Chavez v. Broadway Electric Service Corp.

245 S.W.3d 398, 2007 Tenn. App. LEXIS 398
CourtCourt of Appeals of Tennessee
DecidedJune 27, 2007
StatusPublished
Cited by37 cases

This text of 245 S.W.3d 398 (Chavez v. Broadway Electric Service Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chavez v. Broadway Electric Service Corp., 245 S.W.3d 398, 2007 Tenn. App. LEXIS 398 (Tenn. Ct. App. 2007).

Opinion

OPINION

SHARON G. LEE, J„

delivered the opinion of the court,

in which CHARLES D. SUSANO, JR., and D. MICHAEL SWINEY, JJ„ joined.

The Plaintiffs, Lester M. Chavez, Roger S. Davy, and Judith Chavez, were formerly employed at the U.S. Department of Energy (“DOE”) facility in Rocky Flats, Colorado. The Plaintiffs moved to Tennessee to work at the DOE facilities in Oak Ridge for the Defendant. Mr. Chavez and Mr. Davy were told by the Defendant that there was enough work for them for “ten years.” Mrs. Chavez was promised a job with the Defendant for one year. When the work did not materialize as anticipated, the Plaintiffs brought this action for breach of contract, fraudulent misrepresentation, and promissory estoppel against the Defendant. The trial court, applying the promissory estoppel doctrine, awarded Mr. Chavez damages in the amount of $25,661 and awarded Mr. Davy $31,219 in damages. The trial court found that the Defendant breached an oral employment contract with Mrs. Chavez, and awarded her damages in the amount of $4,463. We affirm the trial court’s factual findings, but disagree with the trial court’s conclusion that the facts support a judgment for Mr. Chavez and Mr. Davy under the promissory estoppel doctrine. Specifically, we hold that the employer’s representations to the Plaintiffs regarding the general condition of the job market in Oak Ridge were too ambiguous and vague to be held as “promises” supporting an action for damages. In the absence of an enforceable employment contract and any finding of misrepresentation or fraud on the employer’s part, we reverse the judgment for Plaintiffs Mr. Chavez and Mr. Davy under promissory estoppel. We affirm the trial court’s judgment awarding Mrs. Chavez damages for breach of an oral employment contract for a one-year period.

I. Background

This case began as two separate actions against Broadway Electric Service Corporation (“BESCO”), one by Lester and Judy Chavez and the other by Roger S. Davy, but because of their similarity in factual allegations and legal theories, they were consolidated and tried together. In 2003, both Mr. Chavez and Mr. Davy were employed as electricians at the U.S. Department of Energy’s (“DOE”) facility in Rocky Flats, Colorado. DOE ordered a permanent shutdown of the Rocky Flats facility in early 2003, and began disman *400 tling and downsizing its workforce. Although it was clear that Mr. Chavez and Mr. Davy had a limited amount of employment remaining at Rocky Flats, the shutdown was done gradually, and they each testified that they thought they would be able to continue working there for another two to three years at most. Rocky Flats was a secure DOE facility, and both Mr. Chavez and Mr. Davy had a security clearance that enabled them to work at such a facility.

Sometime in early 2003, a local union steward told Mr. Chavez about a contracting firm in the Oak Ridge, Tennessee, area that was looking for electricians with security clearances to work at the DOE facilities in Oak Ridge. Mr. Chavez also saw a flyer posted by BESCO that advertised employment positions in Oak Ridge, stating as follows:

Following is information for the positions in Oak Ridge, TN at the DOE Sites for BESCOfc]
We offer the prevailing wage for all craft employees through the individual Unions plus $1.00 per hour. If there is no work for a particular craft, we can utilize the individuals as “Escorts,” you will continue with the same pay scale. Should you not be a member of any Union and want to work as an “Escort” only, we processed [sic] through the Labors Local # 818. The pay is a flat $15 per hour, BESCO pays the Installation Fee ($350.00) and you are responsible for the dues.
With either Local Union you will be paid $45.00 per working day per diem. This will be paid after six (6) weeks employment and every four (4) weeks thereafter for up to one (1) year.
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There is lots of work in Oak Ridge and BESCO has contracts at all three Oak Ridge Sites. Our Company has been in business in this area and on the DOE sites more than 50 years. Anyone with an “L” or “Q” [security] clearance will not have a problem finding work in the area. There is always a need for cleared personnel by all the Oak Ridge Companies with DOE contracts.

Mr. Chavez contacted Travis Mayton, a BESCO field superintendent responsible for hiring workers for BESCO’s DOE contracts, in March of 2003. Mr. Chavez testified that during their initial phone conversation, Mr. Mayton offered him a job. Mr. Chavez described the terms of the job offer as “work up to ten years, a dollar on top of the base salary for my clearance, per diem of $45 a day per day worked, overtime approximately 16 to 20 hours a week.” Mr. Chavez testified that the base hourly wage offered him by BESCO was $21.67 an hour.

Shortly thereafter, Mr. Chavez traveled to Oak Ridge to meet with Mr. Mayton and to look at the DOE facilities. At that meeting, Mr. Mayton confirmed BESCO’s offer, told Mr. Chavez that BESCO had contracts for all three of DOE’s Oak Ridge facilities and, according to Mr. Chavez, told him that “there was enough work for ten years and he wished there were — he had 40 more electricians like me with Q clearances because he could keep us all employed.” Mr. Chavez stated that based on his observations, he concluded that there was indeed an abundance of work in Oak Ridge for electricians in March of 2003.

Mr. Chavez testified that he accepted BESCO’s offer “sometime in April or May” of 2003. Mr. Chavez contacted Mr. Mayton numerous times to confirm that the job offer was still good before turning in his separation papers with his employer at Rocky Flats. Mr. Chavez testified that he decided to move his family to the Knox *401 ville area because BESCO “kept assuring me that there was work for me for ten years and at least a year of work for my wife as an escort.” 1

Mr. Chavez started work for BESCO as an electrician, working at a DOE construction site in Oak Ridge, in August of 2003. The arrival of the Chavez family in East Tennessee coincided with a serious downturn in the amount of construction work available to BESCO under the DOE contracts. Among other things, DOE budgetary constraints and a delay in Congressional funding caused BESCO temporary construction delays and a general temporary downsizing of its workforce. Mr. Chavez worked for BESCO for approximately eleven weeks, and on October 16, 2003, he was furloughed for lack of work. Mr. Mayton assured Mr. Chavez that the furlough was only temporary, and told him to check back regularly to see if work had become available. Each time Mr. Chavez called in to check, Mr. Mayton assured him that the work slowdown was temporary, and that work would be available soon.

Mr. Chavez began looking for another job in November of 2003. He found work as an escort, accompanying persons without security clearance on the secured DOE sites, in November of 2003, and continued in that position for approximately 13 months, earning $13.50 per hour. In March of 2005, Mr. Chavez was hired by another contracting firm as an electrician, working at the Oak Ridge Y-12 plant and earning between $23 and $24 per hour.

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245 S.W.3d 398, 2007 Tenn. App. LEXIS 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chavez-v-broadway-electric-service-corp-tennctapp-2007.