Carney v. Dexter Shoe Co.

701 F. Supp. 1093, 1988 U.S. Dist. LEXIS 14186, 50 Empl. Prac. Dec. (CCH) 39,007, 49 Fair Empl. Prac. Cas. (BNA) 707, 1988 WL 132656
CourtDistrict Court, D. New Jersey
DecidedDecember 13, 1988
DocketCiv. A. 87-4468
StatusPublished
Cited by21 cases

This text of 701 F. Supp. 1093 (Carney v. Dexter Shoe Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carney v. Dexter Shoe Co., 701 F. Supp. 1093, 1988 U.S. Dist. LEXIS 14186, 50 Empl. Prac. Dec. (CCH) 39,007, 49 Fair Empl. Prac. Cas. (BNA) 707, 1988 WL 132656 (D.N.J. 1988).

Opinion

OPINION

LECHNER, District Judge.

In this action, plaintiff George J. Carney (“Carney”) alleges that the defendant Dexter Shoe Company (“Dexter”) is liable for violating the following in connection with his termination on November 13, 1985: the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., (First Count of Plaintiffs Complaint); the New Jersey Law Against Discrimination (“NJLAD”), N.J.S.A. 10:5-12(a), (Second Count); the clear mandate of the public policy of the State of New Jersey (Third Count); an implied promise of job security, good faith and fair dealing (Fourth Count); and an express and implied contract of employment (Fifth Count). Carney also alleges that Dexter intentionally inflicted emotional distress upon him (Sixth Count). Carney seeks compensatory and punitive damages.

Now before the court is Dexter’s motion for summary judgment. It is Dexter’s position that Carney was an independent sales representative, not a Dexter employee, and thus his relationship with Dexter is not governed by ADEA or NJLAD and further that the relationship was for an indefinite duration and thus terminable at will by either party.

Facts

Carney is currently sixty years old and has been a resident of New Jersey since 1975. Prior to the termination of the working relationship, Carney had worked for Dexter in various capacities for a period of nineteen and one-half years. In his most recent position, Carney has described himself as a “self-employed representative]” of Dexter (T^l-ig). 1

Dexter is a corporation chartered in the State of Maine 2 and, according to plaintiff’s Complaint, is a corporation with its principal place of business in the state of Massachusetts. Dexter is engaged in the manufacture and sale of shoes.

Carney joined Dexter in 1966, at age thirty-eight, as an in-stock shoe salesman. His territory included New Jersey and Southern Connecticut. As a shoe salesman at this time, Carney’s compensation was based strictly on commission as a percentage of sales; no salary or bonus was paid. Within a few months, Carney was given a new position with Dexter in Boston where, as an executive salesman, he sold to approximately forty national accounts, including Sears Roebuck and other large department stores. In this position, which Carney held for nine and one-half years until 1975 (when Dexter eliminated the division), he was paid a yearly salary and usually received a bonus. In 1975, Carney reas-sumed his duties as a Dexter salesman responsible for the Northern New Jersey and Long Island territory. Once again, Carney was on a commission only based income.

While Dexter claims Carney was barely getting by in his various positions, Carney claims he was so successful that he took a territory yielding a commission income to his predecessor of $33,000 in 1975 and increased the business to the point where he was earning $100,000 as early as 1980. Carney also alleges that, in addition to his work as a salesman, he made other contributions as well, most notably in the research and design area. Over ten years ago, Carney alleges he helped develop the “Suburban,” a particularly well-selling shoe line for Dexter. It is not clear whether Carney received any compensation for such work over and above the extent to *1096 which he was paid commissions as a salesman.

As an in-stock salesman, Carney was free to terminate his employment with Dexter at any time although he stated he would have to give up certain earned commissions (T2:28-10 to 28-14). Carney was free to establish his own work agenda and to visit accounts as he saw fit; Dexter did not require Carney to work any specific hours during the day or to make any minimum number of customer calls per day (T2:7-21). Carney was not provided with an office nor was he reimbursed for the costs incurred in furnishing or staffing one (T2:12-22 to 13-33). Carney received no schooling, training or formal direction from Dexter on how to sell their products (T:19-25 to 20-11).

Carney was not provided with a company car, nor was he reimbursed for travel or other related expenses; he fully funded all of his expenses (T:39-23 to 40-4; T2:5 — 15); Carney received no reimbursement for attending annual sales meetings (T2:5-15). Carney paid all of the travel and entertainment expenses which he incurred doing Dexter related business (T:40-6).

