Bonczar v. Suburban Propane, et al.
This text of Bonczar v. Suburban Propane, et al. (Bonczar v. Suburban Propane, et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Bonczar v. Suburban Propane, et a l . CV-94-68-B 09/30/96
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE
Michael Bonczar and Jo-Ann Bonczar
v. CV-94-68-B
Suburban Propane Gas Corporation, David Fehelev, Carl Richardson, Dennis Spina, and Glen Stec
O R D E R
Michael Bonczar brought suit against his employer. Suburban
Propane Gas Corporation ("Suburban"), and his supervisors after
he was demoted. His complaint alleges (1) age discrimination,
wrongful termination, and intentional infliction of emotional
distress against all defendants; (2) defamation against
defendants Suburban, Spina, Richardson, and Stec; (3) intentional
interference with contractual relations against defendant
Feheley; and (4) breach of contract and breach of the implied
covenant of good faith and fair dealing against defendant
Suburban. In addition, Jo-Ann Bonczar asserts a claim for loss
of consortium against all defendants. The defendants have moved for summary judgment on all
claims. I grant summary judgment in favor of the individual
defendants on all claims against them and in Suburban's favor on
the claims for age discrimination, intentional infliction of
emotional distress, and defamation. Bonczar's claims for
wrongful discharge, breach of contract, and breach of the duty of
good faith and fair dealing against Suburban, and part of Jo-Ann
Bonczar's loss of consortium claim, survive as is explained
below.
I. STANDARD OF REVIEW
Summary judgment is appropriate if the record, taken in the
light most favorable to the non-moving party, shows that no
genuine issues of material fact exist and the moving party is
entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c);
Commercial Union Ins. Co. v. Walbrook Ins. Co., 7 F.3d 1047, 1050
(1st Cir. 1993). A "material fact" is one "that might affect the
outcome of the suit under the governing law," and a genuine
factual issue exists if "the evidence is such that a reasonable
jury could return a verdict for the nonmoving party." Anderson
v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).
2 Affidavits supporting or opposing a motion for summary
judgment " [must] be made on personal knowledge, [must] set forth
such facts as would be admissible in evidence, and [must] show
affirmatively that the affiant is competent to testify to the
matters stated therein." Fed. R. Civ. P. 56(e). The party
opposing consideration of an affidavit must specify the
objectionable portions and the grounds for objection. Casas
Office Machs. v. Mita Coovstar America, 42 F.3d 668, 682 (1st
Cir. 1994). I may disregard only inadmissible portions of an
affidavit. I state the background facts in accordance with the
standard of review.
II. BACKGROUND
Bonczar began working as a truck driver for defendant
Suburban Propane in 1972, and then worked his way up to a
regional manager position for Maine, New Hampshire, and Vermont
by 1989. David Feheley, the area vice president, was his
immediate supervisor. Feheley reported to Carl Richardson, a
senior vice president, who reported to Dennis Spina, president of
Suburban. Glen Stec was vice president of human resources.
One way in which Suburban's management attempted to evaluate
the company's financial health was by examining changes in its
3 ratio of customer losses to customer gains (the "loss-to-gain
ratio"). In February 1991, Feheley warned Bonczar and the other
regional managers that he expected each region to improve its
loss-to-gain ratio. Feheley followed up his warning with an
April 1991 memorandum in which he instructed his regional
managers:
Please advise your district managers of our decision regarding the management of customer removals. A district is not to perform what would eguate to a customer removal unless there is a corresponding installation to counteract the removal.
Bonczar and other regional managers interpreted this memorandum
as an instruction to falsify reports when necessary in order to
show an improving loss-to-gain ratio. As a result, Bonczar
allowed his district managers to submit false reports.
In the fall of 1991, Walt Wojewodzic, the credit and
collections manager for Bonczar's region, raised the issue of
false reports with Spina during a meeting of credit and
collections managers at Suburban's headguarters. This action
prompted Feheley to order Bonczar to fire Wojewodzic. Bonczar
refused to comply with Feheley's directive.
In February 1992, Bonczar held a series of meetings with his
district managers to address the false reports issue. During
these meetings, he informed his staff that he planned to meet
4 with Spina and request that Spina rescind Feheley's April 1991
directive. However, before Bonczar could meet with Spina,
Wojewodzic asked Spina to meet with all of the district managers
to discuss Feheley's policy. Spina held this meeting on February
19, 1992, but barred Bonczar from participating.
On February 24, 1992, Richardson called Bonczar and
suspended him. Bonczar began to suffer from extreme anxiety,
including bouts of hyperventilation, for which he sought
professional help. Stec ordered Bonczar to attend a meeting on
February 28 with him. Spina, and Richardson at the company
headquarters in Whippany, New Jersey. Bonczar was too upset to
drive, so his wife drove him to the meeting. It lasted about two
and one-half hours. Spina and Richardson criticized Bonczar
harshly for, inter alia, lacking leadership, blaming problems on
upper level management, falsifying reports, writing
unprofessional memoranda,1 and failing to complete required
evaluations of his district managers.
Several days after the February 28 meeting, Richardson and
Feheley informed Bonczar that he was no longer a regional
1 In one memorandum to his district managers, Bonczar stated, "the only difference between a brown-noser and a shit- head is depth perception." In another memorandum, he instructed his district managers to "cover thy posterior".
5 manager, but that he could continue to work for Suburban as a
District Manager for the same pay. Bonczar refused their offer,
and appealed through Suburban's Employee Appeal and Review System
("EARS"). Feheley considered and denied Bonczar's first appeal.
Suburban never considered Bonczar's second appeal because Bonczar
was unable to drive to New Jersey for another scheduled meeting.
He never returned to work.
During the same time period, Feheley and Spina made several
age-related comments. Feheley often bragged about having been
the youngest regional manager, and suggested that he was proud of
the general youth of his staff. At a meeting of the regional
managers in 1991, he referred to Bonczar, who was then forty-six,
and another manager as "old bucks." Spina told the district
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Bonczar v. Suburban Propane, et a l . CV-94-68-B 09/30/96
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE
Michael Bonczar and Jo-Ann Bonczar
v. CV-94-68-B
Suburban Propane Gas Corporation, David Fehelev, Carl Richardson, Dennis Spina, and Glen Stec
O R D E R
Michael Bonczar brought suit against his employer. Suburban
Propane Gas Corporation ("Suburban"), and his supervisors after
he was demoted. His complaint alleges (1) age discrimination,
wrongful termination, and intentional infliction of emotional
distress against all defendants; (2) defamation against
defendants Suburban, Spina, Richardson, and Stec; (3) intentional
interference with contractual relations against defendant
Feheley; and (4) breach of contract and breach of the implied
covenant of good faith and fair dealing against defendant
Suburban. In addition, Jo-Ann Bonczar asserts a claim for loss
of consortium against all defendants. The defendants have moved for summary judgment on all
claims. I grant summary judgment in favor of the individual
defendants on all claims against them and in Suburban's favor on
the claims for age discrimination, intentional infliction of
emotional distress, and defamation. Bonczar's claims for
wrongful discharge, breach of contract, and breach of the duty of
good faith and fair dealing against Suburban, and part of Jo-Ann
Bonczar's loss of consortium claim, survive as is explained
below.
