Puricelli v. CNA Insurance

185 F.R.D. 139, 1999 U.S. Dist. LEXIS 11052, 1999 WL 223157
CourtDistrict Court, N.D. New York
DecidedApril 14, 1999
DocketCiv. No. 98-CV-0359
StatusPublished
Cited by23 cases

This text of 185 F.R.D. 139 (Puricelli v. CNA Insurance) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puricelli v. CNA Insurance, 185 F.R.D. 139, 1999 U.S. Dist. LEXIS 11052, 1999 WL 223157 (N.D.N.Y. 1999).

Opinion

MEMORANDUM-DECISION AND ORDER

SMITH, United States Magistrate Judge.

Plaintiffs, Diane Puricelli and Charles Hughes, jointly filed suit against their former employer, defendant CNA, seeking relief for alleged violations of the Age Discrimination in Employment Act of 1967 (ADEA), the New York State Human Rights Law, and intentional infliction of emotional distress. Defendant now moves this court pursuant to Fed.R.Civ.P. 20(a) and 21 to sever the claims of plaintiffs Puricelli and Hughes on the ground that the claims are misjoined because they neither arise out of the same transaction or occurrence or present common questions of law or fact. In the alternative, defendant seeks relief under Fed.R.Civ.P. 42(b) in the form of separate trials. In order to determine whether plaintiffs’ claims meet the per[141]*141missive joinder requirements of Fed.R.Civ.P. 20(a), a complete factual review is necessary.

A Plaintiff Puricelli

Plaintiff Puricelli was employed by Continental Insurance Company in Glens Falls, New York, from March 1986 through May 1995. Continental was taken over by defendant CNA in May 1995. Following the takeover, Puricelli continued her employment and held the position of litigation supervisor until July 1996, when she was allegedly demoted to bodily injury adjuster. Puricelli worked in that capacity until December 27, 1996, the date of her alleged termination. Puricelli then alleges that defendant embarked on a campaign to remove older employees from the claims department, involving disparaging remarks and harassment related to Purieel-li’s age, which culminated in her discharge on an allegedly pretextual ground and replacement by a younger employee.

Shortly after the takeover in June 1995, Puricelli was given a performance evaluation by Kevin Romer, to whom she reported, and received a rating of “3” (performance meets expectations). Following the review, Romer counseled Puricelli on the specific areas of her performance that needed improvement. In June 1996, Puricelli was placed on a 30-day probationary action plan designed to correct those performance problems. By the end of the third week of the 30-day period, Puricelli was given the option of taking a demotion to litigation adjuster, or to continue the plan and possibly face termination if her performance did not improve by the end of the period. Puricelli opted for the demotion, resulting in a $3,000 reduction in salary, and thereafter reported to Mark Romano. Romano evaluated Puricelli in September 1996 and rated her at a “3” (performance meets expectations). In light of the favorable recommendation, Romano recommended Puri-celli for a “spot bonus”. The bonus was approved by Romer, but before disbursement, Puricelli notified Romano in December 1996 that she had accepted a position with another insurance company.

B. Plaintiff Hughes

Plaintiff Hughes was employed by Continental Insurance Company from 1977 to May 1995, and then by CNA until his alleged termination on November 8, 1996. After the takeover, Hughes initially occupied the position of litigation adjuster until he was allegedly demoted to liability bodily injury adjuster in July 1996. Hughes similarly claims that defendant orchestrated a campaign to remove older employees from the claims department, and that his alleged discharge and replacement by a younger employee was pre--textual.

The events preceding Hughes’ termination are more involved. From the time of the takeover until August 1996, Hughes reported to Puricelli, who at that time was a claims supervisor. During the summer of 1996, defendant reorganized the claims department to reflect its “aggressive new philosophy of cost-effective management.” As a result of the restructuring, Hughes was transferred from the litigation unit to the represented unit. The transfer did not affect his title or pay. Hughes was thereafter evaluated by Romano in September 1996 and was given a rating of “4” (performance does not meet the minimum requirements). The basis for the low rating was Hughes’ inability to learn defendant’s new computer system as well as his “worst case scenario” approach to claims. No disciplinary action was taken. In October 1996, Hughes notified Romano that he planned to retire and accept an offer with another insurance company.

In support of its motion, defendant asserts that the circumstances underlying plaintiffs’ claims are so factually distinct that the requirements of permissive joinder have not been satisfied and alternatively that a joint trial would cause undue prejudice and confusion. In opposition to defendant’s severance motion, plaintiffs concede that the individual circumstances surrounding their respective claims vary, but they contend that both were subject to a similar pattern of discriminatory action by the defendant, thus bringing their claims within the purview of Rule 20(a).

DISCUSSION

Rule 21 of the Fed.R.Civ.P. addresses the misjoinder of parties. The rule is silent with regard to the grounds for mis-[142]*142joinder, but it is well-settled that parties are misjoined when the preconditions of permissive joinder, set forth in Rule 20(a), have not been satisfied. Glendora v. Malone, 917 F.Supp. 224, 227 (S.D.N.Y.1996); Fong v. Rego Park Nursing Home, No. 95 Civ. 4445, 1996 WL 468660 (E.D.N.Y. Aug. 7, 1996). Pursuant to Rule 20(a), proper joinder of parties requires the satisfaction of two criteria: (1) the right to relief sought by all plaintiffs must arise out of the same transaction or occurrence, or series of transactions or occurrences; and (2) a common question of law or fact as to all plaintiffs must arise in the action. Fed.R.Civ.P. 20(a); Blesedell v. Mobil Oil Co., 708 F.Supp. 1408, 1421 (S.D.N.Y.1989). A determination on the question of joinder of parties lies within the discretion of the district court. Mosley v. General Motors Corp., 497 F.2d 1330, 1332 (8th Cir.1974) (citing 7 C. Wright, Federal Practice and Procedure, § 1653 at 270 (1972)).

The well-established policy underlying permissive joinder is to promote trial convenience and expedite the resolution of lawsuits. Blesedell, 708 F.Supp. at 1421. The Supreme Court has recognized this policy, stating that “the impulse [under the Rule] is toward entertaining the broadest possible scope of action consistent with fairness to the parties; joinder of claims, parties and remedies is strongly encouraged.” United Mine Workers of America v. Gibbs, 383 U.S. 715, 724, 86 S.Ct. 1130, 1137, 16 L.Ed.2d 218 (1966). As such, severance is appropriate only where the prerequisites of permissive joinder have not been satisfied. Glendora, 917 F.Supp. at 227.

A. Same Transaction or Occurrence

Courts have generally adopted a case-by-case approach in determining whether plaintiffs’ claims constitute a “single transaction or occurrence” for purposes of Rule 20.

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Bluebook (online)
185 F.R.D. 139, 1999 U.S. Dist. LEXIS 11052, 1999 WL 223157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puricelli-v-cna-insurance-nynd-1999.