Robert A. Mariotti, Sr. v. Mariotti Bldg Products Case Brief

Court of Appeals for the Third Circuit2013Docket #1089995
714 F.3d 761 118 Fair Empl. Prac. Cas. (BNA) 224 2013 WL 1789440 2013 U.S. App. LEXIS 8610 96 Empl. Prac. Dec. (CCH) 44,816 Employment Law Corporations Civil Procedure

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Case Brief Summary & Legal Analysis

3 min read

tl;dr: A shareholder-director in a family-owned corporation sued for religious discrimination under Title VII after being fired. The court held he was an owner/employer, not an “employee” protected by the statute, because he possessed significant control and authority derived from his ownership stake.

Legal Significance: Extends the Supreme Court’s Clackamas test for determining “employee” status beyond the ADA and professional corporations, applying it to Title VII claims involving shareholders of closely held corporations and emphasizing the source of an individual’s authority as a key factor.

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiff Robert Mariotti, Sr. was a co-founder, shareholder, vice-president, secretary, and director of Mariotti Building Products, Inc. (MBP), a closely held family corporation. He alleged that after a religious awakening, he was subjected to harassment by other family members who were also officers and directors. Following the death of the family patriarch, the other shareholders voted to terminate his employment, allegedly because of a eulogy he gave that referenced his faith. The termination letter stated that his benefits would cease but that his “share of any draws from the corporation” would continue. Despite his termination as an employee in January 2009, Mariotti continued to serve as a member of MBP’s board of directors until August 2009, when he was not re-elected. He filed suit alleging religious discrimination and hostile work environment under Title VII. The district court granted MBP’s motion to dismiss, concluding that Mariotti was not an “employee” under the statute.

Court Holding & Legal Precedent

Issue: Does a shareholder-director of a closely held corporation, who participates in the management and governance of the business, qualify as an “employee” entitled to protection under Title VII?

No. The court affirmed the dismissal, holding that the plaintiff was not Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo con

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Legal Issue

Does a shareholder-director of a closely held corporation, who participates in the management and governance of the business, qualify as an “employee” entitled to protection under Title VII?

Conclusion

This case solidifies the application of the *Clackamas* control test to Title Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea

Legal Rule

To determine if a shareholder-director is an "employee" under Title VII, courts Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu

Legal Analysis

The court first determined that the Supreme Court's test in *Clackamas*, although Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in vol

Flash-to-Full Case Opinions

Flash Summary

  • The Clackamas test for determining “employee” status (originally ADA) **applies to
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non

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