Justia U.S. 1st Circuit Court of Appeals Opinion Summaries

The First Circuit certified to the Massachusetts Supreme Judicial Court (SJC) the unresolved question of what is meant, in the context of a franchise agreement, by "performing any service," as that phrase is used in the Massachusetts Independent Contractor Law (ICL), Mass. Gen. Laws ch. 149, 148B(a).Plaintiffs, owners and operators of 7-Eleven franchises in Massachusetts, filed a putative class action against 7-Eleven, Inc. for alleged violations of the Massachusetts ICL, the Massachusetts Wage Act, and the Massachusetts Minimum Wage Law, challenging 7-Eleven's decision to classify them as independent contractors rather than employees. The district court ruled in favor of 7-Eleven and then, after remand, ruled for 7-Eleven again. At issue was whether Plaintiffs performed "any service" for 7-Eleven under the Massachusetts ICL. The First Circuit certified to the Massachusetts SJC the following question: Do Plaintiffs perform "any service" for 7-Eleven within the meaning of the Massachusetts ICL where they perform various contractural obligations under their franchise agreement and 7-Eleven receives a percentage of the franchise's gross profits. View "Patel v. 7-Eleven, Inc." on Justia Law

The First Circuit affirmed the district court's order entering summary judgment in favor of Defendant with respect to Plaintiff's assertion that he was wrongfully deprived of thousands of dollars in commissions he alleged he was due, holding that there was no error.After he resigned, Plaintiff brought suit against Defendant, his former employer, asserting claims for nonpayment of wages under the Act, breach of contract, unjust enrichment, and quantum meruit. Defendant successfully removed the action to federal district court, which granted summary judgment in favor of Defendant. The First Circuit affirmed, holding that the district court (1) did not err in granting in part Defendant's motion to strike certain portions of his response to the summary judgment motion; and (2) did not err in granting summary judgment against Plaintiff on his claims. View "Klauber v. VMware, Inc." on Justia Law

The First Circuit affirmed in part and reversed in part the order of the district court in the underlying action originally brought by Peter Marcus against the American Contract Bridge League (ACBL), where Marcus was formerly employed, holding that the district court erred in part.In the underlying amended complaint, Marcus and his co-plaintiffs sought unpaid overtime wages under the Fair Labor Standards Act (FSLA), 29 U.S.C. 207(a), and Marcus asserted that he was wrongfully discriminated and retaliated against for requesting his claimed pay. The district court entered summary judgment for certain plaintiffs and, as to Marcus's retaliation claim, entered summary judgment for ACBL. The First Circuit reversed in part and remanded the case, holding that the district court (1) erred in denying Plaintiffs' motion to substitute a party; (2) correctly granted judgment in favor of ACBL on Marcus's retaliation claim; (3) erred in granting judgment with respect to the FSLA overtime claims of certain plaintiffs; and (4) otherwise did not err. View "Marcus v. American Contract Bridge League" on Justia Law

The First Circuit affirmed the rulings of the district court requiring Timothy Day to pay NuVasive, Inc., his former employer, more than $1.7 million in damages and attorney's fees for breach of contract and spoliation of evidence, holding that the district court did not err or abuse its discretion.NuVasive brought suit against Day making claims arising from Day's business interactions with NuVasive's customers on behalf of Alphatec Spine, Inc., Day's new employer, in violation of non-competition and non-solicitation obligations in Day's contract with NuVasive. After the district court entered its final judgment Day appealed, arguing that the court erred in finding the requisite causal nexus between Day's improper solicitations and the decisions of certain NuVasive customers to switch to Alphatec as their primary supplier of spine-related surgical products. The First Circuit affirmed, holding that there was no error in the damages award or the sanctions-based award of attorney's fees and costs. View "NuVasive, Inc. v. Day" on Justia Law

The First Circuit affirmed the determination of the Title III court, during the course of its confirmation of the Modified Fifth Amended Title III Plan of Adjustment (Plan) for the Puerto Rico Highways and Transportation Authority (PRHTA), that the Vazquez-Valezquez Group's claims for additional compensation made in a separate federal lawsuit were dischargeable, holding that there was no error.The Group, which was composed of sixty-nine current and former PRHTA employees who received extra compensation under PRHTA Regulation 12-2017, with which the PRHTA later broke. At issue was the Group's objection to the Title III court's determination that the Group's claims for additional compensation were dischargeable under the Plan. After the Title III court entered an order and judgment confirming the plan the Group appealed, arguing that its members' claims were nondischargeable. The First Circuit affirmed, holding that the claims for additional compensation were not exempt from discharge. View "Financial Oversight & Management Bd. v. Vazquez-Velazquez Group" on Justia Law

