Yapp v. Excel Corporation

186 F.3d 1222, 1999 Colo. J. C.A.R. 4721, 5 Wage & Hour Cas.2d (BNA) 872, 44 Fed. R. Serv. 3d 1370, 1999 U.S. App. LEXIS 18169, 1999 WL 565291
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 3, 1999
Docket98-1061, 98-1069
StatusPublished
Cited by282 cases

This text of 186 F.3d 1222 (Yapp v. Excel Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yapp v. Excel Corporation, 186 F.3d 1222, 1999 Colo. J. C.A.R. 4721, 5 Wage & Hour Cas.2d (BNA) 872, 44 Fed. R. Serv. 3d 1370, 1999 U.S. App. LEXIS 18169, 1999 WL 565291 (10th Cir. 1999).

Opinions

MURPHY, Circuit Judge.

Kenneth E. Yapp appeals the judgment of the United States District Court for the District of Colorado, granting summary judgment to Excel Corporation (“Excel”) on the basis of claim preclusion. In the summer of 1996, Yapp filed suit against his former employer, Excel, for overtime compensation due under the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. §§ 201-219. Two weeks later he filed suit against Excel alleging numerous claims for wrongful termination. After the first case was settled and an Order of Dismissal with Prejudice was entered, the district court granted Excel’s motion for summary judgment in the second case on the basis of claim preclusion. Yapp’s appeal is primarily a challenge to that summary judgment. This court exercises jurisdiction pursuant to 28 U.S.C. § 1291 and AFFIRMS.

I. BACKGROUND

Plaintiff Kenneth E. Yapp worked in Excel’s beef slaughter plant in Sterling, Colorado from 1987 until he was terminated in 1995. On June 7, 1996, Yapp sued Excel in the United States District Court for the District of Colorado for violations of the FLSA seeking unpaid overtime compensation [hereinafter “Overtime Action”]. Approximately two weeks later, Yapp sued Excel in a Colorado state court, alleging wrongful discharge premised on theories of violation of public policy, breach of employment contract, promissory estoppel, violation of implied covenant of good faith and fair dealing, negligent misrepresentation, and multiple torts [hereinafter ‘Wrongful Discharge Action”]. Excel removed the Wrongful Discharge Action to the same federal district court in which the Overtime Action was pending, and then filed a motion to consolidate the two cases, arguing that “[consolidation ... will eliminate much duplication of effort and will result in decreased costs and expenses to both parties.” Yapp responded in kind, arguing that consolidation would result in delay and increased costs for both parties. The district judge denied the motion, reasoning that “[p]laintiff has stated valid reasons for filing the two cases separately and separate trials will be conducive to expedition and economy.”

The parties negotiated a settlement in the Overtime Action, agreeing that Excel would pay Yapp $14,000 in return for a Stipulation for Dismissal with Prejudice, signed by both parties on September 9, 1997. The district court issued an Order of Dismissal with Prejudice in the Overtime Action on September 11, 1997. Approximately two weeks after the Overtime Action was dismissed with prejudice, Excel filed motions to supplement its answer, its pending motion for summary judgment, and the final pretrial order in the Wrongful Discharge Action to include the affirmative defense of claim preclusion [1226]*1226premised on the dismissal of the Overtime Action.1 Yapp resisted Excel’s effort to supplement on the grounds that the parties fully understood that settlement of the Overtime Action did not extend to the Wrongful Discharge Action. Yapp relied upon language in a proposed settlement agreement2 and a September 9, 1997, letter from Yapp’s counsel to Excel’s counsel,3 both of which Yapp asserts shielded the Wrongful Discharge Action from claim preclusion flowing from the dismissal in the Overtime Action. The district court granted Excel’s motion to supplement.

On October 20, 1997, Yapp filed a 60(b) motion, seeking to rescind the Stipulation for Dismissal with Prejudice and Order for Dismissal with Prejudice in the Overtime Action. Yapp argued that relief should be based upon fraud, misrepresentation, misconduct of the adverse party, breach of covenant of good faith and fair dealing, failure to achieve a meeting of the minds, mistake of law, and mutual mistake. On February 2, 1998, the district court denied Yapp’s 60(b) motion. A week later, the district court granted Excel’s Motion for Summary Judgement on the basis of claim preclusion.

On appeal, Yapp primarily targets the summary judgment. He also challenges the district court’s order allowing Excel to amend its answer in the Wrongful Discharge Action and the district court’s denial of Yapp’s 60(b) motion in the Overtime Action.

II. DISCUSSION

A. Motion for summary judgment

A grant or denial of summary judgment is reviewed using the same standard applied by the district court. See King v. Union Oil Co. of Cal., 117 F.3d 443, 444-45 (10th Cir.1997). Summary judgment is appropriate if “there is no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law.” Fed. R. Civ. Pro. 56(c); see also King, 117 F.3d at 445. Issues of fact are reviewed in a light most favorable to the nonmoving party. See Craig v. Eberly, 164 F.3d 490, 493 (10th Cir.1998).

Federal law of claim preclusion applies. See Murdock v. Ute Indian Tribe of Uintah & Ouray Reservation, 975 F.2d 683, 687 (10th Cir.1992) (citing, inter alia, Restatement (Second) of Judgments § 87, at 314 (1982) (“Federal law determines the effects under the rules of res judicata of a judgment of a federal court.”)). Claim preclusion requires: (1) a judgment on the merits in the earlier action; (2) identity of the parties or their privies in both suits; and (3) identity of the cause of action in both suits.4 See King, 117 F.3d at 445. [1227]*1227The parties agree that the first two elements are present. The issue here is whether the Wrongful Discharge Action is sufficiently similar to the Overtime Action to warrant the operation of claim preclusion. Yapp argues that his two suits are rooted in different transactions. Excel argues that all claims arising from an employment relationship constitute a single transaction or a series of sufficiently connected transactions for purposes of claim preclusion.

This court has adopted the transactional approach of the Restatement (Second) of Judgments in determining what constitutes identity of the causes of action. See Petromanagement Corp. v. Acme-Thomas Joint Venture, 835 F.2d 1329, 1335-36 (10th Cir.1988). The transactional approach provides that a claim arising out of the same “transaction, or series of connected transactions” as a previous suit, which concluded in a valid and final judgment, will be precluded. Restatement (Second) of Judgments § 24 (1982) [hereinafter “Restatement”]; see also Nwosun v. General Mills Restaurants, Inc., 124 F.3d 1255, 1257 (10th Cir.1997) (“[A] cause of action includes all claims or legal theories of recovery that arise from the same transaction, event, or occurrence”).

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186 F.3d 1222, 1999 Colo. J. C.A.R. 4721, 5 Wage & Hour Cas.2d (BNA) 872, 44 Fed. R. Serv. 3d 1370, 1999 U.S. App. LEXIS 18169, 1999 WL 565291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yapp-v-excel-corporation-ca10-1999.