Habitat for Humanity International, Inc. v. Morris

CourtDistrict Court, M.D. Florida
DecidedOctober 26, 2021
Docket2:19-cv-00456
StatusUnknown

This text of Habitat for Humanity International, Inc. v. Morris (Habitat for Humanity International, Inc. v. Morris) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Habitat for Humanity International, Inc. v. Morris, (M.D. Fla. 2021).

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.

First, paragraph 8 contains a broad release of any claims Mr. Morris may have against Habitat, including “claims pursuant to federal, state, or local law regarding discrimination based on . . . age, race, [and] sex.” (Id. at 11, ¶ 8.) Next, paragraph 9 contains a covenant not to sue for any of the various claims mentioned in paragraph 8. It provides, in relevant part: [Y]ou promise to the fullest extent permitted by applicable law, you will not sue or initiate any action or other proceeding asserting any such claim or proceeding [in paragraph 8], individually or as a member of a class . . . . You further agree that if you breach this promise, you shall in addition to all other remedies provided hereunder or otherwise, pay as damages all costs incurred by any party in defending such action or proceeding, including their reasonable attorneys’ fees. (Id. at ¶ 9) (emphasis added.) And finally, paragraph 10 contains a non-disparagement clause, which provides, in its entirety: You agree that you will not make, directly or indirectly, any adverse or disparaging oral or written statements (including social media) regarding [Habitat] or its affiliates, national organizations, partners, associated entities, successors, assigns, agents, executives, directors, officers or current or former employees of any of them, whether to any donor or prospective donor of [Habitat], the press or any other media, and other business entity or third party, or any current or former director, officer or employee of [Habitat]. You agree that you will do nothing to impair [Habitat’s] reputation or good will among its donors, potential donors, vendors, supplies, the Habitat for Humanity community, other third parties, or the public. (Id. at 12, ¶ 10) (emphasis added). II. Mr. Morris leaves Habitat and executes a severance agreement that contains a general release, a covenant not to sue, and a non- disparagement clause. After Mr. Morris’s employment ended, his former supervisor took a closer look at his history of expenses and allegedly uncovered: (a) additional improper use of Habitat’s resources, (b) reimbursements that did not have documentary support or were otherwise noncompliant with Habitat’s policies, (c) significant mileage on Mr. Morris’s company car for personal trips, and (d) unreported vacation time. (Doc. 71 at 10–14, ¶¶ 30–44.) Based on these purported discoveries, Habitat sued Mr. Morris in Georgia state court, alleging claims that sounded in fraud and breach of fiduciary duty. (Doc. 1-1 at 3–21.) Mr. Morris (who disputes these allegations) removed the action to the U.S. District Court for the Northern District of Georgia, which eventually transferred the action to this Court. (Docs. 1, 7, 10.) On August 16, 2019, Mr. Morris filed his answer to Habitat’s post-transfer amended complaint. (Doc. 34.) His answer included multiple counterclaims for race, sex, and age discrimination. (Id. at 9–14.) About a month later, The News- Press (a local newspaper in Fort Myers, Florida) published an article titled, “Estero man claims race, age bias against Habitat for Humanity International.” (Doc. 88-1 at 15–19.) In the article, Mr. Morris is quoted as saying: I believe that I was being passed over for promotion, passed over for opportunities for growth because I was an experienced, white, conservative male. . . . As a white male, I was treated different because I was in a different class — I was not a woman, I was not a person of color, I was not a person of a particular political group or gender identity. . . . There were several senior director roles being put in place and I was told I was not going to be considered. . . . It had been my experience and my observation over the course of that seven-year period when I was at Habitat for that second term that white males, especially conservative males like myself . . . were being passed over. (Doc. 88-1 at 18–19.) The Court initially dismissed Mr. Morris’s counterclaims without prejudice for failing to state a claim and provided him with an opportunity to replead. (Doc. 57.) On November 8, 2019, Habitat filed a third amended complaint which included—for the first time—two additional counts for breach of contract. (Doc.

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