Tapley v. Simplifile LC

CourtDistrict Court, N.D. Texas
DecidedFebruary 3, 2021
Docket3:19-cv-00227
StatusUnknown

This text of Tapley v. Simplifile LC (Tapley v. Simplifile LC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tapley v. Simplifile LC, (N.D. Tex. 2021).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

ROBERT B. TAPLEY, § § Plaintiff, § § § v. § CIVIL ACTION NO. 3:19-cv-00227-E § § SIMPLIFILE, LC, § § Defendant. §

MEMORANDUM OPINION AND ORDER

Before the Court is Defendant Simplifile, LC’s Partial Motion for Summary Judgment (Doc. No. 40). For the following reasons, the Court GRANTS the motion. BACKGROUND In this action, Tapley, an African American, asserts a claims for race discrimination under 42 U.S.C. § 1981 against his former employer Simplifile, LC (Simplifile) based on its decisions to (1) include him in a reduction in force (RIF) of sales personnel and (2) revoke its offer of a severance agreement and payment after learning that he had been operating an insurance business during his employment. Simplifile moves for summary judgment on Tapley’s section 1981 claim, contending he has no evidence to show that either his inclusion in the RIF or the decision to revoke the severance offer was a pretext for race discrimination. Simplifile also asserts there is no evidence that any similarly-situated non-African-American employees received more favorable treatment with respect to its decision to revoke Tapley’s severance offer. The summary judgment evidence shows that Simplifile connects private businesses with governmental agencies to enable and simplify the electronic filing of legal and other documents involved in real estate transactions (Doc. 42, p. 5). In 2009, Simplifile President Paul Clifford

hired Tapley to be Regional Sales Director for Texas; Louisiana later was added to Tapley’s territory (Id., pp. 5-6, 38). As sales director, Tapley sold Simplifile products to real estate submitters and sold/assisted counties in signing up to use Simplifile’s systems (Id., p. 37). Starting in 2016, Simplifile required its employees, including Tapley, to enter into a Confidentiality, Non-Solicitation and Non-Compete Agreement (Confidentiality Agreement) in order to better protect its confidential information (Id., pp. 6, 28-35, 92-93). Under the Confidentiality Agreement, which was “material consideration” for his continued at-will

employment, Tapley agreed not to enter into any oral or written agreement that conflicted with the performance of his full-time job with Simplifile and to provide written notification if he intended to engage in certain activities, including, but not limited to, owning or operating another business, “regardless of the type of business or time commitment required” (Id., pp. 30, 95). The Confidentiality Agreement provided that it represented their entire agreement on the subjects therein and could not be modified except by a written agreement that referred to the

Confidentiality Agreement and was signed by both parties (Id., pp. 31-32). Initially, Simplifile’s Texas sales were strong but, after time, sales growth slowed (Id., p. 7). In mid-2018, a review of sales data, projections, and conversations with various sales directors, including Tapley, caused Vicki DiPasquale, Simplifile Vice President of Sales, to believe Simplifile was overstaffed in the sales director position (Id., p. 39). In late 2018, Clifford, DiPasquale, and Auri Burnham, Simplifile’s Vice President of Finance and Accounting, determined to reduce sales director positions by three (Doc. 42, pp. 8, 39). DiPasquale then analyzed historical sales data and interviewed each sales director regarding future growth opportunities in their states (Id., pp. 8, 39-40). During that process, Tapley told DiPasquale that he believed future growth in Texas was likely limited and, specifically, that growth percentages

were probably going to be flat or not grow as quickly or at the same percentages as years past (Id., pp. 39-40, 88, 161, 168). Based on Simplifile sales data and sales director feedback about future growth opportunities, DiPasquale recommended that the sales director positions held by Tapley, Randy Wilkey, and Melanie Gornick be eliminated, and Clifford and Burnham agreed with her recommendation (Id., p. 7). In November 2018, Tapley, Wilkey, and Gornick were laid off pursuant to the RIF, and sales opportunities in their territories were redistributed to other, remaining sales directors (Id.,

pp. 7, 41-42, 84, 88-89, 96; Doc. 45, pp. 130-131). They were offered a separation package in exchange for a release of claims (Id., pp. 7-8). Tapley accepted the package and agreed to release any claims, including, but not limited to, claims for race discrimination, against Simplifile (Id., pp. 97-98, 131-136). Tapley further agreed that nothing in his release changed or limited the rights or obligations under the Confidentiality Agreement (Id., pp. 98, 134). Shortly thereafter, Jeff Pettine, who added Texas to his territory, mentioned to another

