Dunn v. Gordon Food Services, Inc.
780 F. Supp. 2d 570
W.D. Ky.2011Background
- Dunn worked for Gordon Food Services from August 2003 to October 2008 as a Customer Development Specialist.
- Before employment, Dunn signed an Application containing a one-year statute-of-limitations waiver for employment claims.
- Dunn signed the waiver on August 9, 2004; the clause appeared on the last page in all caps with a reading instruction.
- Dunn was terminated on October 3, 2008; she filed state-law claims in April 2010 in Bullitt County Circuit Court, later removed to federal court.
- GFS moved for judgment on the pleadings, then converted to a Rule 56 summary judgment motion; Dunn submitted sur-replies and affidavits were requested.
- The court granted summary judgment for GFS, holding the waiver reasonable and Dunn’s waiver knowing and voluntary.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kentucky would permit a waiver of the statute of limitations in an employment application. | Dunn argues waivers of limitations in employment contracts are improper under Kentucky law. | GFS contends Kentucky would uphold such waivers in light of related doctrines and cases. | Yes; Kentucky would permit such waivers. |
| Whether the one-year waiver in the Application was knowing and voluntary. | Dunn contends she lacked education and opportunity to consult counsel to knowingly waive rights. | GFS argues record supports knowing and voluntary execution despite limited education and no attorney consulted. | Yes; waiver was knowing and voluntary. |
| Whether an at-will employee can enter an employment agreement and remain at-will. | Dunn asserts at-will status cannot coexist with contractual waiver. | GFS relies on Kentucky precedent allowing unilateral at-will modifications to include arbitration or similar waivers. | Yes; at-will status can coexist with a waiver of the limitations period. |
Key Cases Cited
- Hale v. Blue Cross & Blue Shield of Kentucky, Inc., 862 S.W.2d 905 (Ky.Ct.App.1993) (waiver of limitations in insurance context deemed reasonable)
- Edmondson v. Pa. Nat. Mut. Cas. Ins. Co., 781 S.W.2d 753 (Ky.1989) (contractual reduction of limitations allowed if reasonable)
- Webb v. Ky. Farm Bureau Ins. Co., 577 S.W.2d 17 (Ky.Ct.App.1978) (reduction of limitations in contractual context permissible)
- Higdon Food Service, Inc. v. Walker, 641 S.W.2d 750 (Ky.1982) (mutuality/consideration in employment agreements; waiver permitted for continued employment)
- Elkins v. Ky. Farm Bureau Mut. Ins. Co., 844 S.W.2d 423 (Ky.Ct.App.1992) (distinguishes no-fault/uninsured motorist context from general waiver validity)
- Thurman v. DaimlerChrysler, Inc., 397 F.3d 352 (6th Cir.2004) (federal court upholds six-month limitation in employment application)