Saleh Elgiadi v. Washington State University

CourtCourt of Appeals of Washington
DecidedNovember 8, 2022
Docket38784-4
StatusPublished

This text of Saleh Elgiadi v. Washington State University (Saleh Elgiadi v. Washington State University) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saleh Elgiadi v. Washington State University, (Wash. Ct. App. 2022).

Opinion

NOTICE: SLIP OPINION (not the court’s final written decision)

The opinion that begins on the next page is a slip opinion. Slip opinions are the written opinions that are originally filed by the court. A slip opinion is not necessarily the court’s final written decision. Slip opinions can be changed by subsequent court orders. For example, a court may issue an order making substantive changes to a slip opinion or publishing for precedential purposes a previously “unpublished” opinion. Additionally, nonsubstantive edits (for style, grammar, citation, format, punctuation, etc.) are made before the opinions that have precedential value are published in the official reports of court decisions: the Washington Reports 2d and the Washington Appellate Reports. An opinion in the official reports replaces the slip opinion as the official opinion of the court. The slip opinion that begins on the next page is for a published opinion, and it has since been revised for publication in the printed official reports. The official text of the court’s opinion is found in the advance sheets and the bound volumes of the official reports. Also, an electronic version (intended to mirror the language found in the official reports) of the revised opinion can be found, free of charge, at this website: https://www.lexisnexis.com/clients/wareports. For more information about precedential (published) opinions, nonprecedential (unpublished) opinions, slip opinions, and the official reports, see https://www.courts.wa.gov/opinions and the information that is linked there. For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

FILED NOVEMBER 8, 2022 In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

SALEH ELGIADI, on behalf of himself ) No. 38784-4-III and all others similarly situated, ) ) Appellant, ) ) v. ) PUBLISHED OPINION ) WASHINGTON STATE UNIVERSITY ) SPOKANE, an agency of the State of ) Washington and THE STATE OF ) WASHINGTON, ) ) Respondents. )

LAWRENCE-BERREY, J. — Settling parties in employment discrimination cases

sometimes include a no-rehire provision in their settlement agreements. In the provision,

the former employee agrees not to seek or accept employment from the former employer.

The question presented here is whether a former employee who settles a claim of

unlawful discrimination may effectively waive their contingent right to be rehired. We

conclude they may and affirm the trial court’s summary judgment rulings. For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

No. 38784-4-III Elgiadi v. Wash. State Univ.

FACTS

Saleh Elgiadi worked for Washington State University (WSU) for 29 years.

During this time, he worked in information technology, eventually becoming the chief

information technology officer for WSU-Spokane’s information technologies systems

(ITS) department. Following a wage dispute, WSU terminated his employment.

Mr. Elgiadi brought suit against WSU and the State of Washington (collectively

the State) alleging breach of contract, promissory estoppel, wrongful termination in

violation of public policy, negligent misrepresentation, intentional misrepresentation,

intentional interference with a business expectancy, retaliation, and age discrimination.

His request for relief included lost wages, benefits, back wages, front pay, double

damages, prejudgment interest, and attorney fees; he did not ask to be reinstated. His

claim for age discrimination was dismissed on summary judgment.1

In early 2020, Mr. Elgiadi and the State entered into a settlement agreement. The

agreement required Mr. Elgiadi to release the State from all claims arising out of his

former employment. In exchange, the State agreed to pay Mr. Elgiadi $295,000. The

1 One of the parties highlighted portions of the letter decision they wanted to emphasize. Highlighting text results in our copy of that text appearing redacted. We encourage parties to underline text they wish to stress so we can read it. Ultimately, and as explained below, the summary dismissal of Mr. Elgiadi’s discrimination claim is irrelevant.

2 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

agreement contained the following provision, which provides only one limitation on Mr.

Elgiadi’s future employment:

3. As a condition of this settlement, State of Washington requires that Plaintiff agree he will neither seek nor accept employment with WASHINGTON STATE UNIVERSITY-SPOKANE, at any time in the future. . . . The parties agree this required limitation applies only to employment with WSU-Spokane and that it does not prevent Plaintiff for [sic] working for an independent contractor providing services, consulting, acting as a vendor or other contractors providing materials, supplies or services to WSU-Spokane.

Clerk’s Papers (CP) at 30 (emphasis added).

Seven months later, Mr. Elgiadi brought suit against the State. His suit sought

class action status for all former State employees whose discrimination claim settlements

included a no-rehire provision.

Pertinent to the issues on appeal, Mr. Elgiadi’s complaint asserts that the above-

italicized provision—referred to hereafter as the “no-rehire provision”—violates the

public policy behind the Washington Law Against Discrimination (WLAD), chapter

49.60 RCW, violates WLAD’s antiretaliation statute (RCW 49.60.210), and is an

unlawful restraint of trade (RCW 49.62.020). The State denied that the provision violated

those laws and affirmatively asserted defenses—including the defenses of waiver, accord

and satisfaction, equitable estoppel, and judicial estoppel.

3 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

Prior to seeking class certification, Mr. Elgiadi filed a motion for partial summary

judgment requesting the trial court declare the no-rehire provision void and

unenforceable. The State filed a cross motion for summary judgment, requesting

dismissal of Mr. Elgiadi’s claims. The trial court denied the former and granted the latter.

Mr. Elgiadi timely appealed the trial court’s rulings.

LAW AND ANALYSIS

A. Standard of review

We review a trial court’s summary judgment ruling de novo, taking all facts and

inferences in the light most favorable to the nonmoving party. NOVA Contracting, Inc. v.

City of Olympia, 191 Wn.2d 854, 864, 426 P.3d 685 (2018).

B. Strong public policy encourages settlements

Settlement agreements are governed by the legal principles of contract law.

Stottlemyre v. Reed, 35 Wn. App. 169, 171, 665 P.2d 1383 (1983). Mr. Elgiadi does not

dispute that he voluntarily entered into the settlement agreement. Instead, he seeks to

have the no-rehire provision declared void and unenforceable, to have it struck from the

agreement, and to retain the $295,000 paid to him by the State.

Through compromise and settlement, parties agree to dismiss disputed claims by

making mutual concessions. Harding v. Will, 81 Wn.2d 132, 138, 500 P.2d 91 (1972);

4 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/.

15B AM. JUR. 2D COMPROMISE AND SETTLEMENT AGREEMENTS § 1 (2021). By its

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Saleh Elgiadi v. Washington State University, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saleh-elgiadi-v-washington-state-university-washctapp-2022.