Peterson v. Snodgrass

683 F.Supp.2d 1107

Lynn R. PETERSON, Plaintiff, v. Brian SNODGRASS and Darcy Snodgrass, Defendants.

No. CV-09-454-ST.

United States District Court, D. Oregon.

January 5, 2010.

Charles A. Ford, Ford & James, LLP, Wilsonville, OR, for Plaintiff.

Jay W. Beattie, Jenni E. Mosebach, Lindsay Hart Neil & Weigler, LLP, Portland, OR, for Defendants.

OPINION

STEWART, United States Magistrate Judge:

INTRODUCTION

Plaintiff, Lynn R. Peterson ("Peterson"), originally filed this action in Clackamas County Circuit Court on August 26, 2008, as Case No. CV 08080702. She alleges breach of contract and state law claims for unpaid wages and overtime against defendants, Brian and Darcy Snodgrass, for whom she worked first as a housekeeper and later as a nanny between August 2004 and July 2008. Notice of Removal, Ex. 3. Peterson later amended her pleadings to include claims for violation of the Residential Landlord and Tenant Act, ORS Chapter 90. Id., Ex. 7 (First Amended Complaint).

On April 2, 2009, Peterson filed a Second Amended Complaint alleging that the failure to pay overtime wages also violated the Fair Labor Standards Act ("FLSA"), 29 USC § 201-19. The addition of this federal claim prompted defendants to remove the action to this court on April 24, 2009. Id., ¶¶ 2-4.

The Third Amended Complaint, filed shortly after removal to this court, alleges claims for: (1) breach of employment contract ("First Claim"); (2) wrongful discharge ("Second Claim"); (3) unpaid overtime under both ORS Chapter 653 and the FLSA ("Third Claim"); (4) penalty wages (under ORS 652.150) and liquidated damages (under the FLSA, 29 USC § 216(b)) ("Fourth Claim"); (5) violation of ORS 659A.040 (workers' compensation discrimination) ("Fifth Claim"); (6) violation of the Residential Landlord and Tenant Act ("Sixth Claim"); and (7) violation of ORS 659A.112 (disability discrimination) ("Seventh Claim"). Defendants responded with a host of denials, 17 affirmative defenses, and a counterclaim for attorney fees. Defendants' Answer, Affirmative Defenses, and Counterclaim to Plaintiff's Third Amended Complaint (docket # 5). As confirmed at oral argument, defendants agreed to withdraw their Sixth (de minimus time), Seventh (preemption), and Fifteenth (setoff) Affirmative Defenses. Ford Decl., ¶ 9.

This court has subject matter jurisdiction pursuant to the FLSA, 29 USC § 216(b), and supplemental jurisdiction over the state law claims under 28 USC § 1367. All parties have consented to allow a Magistrate Judge to enter final orders and judgment in this case in accordance with FRCP 73 and 28 USC § 636(c). Peterson filed a motion seeking summary judgment on her First Claim (breach of employment contract), Third Claim (unpaid overtime), and Fourth Claim (penalty wages under ORS 652.150 and liquidated damages under 29 USC § 216(b)), and to strike five of defendants' remaining 14 affirmative defenses.

On December 22, 2009, this court ruled on Peterson's motion. This Opinion gives the reasoning behind that ruling.

LEGAL STANDARD

FRCP 56(c) authorizes summary judgment if "no genuine issue" exists regarding any material fact and "the moving party is entitled to judgment as a matter of law." The moving party must show an absence of an issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the moving party does so, the nonmoving party must "go beyond the pleadings" and designate specific facts showing a "genuine issue for trial." Id. at 324, 106 S.Ct. 2548, citing FRCP 56(e). The court must "not weigh the evidence or determine the truth of the matter, but only determine whether there is a genuine issue for trial." Balint v. Carson City, Nev., 180 F.3d 1047, 1054 (9th Cir.1999) (citation omitted). A "`scintilla of evidence,' or evidence that is `merely colorable' or `not significantly probative,'" does not present a genuine issue of material fact. United Steelworkers of Am. v. Phelps Dodge Corp., 865 F.2d 1539, 1542 (9th Cir.), cert. denied, 493 U.S. 809, 110 S.Ct. 51, 107 L.Ed.2d 20 (1989) (emphasis in original) (citation omitted).

The substantive law governing a claim or defense determines whether a fact is material. T.W. Elec. Serv., Inc. v. Pacific Elec. Contractors Ass'n, 809 F.2d 626, 630 (9th Cir.1987). The court must view the inferences drawn from the facts "in the light most favorable to the nonmoving party." Id. (citation omitted).

UNDISPUTED FACTS

I. Peterson's Initial Employment with the Snodgrasses

Peterson began working for Brian and Darcy Snodgrass in August 2004 as a housekeeper. Darcy Snodgrass' executive assistant, Cassie Shearer ("Shearer"), supervised her. B. Snodgrass Depo., p. 53; Peterson Depo., pp. 19-21. A few months later, two nannies left the Snodgrasses' employ at the same time, leaving them without a nanny. Peterson Depo., pp. 38-39. Peterson approached the Snodgrasses about working for them as a nanny. Id.

