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Hearsay, speculation insufficient to show material breach of separation agreement

October 2023 employment law letter
Authors: 

Cecilia A. Heberling, Axley Attorneys

A former employee of Browns Living, LLC, filed a federal lawsuit in Wisconsin, alleging the assisted living management company unlawfully terminated her employment because of race discrimination in violation of Title VII of the Civil Rights Act of 1964 and disability discrimination in violation of the Americans with Disabilities Act (ADA). Although she signed a separation agreement and release of claims, she argued she wasn’t barred from filing her claims because the company had materially breached the agreement, making it null and void. The court disagreed, granting the employer’s request for summary judgment (dismissal in its favor without a trial).

Facts

Kelly Armstrong, a white female, began working for Browns as a director for its Milwaukee region in January 2020. She was responsible for managing six assisted living facilities in the Milwaukee area, hiring and supervising care managers for each facility, and traveling to them on a routine basis. She reported directly to the director of operations.

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