Habitat for Humanity International, Inc. v. Morris

District Court, M.D. Florida·Decided October 26, 2021·No. 2:19-cv-00456·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA FORT MYERS DIVISION HABITAT FOR HUMANITY INTERNATIONAL, INC.,

Plaintiff,

v. Case No. 2:19-cv-456-JLB-MRM

ROBERT DERRICK MORRIS,

Defendant.

ORDER Defendant Robert Derrick Morris is a former employee of Plaintiff Habitat for Humanity International, Inc. (“Habitat”). His employment was terminated after Habitat allegedly discovered irregularities in his reimbursement requests. As part of the termination, Habitat and Mr. Morris executed a severance contract under which Mr. Morris received payment in exchange for a covenant not to sue and agreeing to comply with a non-disparagement clause. After Habitat initiated this action against Mr. Morris for fraud and breach of fiduciary duty, he filed counterclaims for employment discrimination based on race, sex, and age. He also made comments to local media about Habitat’s purported discrimination. Habitat responded by adding two claims for breach of contract (Counts V and VI) based on Mr. Morris’s violation of the covenant not to sue and the non- disparagement clause in the severance contract. Habitat now moves for partial summary judgment on those claims. (Doc. 88.) After carefully reviewing the parties’ arguments, the Court grants Habitat’s motion in part. It is clear that Mr. Morris’s activity violated the severance contract, and that Habitat is entitled—at a minimum—to restitution of its severance payment. But Habitat’s request for attorney’s fees and costs will be deferred to a later stage of this litigation, and the

Court is not yet certain whether Habitat is entitled to reputation damages for Mr. Morris’s alleged violation of the severance agreement’s non-disparagement clause. In those respects, Habitat’s motion for partial summary judgment will be denied. BACKGROUND I. Mr. Morris leaves Habitat and executes a severance agreement that contains a general release, a covenant not to sue, and a non- disparagement clause. Although Habitat’s motion for partial summary judgment is limited to its breach-of-contract claims, some discussion of the parties’ overarching dispute is helpful to understand the facts. Mr. Morris was employed by Habitat from 2002 through 2005, and again from 2010 through 2017. (Doc. 88 at 2–3, ¶ 4; Doc. 91 at 3, ¶ 4.) His last role with Habitat was “Director of Construction Technology and Safety,” which he performed remotely from his home in Estero, Florida. (Doc. 88 at 2–3, ¶ 4; Doc. 88-1 at 17.) As part of the job, Habitat allowed Mr. Morris to submit reimbursement requests for certain work-related expenses. (Doc. 71 at 6 ¶ 19.)

Habitat alleges that in 2017 a new supervisor questioned Mr. Morris for requesting inappropriate reimbursements in his expense report. (Id. at 6, ¶ 20.) This questioning, according to Habitat, led Mr. Morris to ask that he be laid off. (Id. at 7, ¶ 23.) Mr. Morris admits only that he requested to be laid off, not that he requested inappropriate reimbursements. (Doc. 88 at 3, ¶ 5; Doc. 91 at 3, ¶ 5.) In any case, Habitat honored his request. On August 7, 2017, the parties executed a severance contract, under which Mr. Morris received a severance payment of $16,830—reduced to $14,960 after “appropriate deductions and

withholdings.” (Doc. 88 at 3, ¶ 6; Doc. 91 at 3, ¶ 6.) The contract specifically provides that Mr. Morris’s severance payment “exceed[ed] the payments and benefits to which [he] would otherwise [have been] entitled,” and that the payments and benefits were “specific and sufficient consideration for the releases and covenants” contained elsewhere in the agreement. (Doc. 88-1 at 10, ¶ 6.) For purposes of this order, three of these “releases and covenants” are significant.

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