On November 29, 2004, the Snodgrasses promoted Peterson to a "Full-Time Nanny" position, caring for their three children, then aged 14, nine, and nearly two. Peterson Decl., Ex. 1. The nanny position paid $42,000 per year based on an approximate 45-55 hour work week. Id. When she accepted that position, Peterson acknowledged reading and understanding "all information regarding Darcy and Brian Snodgrass' Employment Policies and Procedures." Id. Those Employment Policies and Procedures contain an "at will" provision. Bolesky Decl., Ex. 1 (Employment Policies and Procedures Updated 9-11-03).

Not quite a year later, on August 6, 2005, Peterson received a performance review, at which time she was granted two weeks of vacation per year and a $6,000 per year increase in salary. Id., Ex. 4. As did the 2004 agreement, that performance review also incorporated the Snodgrasses' Employment Policies and Procedures. Id.

Prior to 2006, the Snodgrasses paid overtime to Peterson whenever she worked more than 50 hours in a week. Peterson Decl., ¶ 10. However, in April 2006, Brian Snodgrass decided that any hours worked in excess of 50 hours per week would be paid by "comp time" (also known as "Flex Time"), which meant that Peterson would be given time off, on an hour-for-hour basis, for each hour she worked in excess of 50 hours per week. Id.; Peterson Depo., pp. 111-15.

Peterson received another raise in 2006, bringing her annual salary to $55,000 per year.¹ She does not dispute that her employment at that time remained subject to the Snodgrasses' Employment Policies and Procedures.

Peterson did not live at the Snodgrasses' home, but would occasionally stay overnight to care for their children. Peterson Decl., ¶ 4. During the last two years of her employment, she rented a condominium in Canby ("the Canby Unit") which was owned by a company controlled by the Snodgrasses. Id.

II. Search for Other Employment and Negotiation of the 2007 Employment Agreement

There is no evidence of dissatisfaction by the Snodgrasses with the first two years of Peterson's employment as the nanny.² Nevertheless, Brian Snodgrass contends that Peterson "did not get along with other employees at all ever" and asserts that she was "a source of ... employee gossip and everything else at the house." B. Snodgrass Depo., p. 23.

Peterson's view of Darcy Snodgrass is equally unflattering. Peterson describes Darcy Snodgrass as "very critical of her employees" and "not an easy person to work for." Peterson Decl., ¶ 11. Apparently as a result of Darcy Snodgrass' increasing criticism, by the summer of 2007, Peterson had become increasingly anxious over "not knowing whether she would have a job from day to day" and began looking for other employment. Peterson Depo., pp. 88, 104.

Late in the summer of 2007, Peterson received an offer to work as a live-in nanny with another family. When she advised the Snodgrasses that she would be leaving their employ, they asked her to reconsider. Peterson told them she would remain their employee if she was given a contract of employment for a two-year term. Peterson Decl., ¶ 5. In response, Brian Snodgrass presented Peterson with a document entitled "Employment Contract between Brian & Darcy Snodgrass and Lynn Peterson" ("2007 Contract"), which specifies that it is "in effect for 24 months from the date of signing" and further specifies: (1) an "annual salary of $50,000 based on 50 hour work week;" (2) "work performed beyond 50 hours Comp time will accrue to be used for future days off. Any unused comp time will be paid out at the end of the year;" and (3) rent of the Canby Unit to be $600 per month with no rent due for the month of August 2007. Id., Ex. 3. The salary specified in the 2007 Contract was $5,000 per year less than what Peterson had been paid the prior year. Peterson was agreeable to the reduced salary because the Snodgrasses rented the Canby Unit to her at less than market rental rate. Id., ¶ 6.³

III. July 3-4, 2008

In the spring of 2008, Peterson became very stressed at work, a condition she attributes to the difficulty of working with Darcy Snodgrass. Id., ¶ 11. On July 3, 2008, when Peterson reported to work, Shearer told her that Darcy Snodgrass had complained about the quality and quantity of her work. Id. Peterson, who had "routinely been working 12 hours a day at this time," became visibly upset. Id.; Treadwell Depo., pp. 45-46. By about 11 a.m., Peterson was crying, visibly shaken, and reported experiencing a lot of chest pain. Treadwell Depo., p. 46. She also became nauseous and then vomited in the bathroom. Peterson Decl., ¶ 11.

The Snodgrasses and their employees were preparing for a party, and Haylie Hay, a woman who worked for Brian Snodgrass' business, told Peterson it was a really bad time to be gone and asked her to make it through the day. B. Snodgrass Depo., pp. 53-54; Treadwell Depo., p. 46. However, Peterson felt so ill that she left work and immediately went to the Geneva Health Center and Urgent Care Clinic in Wilsonville, Oregon. Pet...