Fifth Circuit Court Reverses Summary Judgment Decision in Employer vs. Employee Suit, Chief Judge Disagrees with Majority

Fifth Circuit Employer vs Employee

Timothy J. Nelson worked as an insurance adjuster for L.A. Public Insurance Adjusters, Inc. (LAPIA). The business relationship between employer and employee quickly soured and LAPIA terminated Nelson and filed suit against him for disparaging comments made by Nelson to former clients. Nelson countersued, claiming that LAPIA owed him commissions. The same day Nelson filed the counterclaim, he removed the case to the United States District Court for the Southern District of Texas. Although LAPIA failed to answer the countersuit until two years later in 2019, the district court ruled summary judgment in the company's favor. Nelson appealed the decision. The Fifth Circuit Court agreed with Nelson and reversed the district court's decision. However, Chief Judge Priscilla R. Owen dissented this reversal. Read more here.