Kelly B. ZANDERS, Plaintiff-Appellant, v. NATIONAL RAILROAD PASSENGER CORPORATION, Defendant-Appellee

898 F.2d 1127, 1990 U.S. App. LEXIS 3985, 53 Empl. Prac. Dec. (CCH) 39,769, 52 Fair Empl. Prac. Cas. (BNA) 769, 1990 WL 28792
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 21, 1990
Docket88-3475
StatusPublished
Cited by107 cases

This text of 898 F.2d 1127 (Kelly B. ZANDERS, Plaintiff-Appellant, v. NATIONAL RAILROAD PASSENGER CORPORATION, Defendant-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly B. ZANDERS, Plaintiff-Appellant, v. NATIONAL RAILROAD PASSENGER CORPORATION, Defendant-Appellee, 898 F.2d 1127, 1990 U.S. App. LEXIS 3985, 53 Empl. Prac. Dec. (CCH) 39,769, 52 Fair Empl. Prac. Cas. (BNA) 769, 1990 WL 28792 (6th Cir. 1990).

Opinion

ENGEL, Senior Circuit Judge.

Plaintiff Kelly B. Zanders appeals a summary judgment of the United States District Court for the Northern District of Ohio granted in favor of Defendant National Railroad Passenger Corporation (Amtrak). Zanders claims that Amtrak retaliated against her in violation of Title VII of the Civil Rights Act of 1964 when it sued her in Ohio state court, seeking to enforce a termination agreement executed by her and Amtrak.

The central issue in this appeal is whether the district judge correctly gave preclu-sive effect to an Ohio state court determination that a former employee’s post-termination agreement prohibited improper disclosure of confidential information. Not infrequently, employers enter into post-employment agreements whereby, for separate consideration, the departing employee agrees not to disclose confidential information the employee acquired in the course of employment. While most often such agreements concern trade secrets and corporate strategy, the agreement construed by the Ohio court here concerned information which the plaintiff had gained as part of the employer’s staff involved in the processing and defense of discrimination claims against the employer. While absolute bans against disclosure might, we concede, run afoul of both the language and intent of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e, et seq., such an absolute ban was not contained in the agreement presented to the Ohio court and to the district court. Instead, the Ohio court construed the agreement to prohibit disclosure unless the employer was accorded an opportunity to interpose any rights it might have to assert the attorney-client or work product privileges. A contract so limited, the Ohio court held, violated neither Ohio nor federal public policy. The Ohio court, therefore, enjoined the premature disclosure, without court supervision, of the allegedly confidential information.

The district court, applying the principles of preclusion of Kremer v. Chemical Construction Corp., 456 U.S. 461, 102 S.Ct. 1883, 72 L.Ed.2d 262 (1982), held itself bound to respect the state court’s finally adjudicated determination on the public policy issue. The district court also concluded that there was no evidence to support Zan-ders’ claim, under 42 U.S.C. § 2000e-3, that the employer retaliated against her by filing its suit in state court to prevent disclosure.

I.

Between 1977 and December 4, 1984, Amtrak employed Kelly Zanders as an assistant on equal employment opportunity and affirmative action matters. Under the supervision of Amtrak attorneys, she investigated and drafted answers to employment discrimination complaints. In this position, Zanders acquired confidential information concerning the discrimination claims filed against Amtrak; much of this information is subject to the attorney-client and work product privileges.

On December 4, 1984, Zanders resigned her position and executed a termination agreement with Amtrak: in consideration of $14,500, Zanders agreed not to disclose confidential information acquired in the course of her employment. On August 16, 1986, the attorney representing Amtrak employee Rita Samuiloff, who had filed an employment discrimination claim against Amtrak, notified the Amtrak legal department that Zanders had agreed to appear as a witness for Samuiloff at a hearing to be held before the Illinois Human Rights Commission. Zanders likewise executed an affidavit in another discrimination case indicating that she was willing to testify on behalf of the complainant.

Concerned that Zanders would disclose confidential information gained in the course of her employment, on August 19, *1130 1986, Amtrak sued Zanders in the Court of Common Pleas of Cuyahoga County, Ohio, seeking to enjoin Zanders from violating the termination agreement. After trial on December 9-10, 1986, the Court of Common Pleas held that the agreement did not violate public policy, that Zanders had breached the termination agreement, and that she was likely to breach it in the future. The court thus enjoined Zanders from using information acquired in the course of her employment to assist anyone raising an employment discrimination claim against Amtrak. The court specifically excepted participation “required by law in a proceeding in which Amtrak has the opportunity to assert any applicable claim of privilege[.]”

On November 4, 1986, Zanders instituted this action in the United States District Court for the Northern District of Ohio, alleging that: (1) Amtrak, in violation of section 704(a) of Title VII of the Civil Rights Act of 1964, initiated its state court suit against Zanders to retaliate against her for having assisted Samuiloff in her state employment discrimination proceeding, and (2) the termination agreement violated public policy and therefore was void. Zanders did not return or tender the return of the $14,500 consideration she had been paid under her contract.

On April 22, 1988, on cross motions for summary judgment, United States District Judge Ann Aldrich held that (1) there was no evidence that Amtrak either acted in bad faith or harassed Zanders when it sued to enforce the termination agreement and (2) the Court of Common Pleas’ holding that the termination agreement did not violate public policy was res judicata. The district court thus granted summary judgment for Amtrak. Zanders appeals. We affirm.

II.

Judge Aldrich did not independently evaluate Zanders’ claim that the termination agreement violated public policy and was therefore invalid; instead, she held that this claim was foreclosed as res judicata, given the Court of Common Pleas’ holding that the agreement did not violate public policy. In the state court litigation, Zan-ders defended on the ground that the agreement violated public policy. Judge Aldrich held that the state court rejected this contention when it stated: “On December 4, 1984, Zanders terminated her employment with Amtrak pursuant to the provisions of a termination agreement which this court finds consistent with public policy....”

Under the Supreme Court’s interpretation of 28 U.S.C. § 1738, 1 unreviewed state administrative proceedings are not entitled to full faith and credit by federal courts and thus have no preclusive effect upon subsequent Title VII litigation in the federal courts. University of Tennessee v. Elliott, 478 U.S. 788, 796, 106 S.Ct. 3220, 3225, 92 L.Ed.2d 635 (1986). In contrast, a state court judgment must be accorded by federal courts the same preclusive effect it would be accorded by the courts of the State. This rule of general application has been upheld specifically in the context of Title VII litigation. See Kremer v. Chemical Construction Corp., 456 U.S. 461, 102 S.Ct.

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898 F.2d 1127, 1990 U.S. App. LEXIS 3985, 53 Empl. Prac. Dec. (CCH) 39,769, 52 Fair Empl. Prac. Cas. (BNA) 769, 1990 WL 28792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-b-zanders-plaintiff-appellant-v-national-railroad-passenger-ca6-1990.