Okonko v. Union Oil Co. of California

519 F. Supp. 372, 26 Fair Empl. Prac. Cas. (BNA) 1592, 1981 U.S. Dist. LEXIS 13680
CourtDistrict Court, C.D. California
DecidedJuly 10, 1981
DocketCV 79-2969-WMB
StatusPublished
Cited by8 cases

This text of 519 F. Supp. 372 (Okonko v. Union Oil Co. of California) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Okonko v. Union Oil Co. of California, 519 F. Supp. 372, 26 Fair Empl. Prac. Cas. (BNA) 1592, 1981 U.S. Dist. LEXIS 13680 (C.D. Cal. 1981).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

WM. MATTHEW BYRNE, Jr., District Judge.

Plaintiff, a Black native of Nigeria who is now a permanent resident of the United *374 States, brought this action alleging that Union Oil Company of California (“Union Oil”) discriminated against him in employment on the basis of race and national origin. The complaint alleges that various actions by Union Oil between August 27, 1976, and June 8, 1979, violated his rights under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981, and that those acts constituted breaches of his contract of employment.

Defendant moved for partial summary judgment on two theories: first, that a portion of plaintiff’s claims under § 1981 and the employment contract theories are barred by the appropriate California statutes of limitation; and second, that the settlement of a charge filed by plaintiff on August 27, 1976, with the Equal Employment Opportunity Commission (“EEOC”), barred any suit for employment discrimination relating to incidents before that date.

FACTS

Union Oil first hired plaintiff in October, 1970, as a Plantman in its Los Angeles Terminal. In April, 1971, he was assigned to a Lab Technician position, which he held until Friday, August 6, 1976. On that date the Terminal Superintendent permanently relieved him of the Lab Technician position and advised him to go home to decide if he would prefer to be terminated or demoted to Plantman. On Monday, August 9, 1976, plaintiff advised the Superintendent that he preferred demotion and he began work as a Plantman on the following day. On August 12, 1976, he left work on sick leave and did not return to work until May 23, 1977.

On August 27, 1976, while on sick leave, plaintiff filed a charge with the EEOC. Shortly thereafter, although the date is not clear from the record, he engaged an attorney to represent him in that matter. The attorney had regular contact with Union Oil during the pendency of the charge.

When plaintiff returned to work he accepted placement as a General Clerk in the Administrative Office of the Los Angeles Terminal. He worked until November 22, 1977, when he again left on sick leave. When he returned to work on January 15, 1979, he accepted placement in a Trainee position. On June 8,1979, he was terminated from Union Oil’s employ.

This complaint was filed on August 7, 1979, although not formally served until January 28, 1980. Union Oil acknowledges that plaintiff gave it a copy of the complaint shortly after its filing.

In January, 1980, Union Oil and plaintiff’s attorney negotiated a settlement of the charge that had been filed with the EEOC in 1976, by which Union Oil agreed to pay plaintiff $4,718.70. Union Oil prepared, and sent to plaintiff, a general release for his signature. It reads in relevant part:

In consideration of the terms and provisions of the Settlement Agreement entered into as of even date herewith, I do hereby ... release, acquit and forever discharge Union Oil Company of California ... from any and all claims, actions, causes of action, rights, demands, debts, damages, or accountings of whatever nature, whether known or unknown, from the beginning of time to the date hereof, excepting only those matters set forth in the Settlement Agreement.

Union Oil sent with this General Release and Settlement Agreement a cover letter stating, in relevant part:

I wish to withdraw my lawsuit filed against Union Oil Company of California in Case No: 79-02969 and all other charges filed against Union Oil Company of California.
The reason I wish to withdraw or dismiss this lawsuit and all other charges is that I have entered into an agreement with the Company resolving all differences between myself and Union Oil Company of California.

Plaintiff refused to sign the general release and, instead, signed an EEOC form Settlement Agreement. The Agreement provided in relevant part:

1. In exchange for the promises made by Union Oil Company of Calif, contained in paragraph (2) of this agreement, Herbert O. Okonko agrees not to institute a *375 lawsuit under Title VII of the Civil Rights Act of 1964, based on charge number TLA6-3563 [the 1976 charge] filed with the Equal Employment Opportunity Commission ....
3. This agreement constitutes the complete understanding between the Respondent, Charging Party and the Equal Employment Opportunity Commission. No other promises or agreements shall be binding unless signed by these parties.

A representative of Union Oil also signed the EEOC form Settlement Agreement and sent a check to plaintiff in the agreed amount in late January, 1980.

During the course of the settlement discussions, plaintiff filed a second charge against Union Oil with the EEOC on January 9, 1980. That charge, like the complaint in this case, alleged various acts of discrimination, beginning with his demotion to Plantman in 1976 and culminating with his termination from employment in 1979.

STATUTE OF LIMITATIONS

Union Oil contends that plaintiff is barred by the appropriate statute of limitations from seeking relief for any and all actions prior to August 7, 1976 on the § 1981 claim and August 7, 1977 on the breach of contract claim.

The controlling limitations period for a cause of action under § 1981, which does not contain its own statute of limitations, “would ordinarily be the most appropriate one provided by state law.” Johnson v. Railway Express Agency, Inc., 421 U.S. 454, 462, 95 S.Ct. 1716, 1721, 44 L.Ed.2d 295 (1975). Under California law, the most appropriate statute of limitations is three years. See Bratton v. Bethlehem Steel Corp., 649 F.2d 658, 663-64 (9th Cir. 1980).

Wiltshire v. Standard Oil Co. of California, 447 F.Supp. 756, 765 (N.D.Cal. 1978), appeal pending, No. 78 — 2030 (9th Cir.); Cal.Code Civ.Proc. § 338(1) (West Supp.1981). As to the breach of contract claim, California provides for a two-year statute of limitations for breach of an oral contract. See Cal.Code Civ.Proc. § 339(1). 1

The complaint in this case was filed on August 7, 1979. Thus, unless some tolling principle applies, plaintiff is barred from seeking relief for any conduct by defendant occurring prior to August 7, 1976 on the § 1981 claim and for any breach of contract occurring before August 7, 1977.

The filing of an administrative complaint with the EEOC does not, by itself, “toll the running of the statute of limitations on a cause of action under § 1981 based on the same facts.” London v. Coopers & Lybrand,

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Bluebook (online)
519 F. Supp. 372, 26 Fair Empl. Prac. Cas. (BNA) 1592, 1981 U.S. Dist. LEXIS 13680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/okonko-v-union-oil-co-of-california-cacd-1981.