Big WeekAll sorts of interesting bits this week. Probably the lead story for the purpose of this blog's agenda is the apparently imminent passage of class action reform legislation. There will be a deluge of commentary on this one. You can read a short article about it
here. You can also read the bill (the Class Action Fairness Act of 2005, S.5) itself
here.
The First Circuit Court of Appeals also issued some interesting decisions this week.
The Court held in
In re Slater Health Center, Inc., Docket No. 04-1439 (1st Cir. February 16, 2005) that a reduction of claims for Medicare reimbursement based upon prior overpayments was a valid "recoupment" and did not violate the automatic stay in bankruptcy. A recoupment differs from a set off in that a recoupment is a reduction of a debt based upon an obligation flowing in the other direction that "arises out of the same transaction." A set off is a reduction of a debt based upon an unrelated debt in the other direction. Taking a set off violates the automatic stay.
In
Noviello v. City of Boston, Docket No. 04-1719 (Ist Cir. February 16, 2005), the Court resolved two issues of first impression in the First Circuit relating to sexual harassment and retaliation claims. Plaintiff, a City of Boston parking enforcement official, asserted a hostile work environment claim against the City. The first question dealt with the timeliness of plaintiff's claims and whether she could rely upon the "continuing violation" doctrine to salvage her claims. The Court distinguished sexual harassment from retaliatory harassment as separate and distinct harms based upon conduct that derives from a different underlying animus. Sexual harassment is gender based. Retaliatory harassment is based upon "a discrete intention to punish a person who has rocked the boat." As a result, the Court held that plaintiff's state-law claim for sexual harassment was time barred (but that her federal claims and her state-law claim for retaliation survived).
The Court then considered whether "the creation and perpetuation of a hostile work environment itself can constitute a retaliatory adverse employment action" to generate a cognizable retaliation claim under the state and federal statutes. The Court considered the federal and state statutes separately and concluded that the plaintiff had a cognizable claim under both.
The Court analyzed the facts presented and concluded that plaintiffs' retaliatory harassment claims should have survived summary judgment, but that her sexual harassment claims did not.