I. STANDARD OF REVIEW
Summary judgment is appropriate if the record, taken in the
light most favorable to the non-moving party, shows that no
genuine issues of material fact exist and the moving party is
entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c);
Commercial Union Ins. Co. v. Walbrook Ins. Co., 7 F.3d 1047, 1050
(1st Cir. 1993). A "material fact" is one "that might affect the
outcome of the suit under the governing law," and a genuine
factual issue exists if "the evidence is such that a reasonable
jury could return a verdict for the nonmoving party." Anderson
v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).
2 Affidavits supporting or opposing a motion for summary
judgment " [must] be made on personal knowledge, [must] set forth
such facts as would be admissible in evidence, and [must] show
affirmatively that the affiant is competent to testify to the
matters stated therein." Fed. R. Civ. P. 56(e). The party
opposing consideration of an affidavit must specify the
objectionable portions and the grounds for objection. Casas
Office Machs. v. Mita Coovstar America, 42 F.3d 668, 682 (1st
Cir. 1994). I may disregard only inadmissible portions of an
affidavit. I state the background facts in accordance with the
standard of review.
II. BACKGROUND
Bonczar began working as a truck driver for defendant
Suburban Propane in 1972, and then worked his way up to a
regional manager position for Maine, New Hampshire, and Vermont
by 1989. David Feheley, the area vice president, was his
immediate supervisor. Feheley reported to Carl Richardson, a
senior vice president, who reported to Dennis Spina, president of
Suburban. Glen Stec was vice president of human resources.
One way in which Suburban's management attempted to evaluate
the company's financial health was by examining changes in its
3 ratio of customer losses to customer gains (the "loss-to-gain
ratio"). In February 1991, Feheley warned Bonczar and the other
regional managers that he expected each region to improve its
loss-to-gain ratio. Feheley followed up his warning with an
April 1991 memorandum in which he instructed his regional
managers:
Please advise your district managers of our decision regarding the management of customer removals. A district is not to perform what would eguate to a customer removal unless there is a corresponding installation to counteract the removal.
Bonczar and other regional managers interpreted this memorandum
as an instruction to falsify reports when necessary in order to
show an improving loss-to-gain ratio. As a result, Bonczar
allowed his district managers to submit false reports.
In the fall of 1991, Walt Wojewodzic, the credit and
collections manager for Bonczar's region, raised the issue of
false reports with Spina during a meeting of credit and
collections managers at Suburban's headguarters. This action
prompted Feheley to order Bonczar to fire Wojewodzic. Bonczar
refused to comply with Feheley's directive.
In February 1992, Bonczar held a series of meetings with his
district managers to address the false reports issue. During
these meetings, he informed his staff that he planned to meet
4 with Spina and request that Spina rescind Feheley's April 1991
directive. However, before Bonczar could meet with Spina,
Wojewodzic asked Spina to meet with all of the district managers
to discuss Feheley's policy. Spina held this meeting on February
19, 1992, but barred Bonczar from participating.
On February 24, 1992, Richardson called Bonczar and
suspended him. Bonczar began to suffer from extreme anxiety,
including bouts of hyperventilation, for which he sought
professional help. Stec ordered Bonczar to attend a meeting on
February 28 with him. Spina, and Richardson at the company
headquarters in Whippany, New Jersey. Bonczar was too upset to
drive, so his wife drove him to the meeting. It lasted about two
and one-half hours. Spina and Richardson criticized Bonczar
harshly for, inter alia, lacking leadership, blaming problems on
upper level management, falsifying reports, writing
unprofessional memoranda,1 and failing to complete required
evaluations of his district managers.
Several days after the February 28 meeting, Richardson and
Feheley informed Bonczar that he was no longer a regional
1 In one memorandum to his district managers, Bonczar stated, "the only difference between a brown-noser and a shit- head is depth perception." In another memorandum, he instructed his district managers to "cover thy posterior".
5 manager, but that he could continue to work for Suburban as a
District Manager for the same pay. Bonczar refused their offer,
and appealed through Suburban's Employee Appeal and Review System
("EARS"). Feheley considered and denied Bonczar's first appeal.
Suburban never considered Bonczar's second appeal because Bonczar
was unable to drive to New Jersey for another scheduled meeting.
He never returned to work.
During the same time period, Feheley and Spina made several
age-related comments. Feheley often bragged about having been
the youngest regional manager, and suggested that he was proud of
the general youth of his staff. At a meeting of the regional
managers in 1991, he referred to Bonczar, who was then forty-six,
and another manager as "old bucks." Spina told the district
managers at the February 19, 1992, meeting that he disliked the
"old" Suburban management style. Suburban filled Bonczar's
regional position with a thirty-five year-old employee.
III. DISCUSSION
A. COUNT I: AGE DISCRIMINATION
Bonczar alleges that defendants discriminated against him on
the basis of his age in violation of the Age Discrimination in
Employment Act of 1967, 29 U.S.C.A. § 621, et seq. (West 1985 &
6 Supp. 1995) ("ADEA"). Under the ADEA, a plaintiff may establish
discrimination either by direct or by circumstantial evidence.
Direct evidence must be the "evidentiary equivalent of a smoking
gun," Smith v. F.W. Morse & Co., 76 F.3d 413, 421 (1st Cir.
1996), such that, if believed, it would establish discrimination
without any inferences. Bodenheimer v. PPG Indus., 5 F.3d 955,
958 (5th Cir. 1993). If a plaintiff produces direct evidence
that discrimination was a motivating factor in the adverse
employment decision, the burden shifts to the defendant to prove
that it would have made the same decision absent a discriminatory
motive. Smith, 76 F.3d at 421; Jackson v. Harvard, 900 F.2d 464,
467 (1st Cir. 1990), cert, denied, 498 U.S. 848 (1990).2
When, as is frequently the case, a plaintiff is forced to
rely on circumstantial evidence, the burden-shifting framework
announced in McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802
(1973) and most recently explained in St. Mary's Honor Ctr. v.
Hicks, 509 U.S. 502 (1993), applies. Paqes-Cahue v. Iberia
2 The Civil Rights Act of 1991 changed the law in Title VII cases to permit a plaintiff to recover declaratory relief, injunctive relief, costs, and attorneys' fees when the employee meets its burden of proof under Price Waterhouse v. Hopkins, 490 U.S. 228, 277 (1989) if discrimination nevertheless was a motivating factor in the employer's decision. See 42 U.S.C.A. § 2000e-2(a) (West 1994). However, this portion of the Civil Rights Act of 1991 does not apply to age discrimination claims. Thus, Price Waterhouse still applies to such claims.
7 Lineas Aereas de Espana, 82 F.3d 533, 537 (1st Cir. 1996);
LeBlanc v. Great American Ins. Co, 6 F.3d 836, 842-43 (1st Cir.
