Weisman v. New Jersey Department of Human Services
982 F. Supp. 2d 386
D.N.J.2013Background
- Weisman, a registered nurse at Ancora Psychiatric Hospital, alleged retaliation for complaints about working conditions.
- Weisman went on leave in 2008-2009; after fitness-for-duty evaluation, she did not return due to unfitness to work.
- November 20, 2009, Long notified the NJ Board of Nursing of suspensions/discipline; March 30, 2010, another related notice issued.
- April 16, 2010, settlement agreement changed Weisman's termination from 'Removal' to 'resignation in good standing' in exchange for a broad release; signatures included unions, DHS, and mediators.
- Weisman later secured a Kennedy nursing position, which Kennedy rescinded after background checks; background check described as a 'voluntary resignation' by Ancora.
- Weisman and her husband filed suit March 31, 2011; at issue were multiple counts and the breach-of-contract claim related to the settlement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement released pre-April 16, 2010 claims. | Weisman argues release should bar all pre-settlement claims. | Defendants contend the release is the operative barrier to suit. | Yes; release forecloses remaining claims except as limited by terms. |
| Whether the designation 'resignation in good standing' breached the contract materiality. | Weisman claims the error persisted seven months and altered obligations. | Defendants maintained no material breach; only a clerical error corrected later. | No material breach; corrected designation satisfied contract. |
| Whether the letters to the New Jersey Board of Nursing were required to be revoked under the settlement. | Weisman believed letters would be withdrawn or amended to clear her record. | Settlement terms did not mandate withdrawal of letters; disclosure under statute was proper. | Not required by the settlement; compliance with statute and disclosure persisted. |
| Whether rescission based on unilateral mistake is available here. | Weisman alleges unilateral mistake entitled to rescission. | Mistake negated by receipt of notice and signing; no rescission due to negligence. | Unilateral-mistake rescission not warranted. |
Key Cases Cited
- Magnet Res., Inc. v. Summit MRI, Inc., 318 N.J. Super. 275 (1998) (material breach governs continued performance under contract)
- Mortellite v. Novartis Crop Protection, Inc., 460 F.3d 483 (3d Cir. 2006) (NJ contract law governs settlement-term disputes)
- Haledon v. N. Haledon, 358 N.J. Super. 289 (2003) (consideration and meeting of the minds required for contract formation)
- Rudbart v. N. Jersey Dist. Water Supply Comm’n, 127 N.J. 344 (1992) (signing contracts creates a presumption of understanding terms)
- Gennari v. Weichert Realtors, 148 N.J. 582 (1997) (predicts reasonable reliance and material misrepresentation standards)
- Port Liberte Homeowners Ass’n v. Sordoni Constr. Co., 393 N.J. Super. 492 (2007) (truthful disclosure obligations among health entities under reporting statute)