Magpiong v. Superdry Retail LLC

304 F. Supp. 3d 983
CourtDistrict Court, D. Nevada
DecidedJanuary 17, 2018
Docket2:17–cv–00255–JAD–VCF
StatusPublished
Cited by2 cases

This text of 304 F. Supp. 3d 983 (Magpiong v. Superdry Retail LLC) 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
Magpiong v. Superdry Retail LLC, 304 F. Supp. 3d 983 (D. Nev. 2018).

Opinion

Jennifer A. Dorsey, U.S. District Judge

Plaintiff Elaine Magpiong's career at defendant Superdry Retail's store in Las Vegas's Grand Bazaar Shops came to an end on June 11, 2015, when she was terminated for purported company-reorganization reasons. She signed a separation agreement, entitling her to a severance package and shielding Superdry from any and all claims, known or unknown, suspected or unsuspected, regardless of whether she discovered new or different facts relating to her employment or termination. Eight months later, Magpiong got word of a lawsuit in New York filed by a former Superdry human resources manager against Superdry. That lawsuit illuminated to Magpiong that Superdry fired her because she is a lesbian, not for innocuous reorganization reasons. So Magpiong sues Superdry, claiming that it discriminated against her based on her sexual orientation, breached the implied covenant of good faith and fair dealing, and fraudulently induced her to sign the claim-barring separation agreement. Superdry moves to dismiss, arguing that Magpiong's fraudulent-inducement claim fails as a matter of fact and law, and thus, the separation agreement is valid, binding, and enforceable and precludes Magpiong's other claims. I agree with Superdry, so I grant the motion and dismiss all of Magpiong's claims with prejudice.

Background1

Plaintiff Elaine Magpiong started working for defendant Superdry in October 2011. She excelled at her job and was eventually promoted to manage one of Superdry's two locations on the Las Vegas strip. She had no disciplinary record, received positive performance reviews, and was considered a "strong performer" by her manager.

At some point in the first half of 2015, Rozalind Stewart, the head of Superdry's US Retail Operations, visited Magpiong's store and met her for the first time. Following that visit, Stewart told Human Resources Manager Pamela Brown that she planned to fire Magpiong because she didn't like how Magpiong walked (particularly because she "swaggered"), she felt that Magpiong's clothing style was "off brand,"2 and because Magpiong drank energy drinks. Stewart intended to have the store manager at the other Las Vegas strip location-a heterosexual who conformed to female stereotypes-manage *985both sites, but Brown advised Stewart that her reasons for terminating Magpiong were illegitimate, discriminatory, and illegal. Stewart then attempted to disguise her discriminatory motives and told Brown that she would just fire the other manager as well.

On June 11, 2015, Brown-directed by Stewart-terminated Magpiong, citing "company reorganization." Magpiong signed a broad "Separation and General Release Agreement" that released Superdry from all liability relating to Magpiong's employment and termination, and in exchange, Magpiong received $2,230.77 in severance pay. Apparently, Brown returned to her office in New York and voiced her concerns that the company was violating several employment laws, but her whistleblowing was not appreciated, and she, too, was terminated.

About eight months later, Magpiong learned that Brown had filed a lawsuit against Superdry in New York for unlawful employment practices and retaliation. That lawsuit brought to light Stewart's behind-the-scenes motives for terminating Magpiong, so Magpiong filed a claim with the Nevada Equal Rights Commission and, later, this court. Superdry contends that Magpiong is bound by her separation agreement and is in breach of it by maintaining this lawsuit. Magpiong argues that she was fraudulently induced to sign it because, had she known that she was fired for her sexual orientation, she never would've agreed to it.

Discussion

A. Motion-to-dismiss standard

Federal Rule of Civil Procedure 8 requires every complaint to contain "[a] short and plain statement of the claim showing that the pleader is entitled to relief."3 While Rule 8 does not require detailed factual allegations, the properly pled claim must contain enough facts to "state a claim to relief that is plausible on its face."4 This "demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation"; the facts alleged must raise the claim "above the speculative level."5 In other words, a complaint must make direct or inferential allegations about "all the material elements necessary to sustain recovery under some viable legal theory."6

District courts employ a two-step approach when evaluating a complaint's sufficiency on a Rule 12(b)(6) motion to dismiss. First, the court must accept as true all well-pled factual allegations in the complaint, recognizing that legal conclusions are not entitled to the assumption of truth.7 Mere recitals of a claim's elements, supported only by conclusory statements, are insufficient.8 Second, the court must consider whether the well-pled factual allegations state a plausible claim for relief.9 A claim is facially plausible when the complaint alleges facts that allow the court to draw a reasonable inference that the defendant is liable for the alleged misconduct.10 A complaint that does not permit *986the court to infer more than the mere possibility of misconduct has "alleged-but not shown-that the pleader is entitled to relief," and it must be dismissed.11

Review on a motion to dismiss under FRCP 12(b)(6) is normally limited to the four corners of the complaint.12 "If the district court relies on materials outside the pleadings in making its ruling, it must treat the motion to dismiss as one for summary judgment and give the non-moving party an opportunity to respond."13 "A court may, however, consider certain materials-documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice-without converting the motion to dismiss into a motion for summary judgment."14 And "documents whose contents are alleged in a complaint and whose authenticity no party questions, but which are not physically attached to the pleading, may be considered in a ruling on a Rule 12(b)(6) motion to dismiss."15

B. I consider the separation agreement in making my ruling.

This is Superdry's second motion to dismiss. In its first motion, Superdry argued that Magpiong is bound by the separation agreement, which prevented her from bringing any claims against it.16 Superdry also argued that, regardless of the separation agreement, Magpiong's claims are barred by the applicable statute of limitations.17 Magpiong countered that the agreement is voidable because it was induced by fraud18 and that she is entitled to equitable tolling.19

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pelletier v. Rodriguez
D. Nevada, 2021
James v. Alessi
D. Nevada, 2020

Cite This Page — Counsel Stack

Bluebook (online)
304 F. Supp. 3d 983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magpiong-v-superdry-retail-llc-nvd-2018.