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Old Elk v. Healthy Mothers

6/19/2003

Submitted on Briefs: July 2, 2002


Appellants John Old Elk, June Goodleft and Dana Zimmer (the Appellants) filed a complaint against Respondent Healthy Mothers, Healthy Babies, Inc. (HMHB), in the First Judicial District Court, Lewis and Clark County. HMHB subsequently filed a motion for summary judgment. The District Court granted HMHB's motion, and the Appellants appeal. We affirm the judgment of the District Court.


We restate the issues on appeal as follows:


1. Did the District Court err in granting HMHB's motion for summary judgment?


2. Did HMHB violate the Separation and Release Agreements by moving for summary judgment?


3. Are the Appellants entitled to recover attorneys' fees and costs pursuant to ยงยง 39-3-214, MCA (1999)?


BACKGROUND


The Appellants were terminated by their employer, HMHB, in January of 1994. On February 22, 1994, June Goodleft entered into a Separation and Release Agreement with HMHB. John Old Elk and Dana Zimmer then entered into Separation and Release Agreements with HMHB on March 10, 1994, and March 16, 1994, respectively. The Separation and Release agreements (hereinafter the Agreements) all contained the following provisions:


THREE: The Employee agrees to release HMHB, any related entities, and the employees, directors and employee benefit programs of any of them, and their agents and insurers, from all rights or claims the Employee may have, related to the Employee's employment with HMHB or the termination of that employment. This also includes a release of any rights or claims the Employee may have under the Age Discrimination in Employment Act, which prohibits discrimination in employment; Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race, color, national origin, religion or sex, the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; or any other federal, state or local laws or regulations prohibiting employment discrimination. This also includes a release by the Employee of any claims for wrongful discharge, or any other state law claims.


However, by signing this release the Employee does not give up [his or] her rights, if any, to unpaid salary, pension, retiree, health or similar benefits under HMHB's standard compensation and benefits program applicable to the Employee or under the Separation Plan, with one exception: By signing this release the Employee does give up [his or] her rights to any benefit or amount claimed by [him or] her if the Employee's claim or position was rejected or denied before the Employee signed this agreement.


FOUR: The Employee promises never to file a lawsuit asserting any claims that are released in Section Three.


Despite the above provisions, the Appellants filed a pro se complaint against HMHB, its employees and directors, on January 3, 1995. The Appellants then filed an amended pro se complaint on April 27, 1995. On August 21, 1996, the District Court issued an order, in which it concluded that the Appellants' original pro se complaint and amended pro se complaint failed to comply with Rule 8(a), M.R.Civ.P., which requires pleadings to contain "a short and plain statement of the claim showing that the pleader is entitled to relief." Consequently, the District Court directed the Appellants' newly-hired counsel to file a second amended complaint that complied with Rule 8(a), M.R.Civ.P.


The Appellants filed their second amended complaint on October 1, 1996. The Appellants' second amended complaint contained the following claims: (1) wrongful discharge; (2) breach of contract; (3) breach of the

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