The Interstate Medical Licensure Compact Commission (IMLCC), an interstate agency formed by agreement among multiple states, sued Robert Bowling, its former director of information technology. The Commission alleged that Bowling breached confidentiality provisions and contractual obligations after his employment ended. Bowling countered that the Commission lacked the legal authority to sue him because it was not an independent legal entity and was not properly authorized to bring suit under federal diversity jurisdiction.
The IMLCC hired Bowling in 2020, and both parties executed an employment agreement that included non-disclosure and non-disparagement clauses. In 2021, the IMLCC terminated Bowling’s employment. He later sent messages and documents to third parties that the Commission alleged violated confidentiality and non-disparagement terms. The IMLCC filed suit for breach of contract, breach of the implied covenant of good faith and fair dealing, and conversion.
Bowling moved to dismiss, arguing that the IMLCC lacked standing and was not a separate legal entity capable of bringing the suit. The district court denied the motion, finding that the IMLCC qualified as an independent interstate compact commission with legal personhood. Bowling appealed.
Tenth Circuit upheld the Commission’s legal status and jurisdiction
The Tenth Circuit examined whether the IMLCC was a legally distinct body capable of initiating litigation. The court reviewed the Compact’s language and structure, comparing it to other interstate compacts historically recognized by federal courts. It found that the IMLCC had a governing structure, fiscal autonomy, and powers delegated by member states, including the authority to sue and be sued.
The court rejected Bowling’s argument that the Commission needed additional state-by-state enabling legislation to possess legal personhood. It also affirmed that the Commission’s citizenship for diversity jurisdiction purposes derived from its member states.
Final outcome
The Tenth Circuit affirmed the district court’s denial of Bowling’s motion to dismiss. It held that the IMLCC had standing and authority to bring its breach of contract claims in federal court.
Help with breach of contract and confidentiality disputes
If you’re involved in a dispute over breach of contract, confidentiality, or post-employment obligations, Whitcomb, Selinsky PC handles cases involving employment contracts, non-disclosure terms, and commercial litigation. Reach out to schedule a consultation and learn how our team can assist with your case.
Joe Whitcomb
