Hernandez v. Creative Concepts, Inc.

295 F.R.D. 500, 86 Fed. R. Serv. 3d 613, 2013 WL 4399235, 2013 U.S. Dist. LEXIS 116319
CourtDistrict Court, D. Nevada
DecidedAugust 16, 2013
DocketNo. 2:10-CV-02132-PMP-VCF
StatusPublished
Cited by3 cases

This text of 295 F.R.D. 500 (Hernandez v. Creative Concepts, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hernandez v. Creative Concepts, Inc., 295 F.R.D. 500, 86 Fed. R. Serv. 3d 613, 2013 WL 4399235, 2013 U.S. Dist. LEXIS 116319 (D. Nev. 2013).

Opinion

ORDER

PHILIP M. PRO, District Judge.

Presently before the Court is Defendant NPL Construction Co.’s Motion for Summary Judgment Seeking Dismissal of All Claims Asserted by Plaintiff Ivan Madrigal Based Upon his General Release of Claims (Doc. # 170), filed on February 9, 2013. Plaintiff Ivan Madrigal filed an Opposition (Doc. # 187/# 188) on March 11, 2013. Defendant filed a Reply (Doc. # 225) on April 6, 2013.

I. BACKGROUND

The parties are familiar with the facts of this case and the Court will not repeat them here except where necessary. Defendant NPL Construction Co. (“NPL”) moves for summary judgment on all claims asserted by Plaintiff Ivan Madrigal (“Madrigal”) based [502]*502on a general release provision contained in a settlement agreement Madrigal entered into with NPL shortly before this lawsuit was filed.

On November 14, 2009, Madrigal and NPL entered into a Full and Complete Confidential Settlement Agreement and Release of Claims (“Agreement”), which settled wage and hour claims in a separate lawsuit against NPL that were unrelated to the claims in the present action before this Court. (Mot. for Summ. J. Seeking Dismissal of All Claims Asserted by Ivan Madrigal Based Upon his Gen. Release of Claims (Doc. # 170) [“MSJ”], Ex. 1, Attach. E at 1.) In the separate lawsuit, Madrigal was represented by the law firm Reich, Adell & Cvitan, P.C. (MSJ, Ex. 1 at 2.) By the time the Agreement was executed, Madrigal and the other Plaintiffs in this action had retained counsel, Stanley Broome (“Broome”) of the Broome Law Firm, to represent them with respect to the claims at issue in this case. (PL Ivan Madrigal’s Opp’n to Def. NPL’s Mot. Summ. J. (Doc. # 188) [“Opp’n”], Ex. 4 at 1.) At the time the parties executed the Agreement, NPL and its attorneys were aware that Madrigal was represented by Broome in relation to Madrigal’s claims at issue in this case. (Opp’n, Ex. 3 at 2; MSJ, Ex. 1, Attach. B at 208 (Madrigal testifying at his deposition, attended by NPL’s attorney, that his counsel in the wage and hour lawsuit was not representing him in this lawsuit).) However, neither Madrigal’s counsel at Reich, Adell & Cvitan, P.C. nor NPL’s counsel contacted Broome regarding the negotiation and execution of the Agreement. (Opp’n, Ex. 4 at 2.)

Section III.A.2 of the Agreement provides: [Madrigal] hereby releasefs NPL] ... from any and all claims, grievances, demands or causes of action which [Madrigal] may own or hold at any time prior to the date of this Agreement. The scope of this Agreement’s Release is specifically intended to include, but is not limited to, any and all claims, demands or causes of action for wages, compensation or benefits for services rendered; any claim under Title VII of the Civil Rights Act of 1964 ... or any other federal, state or local law, regulation, or ordinance prohibiting employment discrimination, dictating the payment of wages to employees, or otherwise governing the employment relationship. This Agreement’s Release also includes, but is not limited to, any claim for negligent or intentional infliction of emotional distress, defamation, slander, libel, fraud, misrepresentation, termination in violation of public policy, wrongful termination, retaliation, breach of contract (whether written, oral, or implied), breach of the implied covenant of good faith and fair dealing, or any other claim, however styled, relating to or arising out of [Madrigal’s] employment with [NPL] prior to or on the date [Madrigal signs] this Agreement. This Agreement’s Release does not include any claim for violation of the California Workers’ Compensation Act brought before the California Workers’ Compensation Appeals Board.