1993), cert, denied, 114 S.Ct. 1398 (1994). The plaintiff must
establish a prima facie case of discrimination by proving by a
preponderance of the evidence that (1) he was a member of a
protected class, (2) he performed his job adequately, (3) he was
nevertheless dismissed/demoted and (4) his employer either
replaced him with a younger person or otherwise did not treat age
neutrally. See Hicks 509 U.S. at 506; Paqes-Cahue, 82 F.3d at
533; Woodman v. Haemonetics Corp., 51 F.3d 1087, 1091-92 (1st
Cir. 1995). While the burden of persuasion remains with the
plaintiff throughout the case, a presumption of discrimination
arises from proof of his prima facie case. Hicks, 509 U.S. at
507. To rebut this presumption, the employer must produce
evidence which, "taken as true, would permit the conclusion that
there was a nondiscriminatory reason for the adverse action."
Id. at 509. If the employer meets its burden of production, the
presumption of discrimination "drops out of the picture." Hicks,
509 U.S. at 511. Accord, Paqes-Cahue, 82 F.3d at 536; Woodman,
51 F.3d at 1091; LeBlanc, 6 F.3d at 843.
Though Hicks recognizes that an employee always remains
responsible for proving that her employer dismissed her because of her age, it also provides in dicta that:
The factfinder's disbelief of the reasons put forward by the defendant (particularly if disbelief is accompanied by a suspicion of mendacity) may, together with the elements of the prima facie case, suffice to show intentional discrimination. Thus, rejection of the defendant's proffered reasons, [sic] will permit the trier of fact to infer the ultimate fact of intentional discrimination.
509 U.S. at 511 (emphasis in original). At least one circuit
interprets this dicta to entitle a plaintiff to submit her claim
to the jury whenever she has proved her prima facie case and
demonstrated that the employer's reason for its action was false.
Anderson v. Baxter Healthcare Corp., 13 F.3d 1120, 1123 (7th Cir.
1994) . The First Circuit, however, has determined that proof of
a prima facie case and evidence of pretext will suffice only if
the factfinder could reasonably conclude from all of the evidence
that the defendant intentionally discriminated against the
plaintiff. See Barbour v. Dynamics Research Corp., 63 F.3d 32,
39 (1st Cir. 1995), cert, denied, 116 S.Ct. 914 (1996); Udo v .
Tomes, 54 F.3d 9, 13 (1st Cir. 1995); Smith v. Stratus Computer,
40 F.3d 11, 16 (1st Cir. 1994), cert, denied, 115 S.Ct. 1958
(1995); Woods v. Friction Materials, 30 F.3d 255, 260-61 n.3 (1st
Cir. 1994). In other words, proof of a prima facie case plus
pretext will be enough to survive summary judgment in some but
not all cases. See, e.g.. Woods, 30 F.3d at 260-61 n.3. I apply the First Circuit standard in evaluating Bonczar's claim.
Bonczar contends that he has produced sufficient direct
evidence of discrimination to qualify his claim as a direct
evidence case. I disagree. Bonczar supports his position with
the following: (1) Feheley once referred to Bonczar and another
older employee as "old bucks" at a meeting of regional managers
in 1991; (2) Feheley once boasted of the general youth of his
staff, often bragged about being the youngest regional manager in
Suburban, and once commented on his own relative youth around the
time of his birthday; (3) Spina was rumored to be eager to do
away with the "old" Suburban culture and employees; (4) when
Spina learned that Richardson, another employee, planned to
retire early, he told him that "he would F [Richardson] before
[Richardson] F'd him," (abbreviation in original) and that he
"didn't want people around him unless they were going to be there
for ten years or longer"; and (5) Richardson believed that he was
the victim of age discrimination because Spina fired him for
requesting an early retirement plan. While some of these
statements and actions arguably evidence age consciousness by
Bonczar's superior, they do not constitute direct evidence of
Bonczar's claim that he was demoted because of his age. As
Justice O'Connor observed in her concurring opinion in Price
10 Waterhouse, "[S]tray remarks in the workplace, while perhaps
probative of sexual harassment, . . . cannot justify requiring
the employer to prove that its hiring or promotion decisions were
based on legitimate criteria. Nor can statements by nondecision
makers, or statements by decisionmakers unrelated to the
decisional process itself, suffice to satisfy the plaintiff's
burden in this regard." Price Waterhouse, 490 U.S. at 277
(internal citations omitted). Therefore, I will analyze his
claim under the McDonell-Douqlas framework.
Defendants do not dispute that Bonczar has made out a prima
facie case of age discrimination, and Bonczar does not dispute
that Suburban has articulated a legitimate, nondiscriminatory
reason for demoting him. As discussed above, in the First
Circuit, regardless of whether Suburban's reasons for demoting
Bonczar were pretextual, Bonczar cannot prevail unless a
reasonable jury could infer that, but for its discriminatory
animus. Suburban would not have demoted him. Mesnick v. General
Elec. C o ., 950 F.2d 816, 824 (1st Cir. 1991), cert, denied, 504
U.S. 985 (1992). Therefore, I need decide only whether Bonczar
has produced evidence from which a reasonable jury could infer
that he was demoted because of his age.
11 Accordingly, pro-youth statements such as those attributed
to Feheley, without more, will not support an inference of age
discrimination. Id. at 826. For example, in Mesnick, the
statement by plaintiff's superior that he was "sad to lose the
youth of the workforce" could not sufficiently support an
inference of discriminatory animus. Id. (collecting cases).
Even assuming that Spina's reported statements concerning the
"old" Suburban culture and employees are admissible evidence,
they show at most only that Spina was biased against employees
who had been with Suburban for a long time, not that he was
biased against older employees. These statements, and the other
statements cited by Bonczar and discussed previously are simply
insufficient to permit a reasonable jury to conclude that Bonczar
was demoted because of his age. Therefore, I grant defendants'
motion for summary judgment as to plaintiffs' age discrimination
claim.
B. COUNT II: WRONGFUL DISCHARGE
To prevail on a claim of wrongful discharge under New
Hampshire law, Bonczar must show (1) that he was discharged out
of bad faith, malice, or in retaliation for (2) performing acts
which public policy would encourage or refusing to perform acts
which public policy would condemn. Short v. School Admin. Unit
12 N o . 16, 136 N.H. 76, 84(1992).3 Essentially, Bonczar claims
that he was discharged for refusing to carry out a company policy
of falsifying customer gain/loss reports to make districts in his
region look more successful than they actually were. Defendants
argue that Bonczar's claim of wrongful discharge fails for three
reasons.
First, the defendants argue that Bonczar's claim is
precluded by New Hampshire's Whistleblowers' Protection Act, N.H.
Rev. Stat. Ann. ch. 275-E (Supp. 1995). However, the Act states
explicitly:
275-E:5 No Effect on Bargaining or Common Law Rights. This chapter shall not be construed to diminish or impair . . . any common law rights.
Therefore, regardless of whether Bonczar has complied with the
conditions for bringing a claim under the statute, it does not
preclude his claim for wrongful discharge.
Second, they argue that Bonczar cannot show that he was
demoted for performing acts which public policy would encourage
or refusing to perform acts which public policy would condemn.
According to the defendants, Bonczar's management errors caused
his demise after he misinterpreted several memoranda Feheley sent
3 The parties do not dispute that Bonczar was an at-will employee. Neither do they dispute that he was constructively discharged.
13 him. As a result, Bonczar allowed his district managers to
falsify their gain/loss records. As defendants see it, Bonczar
continued to force his subordinates to submit false reports until
they complained to Spina.
