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Case Law Alerts

Eastern District of Pennsylvania Grants Summary Judgment for Employer: Termination for Use of Racial Slur Upheld Under Title VII and PHRA

Murray v. Verizon Wireless, LLC, 2025 WL 2848494 (E.D. Pa. Oct. 8, 2025)

January 1, 2026

by Mary N. Yurick

In his lawsuit against his employer, the plaintiff, an African American male, alleged violations of the Pennsylvania Human Relations Act (PHRA) and 42 U.S.C. § 2000(e)(2) (Title VII), seemingly under the theories of race/color discrimination and retaliation, and for wrongful termination. The action was originally filed in the Philadelphia Court of Common Pleas, but the employer timely removed the case to federal court in the Eastern District of Pennsylvania.

The plaintiff had what the court described as a frustrating but innocuous conversation with a co-worker where the plaintiff commented under his breath, using the “n-word” twice. The employee he had been talking with did not use the “n-word.” Another employee reported the plaintiff to human resources.

The employer conducted an investigation, which included multiple interviews, where the plaintiff admitted that he used the “n-word” twice at work. At the conclusion of the investigation, the employer terminated the plaintiff’s employment. The reason given for his termination was his use of the “n-word” at work.

While the plaintiff seemed to argue that being punished for using the “n-word” trampled his Constitutional right to free speech as the basis for his wrongful termination claim, the court noted that there is no Constitutional right to be had with regard to a private employer unless the employer was effectively acting on behalf of the state. The court also rejected the plaintiff’s attempt to “shoehorn” a disparate impact theory into the case for the first time at summary judgment.

The plaintiff also attempted to claim that he complained to the employer about discrimination on the basis of his own protected class at a meeting requested by the employer, but the court found that this did not rise to the level of protected activity because it was at the behest of the employer, not a response to a complaint by the plaintiff. Further, the court determined from the record that the plaintiff’s complaint at the meeting was “the very definition of a ‘general complaint of unfair treatment’ which cannot support a claim for retaliation.”

The court concluded that even if the plaintiff had established a prima facie case under Title VII and/or the PHRA, which he did not, the court would still have found that the employer had a legitimate, non-discriminatory reason for terminating the plaintiff’s employment—namely, the plaintiff violated a neutrally applicable policy prohibiting the use of certain language deemed inappropriate for the workplace. The court emphasized that the “vast majority” of other former employees who did exactly what the plaintiff had done were punished the same way he was, and the only exceptions were of the same protected class as the plaintiff.

Ultimately, the court entered summary judgment in favor of the employer on all counts. The court reiterated that Title VII and the PHRA do not exist to remedy “harshness” in the workplace; rather, their purpose is limited in scope and “designed only to ensure employers are not discriminating in their employment decisions.”

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.