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Justia Daily Opinion Summaries

US Court of Appeals for the Eighth Circuit
February 5, 2021

Table of Contents

Starkey v. Amber Enterprises, Inc.

Civil Rights, Constitutional Law, Labor & Employment Law

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US Court of Appeals for the Eighth Circuit Opinions

Starkey v. Amber Enterprises, Inc.

Dockets: 19-3688, 19-3757

Opinion Date: February 4, 2021

Judge: Erickson

Areas of Law: Civil Rights, Constitutional Law, Labor & Employment Law

Plaintiff filed suit in state court against Amber Pharmacy and others, alleging claims of discrimination, retaliation, demotion and a hostile work environment. After removal to federal court, the district court granted summary judgment in favor of defendants on all but a portion of plaintiff's Nebraska Fair Employment Practice Act (NFEPA) claim. In regard to plaintiff's claim of age discrimination in violation of the Age Discrimination in Employment Act of 1967 (ADEA), the Eighth Circuit assumed that plaintiff established a prima facie case, but that defendants articulated a legitimate, nondiscriminatory reason for eliminating plaintiff's position and demoting her: the need to restructure the financial department to put a stronger emphasis on accounting and more effectively implement the new operating system. The court concluded that plaintiff's evidence was insufficient and did not satisfy her burden of showing age was a motivating factor in defendants' decision to restructure. The court also concluded that defendants are entitled to summary judgment on plaintiff's federal claims under Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the Employee Retirement Income Security Act (ERISA). Given the similarities between the federal and state ADEA claim, the court concluded that it was appropriate for the district court to exercise supplemental jurisdiction and grant summary judgment on the Nebraska ADEA claim. Because plaintiff's claim for intentional infliction of emotional distress was neither novel nor complex, the exercise of supplemental jurisdiction would not offend principles of comity and fairness. The court concluded that the district court erred in splitting plaintiff's claim that her employer retaliated against her for reporting Medicaid and HIPPA issues and for filing charges with the Nebraska Equal Opportunity Commission. The court vacated the district court's order on the NFEPA claim with instructions to remand the claim in its entirety to state court so that Nebraska courts may resolve the novel questions of state law.

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