Bonczar, however, has provided evidence from which a
reasonable jury could infer guite a different story. According
to Bonczar's evidence, in early 1991, Feheley made clear to
Bonczar and other regional managers that the customer gain/loss
reports should be falsified if necessary to demonstrate a
positive trend. Bonczar was concerned about the policy, but also
concerned that he might be punished if he objected to it.
Wojewodzic was also concerned about the policy, and raised the
issue directly with Spina at a meeting in October, 1991. That
same day, Richardson reported Wojewodzic's comments to Feheley,
and Feheley ordered Bonczar to fire Wojewodzic, which Bonczar
refused to do.
Bonczar thereafter held two meetings with his district
managers to decide how to deal with the policy. On February 14,
1992, Wojewodzic faxed an emotional letter to Spina, reguesting a
meeting with Spina, Bonczar, Stec and all the region's district
managers to discuss Feheley's policy. Spina held the meeting,
but barred Bonczar, and made clear to the district managers that
14 he would continue to support Feheley. On February 24, Richardson
suspended Bonczar. After a meeting on February 28, 1992 with
Spina, Richardson, and Stec, Richardson and Feheley called
Bonczar and told him that he had been demoted to district
manager.
Defendants do not dispute that falsifying customer gain/loss
reports is an activity which public policy would condemn.
Bonczar has provided evidence from which a reasonable jury could
infer that he was demoted because he resisted Feheley's policy by
refusing to fire Wojewodzic and by holding meetings with his
district managers to discuss how best to solve the problem.
Therefore, Bonczar has satisfied the public policy reguirement of
a claim for wrongful discharge.
Third, defendants contend that Bonczar was not discharged
for resisting the falsification policy, but for circulating
unprofessional memoranda and for lowering the morale of the
district managers in his region by showing reluctance to comply
with the policies set by upper-level management and by siding
with lower-level employees.4 For example, in a memo dated May 1,
1991, titled "FIRESIDE CHAT," Bonczar wrote:
4 In addition, in a letter dated March 2, 1992, Spina, Richardson, and Stec explained that he was being demoted because he had ordered his district managers to falsify reports.
15 . . . any memos that I send out to you from Mr. D.R. Feheley's office, please read through the threats and intimidating verbiage (rhymes with garbage) and just try to get the simple point he is trying to get across. I really don't have time to rewrite all of his memos. . . . And remember those great words of Walt Wojewodzic, who once said the only difference between a brown-noser and a shit-head is depth perception.
In a memo entitled "Improve Your Bottom Line," headed by a
picture of a row of naked babies' bottoms, Bonczar expressed
"mixed emotions" about a trip to headguarters, and concluded:
I only half agree with Gerry Hendrickson when he says that bosses are like diapers. They are always on your ass and usually full of sh_t!!! Let's show them we can do what's needed.
Bonczar also gave Feheley a hat made to look like a condom at a
Christmas party in 1990 or 1991 "because of what we had thought
of him."
Notwithstanding the defendant's evidence, a reasonable jury
could infer from the evidence submitted that until it knew
Bonczar was resisting the falsification policy. Suburban thought
he was an excellent employee. In twenty years of employment with
Suburban, Bonczar had never been reprimanded. In October of
1990, he received a very favorable employee evaluation. One
month before his demotion, Bonczar received a silver pin for his
outstanding accomplishments. Therefore, a reasonable jury could
infer that Bonczar was constructively discharged for resisting
16 Feheley's policy of falsifying customer gain/loss reports, and
defendants would not be entitled to summary judgment on the
wrongful discharge claim.
Finally, individual defendants Spina, Richardson, Stec, and
Feheley argue that the wrongful discharge claim against them must
be dismissed because they did not employ Bonczar. Regardless of
whether a claim for wrongful discharge sounds in tort or in
contract, it rests on an employment relationship between the
parties. Miller v. CBC Companies, Inc., 908 F.Supp. 1054, 1067
(D.N.H. 1995). It is undisputed that Spina, Richardson, Stec and
Feheley did not employ Bonczar. Therefore, I grant defendants'
motion regarding the wrongful discharge claim against individual
defendants. Id.
C. COUNT III: INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
In Count III, Bonczar seeks to recover from Suburban and the
individual defendants for intentional infliction of emotional
distress. New Hampshire's Workers' Compensation Law provides, in
pertinent part:
281-A:8 Employees Presumed to Have Accepted. I. An employee of an employer subject to this chapter shall be conclusively presumed to have accepted the provisions of this chapter and, on behalf of the employee, or the employee's personal or legal representatives, to have waived all rights of action whether at common law or by statute or provided under the laws of any other state or otherwise:
17 (a) Against the employer or the employer's insurance carrier . . .; and
(b) Except for intentional torts, against any officer, director, agent, servant or employee acting on behalf of the employer or the employer's insurance carrier. . .
N.H. Rev. Stat. Ann. § 281-A:8 (Supp. 1995). Therefore, Bonczar
is barred from suing Suburban, his employer, for the intentional
tort of intentional infliction of emotional distress. See Duquav
v. Androscoggin Valiev Hosp., 1996 WL 157191, *2 (D.N.H. 1996);
Thompson v. Forest, 136 N.H. 215, 219 (19 92); O'Keefe v.
Associated Grocers of New England, Inc., 120 N.H. 834, 835-36
(1980); Censullo v. Brenka Video, Inc., 989 F.2d 40, 43 (1st Cir.
1993); Bourgue v. Town of Bow, 736 F. Supp. 398, 404 (D.N.H.
1990) .
Bonczar's claims of intentional infliction of emotional
distress against individual defendants Feheley, Richardson,
Spina, and Stec also fail. To maintain a claim for intentional
infliction of emotional distress, Bonczar must establish that the
defendants "by extreme and outrageous conduct intentionally or
recklessly cause[d] severe emotional distress [to him]." Morancy
v. Morancv, 134 N.H. 493, 495-96 (1991) (guoting Restatement
(Second) of Torts § 46 (1965)). Bonczar has submitted evidence
from which a reasonable jury could infer that he did in fact
18 suffer severe emotional distress. However, he has submitted no
evidence from which a reasonable jury could infer that
defendants' conduct went "beyond all possible bounds of decency,
and [would] be regarded as atrocious, and utterly intolerable in
a civilized community." Restatement (Second) of Torts § 46 cmt.
d; accord Jarvis v. Prudential Ins. Co., 122 N.H. 648, 652
(1982) .
1. David Feheley
Bonczar submitted evidence indicating that Feheley forced
his regional and district managers to lie about their customer
losses and gains. Bonczar also submitted evidence that Feheley
participated in the decision to demote him for, inter alia,
encouraging district managers. Feheley also denied Bonczar's
first appeal in Suburban's disciplinary review system. Feheley
was not present at the February 19 meeting, he did not sign the
letter informing Bonczar of his demotion, and although he was on
the telephone, he did not speak while Richardson informed Bonczar
of the decision to demote him. Feheley's behavior, as reported
by Bonczar, though reprehensible, was not "extreme and
outrageous" enough to allow recovery. See Brewer v. K.W.
