Garcia Rosado v. Scotiabank de P.R.
3:12-cv-01383
D.P.R.Jan 17, 2013Background
- Plaintiff Ana García-Rosado, 57, worked at RG Premier Bank in Fajardo from 1998 to 2010.
- OCFI took RG Premier Bank into receivership in April 2010; FDIC became receiver.
- April 30/May 1, 2010, Scotiabank acquired RG Premier Bank branches, including Fajardo.
- May 2, 2010, Scotiabank executives held a meeting with employees about integration.
- Plaintiff signed a contract with C.D. Mitchell & Co. to receive past-payments; contract dates contested.
- Plaintiff was told her employment with Scotiabank would continue; she was terminated May 22, 2010; most other RG employees were later hired by Scotiabank.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FIRREA applicability and jurisdiction on plaintiff’s claims | García-Rosado’s claims against Scotiabank not subject to FIRREA | FIRREA deprives claims against failed banks/receivers | FIRREA does not apply; claims against Scotiabank survive |
| Whether Scotiabank is liable as RG Premier’s successor under Law 80 | Scotiabank continued core operations and employees after acquisition | No successor liability; contract and timing negate status | Genuine dispute whether Scotiabank is successor; Law 80 applies |
| Whether Law 80 covers temporary employees like García-Rosado | Evidence supports continuity of employment despite fixed-term contract | Short-term contract not within Law 80 protection | Material factual dispute; Law 80 claim not barred at summary judgment |
| Whether plaintiff states a prima facie claim of age discrimination under Law 100 | Younger coworkers retained/hired; plaintiff discharged | Employer must show good cause for discharge under Law 80 | Plaintiff states prima facie Law 100 claim; summary judgment denied |
Key Cases Cited
- Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27 (U.S. 1987) (assessment of employer-employee relations in successor analysis)
- Asseo v. Centro Medico del Turabo, Inc., 900 F.2d 445 (1st Cir. 1990) (factors for determining successor status in Puerto Rico context)
- Otero-Burgos v. InterAmerican Univ., 558 F.3d 1 (1st Cir. 2009) ( Law 80 severance framework and coverage)
- Hoyos v. Telecorp Communications, Inc., 488 F.3d 1 (1st Cir. 2007) (prima facie requirements for Law 100 age discrimination)
- Benson v. JPMorgan Chase Bank, N.A., 673 F.3d 1207 (9th Cir. 2012) (FIRREA claims after acquisition generally not barred)
- Am. Nat’l Ins. Co. v. FDIC, 642 F.3d 1137 (D.C. Cir. 2011) (FIRREA scope excludes claims against post-acquisition actions)