Newman v. Gagan LLC

939 F. Supp. 2d 883, 27 Am. Disabilities Cas. (BNA) 1811, 20 Wage & Hour Cas.2d (BNA) 1205, 2013 WL 1332247, 2013 U.S. Dist. LEXIS 45108
CourtDistrict Court, N.D. Indiana
DecidedMarch 28, 2013
DocketCivil Action No. 2:12-CV-248-JVB-PRC
StatusPublished

This text of 939 F. Supp. 2d 883 (Newman v. Gagan LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newman v. Gagan LLC, 939 F. Supp. 2d 883, 27 Am. Disabilities Cas. (BNA) 1811, 20 Wage & Hour Cas.2d (BNA) 1205, 2013 WL 1332247, 2013 U.S. Dist. LEXIS 45108 (N.D. Ind. 2013).

Opinion

OPINION AND ORDER

JOSEPH S. VAN BOKKELEN, District Judge.

This case arises from alleged wrongful discharge, breach of the duty of good faith [887]*887and fair dealing, promissory estoppel, and violations of the Americans with Disabilities Act (“ADA”) and Family and Medical Leave Act (“FMLA”). James Newman brings these causes of action against four business entities, all of which he contends should be treated as his employers, as well as two individuals he claims were his supervisors. Invoking Federal Rule of Civil Procedure 12(b)(6),1 two groups of Defendants have each moved separately to dismiss the Complaint for failure to state a claim upon which relief can be granted. In responding, Newman has shown a plausible entitlement to relief on his ADA and FMLA causes of action, -as well as the claim for wrongful discharge. The same cannot be said of his counts for promissory estoppel and breach of the duty of good faith and fair dealing.

A. Background

1. Newman’s Complaint

For the reader’s convenience, the Court provides the following summary of what Newman has alleged in his Complaint.

Gagan LLC, Think Tank Software Development Corp. (“Think Tank”),2 United Consumers Club Incorporated (“UCC’), and DirectBuy Inc. (“DirectBuy”) “share common management, interrelation among/between their operations, centralized control of their human resources/benefits, and a degree' of common ownership and control.” (Id. ¶ 49.)

In May 2010, Newman and employers Gagan LLC and Think Tank, entered into the “Employment Agreement” attached to the Complaint at Exhibit A, which he incorporated into the Complaint by reference. (Compl. ¶ 10, 1 n. 1.) That contract, which superseded “all prior agreements” between the parties regarding Newman’s employment, was on its face an integration of their “entire understanding and agreement.” (Ex. A to Compl., ¶ 18.) It made him an employee at will and prohibited him from taking on other employment. (Ex. A ¶ 6; Compl. ¶ 10.) He closed his private business to comply. (Id. ¶ 10.) Newman’s initial title as these Defendants’ employee was Accounting Business Analyst, and his duties entailed what one would expect from his title, plus some human-resources work. (See id. ¶¶ 12, 14.) At the outset, Newman’s “immediate supervisors” were Laurie Gagan, an employee of DirectBuy and Think Tank, and James Gagan, Jr. (See id. ¶¶ 5 (labeling “DirectBuy, Inc.” as “DirectBuy”), 16 (calling Laurie Gagan an employee of “Direct-Buy”).) 3 The Complaint does not particularly describe Gagan LLC’s or Think Tank’s businesses, but explains that DirectBuy “is a franchisor whose franchises operate ‘buying clubs’ that permit members to purchase merchandise directly from manufacturers at reduced prices.” (Id. ¶ 6.) “UCC is the parent company of DirectBuy. Inc.,” and “exercises control over DirectBuy’s operations and personnel decisions.” (Id. ¶ 5.)

When he began, Newman was “being groomed as Gene Deutsch’s replacement as Chief Financial Officer of the business entities commonly referred to as the Gagan Family of Companies.” (Id. ¶ 16.) [888]*888He intended to stay with that family of companies until retirement. (Id.)

In conclusory terms, Plaintiff has alleged in paragraph 18 that he was at all relevant times “a qualified individual with a disability,” and had “a record of impairment,” or was perceived as disabled by the Defendants. Newman “took several prescribed [though unspecified] medications,” without which he was “substantially limited in activities that are of central importance to his daily life.” (Id. ¶ 19.)

Before about January 14, 2011, when “Newman suffered a serious [unnamed] physical injury at work,” the Defendants had no qualms with his performance of the job and had not attempted to control the administration of his medications. (Id. ¶ 20.) Newman doesn’t say what happened for the following three months or so, but his treating physician “released him to return to work with given medical restrictions” as of April 18, 2011. (See id. ¶¶ 20-22.) Beginning then, Newman could perform sedentary work duties eight hours per day and forty hours per week, but he had to use crutches while moving about, bearing weight on an apparently injured leg only “as tolerated.” (See id. ¶ 22.) Newman was restricted from lifting over ten-pounds, operating machinery, and even working in the. presence of clutter.4 (See id.),

Newman asked for accommodation of these medical restrictions, although the Complaint doesn’t reveal how, when, or of whom precisely. (See id. ¶ 23.) He obtained from the Indiana Department of Motor Vehicles a placard, and, in what may or may not have been a separate incident from the events alleged in paragraph 23 of the Complaint, asked for a handicapped parking space. (See id. ¶ 24.) “Defendants refused Newman the use of a handicapped parking space;” they didn’t have one. (Id. ¶ 36.)

“A meeting was scheduled for Newman with Laurie Gagan and Jim Gagan Jr., around April 18, 2011, to discuss Newman returning to work to perform his accounting duties for Defendants. Newman believed he could perform his accounting business analysis and human resources job duties with or without accommodation.” (Id. ¶ 25.)

But at some unstated time, Newman hired a lawyer, and Defendants learned of this “around April 15, 2011.” (Id. ¶ 26.) The April 18 meeting then “was cancelled.” (Id.)

Ultimately, Defendants “refused to accommodate Newman’s given medical restrictions,” telling him the restrictions first would have to be lifted, or at least changed. (Id. ¶27.) “Around June 8, 2011,” Newman became informed that Gagan LLC and Think Tank had “decided to eliminate his position of accounting business analyst.” (Id. ¶ 28.) Gagan LLC and Think Tank placed. Newman on a leave of absence, and said they would consider him for future openings once “fully released” by his doctor to return to work. (Id. ¶ 29.) They later replaced Newman with Jennifer Jimenez as Accounting Business Analyst. (See id. ¶ 30.) Jimenez had less education and experience than Newman (Id. ¶ 15), and eventually asked Newman for some help. (Id, ¶ 30.)

About- two days after Newman learned the Defendants were eliminating his position; that is, around June 10, 2011; his doctor released him to come back without a limitation to sedentary work or a lifting restriction. (See id. ¶ 31.) Newman was directed to use a cane from that time on, [889]*889and to continue prescription pain medication. (Id)

Around the following week, he received “a letter offering him the position of Assistant Marketing Room Manager,” a position that entailed a “decreased rate of pay.” (Id ¶ 34.) Newman took the offer, and returned to work “around June 21, 2011.” (Id ¶ 35.) But Laurie Gagan then sought to “take possession” of and administer Newman’s medications to him, which he refused. (Id) The details of this are unclear, but somehow “Defendants caused Newman to work without taking prescription medications related to his impairment and/or perceived disability during his working hours.” (Id)

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939 F. Supp. 2d 883, 27 Am. Disabilities Cas. (BNA) 1811, 20 Wage & Hour Cas.2d (BNA) 1205, 2013 WL 1332247, 2013 U.S. Dist. LEXIS 45108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-gagan-llc-innd-2013.