Thompson Tool Co., 647 F. Supp. 1562, 1564, 1566-67 (D.N.H. 1986)
(no intentional infliction of emotional distress where defendant
19 refused to provide samples to plaintiff to help him investigate
work-related skin condition, thereby preventing plaintiff from
obtaining medical release from doctor, then refused to allow
plaintiff to return to work without medical release).
2. Carl Richardson and Glen Stec
After Spina met with the district managers, Richardson and
Stec called Bonczar to suspend him on February 24 without
explanation. Stec called Bonczar and ordered him to attend a
meeting at the company headguarters in Whippany, New Jersey on
February 28 to defend himself. Richardson, Stec, and Spina were
at the meeting. Richardson noticed that Bonczar was unusually
guiet. Stec observed that Bonczar was upset at the meeting and
"seemed to be a little disoriented in trying to understand what
was happening" when Stec met him in the lobby beforehand.
Richardson was loud and upset and fired guestions at Bonczar
without listening to his answers. Stec was guiet, and
interrupted only once to ask Richardson and Spina to allow
Bonczar to answer a guestion uninterrupted. Spina and Richardson
criticized Bonczar for falsifying budget numbers, failing to send
in performance appraisals for the district managers, thus
preventing the district managers from getting raises, and for
falsifying the customer gain/loss reports. Bonczar responded
20 that Feheley's office had forced him to do these things, and that
he had organized the February 19 meeting to decide what to do
about Feheley. Spina and Richardson also criticized Bonczar for
writing unprofessional memoranda. The meeting lasted
approximately two and one-half hours. Richardson and Feheley
called Bonczar several days later and Richardson told him that
they had decided to demote him and (erroneously) that the
decision could not be appealed. Bonczar then called Stec, who
told him that the decision was appealable.
Stec's conduct was by no means "extreme and outrageous"
Morancv, 134 N.H. at 496. Though Richardson was perhaps
intimidating and insensitive at the February 28 meeting, his
conduct also was far from outrageous. C f . Miller v. CBC
Companies, Inc., 908 F. Supp. 1054, 1068 (D.N.H. 1995) (plaintiff
"just barely" survived motion to dismiss where supervisors
persistently told her that women should stay home and care for
their children and guestioned her ability to work and to care for
her retarded son simultaneously); Sinqleterry v. Nashua Cartridge
Products, 1995 WL 54440, *6-7 (D.N.H. 1995) (plaintiff alleged
facts sufficient to support intentional infliction of emotional
distress where defendant supervisor called plaintiff "nigger,"
physically assaulted plaintiff, and humiliated plaintiff by
21 violating company policy and handing him a letter of warning in
front of his co-workers). Therefore, plaintiff's claims of
intentional infliction of emotional distress against Stec and
Richardson are dismissed.
3. Dennis Spina
In addition to berating Bonczar at the February 28 meeting.
Spina barred Bonczar from the February 19 meeting Bonczar had
organized with the district managers. According to a transcript
of the meeting submitted by plaintiff (assuming without deciding
that it is admissible). Spina called Bonczar "immature," and
criticized his leadership. Spina explained that he had excluded
middle-management, specifically Bonczar, from the meeting because
he wanted the district managers to speak freely. Bonczar has
submitted no evidence suggesting that Spina intended to torment
Bonczar by excluding him, or that Spina should have known that he
would cause Bonczar severe mental distress by excluding him.
Like Richardson, although Spina may have acted inappropriately by
insulting Bonczar at the February 19 meeting and by being angry
and insensitive at the February 28 meeting, his conduct was
neither extreme nor outrageous. The intentional infliction of
emotional distress claim against Spina is dismissed.
22 D. COUNT IV: DEFAMATION
Because both libel and slander are evaluated as defamatory
statements, I need not distinguish between them. See Morrissette
v. Cowette, 122 N.H. 731, 733 (1982); Restatement (Second) of
Torts § 568 (1977). To prove defamation under New Hampshire law,
a private individual plaintiff must show that the "defendant
failed to exercise reasonable care in publishing, without a valid
privilege, a false and defamatory statement of fact about the
plaintiff to a third party." Independent Mechanical Contractors,
Inc. v. Gordon T. Burke & Sons, Inc., 138 N.H. 110, 118 (1993);
accord Duchesnave v. Munro Enterprises, 125 N.H. 244, 250 (1984) .
A statement is defamatory only if it "tends to lower the
plaintiff in the esteem of any substantial and respectable group
of people." Nash v. Keene Pub. Corp., 127 N.H. 214, 219 (1985).
Statements that are substantially true are not actionable.
Simpkins v. Snow, 139 N.H. 735, 740 (1995) .
Opinions can serve as the basis for a defamation claim if
the opinion reasonably implies false and defamatory facts.
Milkovich v. Lorain Journal Co., 497 U.S. 1, 20-21 (1990);
Duchesnave, 125 N.H. at 249. However, a statement of opinion is
not actionable unless it is "sufficiently factual to be
susceptible of being proved true or false." Milkovich, 497 U.S.
23 at 21; accord Phantom Touring, Inc. v. Affiliated Publications,
953 F.2d 724, 727-28 (1st Cir.),. cert, denied, 504 U.S. 974
(1992). Further, an opinion cannot constitute defamation if it
is apparent from the surrounding context that the opinion is
based solely on disclosed non-defamatory facts. Standing
Committee on Discipline of the U. S. Dist. Court for Cent. Dist.
of Cal. v. Yagman, 55 F.3d 1430, 1439 (9th Cir. 1995); Nash, 127
N.H. at 219; Restatement (Second) of Torts § 566 cmt. c (1977)
("A simple expression of opinion based on disclosed . . .
nondefamatory facts is not itself sufficient for an action of
defamation, no matter how unjustified and unreasonable the
opinion may be or how derogatory it is").
New Hampshire recognizes a conditional privilege for
statements that "although untrue, were published on a lawful
occasion, in good faith, for a justifiable purpose, and with a
belief, founded on reasonable grounds of its truth" as long as
the statements were not made with actual malice. Simpkins, 139
N.H. at 740 (internal guotation omitted). I examine the
challenged statements individually in light of the applicable
standard.
1. Spina's Statements at the February 19 Meeting
Bonczar contends that Spina defamed him at the February 19
24 meeting with district managers in the following exchange, and
specifically complains of the statements in bold:
Walt Wojewodzic: You mentioned the overtime figures are way out of whack from what budget was.
Dennis Spina: ah ah
Walt Wojewodzic: Ok well, Diane our regional coordinator faxed a . . . faxed to Mike Bonczar our Regional manager, and this is exactly what it said "the budgeted overtime figures we used where [sic] dictated by Dave Feheley"
Dennis Spina: Well I would say that ah . . that's a very poor memo and very immature of Mike Bonczar to do that.
Walt Wojewodzic: That was his regional coordinator it wasn't . . .
Dennis Spina: I don't care who it was . . Whoever did that he had to sign off on it or say something. That was very immature, and let me tell you something it sounds like we got management here passing the heat. That is not leadership. You do things because there [sic] right. Not because Mike Bonczar said, not because Dave Feheley said, not because ah. . [. . .] Any manager who says and I include you, that says "I'm doing this because my manager told me to do it", shouldn't be in that job.
