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2019 Ohio 1975
Ohio Ct. App.
2019
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Background

  • Kate Kane was IMS’s regional vice president of operations; she took two FMLA leaves for pregnancy and returned to work Feb. 13, 2017, when she was informed her position was eliminated following Island’s October 2016 purchase of IMS.
  • Kane sued IMS, Island, and Justin Meiser asserting FMLA interference and retaliation, gender discrimination, public-policy discrimination, promissory estoppel, and sought declaratory relief on a non‑compete; she demanded a jury.
  • Defendants moved to strike the jury demand based on a jury-waiver in Kane’s employment agreement; the trial court granted that motion and later granted summary judgment to IMS and Island (and separately to Meiser, which is not appealed).
  • Kane relied on two unsigned “Separation Agreement and Release” documents (Exhibits 6 & 7) to argue the stated RIF justification for her termination was pretextual; the trial court excluded those exhibits under Evid.R. 408 and granted summary judgment.
  • The Ninth District held the trial court abused its discretion in excluding Exhibits 6 & 7 because Kane offered them to impeach defendants’ stated reason (not to prove liability via settlement), and remanded for reconsideration of summary judgment with those exhibits considered.
  • The court affirmed the trial court’s striking of the jury demand, finding the waiver broad, conspicuous, and knowingly entered under the circumstances.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Admissibility of Exhibits 6 & 7 (separation agreements) at summary judgment Exhibits undermine defendant’s RIF explanation and impeach credibility; should be considered Exhibits inadmissible under Evid.R. 408 as settlement-related Court: Exclusion was abuse of discretion; exhibits are admissible to impeach and were prejudicially omitted; reversed on this point
FMLA interference (failure to restore) Kane: She was not restored to her original position; termination was pretextual Defendants: Position eliminated in a bona fide RIF; Kane not entitled to reinstatement Court: Summary judgment vacated as to interference to permit trial court to reconsider with exhibits; remanded
FMLA retaliation Kane: Terminated on first day back — temporal proximity supports causation; termination pretextual Defendants: No causal connection; termination due to RIF; even if prima facie, termination legitimate and non‑pretextual Court: Summary judgment vacated to the extent the trial court failed to consider the excluded exhibits; remanded for reconsideration
Jury-trial waiver in employment agreement Kane: Waiver does not expressly cover discrimination claims and was not knowingly/voluntarily given Defendants: Waiver broadly covers litigation arising out of the agreement and was conspicuous and knowingly accepted Court: Waiver valid and enforceable; striking jury demand affirmed

Key Cases Cited

  • Diar v. Roe, 120 Ohio St.3d 460 (Ohio 2008) (standard for reviewing evidentiary rulings; abuse of discretion and material prejudice)
  • Ohio Consumers’ Counsel v. Pub. Util. Comm., 111 Ohio St.3d 300 (Ohio 2006) (Evid.R. 408 does not bar settlement evidence when used for purposes other than proving liability)
  • Cassidy v. Glossip, 12 Ohio St.2d 17 (Ohio 1967) (parties may waive jury trial rights so long as waiver is knowing and voluntary)
Read the full case

Case Details

Case Name: Kane v. Inpatient Med. Servs., Inc.
Court Name: Ohio Court of Appeals
Date Published: May 22, 2019
Citations: 2019 Ohio 1975; 29087
Docket Number: 29087
Court Abbreviation: Ohio Ct. App.
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