861 F. Supp. 2d 692
D.S.C.2012Background
- Sellers sues South Carolina Autism Society, Inc. alleging race discrimination and retaliation related to her employment.
- Seven causes of action are pleaded against Employer, Kim Thomas, and Craig Stoxen, including § 1981, intentional infliction of emotional distress, breach of contract, retaliatory discharge, defamation, tortious interference, and negligence.
- Defendants move to dismiss all claims; Magistrate Judge recommended dismissal of all, or all but § 1981, with remand of state claims.
- Court analyzes whether at-will employment can support a § 1981 claim under Fourth Circuit and other circuits; concludes at-will is contractual and may support § 1981.
- Breach of contract claim is dismissed without prejudice as to Employer and with prejudice as to individual defendants; other state-law claims (outrage, negligence, retaliatory discharge, defamation, tortious interference) are dismissed with prejudice or without prejudice as noted.
- Sellers may amend within 14 days if dismissal is without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether at-will employment supports § 1981 claim | Sellers: at-will status can be contractual for § 1981. | Spriggs not SC-specific; at-will not contractual under SC law. | At-will employment is contractual and may support § 1981. |
| Whether § 1981 claim and breach of contract are viable together | Sellers asserts contractual interest supports § 1981 and breach of contract. | No proper contract pleaded; claims should be dismissed. | § 1981 viable; breach claim dismissed without prejudice as to Employer. |
| Whether outrage and negligence claims survive | Not applicable; but seeks relief for both claims. | Claims deficient under pleading standards. | Both outrage and negligence dismissed with prejudice. |
| Whether retaliatory discharge claim remains under Ludwick | Discharge violated public policy and federal statutes. | Ludwick applies only in narrow circumstances where no other remedy exists. | Dismissed with prejudice; federal remedies preclude Ludwick claim. |
| Whether defamation and tortious interference survive | Boilerplate pleading; seeks relief for comments and interference. | Pleading deficiencies require dismissal. | Dismissed without prejudice; leave to amend to cure deficiencies. |
Key Cases Cited
- Spriggs v. Diamond Auto Glass, 165 F.3d 1015 (4th Cir.1999) (at-will employment may be contractual for § 1981)
- McLean v. Patten Communities, Inc., 332 F.3d 714 (4th Cir.2003) (§ 1981 rights include making, performance, and termination of contracts)
- Turner v. Arkansas Ins. Dept., 297 F.3d 751 (8th Cir.2002) (at-will contracts can support § 1981 claims)
- Perry v. Woodward, 199 F.3d 1126 (10th Cir.1999) (at-will employment can be contractual for § 1981)