Bonczar does not specify what he thinks the cited statements
mean or why he considers them to be defamatory. For the sake of
argument, I presume they mean that, assuming Bonczar blamed
Feheley for inflated or falsified figures, the memo in which he
did so was an example of poor management and indicated a lack of
maturity, and that a manager who blames upper-level management is
25 not performing his job adequately. Thus, Spina did not disclose
that Bonczar had passed the memo from the regional coordinator
straight to the district managers in an attempt to shift blame
for the overtime figures from himself to Feheley. That fact,
apparently, was already known to the district managers, or at
least to Walt Wojedzowic. Spina merely offered his opinion that
it was immature of Bonczar to blame Feheley without doing
anything to correct the problem. Even assuming that the second
statement refers to Bonczar, and is not just a general statement
of Spina's management philosophy, it is merely Spina's opinion of
the disclosed facts presented to him by the district managers.5
Therefore, I grant summary judgment in favor of defendants
regarding these statements.
2. The March 2, 1992 Letter
Bonczar also claims that the March 2, 1992 letter from
Richardson, Spina, and Stec explaining their reasons for demoting
him is defamatory. Bonczar does not specify which statements in
the letter are defamatory, but states generally that the letter
"attribut[es] to Bonczar conduct which he did not do, and
5 Plaintiffs argue that Spina's opinions are nevertheless defamatory because they were offered with actual malice. Plaintiffs misunderstand the law. See Simpkins v. Snow, 139 N.H. 735, 740 (1995) .
26 attribut[es] to him bad management for following the directions
of his own younger supervisor, Feheley." The letter states, in
Mike, it is only fair to say that your failure in part to display these [leadership] traits has resulted in the loss of management focus within Region 16. Issues raised in the meeting with your managers ranged from being reguired to falsify customer gain and loss reports, not receiving performance appraisals, not understanding (or their perception of) how their budgets were approved, letters to your managers which were unprofessional, not supporting the priorities being directed by your superiors, and so forth.
Bonczar does not contend that the letter was published to
any third parties, but instead urges me to accept the "self
publication" doctrine. Bonczar admits that New Hampshire has not
addressed the issue of self-publication. However, even if New
Hampshire law recognized defamation by self-publication, I would
not hold the above statements to be defamatory because Bonczar
has failed to offer sufficient evidence to permit a finding that
the statements are false. See Independent Mechanical
Contractors, 138 N.H. at 118. The letter essentially states (1)
that Bonczar lacked leadership skills and (2) that at the
February 19 meeting with Spina, Bonczar's district managers
discussed various issues and complaints, including falsification
of reports. Bonczar has not presented evidence from which a
reasonable jury could infer that he did not in fact go along with
27 the policy of falsification, knowing it was wrong, and shift the
blame from himself to Feheley. When Spina, Stec and Richardson
charged Bonczar with a lack of leadership in their letter, they
referred to Bonczar's failure either to change or take
responsibility for the policy of falsification.
Bonczar has not presented evidence from which a reasonable
jury could infer that the issues listed were not raised at the
meeting between Spina, Stec and the district managers. The
transcript of the incomplete tape of that meeting submitted by
plaintiff suggests that such issues were raised at the meeting.
For example, it records the following exchange:
Judy Lowell: We had a regional meeting, I can't remember exactly where, but everyone in this room was there and I spoke upas I've been with Suburban for 17 years . . . we where [sic] taught never to lie, not to cheat, and I brought it up at the meeting and said that I didn't like lying and I didn't like cheating and I wasn't going to and I was told to lighten up and play the game.
Skip Walz: That's correct
Walt Wojedwozic: Exactly
Judy Lowell: North Conway
Skip Walz: That was in North Conway.
Dennis Spina: By whom?
Judy Lowell: Michael Bonczar.
Dennis Spina: Why is the focus on Dave Feheley then?
28 Walt Wojedwozic: Because this is being dictated by Dave Feheley to the Regional . . .
Finally, Bonczar does not deny that he reguired his district
managers to falsify reports, and the tape transcript he submitted
suggests that he in fact did so. Neither does he deny that he
failed to give his district managers performance appraisals. It
is also undisputed that he sent at least two unprofessional
memoranda. Bonczar argues vehemently that he did not fully
support Feheley's policy of falsifying numbers -- thus it is true
that he was not "supporting the priorities being directed by
[his] superiors." Because Bonczar has not provided evidence from
which a reasonable jury could conclude that any of the statements
in the March 2, 1992 letter are false, I grant summary judgment
on this point in favor of defendants.
3. Statements to Suburban employees that Bonczar was suspected of theft
Although not alleged in the complaint, Bonczar alleges in
his objection to defendants' motion for summary judgment that
sometime after he was suspended, "management" told unspecified
Suburban employees that Bonczar was suspected of theft.
Bonczar's only evidence is his own vague response to one of
Suburban's interrogatories in which he states: "it has come to
my attention that since I filed this lawsuit, certain Suburban
29 employees asked my old employees questions which questions [sic]
indicated that I was beinq accused and suspected of theft."
Because he failed to specify who said what to whom, he has failed
to notify the defendants of his claim aqainst them with the
requisite deqree of specificity. See Gendron v. St. Pierre, 72
N.H. 400, 401 (1903) (plaintiff claiminq slander must specify the
offensive lanquaqe); Bassett v. Spofford, 11 N.H. 127, 128 (1840)
(same). In sum, I qrant defendants' motions for summary judqment
on all of Bonczar's defamation claims.
E. COUNT V: INTERFERENCE WITH CONTRACTUAL RELATIONS
Bonczar alleqes that Feheley interfered with his contractual
relations with Suburban. To maintain this claim, Bonczar must
show: "(1) [he] had an economic relationship with a third party;
(2) the defendant knew of this relationship; (3) the defendant
intentionally and improperly interfered with this relationship;
and (4) [Bonczar] was damaqed by such interference."
Demetracopoulos v. Wilson, 138 N.H. 371, 373-74 (1994) (quotinq
Jav Edwards, Inc. v. Baker, 130 N.H. 41, 46 (1987); Emery v.
Merrimack Valiev Wood Products, Inc., 701 F.2d 985, 988 (1st Cir.
1983)). Whether an employer can be deemed a third party where
the defendant is an employee of the employer depends on whether
the individual defendant acted within the scope of her
30 employment. See Soltani v. Smith, 812 F. Supp. 1280, 1296
(D.N.H. 1993); see also Alexander v. Fujitsu Business
Communication Svs., 818 F. Supp. 462, 470 (D.N.H. 1993) (employer
was not third party where plaintiff employee alleged that
defendant employee at all times acted as employer's agent).
