Keller v. Mobil Corporation

55 F.3d 94, 1995 U.S. App. LEXIS 12294
CourtCourt of Appeals for the Second Circuit
DecidedMay 22, 1995
Docket1229
StatusPublished
Cited by3 cases

This text of 55 F.3d 94 (Keller v. Mobil Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keller v. Mobil Corporation, 55 F.3d 94, 1995 U.S. App. LEXIS 12294 (2d Cir. 1995).

Opinion

55 F.3d 94

Elizabeth KELLER, Plaintiff-Appellant,
Emmelyn Logan-Baldwin, Esq., Real Party in Interest-Appellant,
v.
MOBIL CORPORATION, Mobil Oil Corporation, Mobil Chemical
Co., a Division of Mobil Oil Corporation; and Rose Freeman,
Individually and as Purchasing Agent (Supervisor), Mobil
Chemical Company, a Division of Mobil Oil Corporation,
Defendants-Appellees.

Nos. 1229, 1709 to 1711, Dockets 93-7225, 93-7275, 94-7319
and 94-7989.

United States Court of Appeals,
Second Circuit.

Argued April 11, 1995.
Decided May 22, 1995.

Emmelyn Logan-Baldwin, Rochester, NY, pro se, and for plaintiff-appellant.

Gary H. Glaser, New York City (Winston & Strawn, William A. Carmell, of counsel), for defendants-appellees.

Before: FEINBERG, WALKER and CABRANES, Circuit Judges.

FEINBERG, Circuit Judge:

Plaintiff Elizabeth Keller appeals from the dismissal with prejudice by the United States District Court for the Western District of New York (Michael A. Telesca, Ch.J.) of her complaint against defendants-appellees Mobil Corporation, Mobil Oil Corporation, Mobil Chemical Co. and Rose Freeman (collectively referred to hereafter as "Mobil") following termination of her employment by Mobil Chemical Co. The district court's dismissal was based on Keller's "repudiation" of a settlement agreement and the district court's finding that Keller's "persistent refusal to settle this matter has worked a hardship upon the defendant." Keller's counsel, Emmelyn Logan-Baldwin, also has filed an appeal from a $10,000 sanction imposed upon her in March 1993 and reiterated by the district court in a decision of February 1994. For reasons set forth below, we vacate both the dismissal and the sanction and remand the case to the district court.

Although we vacate the district court's orders, we note that this case poses an issue of attorney conflict of interest. As discussed below, after various twists and turns, the litigation reached a stage at which the only impediment to settlement was the sanction against Logan-Baldwin. At least at that point, Keller's interests may have been opposed to those of her attorney. We suggest that the district court consider the issue further on remand.

I. Background

In her complaint filed in May 1990, Keller alleged that she had been terminated from her position as Buyer/Contract Administrator at appellee Mobil for discriminatory reasons prohibited by Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sec. 2000e et seq., and other federal statutes. The requested relief included reinstatement and back pay. Eventually, the parties agreed to discuss bases for a settlement and sought the assistance of the court in that endeavor. Settlement discussions led to a conference in the chambers of Judge Telesca on July 16, 1992. While the parties had already been embroiled in their dispute for over two years prior to that conference, the July 1992 conference is the starting point for discussion of the issues presented on appeal.

By the end of the conference the parties apparently had reached a settlement, the main points of which were set out in the record. Judge Telesca concluded the conference by stating, without objection from either Logan-Baldwin or Mobil's representative, that he would issue an order indicating that the case had been settled, and in fact he did so the following day. At this point, it seemed that a simple exchange of documents memorializing the settlement would conclude the matter. However, the ensuing correspondence between Logan-Baldwin and Mobil's counsel indicated that, notwithstanding the parties' apparent settlement in July 1992, differences still remained. Mobil sent draft agreements to Logan-Baldwin, who complained that the drafts failed to reflect the terms of the parties' settlement.

As articulated by Logan-Baldwin, Keller had two principal reservations. First, since Keller suffers from severe glaucoma, she sought benefits from Mobil's employee long-term disability plan (the Plan). At the time of the July 1992 conference the plan administrator had not yet determined whether Keller would be eligible for such benefits. Keller was concerned that denial of these benefits would deprive her of an important source of future income. Should her application be denied initially by the plan administrator she wanted to avoid any possible administrative review and instead appeal directly to the district court. Further, it seems that she wanted an assurance that the district court would review a possible adverse decision by the plan administrator under a de novo standard rather than an abuse of discretion standard. Keller believed that the parties had agreed that the district court would retain jurisdiction to conduct an immediate, de novo review of any adverse decision by the plan administrator, but the drafts submitted by Mobil failed to reflect that agreement.

Keller's second principal reservation concerned a confidentiality clause in the agreement. Years earlier, Keller had been engaged in another, unrelated dispute with Mobil. That dispute ended in a settlement agreement that contained a clause limiting Keller's right to speak publicly about that case. While Keller opposed any confidentiality clause at all in the instant agreement, she insisted that if there must be such a provision it should contain verbatim the terms of the confidentiality clause in the earlier settlement. That clause bound Keller for only four years and, according to Logan-Baldwin, permitted Keller during that time to acknowledge that there had been a lawsuit that had settled. At the July 1992 conference Logan-Baldwin had given Judge Telesca a copy of the settlement agreement from the earlier dispute, and Judge Telesca gave a copy to Mobil's representative. Keller believed that this amounted to an agreement to incorporate verbatim the confidentiality clause from the earlier agreement.

Although Mobil subsequently redrafted the proposed agreement, Keller felt that Mobil had failed to address her two principal concerns. In October 1992, Keller moved the district court to enforce the terms of the parties' settlement as set out in the record of the July 1992 conference. Finding that the most recent draft submitted by Mobil (the October 1992 draft) did reflect the terms of the July 1992 settlement, the court denied Keller's motion and ordered the parties to execute the October 1992 draft within 10 days. Keller then asked the court to reconsider its order.

On February 19, 1993, the district court held a hearing on Keller's motion for reconsideration, at which time Logan-Baldwin described the differences, as she saw them, between the terms of the July 1992 settlement and the terms of the October 1992 draft. Although Logan-Baldwin did indicate to the judge her concerns about whether Keller would have to exhaust administrative remedies before coming back to the judge and whether the judge's review would be de novo, Judge Telesca found no apparent difference between the parties' understandings regarding the court's retention of jurisdiction. The judge did acknowledge that there was a difference in understanding as to the terms of the confidentiality agreement.

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Bluebook (online)
55 F.3d 94, 1995 U.S. App. LEXIS 12294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keller-v-mobil-corporation-ca2-1995.