Nealy v. Shelly & Sands, Inc.

CourtDistrict Court, S.D. Ohio
DecidedJuly 28, 2020
Docket2:20-cv-01100
StatusUnknown

This text of Nealy v. Shelly & Sands, Inc. (Nealy v. Shelly & Sands, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nealy v. Shelly & Sands, Inc., (S.D. Ohio 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

PAUL NEALY, : Case No. 2:20-cv-1100 Plaintiff, : JUDGE SARAH D. MORRISON MAGISTRATE JUDGE VASCURA v. :

SHELLY & SANDS, INC., et al., :

Defendants. :

OPINION & ORDER Plaintiff Paul Nealy asserts that his former employer, Defendant Shelly & Sands, Inc. (“Shelly”), and former supervisor, Defendant Ryan Grezlik, denied him promotions and failed to return him to work based on his race and in retaliation for his prior complaints of race discrimination. (ECF No. 1.) Defendants deny all claims and move to dismiss under Fed. R. Civ. P. 12(b)(1), arguing that the Court lacks jurisdiction due to a mandatory arbitration provision contained within governing collective bargaining agreements. (ECF No. 5.) Mr. Nealy opposes (ECF No. 8) and Defendants’ Reply (ECF No. 11) has been filed. For the reasons that follow, the Court GRANTS the motion and dismisses this action in its entirety without prejudice. I. BACKGROUND In adjudicating this Motion to Dismiss, the Court accepts as true all well-pleaded factual allegations from the Complaint. Ashcroft v. Iqbal, 556 U.S. 662, 678-9 (2009). Mr. Nealy began working for Shelly as a seasonal carpenter in 2012. (ECF No. 1 at ¶ ¶ 12, 15-16.) He worked March through November of each year and had a winter layoff between November and March. Id. at ¶ 14. His position was unionized and covered by two Collective Bargaining Agreements (“CBAs”). Id. at ¶ 18. The CBAs contain identical mandatory grievance and arbitration provisions. They also required him to be paid for transportation costs to any job more than seventy-four miles from his home. Id. Mr. Nealy completed jobs outside of that geographical

restriction several times during his tenure at Shelly but Shelly did not reimburse him for related travel expenses. Id. at ¶ ¶ 19, 23-25. Shelly did reimburse Mr. Nealy’s white co-workers for those costs. Id. at ¶ ¶ 19, 26. Mr. Nealy did not file a grievance on this issue; rather, he reported the incidents to Myra Johnson, Shelly’s Equal Employment Opportunity Officer. Id. at ¶ 21. In 2015, Mr. Nealy was the only African-American assigned to a welding project. Id. at ¶ 28. Tom Bates served as the foreman of the project. Id. Mr. Bates “consistently singled Mr. Nealy out by yelling at him for how long the tasks were taking to complete.” Id. at ¶ 30. Mr. Bates was Mr. Nealy’s foreman on a subsequent project. Id. at ¶ 31. Mr. Bates refused to give Mr. Nealy directions to the job site. Id. at ¶ 33. When Mr. Nealy reported Mr. Bates’ actions to Ms. Johnson, she sent Mr. Grezlik to the job site. Id. at ¶ 34. Mr. Grezlik told the men that he

“hated it when guys call EEO” and specifically mentioned Mr. Nealy’s previous complaint for unpaid accommodations. Id. at ¶ 37. Shelly offered Mr. Nealy a promotion to foreman on a project during 2015, for which he needed training. Id. at ¶ ¶ 39, 43. Mr. Nealy was the only African-American in the training class and the only participant who did not receive paid lodging from Shelly. Id. at ¶ ¶ 45-47. After his training, Shelly did not place him in a foreman position. Id. at ¶ 50. Instead, Mr. Nealy learned that Mr. Grezlik had stated that he did not want Mr. Nealy working at Shelly. Id. at ¶ ¶ 52, 54. Mr. Nealy reported Mr. Grezlik’s comment to Ms. Johnson. Id. at ¶ 54. Mr. Nealy never received a foreman position. In November 2017, Mr. Nealy worked with two other African-Americans on a project. Id. at ¶ 75. All three were laid off from the project due to lack of work but other white carpenters remained on the job. Id. at ¶ ¶ 77-79. In 2018, Mr. Nealy made numerous calls to Shelly employees asking to be reinstated as a