_____ Bonczar contends that Feheley was acting outside the scope
of his employment when he ordered Bonczar to lie and then helped
to terminate him for resisting because Feheley was motivated in
part by a desire to better his own position within the company.6
However, Bonczar has produced no direct evidence of this
motivation. Instead, he would ask the jury to infer that Feheley
acted to benefit himself either because, as Feheley's
Bonczar also claims that Feheley was acting outside the scope of his employment because he was motivated by actual malice, citing Piekarski v. Home Owners Sav. Bank, F.S.B., 956 F.2d 1484, 1495 (8th Cir.), cert, denied, 506 U.S. 872 (1992). In Piekarski, interpreting the law of Minnesota, the Eighth Circuit Court of Appeals stated that the plaintiff's former superior could be held liable for tortious interference with contractual relations if he acted with "actual malice." The court cited a case in which the Minnesota Supreme Court stated that a superior may be held liable if she is "predominantly motivated by malice and bad faith, that is, by personal ill-will, spite, hostility, or a deliberate intent to harm the plaintiff employee." Nordlinq v. Northern States Power Co., 478 N.W. 2d 498, 507 (Minn. 1991). Assuming, without deciding, that the New Hampshire Supreme Court would recognize this doctrine, plaintiff has submitted no evidence from which a reasonable jury could infer that Feheley was predominantly motivated by malice. Cf. Soltani, 812 F. Supp. at 1285, 1297.
31 subordinate, Bonczar was a "thorn" in Feheley's side or because
Feheley stood to gain in some unspecified way if Bonczar was
demoted or discharged. Construing the evidence in the light most
favorable to Bonczar, I conclude that the evidence is simply
insufficient to permit a reasonable jury to conclude that Feheley
was acting solely for his own benefit when he took the action of
which Bonczar complains. Accordingly, Feheley was not a "third
party" to Bonczar's employment contract with Suburban and Feheley
is entitled to summary judgment on this claim.7
F. COUNT VI: BREACH OF CONTRACT
In Butler v. Walker Power, Inc., 137 N.H. 432, 436 (1993),
the New Hampshire Supreme Court distinguished two ways in which
an employee handbook may modify at-will employment. First, the
handbook may constitute an employment contract, and set the
Even if Feheley acted partially to benefit himself and partially to further Suburban's interest in making the company more attractive for purchase, mixed motivation does not convert Suburban into a "third party" for purposes of this claim. See Restatement (Second) of Agency § 236 cmt. b ("The fact that the predominant motive of the servant is to benefit himself. . .does not prevent the act from being within the scope of employment"). See also Daigle v. City of Portsmouth, 129 N.H. 561, 580 (1987) (police officer's off-duty beating of suspect was within scope of employment where it was "actuated to some deqree by an object to discharge a law enforcement responsibility" (emphasis added)); Appeal of Griffin, 140 N.H. 650 (1996) (in context of workers compensation, activity of mutual benefit to employer and employee may be within scope of employment).
32 duration of employment, so that the employee is no longer at-
will, but hired for a term. See id. Additionally, the handbook
may offer "incidental benefits," including disciplinary
procedures which the employer must follow. See id. In such a
case, the employee remains at-will, but is entitled to the
incidental benefits in return for her continued work for the
employer. See id. Although the employer may terminate the
employee at any time, a failure to provide the promised
incidental benefits in the handbook may constitute a breach of
contract. See id. The court further explained:
The [employee] well might make a case asserting damages from failure to follow the step discipline procedure as a contractual incident of employment, unrelated to any durational claim. The ultimate act of termination would be a thin reed for such a case, since the right to arbitrary termination, absent violation of public policy, remains in the hands of the employer. Damages must arise from failure to follow the procedure short of termination.
Id. at 437.
Bonczar does not dispute that he was an at-will employee,
and does not argue that the EARS handbook he received from
Suburban modified his status as an at-will employee by setting
the duration of his employment. Instead, he argues that the EARS
handbook is a contract between himself and Suburban in which
Suburban promises to follow certain disciplinary procedures.
33 Under New Hampshire law, an employee handbook is an
enforceable contract if the requirements of unilateral contract
formation are satisfied. Panto v. Moore Business Forms, 130 N.H.
730, 737, 742 (1988). There must be a unilateral offer,
acceptance, and consideration. Id. at 742. A communication from
the employer constitutes an offer if (1) it manifests an intent
to be bound, id. at 735, (2) is "so definite as to its material
terms or require[s] such definite terms in the acceptance that
the promises and performances to be rendered by each party are
reasonably certain," Chasan v. Village District of Eastman, 128
N.H. 807, 815 (1986), and (3) contains no effective disclaimer.
See Butler, 137 N.H. at 435. The requirements of acceptance and
consideration are satisfied by the employee's continued work for
the employer. Panto, 130 N.H. at 737-38, 741.
Bonczar arques that Suburban breached its contract by
failinq (1) to provide an "ethical" and "humane" disciplinary
system, (2) to follow the specific procedures set out in the
handbook, and (3) to carry out the contract in qood faith.
1. Did Suburban make an enforceable promise to be ethical and humane?
Bonczar arques that Suburban breached its promise in the
handbook to deal with disciplinary matters in an ethical and
humane manner. The EARS handbook states, at the beqinninq of a
34 section entitled "EARS POLICY OVERVIEW":
Consistent with our values of being Ethical, Humane, and Demanding, we believe that our employees should have the right and the opportunity to get job related problems listened to and resolved - fairly and guickly. For that reason, we've implemented the EARS . . . Procedure.
This guoted passage merely explains, in very vague terms,
why Suburban is offering the EARS; it promises nothing. Thus, I
reject Bonczar's contention that Suburban contracted to provide
an ethical and humane disciplinary system. See Burr v. Melville
Corp., 868 F.Supp. 359, 364-65 (D. Me. 1994) (interpreting New
Hampshire caselaw) (statement in employee handbook that
"[e]mployees released for inability to perform should have at
least two documented counselling sessions preceding the release"
did not manifest an intent to be bound) (emphasis in original).
2. Did Suburban deny Bonczar specific disciplinary procedures it contracted to provide?
Bonczar claims that Suburban was obligated to follow the
specific EARS procedures set forth in the handbook, and that it
failed to do so.8 The disciplinary procedures set out in
In their Objection, defendants state: "Plaintiff does not even allege that Suburban failed to follow the EARS process." The Complaint, however, alleges "Defendant Suburban breached its promise to . . . Plaintiff to provide an in-house progressive disciplinary system based on an ethical and humane set of procedures . . . ." Though perhaps poorly drafted, the Complaint does allege that defendant Suburban failed to follow the promised
35 definite terms how Suburban will handle disciplinary problems.
Furthermore, in the handbook Bonczar submitted, there is no
disclaimer.9 In Butler, the New Hampshire Supreme Court held
that a similar set of disciplinary procedures were enforceable.
See 137 N.H. at 436. Therefore, a triable case exists as to
whether Suburban unilaterally offered to carry out the
disciplinary procedures stated in the EARS handbook submitted by
plaintiff. Bonczar satisfied the acceptance and consideration
requirements for unilateral contract formation by continuing to
work for Suburban. Therefore, viewing the evidence in the light
most favorable to the plaintiff, the procedures set out in the
EARS handbook constitute a contract.
The EARS handbook describes essentially a three-step process
for the review of adverse disciplinary decisions. Before the
employee may take advantage of this process, she must discuss the
problem with her immediate supervisor. If the problem remains
disciplinary procedures.
