Carter v. G C Electronics

599 N.E.2d 11, 233 Ill. App. 3d 237, 174 Ill. Dec. 465, 7 I.E.R. Cas. (BNA) 1336, 1992 Ill. App. LEXIS 1307
Appellate Court of Illinois·Decided August 18, 1992·No. 2-91-0510·Published·Cited by 11 cases

Opinion

JUSTICE BOWMAN

delivered the opinion of the court:

Plaintiff, Douglas Carter, appeals from an order of the circuit court of Winnebago County which granted summary judgment in favor of defendant, Household Manufacturing, Inc. (Household). Plaintiff, a former employee of Household, brought this action alleging that defendant discharged him in retaliation for his refusal to participate in the misappropriation of company funds by an officer of the company. On appeal plaintiff asserts that his reply to defendant’s motion raised a genuine issue of material fact regarding defendant’s motive for discharging him, thereby precluding summary judgment.

Carter was employed as the division controller for G C Electronics (GC), a division of Household. He reported directly to Wayne Timpe, the president of GC. In September 1986 Timpe told Carter that Household had approved the settlement of a racial discrimination claim made by a former GC employee. The company had authorized $42,000 for the settlement, but the employee would not agree to anything less than $50,000. Timpe asked Carter to prepare a check for $50,000 for the employee and explained that he, Timpe, would personally reimburse the company for the $8,000 difference between the amount of the settlement check and the amount authorized by Household. Timpe further indicated that he wanted the additional $8,000 payment to be hidden from Household management and held until he repaid it. Carter responded that he could hold the payment until the end of the year but, upon closing the books, it would have to be shown as an employee receivable.

On January 6, 1987, Carter told Timpe the time had come to close the books and asked him what he wanted done with the $8,000 excess payment. Timpe told Carter to show it as an expense and indicated that he would get approval for it from Terence McCarthy, his superior at Household. Carter expensed the $8,000 in one or more categories and closed the books for 1986.

One week later, January 13, 1987, Timpe notified Carter that Household was merging GC with Thorsen Tool Company, another Household operating division. Pursuant to the merger, Carter’s job was being eliminated, and he was not going to be hired for the position of controller for the new, merged division of Household.

Another week later, January 21, 1987, Carter, along with Timpe, signed a letter addressed to Don Holmes, the controller of Household. The letter, which Carter called a “representation letter,” addressed the year-end financial statements and other accounting data submitted by GC to Household’s corporate office. The letter represented that the data were correct and accurate and had been handled properly and that there had been no irregularities involving management or employees which could have an effect on the financial statements.

In a letter dated February 3, 1987, Timpe confirmed to Carter that he was being terminated from GC. Timpe explained that he had decided to look for a new person to fill the controller position in the combined GC-Thorsen division because the job had additional requirements and he did not think Carter would be able to fulfill those requirements. Ultimately, a Household finance manager was named con-trailer of the new entity. The controller at Thorsen had also been eliminated from consideration for the job.

Sometime in February or March Carter called the Household legal department and determined that the amount of the settlement with the former GC employee was still recorded as $42,000, not $50,000. He then called Holmes, the corporate controller, and explained what had happened regarding the payment of the excess $8,000 to the former employee. Prior to this time no one knew about the overpayment except Timpe and Carter. Carter’s last day at GC was the first Friday in April 1987.

On April 26, 1988, Carter filed a one-count complaint alleging that Timpe discharged him in retaliation for his questioning of an illegal transaction. In its motion for summary judgment Household asserted, among other things, that Carter was terminated because his job was eliminated in the course of a corporate reorganization and he was not qualified for the new, more responsible position as controller of the reorganized entity. Following Carter’s response, the trial court essentially indicated that, based on the evidence which had been submitted in support of and in opposition to the motion, the plaintiff had not raised a genuine issue of material fact on the question of the motivation for his discharge. The court found that plaintiff was discharged because his job was abolished. Absent discharge in retaliation for something he did or refused to do, the plaintiff could not show the existence of the tort of retaliatory discharge. Accordingly, the court granted the motion for summary judgment. Plaintiff then brought this timely appeal.

Plaintiff posits that the trial court erred because it disregarded his evidence, from which it could be inferred that he was fired for refusing to participate in an illegal transaction. Plaintiff’s position cannot be sustained.

Summary judgment is proper when the pleadings, depositions, admissions, and affidavits on file demonstrate that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. (Ill. Rev. Stat. 1989, ch. 110, par. 2—1005; Fuentes v. Lear Siegler, Inc. (1988), 174 Ill. App. 3d 864, 866.) The purpose of summary judgment is not to try an issue of fact but to determine whether a triable issue of fact exists. (Fuentes, 174 Ill. App. 3d at 866; Sloan v. Jasper County Community Unit School District No. 1 (1988), 167 Ill. App. 3d 867, 870.) On defendant’s motion for summary judgment a plaintiff is not required to establish his case as he would at trial, but he must present some factual basis that would arguably entitle him to a judgment. (Fuentes, 174 Ill. App. 3d at 866; Martin v. 1727 Corp. (1983), 120 Ill. App. 3d 733, 737.) These fundamental principles guide our inquiry.

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Carter v. G C Electronics, 599 N.E.2d 11, 233 Ill. App. 3d 237, 174 Ill. Dec. 465, 7 I.E.R. Cas. (BNA) 1336, 1992 Ill. App. LEXIS 1307 (Ill. Ct. App. 1992).

599 N.E.2d 11 (Carter v. G C Electronics) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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