation is a dummy under which in reality the individual shareholders are carrying on their personal business.” Id. (citing Port Chester v. Atlas, 40 N.Y.2d 652, 357 N.E.2d 983, 389 N.Y.S.2d 327 (1976)). The Diocese argues:

In the instant case, plaintiff has neither alleged nor offered any evidence that the corporate identities of the Diocese ... and St. Anthony ... are mere shams. Sr.

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Cite This Page — Counsel Stack

Bluebook (online)
888 F. Supp. 1274, 1995 WL 348193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gargano-v-diocese-of-rockville-centre-nyed-1995.