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Nino v. Jewelry Exchange, Inc.

Citations: 50 V.I. 929; 2008 WL 5272520; 2008 U.S. Dist. LEXIS 101831Docket: Civil No. 2006-39

Court: District Court, Virgin Islands; December 15, 2008; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, a former employee, brought a complaint against his former employer and a managerial employee, alleging non-payment of overtime and discrimination based on sexual orientation and ethnicity. The central legal issue pertains to a claim of intentional infliction of emotional distress against the manager, who allegedly subjected the plaintiff to a continuous pattern of harassment. The defendants filed a motion to dismiss under Rule 12(b)(6), arguing the conduct was not sufficiently outrageous to support the claim. The court, led by Chief Judge Gómez, applied the standard requiring all allegations to be viewed in the light most favorable to the plaintiff and determined that the harassment described could be deemed extreme by a jury. The court also considered the potential liability of the employer under the doctrine of 'alter ego,' where the manager's conduct might be attributable to the corporation. Additionally, the court addressed the applicability of Virgin Islands Code Title 13, Section 344(b), determining it does not shield the manager from tort claims. Consequently, the motion to dismiss was denied, allowing the case to proceed to further litigation.

Legal Issues Addressed

Corporate Officer Liability under Virgin Islands Code Title 13, Section 344(b)

Application: The court found that this statutory provision does not bar claims against an officer for personal torts such as intentional infliction of emotional distress.

Reasoning: However, since Nino alleges that Tarapani personally committed the tort and has sued him directly, Section 344 does not preclude this claim.

Intentional Infliction of Emotional Distress in Employment Context

Application: The court acknowledged that extreme and outrageous conduct could arise from a continuous pattern of intolerable behavior or a combination of harassment and retaliation in a workplace setting.

Reasoning: The court noted that while it is rare to find such conduct in employment cases, a continuous pattern of intolerable behavior or instances of sexual harassment combined with retaliation could meet this standard.

Liability of Employers for Acts of Supervisory Employees

Application: The court considered the potential for employer liability where an employee's extreme conduct is attributable to the employer, provided the employee acts as an 'alter ego' of the corporation.

Reasoning: For Diamonds as an employer, Virgin Islands law allows for claims of intentional infliction of emotional distress against an entity based on the actions of an employee if that employee is considered the 'alter ego' of the corporation, making the individual’s actions attributable to the employer.

Standard for Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6)

Application: The court examined the allegations in the light most favorable to the plaintiff and determined that a complaint should only be dismissed if no factual basis could support the claim.

Reasoning: In addressing the motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the court emphasized that all allegations must be viewed favorably to the plaintiff, and a complaint should only be dismissed if no facts could support the claim.