Alan R. Forsha v. Solder Removal Company Roe Corporation

24 F.3d 246, 1994 U.S. App. LEXIS 19003, 1994 WL 161649
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 2, 1994
Docket92-56010
StatusPublished

This text of 24 F.3d 246 (Alan R. Forsha v. Solder Removal Company Roe Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Alan R. Forsha v. Solder Removal Company Roe Corporation, 24 F.3d 246, 1994 U.S. App. LEXIS 19003, 1994 WL 161649 (9th Cir. 1994).

Opinion

24 F.3d 246
NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel.

Alan R. FORSHA, Plaintiff-Appellant,
v.
SOLDER REMOVAL COMPANY; Roe Corporation, Defendants-Appellees.

No. 92-56010.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted Feb. 4, 1994.
Decided May 2, 1994.

Before: D.W. NELSON, REINHARDT, and BRUNETTI, Circuit Judges.

MEMORANDUM*

Plaintiff/Appellant Alan Forsha ("Forsha") appeals from the orders of the district court deeming certain matters to be without substantial controversy and denying him leave to file an amended complaint. For the reasons stated herein, we affirm.

FACTS AND PRIOR PROCEEDINGS

In January 1989, Solder Removal Company's ("Solder") primary stockholder and Chief Executive Officer, Jesse Hood ("Hood"), entered into an oral employment agreement with Forsha. On condition that Forsha immediately leave his current employment and begin work for Solder as Vice President in charge of manufacturing operations, Hood orally promised to pay Forsha a starting salary of $70,000 per year, an annual bonus, participation in a profit-sharing or pension plan, and a stock ownership interest in Solder. Forsha informed Hood at this time that he was interested in long term employment, and Hood allegedly agreed that Forsha's employment "was permanent for so long as [Forsha] continued to perform his duties satisfactorily." Hood also agreed, on behalf of Solder, that if Forsha invented anything Solder would pay him royalties according to terms to be negotiated on an individual basis.

Forsha left his previous employment and began working for Solder on February 1, 1989. On March 30, 1990 Solder paid Forsha $13,384, a portion of the $58,190 bonus that it owed him. Solder allegedly agreed to pay the balance as deferred compensation, including payment in the form of future stock acquisitions. In July 1990, Forsha received a salary increase to $80,000 per year. During his employment with Solder, Forsha invented various items, the rights to which he assigned to Solder in return for promises of royalty payments.

In about June 1990, Hood decided to sell Solder and soon thereafter commenced negotiations with a prospective buyer. In August 1990, Forsha became temporarily disabled and filed a claim with the Workers' Compensation Appeals Board. In November 1990, Solder asked Forsha to sign a written Employment Agreement which characterized Forsha's employment with Solder as "at-will" and required Forsha to relinquish all rights to any of his inventions or to the royalty agreements previously concluded between Forsha and Solder. Forsha refused to sign this agreement. On November 13, 1990, Solder terminated Forsha's employment.

On December 14, 1990, Forsha filed the instant action against Solder alleging, inter alia, breach of contract and wrongful termination. Forsha alleged that Solder breached its contract not to terminate him except for cause and that Solder violated public policy by discharging him for refusing to dismiss his workers' compensation claim. The case was removed to federal court on the basis of a federal pension claim. The district court held a status conference and established a discovery cut-off date of November 29, 1991, set a pretrial conference date for January 6, 1992, and set a trial date for February 11, 1992.

On December 31, 1991, the district court granted Solder's motion for an order deeming certain matters to be without substantial controversy. The court stated that Forsha could not maintain a claim for breach of contract because his employment agreement did not state that he would be terminated only for cause. The court also found that Forsha could not maintain a wrongful termination claim for discharge motivated by his refusal to withdraw a workers' compensation claim, because his exclusive remedy for such a discharge is a proceeding before the California Workers' Compensation Appeals Board.

In his opposition to the motion, Forsha argued that Solder had breached its implied contract not to terminate him except for good cause and that his termination was wrongful because it violated California Labor Code Secs. 2870 and 2871.1 The district court rejected both of these arguments, stating that Forsha had not alleged either an implied contract theory of recovery or a Labor Code Sec. 2870-2871 theory of recovery in his complaint and that his attempt to raise them was now untimely. Additionally, the district court held that Forsha had neither established the prerequisites for an implied contract theory nor submitted evidence showing that any of his inventions fell within the scope of Labor Code Secs. 2870 and 2871.

The district court continued the pretrial conference date from January 6 to January 27, 1992. On January 10, 1992, Solder filed a memorandum of contentions of fact and law, a witness list, and an exhibit list. On January 16, 1992, Solder submitted a proposed pretrial conference order.

On January 27, Forsha moved for leave to file a first amended complaint asserting, inter alia, breach of contract and wrongful termination of employment (in violation of Labor Code Secs. 2870 and 2871). The district denied Forsha's motion on February 20, 1992, ruling that: (1) Forsha had unduly delayed filing his proposed amended complaint and that Forsha should have known of the claims at the time he filed his original complaint; (2) allowing the amendment would cause substantial prejudice to Solder, since it would have no opportunity to conduct discovery regarding the newly asserted claims and would have to substantially revise its pretrial documents; and (3) allowing the amendment would be futile.

The district court entered a pretrial conference order on February 3, 1992, specifying the legal and factual issues to be tried. The court continued the trial to June 9, 1992 because of a pending criminal trial.

On February 7, 1992 Forsha filed a second motion for leave to file an amended complaint. This motion sought to raise the same claims as the January 27th motion. The district court again denied the motion, finding that allowing the amendment after discovery cut-off would prejudice Solder. On June 9 and 10, 1992, the parties tried the remaining issues before the district court.

Forsha appeals the district court's orders contending that his original complaint pled a breach of implied contract theory and that the district court abused its discretion in denying Forsha leave to file an amended complaint.

STANDARD OF REVIEW

A motion for an order deeming issues to be without substantial controversy is a summary judgment motion under Federal Rule of Civil Procedure 56(d). We review the district court's grant of summary adjudication de novo, Jones v. Union Pacific R.R., 968 F.2d 937, 940 (9th Cir.1992); T.W. Elec. Serv., Inc. v. Pacific Elec.

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