247 F. Supp. 3d 438
S.D.N.Y.2017Background
- Ziccarelli worked at NYU ~30 years; took FMLA leave in April 2013 for shoulder surgery and rehabilitation and returned early after alleged pressure from supervisor Cheryl Long.
- While on leave and after return, Long allegedly assigned work, pressured him to end leave, required excessive hours, and gave a negative performance review; Plaintiff later was demoted and resigned claiming constructive discharge.
- Plaintiff alleges Long accessed his NYU medical records (records accessible in NYU’s electronic database) to undermine his FMLA claims; he claims improper disclosure and related torts against NYU and individual defendants.
- Plaintiff sued under FMLA (interference and retaliation), common-law improper disclosure of medical information, negligence/gross negligence (NYU), ADA (later dropped from the proposed amendment), and NYC Human Rights Law (not contested here).
- Defendants moved to dismiss: individual defendants Beale, Mherabi, and Bushman argued they were not “employers” under the FMLA and challenged improper-disclosure/tort allegations; NYU argued WCL preclusion and failure to plead disclosure.
- Court: dismissed Counts I & II as to Beale, Mherabi, and Bushman for failure to plead they acted as employers under the FMLA; dismissed Count III (improper disclosure) as to all defendants based on insufficient allegations that any individual disclosed records or acted within scope; denied dismissal of negligence/gross negligence (Counts IV–V) and allowed limited leave to amend (but denied the proposed amendment as futile unless additional factual detail added).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Beale, Mherabi, Bushman are "employers" under FMLA (individual liability for Counts I & II) | These individuals had supervisory/management authority and were aware of or condoned Long’s conduct; should be liable as employers | They lacked the requisite control over hiring/firing, schedules, pay, and FMLA rights (economic reality test) | Dismissed as to Beale, Mherabi, Bushman — plaintiff failed to plead factual allegations showing control over FMLA rights; may amend with additional facts |
| FMLA interference & retaliation (general against NYU/Long) | NYU/Long pressured return, assigned work on leave, retaliated with negative review/demotion/constructive discharge | Defendants did not move to dismiss NYU on Count I; individuals lack employer status; other factual defenses reserved | Court found plaintiff plausibly pleaded interference/retaliation against NYU/Long (claims survive as to them); individual defendants dismissed for lack of factual support |
| Improper access/disclosure of medical records (Count III) | Long accessed confidential records; NYU failed to prevent unauthorized access; individual and corporate liability for disclosure and inadequate safeguards | Defendants argued plaintiff failed to allege an actual improper disclosure by any individual and that tort claims may be WCL-precluded | Count III dismissed as pleaded: no allegation any Individual disclosed records; Long’s access alone without alleged disclosure insufficient to hold NYU vicariously liable on pleaded facts; plaintiff may amend with factual detail |
| Workers’ Compensation Law (WCL) preclusion of tort claims (Counts III–V) | Plaintiff’s injuries arose from his status as an NYU patient (services available to public), not from employment, so not WCL-precluded | Defendants argued injuries arose out of employment/fellow-employee rule so WCL exclusive remedy applies | WCL does not bar improper-disclosure and negligence claims here because medical services were public and injuries occurred in patient role; Counts IV and V survive against NYU |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (pleading must be plausible)
- Ashcroft v. Iqbal, 556 U.S. 662 (legal conclusions not entitled to assumption of truth)
- Graziadio v. Culinary Inst. of America, 817 F.3d 415 (2d Cir.) (economic reality test for individual FMLA employer)
- Doe v. Guthrie Clinic, Ltd., 22 N.Y.3d 480 (N.Y.) (medical corporation liability and scope-of-employment limits on disclosure claims)
- Lemon v. N.Y.C. Transit Auth., 72 N.Y.2d 324 (N.Y.) (WCL nexus analysis; mere employee status insufficient for exclusivity)
- Herman v. RSR Sec. Servs. Ltd., 172 F.3d 132 (2d Cir.) (factors for economic reality/employer status)