sales director, John Riddell, that a number of leads in Texas had not been pursued and Simplifile was behind on the number of counties enrolled (Id., pp. 176, 180). Pettine wondered what Tapley had been doing (Id.). After their discussion, Riddell ran a Google search, which showed Tapley owned and was the managing member of an Allstate Insurance agency, the “Tapley Group,” formed in 2014 (Id., pp. 41-42, 56, 176-177). Another website showing Tapley’s involvement in a “businessman’s” group appeared to omit Tapley’s nine-year employment with Simplifile, but listed his other employment (Doc. 42, p. 177). Riddell forwarded the website links to DiPasquale (Id., pp. 56, 177). DiPasquale reviewed the information and confirmed that Tapley appeared to own an

Allstate agency, which bore his name, had a physical office location with employees, and was open during normal business hours (Id., pp. 41-42, 53, 58-60). DiPasquale forwarded the information to Clifford and others at Simplifile (Id.) She and Clifford also viewed a publicly- available report on “Brokercheck,” a Financial Industry Regulatory Authority (FINRA) website, which misrepresented, under penalty of perjury, that Tapley had not been employed with Simplifile since 2014 (Id., pp. 8-9, 42, 63-69, 98-99, 101, 104, 163). Tapley never told DiPasquale that he owned and operated an insurance business or provided notice of it in writing

as required by the Confidentiality Agreement1 (Id., pp. 41-42, 56). After considering this information, Simplifile determined Tapley had breached the Confidentiality Agreement and notified Tapley that the termination of his employment was being re-classified as “for cause” and, as a result, he was not eligible for severance pay (Doc. 42, pp. 43, 62-69, 139, 163). According to Clifford and DiPasquale, had Simplifile been aware that Tapley owned and was operating an entirely separate business while working for Simplifile, in breach of the Confidentiality

Agreement, his employment would have been terminated (Id., pp. 8, 41-42). LEGAL STANDARD

Summary judgment is appropriate if, viewing the evidence in the light most favorable to the nonmoving party, “the movant shows that there is no genuine dispute as to any material fact

1 Tapley testified he had a general conversation with DiPasquale at one point between 2015 and 2018 regarding their retirement plans in which he referred to his “business,” but did not provide any details about the business or his ownership of, or involvement in, the business (Doc. 42, p. 95). DiPasquale does not recall the discussion (Id., p. 160). and the movant is entitled to judgment as a matter of law.” FED. R. CIV. P. 56(a). “A fact is material if it might affect the outcome of the suit,” and “[a] factual dispute is genuine if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Thomas

v. Tregre, 913 F.3d 458, 462 (5th Cir. 2019) (quoting Anderson v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hamilton v. Segue Software Inc.
232 F.3d 473 (Fifth Circuit, 2000)
Auguster v. Vermilion Parish School Board
249 F.3d 400 (Fifth Circuit, 2001)
Turner v. Baylor Richardson Medical Center
476 F.3d 337 (Fifth Circuit, 2007)
Lee v. Kansas City Southern Railway Co.
574 F.3d 253 (Fifth Circuit, 2009)
McDonnell Douglas Corp. v. Green
411 U.S. 792 (Supreme Court, 1973)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Richard L. Conkling v. Bert S. Turner
18 F.3d 1285 (Fifth Circuit, 1994)
Bourgeois v. Mississippi Valley State University
507 F. App'x 386 (Fifth Circuit, 2013)
Robert Antoine v. First Student, Incorporated
713 F.3d 824 (Fifth Circuit, 2013)
Maurice Goudeau v. National Oilwell Varco, L.P.
793 F.3d 470 (Fifth Circuit, 2015)
Martin Quintana v. Fujifilm North America Corp.
628 F. App'x 252 (Fifth Circuit, 2015)
Patricia Morris v. Town of Independence
827 F.3d 396 (Fifth Circuit, 2016)
Noris Rogers v. Pearland Indep School District
827 F.3d 403 (Fifth Circuit, 2016)
Michael Ratliff v. Advisors Asset Management, Inc
660 F. App'x 290 (Fifth Circuit, 2016)
Paul Butts v. Marcus Martin
877 F.3d 571 (Fifth Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Tapley v. Simplifile LC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tapley-v-simplifile-lc-txnd-2021.