Otero-Burgos v. Interamerican Universtiy

529 F. Supp. 2d 283, 2006 U.S. Dist. LEXIS 97130, 2006 WL 5127618
CourtDistrict Court, D. Puerto Rico
DecidedDecember 5, 2006
DocketCivil 04-1301(SEC)
StatusPublished

This text of 529 F. Supp. 2d 283 (Otero-Burgos v. Interamerican Universtiy) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otero-Burgos v. Interamerican Universtiy, 529 F. Supp. 2d 283, 2006 U.S. Dist. LEXIS 97130, 2006 WL 5127618 (prd 2006).

Opinion

OPINION AND ORDER

SALVADOR E. CASELLAS, District Judge.

Pending before the Court are Defendants’ Motion Requesting Reconsideration on Denial of Motion for Summary Judgment (Docket # 117) and the opposition thereto (Docket # 130), and Plaintiffs’ Motion to Set Aside Judgment Pursuant to Federal Rules of Civil Procedure 59 and/or 60 (Docket # 121) and Defendants’ opposition thereto (Docket # 125). 1 After reviewing the filings, and the applicable law, for the reasons stated below, Plaintiffs’ motion will be GRANTED and Defendants’ motion will be GRANTED in part and DENIED in part.

Factual and Procedural Background:

A more detailed backgrounds is set forth in our Opinion and Order of August 25, 2006 (Docket # 114). In that opinion the Court granted in part and denied in part Defendants’ motion for summary judgment. Plaintiffs’ Law 100 claim was dismissed as time-barred because they failed to produce the evidence to support their contention that the final decision to dismiss Co-plaintiff Otero-Burgos (hereinafter Otero-Burgos) was made within the applicable statute of limitations. 2 The Court denied entering summary judgment as to the breach of contract claim because “there was a triable issue of fact as to the reason for initiating the dismissal procedure against Co-plaintiff Otero-Burgos and whether there was a cause to terminate his contract with the IAU”. Docket #114,p. 12.

On September 8, 2006 Defendants filed a motion to reconsider the Court’s decision to deny summary judgment as to Plaintiffs’ breach of contract claim (Docket # 117), reiterating the unsuccessful argument that there had been no breach of contract because the IAU complied with the procedures established in the Faculty Manual for the dismissal of a tenured professor. Defendants further contended that, in finding that there were issues of fact as to whether there was just cause for the dismissal, the Court substituted the judgment of “unbiased” faculty members for its own, in violation of the rule of deference to higher education institutions’ decisions. See, Docket # 117, p. 7.

In the alternative, they averred that Plaintiffs’ breach of contract claim was precluded by the Commonwealth’s Act 80, 29 P.R. Laws Ann. § 146 et seq (hereinafter Act 80), which provides an exclusive remedy to an employee seeking redress for an alleged unjust dismissal. 3 Consis *286 tent with this reasoning, Defendants threaded a tripartite argument: (1) that if Plaintiffs were to prove that Otero-Bur-gos’ termination was unjust, the only available compensation under Act 80 would be a salary allowance which would be calculated on the basis of Otero-Burgos’ years of service with the IAU, (2) that such amount would be substantially lower than the jurisdictional amount ($75,000) required by 28 U.S.C A. 1332, thus depriving the Court of jurisdiction and, (3) that even if the Court concluded that Plaintiffs’ damages could be greater than the jurisdictional amount, the Court should dismiss the Act 80 claims against the individual defendants because only the employer can be held liable under such law.

Finally, Defendants asked the Court to dismiss Plaintiffs’ claims under Art. 1802 and 1803 of the Puerto Rico Civil Code, because they are derivative of Plaintiffs’ Law 100 claim, dismissed by the Court in the August 26 opinion.

Plaintiffs opposed to Defendants’ motion for reconsideration (Docket # 130) arguing, in essence, that in Selosse v. Fundación Ana G. Méndez, 122 D.P.R. 534 (1988)(hereinafter Selosse), the Puerto Rico Supreme Court (hereinafter the P.R. Supreme Court) held that whenever there was a manual governing the employment relationship and the procedures related thereto, such manual was a contract between the employer and the employee, and any violation would result in a breach of contract enforceable under Art. 1044 of the Puerto Rico Civil Code. They believe this remedy is independent from the one provided by Act 80. Plaintiffs further alleged that the cases cited by Defendants for the proposition that Act 80 was an exclusive remedy were distinguishable from the case at bar, since none of those cases dealt with the dismissal of a tenured professor.

On the other hand, Plaintiffs also filed a motion to reconsider the Court’s dismissal of their Law 100 claims as time-barred (Docket # 121), which was founded on Plaintiffs’ failure to support the fact that the IAU’s President upheld Otero-Burgos’ dismissal in June 25, 2003 and that it was then that their claims started to accrue. This time they included the letter sent by Mr. Fernós to Otero-Burgos as an exhibit to their motion. Accordingly, they ask the Court to set aside its judgment and restore their Law 100 claims.

Defendants opposed to Plaintiffs’ motion (Docket # 125) and submitted that, in accordance with Morris v. Government Development Bank, 27 F.3d 746 (1st Cir.1994)(hereinafter Morris), the date of accrual was March 6, 2003, when the termination decision was taken, and not June 25, 2003, when Mr. Fernós merely refused to reconsider that decision. We address the parties’ arguments concurrently.

Standard of Review:

Fed.R.CivP. 59(e) allows a party, within ten (10) days of the entry of judgment, to file a motion seeking to alter or amend said judgment. The rule itself does not specify on what grounds the relief sought may be granted, and courts have ample discretion in deciding whether to grant or deny such a motion. Venegas-Hernández v. Sonolux Records, 370 F.3d 183, 190 (1st Cir.2004) (citations omitted). In exercising that discretion, courts must balance the need for giving finality to judgments with the need to render a just decision. Id., citing, Edward H. Bohlin Co. v. Banning Co., 6 F.3d 350, 355 (5th Cir.1993). Despite the lack of specific guidance by the rule on that point, the First Circuit has stated that a Rule 59(e) motion “must either clearly establish a manifest error of law or must present newly discovered evidence”. F.D.I.C. v. World Univ., Inc., 978 F.2d 10, 16 (1st Cir.1992), *287 quoting, Fed. Deposit Ins. Corp. v. Meyer, 781 F.2d 1260, 1268 (7th Cir.1986). Rule 59(e) may not, however, be used to raise arguments that could and should have been presented before judgment was entered, nor to advance new legal theories. Bogosian v. Woloohojian Realty Corp., 823 F.3d 55, 72 (1st Cir.2003).

Applicable Law and Analysis

The motions by the parties set forth three main issues: (1) whether Plaintiffs’ Law 100 and Art.

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Bluebook (online)
529 F. Supp. 2d 283, 2006 U.S. Dist. LEXIS 97130, 2006 WL 5127618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otero-burgos-v-interamerican-universtiy-prd-2006.