Thomas O'Neal v. American Shaman Franchise Systems, Inc.

CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 11, 2026
Docket24-10900
StatusPublished

This text of Thomas O'Neal v. American Shaman Franchise Systems, Inc. (Thomas O'Neal v. American Shaman Franchise Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas O'Neal v. American Shaman Franchise Systems, Inc., (11th Cir. 2026).

Opinion

USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 1 of 43

FOR PUBLICATION

In the United States Court of Appeals For the Eleventh Circuit ____________________ No. 24-10900 ____________________

THOMAS O’NEAL, Plaintiff-Counter Defendant-Appellant, versus

AMERICAN SHAMAN FRANCHISE SYSTEMS, INC., CBD AMERICAN SHAMAN, LLC, SHAMAN BOTANICALS, LLC, SVS ENTERPRISES, LLC, a Kansas limited liability company, STEVEN VINCENT SANDERS, II, an individual, et al., Defendants-Counter Claimants-Appellees, FLORIDA SHAMAN PROPERTIES, LLC et al., Defendants. USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 2 of 43

2 Opinion of the Court 24-10900 ____________________ Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 8:20-cv-00936-KKM-AAS ____________________

Before ROSENBAUM, GRANT, and BRASHER, Circuit Judges. BRASHER, Circuit Judge: We have held that a settlement agreement bars litigation of wage-and-hour claims under the Fair Labor Standards Act only if the settlement was approved by a court or the Department of La- bor. See Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1352– 53 (11th Cir. 1982). In this appeal, we must now decide how this rule applies when FLSA claims are settled alongside non-FLSA claims. After Thomas O’Neal sued American Shaman on several legal theories, including the FLSA, he signed a settlement agree- ment that released “any and all” claims in return for several thou- sand dollars. Neither a court nor the Department of Labor ap- proved the settlement. So, when O’Neal later sued American Shaman again—this time, for fraudulent transfer—he argued that American Shaman could not enforce the release. The district court rejected this position and dismissed O’Neal’s new complaint. We believe that, because of the settlement agreement, the district court correctly dismissed O’Neal’s fraudulent transfer claims. Our interpretation of the FLSA in Lynn’s Food does not im- pose a federal-law impediment to the release of non-FLSA claims. It is true that the parties’ failure to secure preapproval for their set- tlement means the settlement cannot bar litigation of O’Neal’s USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 3 of 43

24-10900 Opinion of the Court 3

FLSA claims. But the enforceability of the release as to non-FLSA claims is a matter of state contract law, not federal FLSA law. Be- cause the release is enforceable as a matter of Florida contract law, it bars O’Neal’s fraudulent transfer claims. For this reason, among others discussed below, we affirm. I.

A convoluted web of litigation underpins this appeal. To simplify the background relevant here, we discuss the underlying facts in three sections below: (A) the initial litigation and the result- ing settlement agreement; (B) Thomas O’Neal’s supplemental complaint and American Shaman’s counterclaims; and (C) the dis- trict court’s disposition of the supplemental complaint and coun- terclaims, and the magistrate judge’s disposition of O’Neal’s mo- tion to amend the supplemental complaint. A.

At its core, this appeal centers around two parties: the Amer- ican Shaman CBD franchise and O’Neal, a franchisee. In early 2020, O’Neal sued American Shaman, alleging breach of contract, unjust enrichment, violation of several Florida statutes, and a host of FLSA violations. Roughly a year after O’Neal filed this complaint, the parties reached a settlement agreement via email. The parties then filed a joint notice that they “have resolved [the] [p]laintiff’s claims” and “are in the process of drafting a confidential agreement to memo- rialize that resolution.” Doc. 65 at 1. American Shaman then issued USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 4 of 43

4 Opinion of the Court 24-10900

a set of financial disclosure documents, and the parties submitted a joint stipulation of voluntary dismissal. Under the settlement agreement, O’Neal received $50,000. The settlement agreement contains a mutual release provi- sion. The mutual release states, in relevant part, that the parties “release” each other “from any and all ‘[c]laims.’” Doc. 180-1 at 2. And the release defines claims as “any and all past, present or future claims, demands, obligations, actions, [or] causes of action.” Id. at 3. The agreement also contains a confidentiality provision. This provision states that “all terms of the settlement and this doc- ument will be held in strict confidence by all parties to this action.” Id. It continues: “[t]he parties . . . agree to keep the terms of this settlement in confidence and not to publish [the terms] . . . in the absence of a court order compelling them to do so and not without prior written notice to the other parties’ attorneys.” Id. at 3–4. And, further, the provision stresses that “[a]ll parties acknowledge that this requirement of confidentiality is a material term of the [settle- ment agreement] and that any failure to . . . comply with the con- fidentiality requirement may subject the offending party to legal damages, including sanctions.” Id. at 4. But the provision clarifies, in part, that “all parties may be allowed to disclose the terms of this settlement to a court in order to obtain an order seeking enforce- ment of the settlement.” Id. USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 5 of 43

24-10900 Opinion of the Court 5

B.