Dexter did not provide Carney with any financial benefits such as a pension, insurance or profit sharing (T2:5-7 to 5-18); Carney did not receive sick pay or paid vacations (T2:8-7); Carney was responsible for paying his own social security and income tax; Dexter did not automatically compute and withhold any amount for any purpose (T2:6-2 to 7-2).

Carney states, however, that Dexter exercised significant control over his activities. For example, Dexter precluded Carney from selling products other than those manufactured by Dexter. (Carney Affidavit at 114; T2:13-25). During his years doing in-stock sales work, Carney reported to Dexter headquarters almost daily by phone (although he set his own daily agenda) and was required to submit in writing weekly reports on forms provided by Dexter. (Carney Affidavit at ¶ 5; T2:22-4 to 24-20). In addition, Carney was subject to various other guidelines (most of which were procedural) set forth in the Dexter Sales Manual. (Carney Affidavit at 115).

Dexter exercised control over the types of shoes which Carney could sell, the delivery dates for shipping supplies to customers and the timing of when Carney could open new accounts. (Carney Affidavit at 116; T2:18-20 to 21-24; T2:103-l to 106-3). As evidence of the extent to which he was dependent upon Dexter for income, Carney claims he was restricted from engaging in other enterprises and was precluded (under the terms of Dexter’s Sales Manual) from selling Dexter shoes other than to customers who met certain Dexter criteria, such as minimum purchase amounts of fifty pairs of shoes. Carney does not claim there was an unreasonably limited number of potential customers to whom he could make sales calls.

As a Dexter salesman, Carney claims he was prevented from taking vacations except during short periods of time when the selling season was over, (Carney Affidavit 116; T2:8-9), however, it was not necessary that Carney receive prior approval from Dexter prior to taking a vacation. (T2:8-17 to 9-23). Carney was also required to contribute monthly expenses of between $100 to $250 for use of a showroom which he had little opportunity to use. Twice a year Dexter would provide Carney with a performance analysis, which he would discuss with one or two Dexter sales managers. (Carney Affidavit 117; T:77-80).

Despite what he regards as the exercise of such control over his sales activities, or perhaps because of it, Carney felt a personal attachment to Dexter and thought Dexter felt similarly. At one point, Carney claims he passed up an opportunity to become a partial owner in an import firm, having been led to believe by Dexter that his future was secure there. (T:56-19 to 69-8; T2:25-23 to 31-3).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

West v. Legacy Health
D. Oregon, 2024
SINGH v. KAPLAN
D. New Jersey, 2022
Chrisanthis v. County of Atl.
825 A.2d 1192 (New Jersey Superior Court App Division, 2003)
Metropolitan Pilots Ass'n, LLC v. Schlosberg
151 F. Supp. 2d 511 (D. New Jersey, 2001)
Kurdyla v. Pinkerton Security
197 F.R.D. 128 (D. New Jersey, 2000)
Pukowsky v. Caruso
711 A.2d 398 (New Jersey Superior Court App Division, 1998)
DeJoy v. Comcast Cable Communications Inc.
968 F. Supp. 963 (D. New Jersey, 1997)
Pitak v. Bell Atlantic Network Svcs., Inc.
928 F. Supp. 1354 (D. New Jersey, 1996)
King v. Port Authority of New York and New Jersey
909 F. Supp. 938 (D. New Jersey, 1995)
McDermott v. Chilton Co.
938 F. Supp. 240 (D. New Jersey, 1995)
Derthick v. Bassett-Walker, Inc.
904 F. Supp. 510 (W.D. Virginia, 1995)
Crawford v. West Jersey Health Systems
847 F. Supp. 1232 (D. New Jersey, 1994)
TM Marketing, Inc. v. Art & Antiques Associates, L.P.
803 F. Supp. 994 (D. New Jersey, 1992)
Frishberg v. Esprit De Corp., Inc.
778 F. Supp. 793 (S.D. New York, 1991)
Fregara v. Jet Aviation Business Jets
764 F. Supp. 940 (D. New Jersey, 1991)
Glenside West Corp. v. Exxon Co., USA
761 F. Supp. 1118 (D. New Jersey, 1991)
Pittman v. LaFontaine
756 F. Supp. 834 (D. New Jersey, 1991)
Maietta v. United Parcel Service, Inc.
749 F. Supp. 1344 (D. New Jersey, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
701 F. Supp. 1093, 1988 U.S. Dist. LEXIS 14186, 50 Empl. Prac. Dec. (CCH) 39,007, 49 Fair Empl. Prac. Cas. (BNA) 707, 1988 WL 132656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carney-v-dexter-shoe-co-njd-1988.