The First Circuit affirmed in part and reversed in part in this case brought against three Maine government officials in their official capacities (collectively, the State) and several healthcare providers (the Providers) by Plaintiffs, seven healthcare workers whose employment was vaccinated after they refused to accept COVID-19 vaccination (collectively, the Providers), holding that the court erred in dismissing certain claims.In 2021, under the "Mandate," Maine required certain healthcare facilities to ensure that their non-remote workers were vaccinated against COVID-19. Plaintiffs alleged that their sincerely-held religious beliefs prevented them from receiving any of the available COVID-19 vaccines and requested that their employers, the Providers, exempt them from the vaccination requirement. The Providers refused and terminated Plaintiffs' employment. Plaintiffs brought this suit alleging several claims. The district court dismissed the complaint in its entirety. The First Circuit reversed in part, holding that the district court (1) did not err in dismissing Plaintiffs' claims brought under Title VII of the Civil Rights Act of 1964; but (2) erred in dismissing Plaintiffs' claims for relief under the Free Exercise and Equal Protection Clauses. View "Lowe v. Mills" on Justia Law

The First Circuit reversed the judgment of the district court dismissing Plaintiff's breach of contract claim against Defendant, a digital health company, and affirmed the district court's dismissal of all other claims against Defendant and three of its board members, holding that Plaintiff plausibly stated a claim for entitlement to severance benefits.Plaintiff worked for Defendant as its CEO for one year. Thereafter, Defendant decided that it no longer wished to continue its relationship with Plaintiff, as defined in her one-year, automatically renewable employment agreement, and, after she left, refused to pay severance benefits under the agreement. In response to Plaintiff's ensuing lawsuit, Defendant argued that it did not terminate Plaintiff's employment because it merely exercised its right not to renew the agreement. The district court agreed and granted Defendant's motion to dismiss for failure to state a claim. The First Circuit (1) reversed the dismissal of Plaintiff's breach of contract claim, holding that the complaint adequately alleged that Defendant obligated itself to pay severance benefits by ending her employment under the agreement without cause before the end of the one-year term; and (2) affirmed the dismissal of all other claims against Defendant and its three board members, holding that the district court did not otherwise err. View "Sullivan v. etectRx, Inc." on Justia Law

The First Circuit affirmed the decision of the district court denying Defendants' motion to dismiss the underlying case or, in the alternative, to compel arbitration under section 1 of the Federal Arbitration Act (FAA), holding that Defendants were not entitled to reversal.Plaintiffs, who distributed Defendants' baked goods along routes in Massachusetts, brought this action alleging that Defendants misclassified them as independent contractors and seeking unpaid wages, overtime compensation, and other damages. Defendants filed a motion to dismiss or, in the alternative, to compel arbitration under the FAA. The district court denied the motion, concluding that Plaintiffs fell within the FAA's section 1 exemption from the FAA's purview "contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce." The First Circuit affirmed, holding (1) two of Defendants' arguments were waived; and (2) Defendants were not entitled to relief on the merits of their remaining arguments. View "Canales v. CK Sales Co., LLC" on Justia Law

The First Circuit affirmed the district court's default judgment in a tort action brought against the owner of a boat that Plaintiff was working on at the time of his injury, holding that the district court did not err in granting default judgment and denying Appellant's request for leave to file a late claim under Supplemental Rule F of the Federal Rules of Civil Procedure.Appellant, a commercial fisherman, filed a complaint in a Massachusetts state court alleging that he was injured while working on a vessel owned by G&J Fisheries, Inc. and that G&J was liable for unseaworthiness and negligence under the Jones Act, 46 U.S.C. 30104. G&J filed a complaint in the federal district court seeking exoneration from liability under 46 U.S.C. 30501-12 and Supplemental Rule F. The district court enjoined all other lawsuits against G&J pursuant to Supplemental Rule F(3) and then granted default judgment for G&J on the grounds that Appellant failed to file a claim as required under the rule. The First Circuit affirmed, holding that the district court did not err in granting default judgment and in denying Appellant's request to file a late claim under Supplemental Rule F(4). View "G&J Fisheries, Inc. v. Costa" on Justia Law

The First Circuit affirmed the judgment of the district court granting in part and denying in part Cultural Care, Inc.'s motion to dismiss this putative class action alleging violations of Plaintiffs' rights under various state and federal wage and hour laws, holding that the district court did not err.Plaintiffs sued Cultural Care, a private company that places au pairs with host families in various states, alleging that the company qualified as an "employer" under the respective states' wage and hour laws and not only failed to pay Plaintiffs what they were owed but that Cultural Care violated the Family Leave Act and other laws. Cultural Care filed a motion to dismiss, arguing, inter alia, that it was shielded from immunity under the doctrine of derivative sovereign immunity as set forth in Yearsley v. W.A. Ross Construction Co., 309 U.S. 18, 20-22 (1940). The district court dismissed the state law deceptive trade practices claims under Connecticut and Washington law for lack of standing but otherwise denied the motion. The First Circuit affirmed, holding that Cultural Care was not entitled to protection under Yearsley at this stage of the litigation. View "Posada v. Cultural Care, Inc." on Justia Law