A few months after signing the settlement agreement, O’Neal initiated an entirely separate action in the Western District of Missouri. To that end, O’Neal served subpoenas on American Shaman and sought documents related to potential fraudulent transfer claims against American Shaman. O’Neal argued that these claims were not barred by the mutual release. In response, American Shaman provided a heavily redacted copy of the settle- ment agreement. O’Neal then filed an amended supplemental complaint in the original litigation—the litigation that underlies this appeal. In this complaint, O’Neal alleges that American Shaman is liable for fraudulent transfer, conversion, and more, but he did not allege any FLSA claims. When filing the supplemental complaint, O’Neal did not attach the settlement agreement or describe its contents. American Shaman responded to this supplemental com- plaint by moving for a judgment on the pleadings. In support of this motion, American Shaman argued that O’Neal’s claims are “barred as a matter of law by the [mutual] release included in a set- tlement agreement between the parties.” Doc. 184 at 1. American Shaman also filed counterclaims against O’Neal for, among other things, breach of contract. Specifically, American Shaman argued that O’Neal breached the mutual release provision when he brought supplemental proceedings against American Shaman. And American Shaman requested that the district court “make a finding that O’Neal and his counsel have acted in bad USCA11 Case: 24-10900 Document: 70-1 Date Filed: 02/11/2026 Page: 6 of 43

6 Opinion of the Court 24-10900

faith . . . and order them . . . to pay the attorneys’ fees.” Doc. 188 at 32. C.

The district court granted American Shaman’s motion for judgment on the pleadings as to the supplemental complaint. The court explained that, under Lynn’s Food, settlement agreements for FLSA claims must be approved by the Department of Labor or a district court. Because the parties’ settlement agreement here was approved by neither, the court determined that the mutual release is unenforceable as to O’Neal’s FLSA claims. But O’Neal did not include those claims in his supplemental complaint, and the district court decided that the release is enforceable as to his non-FLSA claims.

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

Related

Hayes v. Nat'l Services Industries
196 F.3d 1252 (Eleventh Circuit, 1999)
Dean Effarage Farrow v. Dr. West
320 F.3d 1235 (Eleventh Circuit, 2003)
United States v. Brown
342 F.3d 1245 (Eleventh Circuit, 2003)
Klay v. United Healthgroup, Inc.
376 F.3d 1092 (Eleventh Circuit, 2004)
Robert Niland v. Delta Recycling Corp.
377 F.3d 1244 (Eleventh Circuit, 2004)
George v. Smith v. School Board of Orange County
487 F.3d 1361 (Eleventh Circuit, 2007)
King v. Cessna Aircraft Co.
505 F.3d 1160 (Eleventh Circuit, 2007)
United States v. Schultz
565 F.3d 1353 (Eleventh Circuit, 2009)
Brooklyn Savings Bank v. O'Neil
324 U.S. 697 (Supreme Court, 1945)
D. A. Schulte, Inc. v. Gangi
328 U.S. 108 (Supreme Court, 1946)
Owen Equipment & Erection Co. v. Kroger
437 U.S. 365 (Supreme Court, 1978)
Barrentine v. Arkansas-Best Freight System, Inc.
450 U.S. 728 (Supreme Court, 1981)
Landgraf v. USI Film Products
511 U.S. 244 (Supreme Court, 1994)
Kontrick v. Ryan
540 U.S. 443 (Supreme Court, 2004)
United States v. William Duncan Reeds
552 F.2d 170 (Seventh Circuit, 1977)
United States v. Will Renfro
620 F.2d 497 (Fifth Circuit, 1980)
Larry Bonner v. City of Prichard, Alabama
661 F.2d 1206 (Eleventh Circuit, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
Thomas O'Neal v. American Shaman Franchise Systems, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-oneal-v-american-shaman-franchise-systems-inc-ca11-2026.