Nazario-Lugo v. Caribevision Holdings, Inc.
670 F.3d 109
1st Cir.2012Background
- Nazario-Lugo and Caribevisión entered a five-year Puerto Rico employment contract with Article 3 compensation and Article 4 termination provisions.
- Article 4.05 required Nazario to sign a general release before any termination-related payment, except death or as required by law.
- Nazario alleged breaches including unpaid commissions and expenses and sought termination-related pay; she contemplated litigation to enforce rights.
- Caribevisión filed a Puerto Rico declaratory judgment action seeking to enforce the 4.05 release condition and to compel Nazario to sign a release.
- Nazario filed a federal breach-of-contract action in diversity, seeking Article 3 and Article 4 payments, and costs/fees.
- District court dismissed the federal action without prejudice under Colorado River abstention while the Puerto Rico case proceeded; Commonwealth court later held there was no requirement to sign a release for Article 3 payments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court abused its discretion under Colorado River abstention. | Nazario | Caribevisión | No; abstention inappropriate; reverse and remand. |
| Whether piecemeal litigation favors abstention here. | Nazario | Caribevisión | No; no exceptional basis to defer federal jurisdiction. |
| Whether the progress of parallel state proceedings supported abstention. | Nazario | Caribevisión | No; progress neutral, not decisive. |
| Whether the source-of-law factor properly favored abstention since Puerto Rico law governs the contract. | Nazario | Caribevisión | No; no weight given to source-of-law here. |
| Whether the res factor supported abstention given the state court’s handling of funds. | Nazario | Caribevisión | No; no real res; factor should not weigh in favor. |
Key Cases Cited
- Colorado River Water Conservation Dist. v. United States, 424 U.S. 800 (1976) (abstention doctrine; rare exceptional circumstances required)
- Moses H. Cone Mem'l Hosp. v. Mercury Const. Corp., 460 U.S. 1 (1983) (non-exhaustive factors for exceptional circumstances; deference limits)
- Jiménez v. Rodríguez-Pagan, 597 F.3d 18 (1st Cir. 2010) (categories of abstention; weighs factors with discretion)
- Currie v. Grp. Ins. Comm'n, 290 F.3d 1 (1st Cir. 2002) (non-litmus, discretionary balancing of factors)
- Villa Marina Yacht Sales, Inc. v. Hatteras Yachts, 915 F.2d 7 (1st Cir. 1990) (vexatious or contrived nature of suit; abstention context)
- Elmendorf Grafica, Inc. v. D.S. Am. (East), Inc., 48 F.3d 46 (1st Cir. 1995) (limits on district court's discretion in applying Colorado River)