9 Defendants submitted a copy of a disclaimer which they refer to as "a preface to all of Suburban's employee policies." However, this disclaimer does not appear in the handbook submitted by plaintiff, and defendants provide no explanation of where it came from. At best, defendants have shown that there is a factual dispute as to whether the EARS handbook contained a disclaimer, thus they cannot prevail on this issue on summary judgment.
36 unresolved, the employee first submits a written complaint to her
supervisor, and the supervisor responds in writing. Second, the
employee submits a written rebuttal to the next two higher levels
of management. The reviewing authorities investigate the
problem, and either affirm or reverse the decision. Third, the
employee appeals in writing to the Area Human Resources Manager
and (for regional managers and above) an Executive Review Board
("ERB") reviews the disciplinary decision.
Bonczar claims that Suburban failed to follow the EARS
process by allowing Feheley to judge his step two appeal and by
putting his step three appeal on hold. Bonczar has submitted
evidence that Stec told him he could essentially skip to step two
of the appeals process.10 Bonczar appealed to Spina, Richardson
and Stec (presumably, the president and vice presidents at
headguarters were the next two levels of management above
Feheley), but Feheley considered and denied his appeal. Thus, a
triable case exists as to whether Suburban breached its promise
that upper level managers would consider and decide Bonczar's
step two appeal.
Suburban does not dispute that Bonczar complied with the
10 Thus, defendant waived its complaint that Mr. Bonczar failed to speak to Feheley and to complete step one of the process.
37 requirements for a step three review by an ERB, nor that it
denied him a step three review. According to Bonczar, Suburban
did so because Bonczar was unable to attend a meeting of the
Executive Review Board ("ERB") in Whippany, New Jersey. The EARS
handbook states that the ERB "will review all relevant
information, conduct any additional investigation deemed
necessary, and make a decision to uphold, overturn, or modify the
contested action." It does not require the employee to attend
any additional meetings. Furthermore, Stec testified at his
deposition that the step three appeal could have been completed
without meeting with Bonczar. Therefore, a reasonable jury could
find that Suburban breached its contract by denying Bonczar a
step three appeal.
3. Did Suburban breach the implied covenant of good faith and fair dealing?
Plaintiff argues that Suburban failed to carry out its
promise to provide the disciplinary system outlined in the EARS
handbook in good faith. In Centronics Corp. v. Genicom Corp.,
132 N.H. 133, 143, (1989), the New Hampshire Supreme Court held:
[U]nder an agreement that appears by word or silence to invest one party with a degree of discretion in performance sufficient to deprive another party of a substantial proportion of the agreement's value, the parties' intent to be bound by an enforceable contract raises an implied obligation of good faith to observe reasonable limits in exercising that discretion,
38 consistent with the parties' purpose or purposes in contracting.
Id. at 143.
The court articulated the following four guestions to guide
courts deciding a claim for breach of the implied covenant of
good faith:
1. Does the agreement ostensibly allow to or confer upon the defendant a degree of discretion in performance tantamount to a power to deprive the plaintiff of a substantial portion of the agreement's value? . . .
2. If the ostensible discretion is of that reguisite scope, does competent evidence indicate that the parties intended by their agreement to make a legally enforceable contract? . . .
3. Assuming an intent to be bound, has the defendant's exercise of discretion exceeded the limits of reasonableness? . . .
4. Is the cause of the damage complained of the defendant's abuse of discretion, or does it result from events beyond the control of either party, against which the defendant has no obligation to protect the plaintiff? . . .
Id. at 144.
The EARS gave Suburban discretion sufficient to deprive
Bonczar of a substantial portion of the contract's value. I have
already held that the EARS handbook created a legally enforceable
contract. The damage complained of is the demotion, which
resulted from defendant's abuse of its discretion to decide
39 disciplinary appeals. Therefore, I need only decide whether
Suburban's exercise of discretion exceeded the limits of
reasonableness.
Suburban does not dispute that Feheley decided Bonczar's
step two EARS appeal. Because Bonczar blamed Feheley for his
employment problems, the likelihood that Feheley would agree with
Bonczar was very slim. Furthermore, Bonczar has submitted
evidence from which a reasonable jury could infer that Suburban
permanently replaced Bonczar before the EARS review process was
complete, and that Suburban had no other regional manager
positions available. Thus, a reasonable jury could find that
Suburban never intended to reconsider its decision to demote
Bonczar, but intended only to deny his appeal without review at
each stage of the EARS. Therefore, I deny defendant's motion for
summary judgment as to Bonczar's claim for breach of the implied
covenant of good faith and fair dealing. See Silva v. University
of New Hampshire, 888 F. Supp. 293, 331-32 (D.N.H. 1994)
(university's motion for summary judgment denied where plaintiff
claimed university breached implied covenant of good faith by
failing to follow its disciplinary policy).
In sum, I grant defendant Suburban's motion for summary
judgment as to plaintiff's claim that Suburban breached its
40 promise to be ethical and humane. I deny Suburban's motion as to
plaintiff's claims that Suburban failed to follow the specific
procedures outlined in the EARS and breached the implied covenant
of good faith.
G. COUNT VII: LOSS OF CONSORTIUM
Jo-Ann Bonczar brings a claim of loss of consortium. N.H.
Rev. Stat. Ann. 507:8-a (Supp. 1995) states:
. . . a wife or husband is entitled to recover damages for loss or impairment of right of consortium whether caused intentionally or by negligent interference. Where fault on the part of the claimant or the claimant's spouse is found to have caused, in whole or in part, the injury to the spouse on which the claim for loss or impairment of consortium is based, damages recoverable shall be subject to diminution to the extent and in the manner provided for in RSA 507:7-d.
Because I have granted summary judgment in favor of individual
defendants Spina, Richardson, Feheley, and Stec on all other
claims, I grant summary judgment in their favor on this claim as
well. I denied summary judgment to defendant Suburban, however,
on plaintiff's claims of wrongful discharge, breach of contract,
and breach of the duty of good faith and fair dealing.
Without citing any New Hampshire law, defendants argue only
that where injury to one spouse is purely pecuniary, the
uninjured spouse may not claim loss of consortium. Here,
however, plaintiff alleges that the wrongful discharge also
41 caused him mental anguish. Because defendants have presented no
other argument or caselaw to the contrary, their motion for
summary judgment on this point with respect to defendant Suburban
is denied.11
IV. CONCLUSION
For the foregoing reasons Richardson's motion for summary
judgment (document no. 40) is granted. Feheley, Spina, Stec, and
Suburban's motion for summary judgment (document no. 39) is
granted with respect to all claims against individual defendants
and the claims against Suburban for age discrimination,
intentional infliction of emotional distress, and defamation, but
denied with respect to the claims against Suburban for wrongful
discharge, breach of contract, breach of the duty of good faith
and fair dealing, and loss of consortium.
SO ORDERED.
Paul Barbadoro United States District Judge
September 30, 1996
11 Since it was not raised by the parties, I take no position on the issue of whether a wrongful discharge claim states a claim in contract or tort.
42 cc: Nancy Richards-Stower, Esq. Garry R. Lane, Esq. William B. Miller, Jr., Esq. Martha V. Gordon, Esq.
Related
Cite This Page — Counsel Stack
Bonczar v. Suburban Propane, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonczar-v-suburban-propane-et-al-nhd-1996.