Callahan v. Center for Technology Commercialization, Inc.

20 Mass. L. Rptr. 407
CourtMassachusetts Superior Court
DecidedDecember 8, 2005
DocketNo. 030174
StatusPublished

This text of 20 Mass. L. Rptr. 407 (Callahan v. Center for Technology Commercialization, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Callahan v. Center for Technology Commercialization, Inc., 20 Mass. L. Rptr. 407 (Mass. Ct. App. 2005).

Opinion

Henry, Bruce R., J.

This is an action in which the plaintiff, Richard Callahan (“Callahan”), challenges the termination of his employment by the defendant, Center for Technology Commercialization, Inc. (“CTC”). Callahan asserts that CTC wrongfully discharged him in violation of public policy (Count I), in breach of a fiduciary duiy owed to him (Count II), and without just cause (Count III). The case is now before the Court on the defendant’s motion for summary judgment. After a hearing and a consideration of the materials provided by the parties and of the applicable case law, the motion is ALLOWED in part and DENIED in part.

FACTUAL BACKGROUND

CTC is a tax-exempt not-for-profit corporation with a principal place of business in Westboro, Massachusetts. William Gasko (“Gasko”) was the sole incorporator of CTC, which was incorporated on October 15, 1991. Callahan was retained by CTC in September 1992 to do some consulting work and subsequently was hired as an employee. There was no written employment contract between CTC and Callahan. Gasko was the CEO of the corporation and Callahan was the President and Treasurer. James Dunn (“Dunn") was the Chief Technical Officer. At or about the time that Callahan became the President and Treasurer, he, Gasko, and Dunn, agreed to co-manage the company with each of them reporting to the Board of Trustees. Callahan characterizes that agreement as a partnership agreement; however, it appears to be nothing more than an agreement as to how the company would be managed. That agreement was never reduced to writing and was not an agreement in which the Board of Trustees was a parly. That management arrangement was in effect until January 2001, when a change was implemented by the Board of Trustees. Beginning in January of 2001, Gasko was the CEO, with responsibility for making decisions for the corporation, and he reported to the Board of Directors; Dunn and Callahan reported to Gasko as of January 2001. Callahan was not happy with that reorganization and viewed it as a demotion.

Among Callahan’s responsibilities at CTC was to implement policies and procedures for compliance with the laws and regulations of applicable jurisdictions and to track employees’ time for billing the government to ensure that federal auditing standards were met. Callahan says that he policed Gasko very carefully.

In 2000, Eagle Picher (EP) asked CTC to do some work which Callahan felt was appropriate for the skills and mission of CTC. He disagreed, however, with Gasko’s handling of the project and with his retaining of consultants without consulting agreements. Callahan challenged the Board of Trustees’ motives for deviating from CTC’s standard practice of requiring such agreements in writing and he challenged the consultants for charging fees which in his view were excessive. He also disagreed with the Trustees’ efforts to shift CTC into a commercial business and to build the private contract aspect of the business.

Callahan asserts that he strongly warned the Board of Trustees that Gasko was dishonest, particularly with respect to his time cards, and that he was incompetent. He also complained about the Board’s failure to manage Gasko. Callahan also complained about the new organizational/management structure and reported that overhead and administration expenditures were spinning out of control. When Callahan complained to Gasko about those expenses, Gasko told him it was not his responsibility to worry about those expenses.

In February of 2001, Callahan accused Gasko of improperly charging time to NASA for work he had done for EP. At a meeting at which several persons were present, Callahan accused Gasko of stealing and was rebuked by one of the trustees for using inflammatory language. Callahan acknowledged, however, at his deposition that he fulfilled his obligation to make sure that all of the time cards which were submitted were done properly and that to the best of his knowledge the cards were ultimately submitted properly. He also indicated that he never formally raised a complaint to the Board about Gasko’s timekeeping, but raised his concerns through comments made to Gasko when Board members could have heard them.

According to Callahan, CTC’s financial status deteriorated under Gasko’s leadership. Callahan made [408]*408recommendations to the Board in October of 2001 to reinstate a structure which forced financial accountability, to halt a project begun by Gasko to reorganize the company, and to focus on serving CTC’s nonprofit customers who were paying the bills. Instead of adopting those recommendations, the Board voted unanimously to allow Gasko to terminate Callahan’s employment. Gasko had requested the authority to do so citing lack of timely financial reports, cost overrun problems, an inability to work as a team member, and his refusal to accept accountability. Gasko fired Callahan on November 6, 2001, purportedly without providing him with a reason.

At that time, according to Callahan, Gasko was fraudulently billing the government and CTC was now operating in the red.

Subsequent to Callahan’s firing, the Board had an audit done and terminated Gasko on December 21, 2001, for, among other reasons, improper billing.

SUMMARY JUDGMENT STANDARD

Summary judgment shall be granted where there are no genuine issues of material fact and where the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community National Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of demonstrating affirmatively the absence of a triable issue, and that it is entitled to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden either by submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of its case at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). All evidence must be viewed in the light most favorable to the non-moving party. Williams v. Hartman, 413 Mass. 398, 401 (1992).

DISCUSSION Wrongful Termination

The plaintiffs complaint contains three counts, for wrongful termination, breach of fiduciary duty, and termination without just cause, which all rest on the same basic claim: that he was fired for his efforts to keep Gasko and the company on the straight and narrow. He raises numerous issues that he had with the operation of the company and with Gasko in particular. Assuming that he is an at-will employee, in order to prevail on his claim of wrongful termination, Callahan must establish that his termination violated some clearly defined and well-established public policy which is threatened by the employer’s action. Glaz v. Ralston Purina Co., 24 Mass.App.Ct. 386, 390 (1987). He must show that he was terminated either for asserting a legally protected right, or for doing what the law requires, or for refusing to do what the law forbids. Smith-Pfeffer v. Superintendent of Walter B. Fernald School, 404 Mass. 145, 149-50 (1989). The issue of whether there was a public policy violation is a question of law for the court, not for a juiy. Mello v. Stop & Shop Companies, 402 Mass. 555, 561 (1988).

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Related

Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
LiDonni, Inc. v. Hart
246 N.E.2d 446 (Massachusetts Supreme Judicial Court, 1969)
Mello v. Stop & Shop Companies, Inc.
524 N.E.2d 105 (Massachusetts Supreme Judicial Court, 1988)
Williams v. Hartman
597 N.E.2d 1024 (Massachusetts Supreme Judicial Court, 1992)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
Glaz v. Ralston Purina Co.
509 N.E.2d 297 (Massachusetts Appeals Court, 1987)
Kourouvacilis v. General Motors Corp.
575 N.E.2d 734 (Massachusetts Supreme Judicial Court, 1991)
Flesner v. Technical Communications Corp.
575 N.E.2d 1107 (Massachusetts Supreme Judicial Court, 1991)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Smith-Pfeffer v. Superintendent of the Walter E. Fernald State School
533 N.E.2d 1368 (Massachusetts Supreme Judicial Court, 1989)
Maynard v. Royal Worcester Corset Co.
85 N.E. 877 (Massachusetts Supreme Judicial Court, 1908)
Shea v. Emmanuel College
682 N.E.2d 1348 (Massachusetts Supreme Judicial Court, 1997)

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Bluebook (online)
20 Mass. L. Rptr. 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callahan-v-center-for-technology-commercialization-inc-masssuperct-2005.