(MSJ, Ex. 1, Attach. E at 2-3.) Section IV.10 provides that if any party to the Agreement brings an action to enforce it, the prevailing party is entitled to recover costs, expenses, and attorney’s fees. (Id. at 9.)

Madrigal was one of several Plaintiffs who filed this action against NPL on December 4, 2009, less than a month after Madrigal and NPL executed the Agreement. (MSJ, Ex. 4.) Nearly three years later, on November 27, 2012, NPL’s current counsel in this action received a copy of the Agreement. (MSJ, Ex. 2 at 2.) The next day, NPL’s counsel contacted Broome, advised him of the Agreement and its release of claims, and forwarded a draft stipulation of dismissal of Madrigal’s claims against NPL in this action. (Id.) NPL disclosed a heavily redacted copy of the Agreement for the first time in a formal discovery response on November 28, 2012, as part of NPL’s Third Supplemental Disclosures. (Opp’n, Ex. 5.)

NPL now moves for summary judgment on all claims asserted by Madrigal, arguing the general release in the Agreement bars Madrigal from pursuing his claims against NPL in this action. NPL contends Madrigal was represented by counsel when he signed the agreement, he and his counsel were aware of Madrigal’s potential claims against NPL in this case when Madrigal signed the general release, and the general release by its terms applies to these claims. NPL also [503]*503seeks attorney’s fees and costs for having to bring this motion, a remedy provided for in the settlement agreement.

Plaintiff Madrigal responds that NPL failed to plead this affirmative defense in its Answer with sufficient factual support. Madrigal asserts that NPL’s failure to timely assert the defense has prejudiced Madrigal where NPL did not raise this argument until over three years after Madrigal filed this suit even though NPL was aware of it from the time the lawsuit was filed. Madrigal further contends that NPL did not provide the Agreement in its initial disclosures and refused to provide Madrigal with information related to the Agreement during discovery once NPL finally asserted in late November 2012 that the Agreement barred Madrigal’s claims, contending any such discovery would not be relevant. Madrigal asserts NPL cannot now claim the Agreement is relevant.

Madrigal argues he would be prejudiced by allowing NPL to raise this argument at this late date because he has not been given the opportunity to conduct discovery on the issue, and he disputes that he knowingly and intentionally entered into an agreement that waived his claims in this action. Madrigal contends that when he learned NPL was asserting the Agreement barred his claims, he attempted to take discovery on the issue but NPL refused to provide any information. Madrigal contends he would have deposed NPL’s former attorney, who provided an affidavit in support of NPL’s Motion, on issues such as why Madrigal’s current attorney was not consulted regarding an agreement that would foreclose Madrigal’s claims in this case when NPL knew at the time the Agreement was negotiated and executed that Madrigal was represented by different counsel in this case. Madrigal also contends he would have deposed other individuals involved in the settlement of the prior case to investigate their understanding of the Agreement.

On the merits, Madrigal argues that the release provisions in the Agreement should be voided and rescinded based on mutual mistake, as Madrigal did not intend to release his current claims. Madrigal offers his own affidavit that he had no such intention. Madrigal argues there is evidence NPL’s counsel also did not intend for the release to cover Madrigal’s claims in this action because she knew Madrigal was represented by separate counsel, yet she did not contact counsel even though failure to do so would violate California Rules of Professional Conduct.

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295 F.R.D. 500, 86 Fed. R. Serv. 3d 613, 2013 WL 4399235, 2013 U.S. Dist. LEXIS 116319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-creative-concepts-inc-nvd-2013.