ARTIFICIAL INTELLIGENCE IS NOT USED, IN WHOLE OR IN PART, IN THE SUMMARIES OF JUDICIAL AND QUASI-JUDICIAL DECISIONS PREPARED BY NYPPL

January 07, 2018

Independent contractor not an “employee” within the meaning of Title VII


Independent contractor not an “employee” within the meaning of Title VII
Isom v Valey Forge Insurance Co., USCA, 5th Circuit, No. 17-60014
Source: Selected reports posted by WK Workday

The full summary of this decision by Lorene D. Park, J.D. is posted on the Internet at:
http://www.employmentlawdaily.com/index.php/news/title-vii-plaintiff-not-employee-under-liability-policy-so-4m-settlement-not-covered/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CCH-Workday+%28WK+WorkDay%29

A “contract employee” physician who worked as an anesthesiologist claimed a surgeon and the medical practice of which he was CEO refused to work with the physician because he is black. The EEOC’s investigation of his charge ended after the agency concluded he was an independent contractor. He filed a Title VII race discrimination suit and the defendants filed claims with their insurers under policies providing employment practices liability (EPL) coverage and Businessowners liability coverage. The insurers refused to defend or indemnify, arguing the claims were not covered by the policies. The parties settled the discrimination suit for $4 million, but instead of paying damages, the surgeon and his practice assigned the physician their right to sue the liability insurers for indemnity.

The physician filed suit alleging a breach of contract claim against the insurers for breaching their duty to defend and indemnify under the policies and a claim for breach of implied covenant of good faith and fair dealing. The insurers moved for summary judgment, arguing that the claims in the underlying suit were not covered by any policy which they issued and, because there was no breach, there could not have been a breach of implied covenant of good faith and fair dealing. The district court granted the insurer's motion for summary judgment and the Circuit Court of Appeals affirmed.

The 5th Circuit's decision is posted on the Internet at


CAUTION

Subsequent court and administrative rulings, or changes to laws, rules and regulations may have modified or clarified or vacated or reversed the decisions summarized here. Accordingly, these summaries should be Shepardized® or otherwise checked to make certain that the most recent information is being considered by the reader.
THE MATERIAL ON THIS WEBSITE IS FOR INFORMATION ONLY. AGAIN, CHANGES IN LAWS, RULES, REGULATIONS AND NEW COURT AND ADMINISTRATIVE DECISIONS MAY AFFECT THE ACCURACY OF THE INFORMATION PROVIDED IN THIS LAWBLOG. THE MATERIAL PRESENTED IS NOT LEGAL ADVICE AND THE USE OF ANY MATERIAL POSTED ON THIS WEBSITE, OR CORRESPONDENCE CONCERNING SUCH MATERIAL, DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP.
New York Public Personnel Law Blog Editor Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.
New York Public Personnel Law. Email: publications@nycap.rr.com