foreman without receiving an answer. Shelly did not return Mr. Nealy to work that year. Id. at ¶ ¶ 83-115. Mr. Nealy did not file a grievance and did not pursue arbitration. Instead, Mr. Nealy lodged a charge with the Equal Employment Opportunity Commission and received his Right-to- Sue Letter on December 11, 2019. He timely filed the instant Complaint. Therein, he alleges that Defendants violated the Reconstruction Civil Rights Act, 42 U.S.C. § 1981; Title VII of the Civil Rights Act, 42 U.S.C. ¶ 2000e et seq., and related state laws found in Ohio Revised Code Chapter 4112 by refusing to promote him due to his race and by terminating him in retaliation for his complaints to Ms. Johnson. He seeks reinstatement, back pay and compensatory damages. II. STANDARD OF REVIEW

Rule 12(b)(1) provides that the defendant may file a motion to dismiss based on a “lack of jurisdiction over the subject matter.”1 Fed. R. Civ. P. 12(b)(1). The standard of review for a 12(b)(1) motion to dismiss for lack of subject matter jurisdiction depends on whether the

1 “A motion to dismiss based on an arbitration clause ‘does not technically deprive the Court of subject matter jurisdiction,’ and so such a motion is more properly brought under Rule 12(b)(6) than Rule 12(b)(1).” Jacobs Field Servs. N. Am., Inc. v. Wacker Polysilicon N. Am., LLC, 375 F. Supp. 3d 898, 910-11 (E.D. Tenn. 2019), 375 F. Supp. 3d at 910-11 (quoting Liveware Publ’g, Inc. v. Best Software, Inc., 252 F. Supp. 2d 74, 78 (D. Del. 2003)). “Courts have nevertheless allowed defendants to proceed under Rule 12(b)(1) in seeking dismissal based on an arbitration agreement, and the standards for considering a Rule 12(b)(6) motion and a Rule 12(b)(1) facial attack are similar.” Jacobs, 375 F. Supp. 3d at 910-11. defendant makes a facial or factual challenge to subject matter jurisdiction. Wayside Church v. Van Buren County, 847 F.3d 812, 816-17 (6th Cir. 2017). Only the former is present here. See Jacobs, 375 F. Supp. 3d at 910 n.10 (E.D. Tenn. 2019) (holding defendant’s motion to dismiss due to a mandatory arbitration clause under Rule 12(b)(1) raises a facial, rather than a factual,

attack). “A facial attack goes to the question of whether the plaintiff has alleged a basis for subject-matter jurisdiction.” Arnold v. Liberty Mut. Ins. Co., 392 F. Supp. 3d 747, 762 (E.D. Ky. 2019). This type of challenge “questions merely the sufficiency of the pleading,” Gentek Bldg Prods., Inc. v. Sherwin-Williams Co., 491 F.3d 320, 330 (6th Cir. 2007) (citation omitted) and requires the district court to “take[] the allegations in the complaint as true.” Id. “If those allegations establish standing, jurisdiction exists (subject, of course, to later challenge if the allegations prove false).” Solis v. Emery Fed. Credit Union, No. 1:19-cv-387, 2020 U.S. Dist. LEXIS 82366, at *9 (S.D. Ohio May 11, 2020). The plaintiff has the burden of proving jurisdiction when subject matter jurisdiction is challenged. Boyd v. United States, 932 F. Supp. 2d 830, 834 (S.D. Ohio 2013) (citation omitted).

III. MATTERS OUTSIDE OF THE PLEADINGS Each side submits documents outside of the pleadings in support of their respective positions. Typically, the Court does not consider such matters when ruling on a motion to dismiss. The chief concern when considering extrinsic materials on a motion to dismiss is that defendants seeking dismissal not suffer “any prejudicial surprise” as a result of those materials. See Yeary v.

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Nealy v. Shelly & Sands, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/nealy-v-shelly-sands-inc-ohsd-2020.