Chires v. Cumulus Broadcasting, LLC

543 F. Supp. 2d 712, 2008 U.S. Dist. LEXIS 10420, 2008 WL 408524
CourtDistrict Court, E.D. Michigan
DecidedFebruary 13, 2008
Docket06-14971
StatusPublished
Cited by3 cases

This text of 543 F. Supp. 2d 712 (Chires v. Cumulus Broadcasting, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chires v. Cumulus Broadcasting, LLC, 543 F. Supp. 2d 712, 2008 U.S. Dist. LEXIS 10420, 2008 WL 408524 (E.D. Mich. 2008).

Opinion

OPINION AND ORDER

SEAN F. COX, District Judge.

This matter is before the Court on Defendants’ Motion for summary judgment. Both parties have briefed the issues and a hearing was held January 10, 2008. For the following reasons, the Court GRANTS in part, and DENIES in part, Defendants’ Motion for summary judgment. Summary judgment is granted on Plaintiffs breach of contract claims stemming from an alleged oral agreement or a legitimate expectation of just-cause employment; and Plaintiffs claims for fraud. Summary judgment is denied on Plaintiffs claim for breach of an express contract.

I. BACKGROUND

This action arises out of the termination of Plaintiffs employment. Plaintiff, Michael Chires, was employed with Defendants as a market manager for the Flint radio station cluster. Market managers are responsible for programming, promotions, general administration, human resources, managing and overseeing sales activities and customer relations.

In December 2004, Plaintiff voluntarily resigned from Greater Media Broadcasting Company. In February 2005, Larry Blum (“Blum”), the regional director for the Flint, Michigan radio cluster, contacted Plaintiff to recruit him as the market manager for Defendants’ Flint cluster. Plaintiff was not immediately interested. In March 2005, Plaintiff claims he asked Blum very specific questions regarding the status of the Flint cluster, including questions about market performance and revenue. According to Plaintiff, Blum responded that “performance was good, that they were on budget, and that he felt that the goals that were in place were very obtainable.” Plaintiff alleges that in reliance on Blum’s response, he accepted a position with Defendants as a market manager.

Plaintiff and Defendants began to negotiate an employment contract. Defendants’ attorney, Mona Maerz (“Maerz”), drafted the contract using a job description sent by Blum. Plaintiff started working for Defendants before a contract was agreed upon. The contract drafted by Maerz contained an employment term *716 from May 2, 2005 to December 31, 2006. The contract also stated that termination was only for just cause. Apparently a subsequent draft of the contract contained a clause providing that Plaintiffs position as market manager was to be his sole employment. Plaintiff asserts that he and Blum agreed to strike that provision so he could work in his family’s restaurant business. Plaintiff submitted the contract with the sole employment provision struck. Allegedly, despite Blum’s acceptance, Maerz sent another draft of the contract containing another sole employment provision for Plaintiffs consideration. Maerz also emailed Blum and Jon Pinch (“Pinch”), the Chief Operating Officer for Defendants, to inform them that Plaintiff did not agree to her changes to the sole employment provision. Her correspondence included a copy of an email from Plaintiff stating that he and Blum agreed to strike the sole employment provision. Plaintiff again returned a copy of the contract to Blum with the sole employment provision struck. Blum, for the second time, accepted the contract with the sole employment provision struck and forwarded it to Maerz. Plaintiff did not hear back regarding the contract. He asked Blum for a copy but never received one.

Plaintiffs employment with Defendants was terminated on November 30, 2005. Defendants cited “poor performance of your job duties.” The employment contract Plaintiff asserts was in effect contained a six month non-eompete clause. The contract further provided that Defendants would continue to pay Plaintiff his base salary during those six months if Plaintiff was not terminated for cause. Plaintiff argues he was not terminated for cause, and thus should have received payment under his employment contract.

On October 10, 2006, Plaintiff filed an action in Genesee County Circuit Court. Defendants removed the action on November 3, 2006. An Amended Complaint was filed on October 5, 2007, alleging: (1) breach of contract; (2) fraud; and (3) silent fraud. Defendants filed the instant Motion for summary judgment on October 2, 2007.

II. STANDARD OF REVIEW

Under Fed. R. Civ. P 56(c), summary judgment may be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show 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.” Copeland v. Machulis, 57 F.3d 476, 478 (6th Cir.1995). A fact is “material” and precludes a grant of summary judgment if “proof of that fact would have [the] effect of establishing or refuting one of the essential elements of the cause of action or defense asserted by the parties, and would necessarily affect application of appropriate principled of law to the rights and obligations of the parties.” Kendall v. Hoover Co., 751 F.2d 171, 174 (6th Cir.1984). The court must view the evidence in the light most favorable to the nonmoving party and it must also draw all reasonable inferences in the nonmoving party’s favor. Cox v. Kentucky Dept. of Transp., 53 F.3d 146, 150 (6th Cir.1995).

III. ANALYSIS

A. Breach of Contract

Defendants argue they are entitled to summary judgment on two grounds: (1) Plaintiff did not enter into a for-cause employment contract with Defendants; and (2) even if Plaintiff did have a for-cause employment contract, his termination was justified. Plaintiff asserts there was a for-cause employment agreement based on three theories: (1) that Blum’s acceptance of two contracts with *717 the sole employment provision struck constituted an assent to the modification; (2) there was an oral agreement with respect to Plaintiffs salary, term of employment and ability to continue working in his family’s restaurants; and/or (3) Plaintiff had a legitimate expectation of for-cause employment.

1. Did Blum’s acceptance constitute an assent by Defendants?

The parties dispute whether an express contract was formed because Plaintiff did not accept the offered employment contract as written. Plaintiff struck the sole employment provision. Defendants allege that this action served as a rejection of the employment contract, and thus, Plaintiffs employment was at-will. Plaintiff argues that through Blum’s agreement on striking the sole employment provision and acceptance of two contracts with the provision struck, Defendants assented to the contract.

The essential elements of a valid contract are: (1) parties competent to contract; (2) a proper subject matter; (3) legal consideration; (4) mutuality of agreement; and (5) mutuality of obligation. Hess v. Cannon Township, 265 Mich.App. 582, 592, 696 N.W.2d 742 (Mich.App.2005). The issue here is mutuality of agreement. “A basic requirement of contract formation is that the parties mutually assent to be bound.” Rood v. General Dynamics Corporation, 444 Mich.

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Cite This Page — Counsel Stack

Bluebook (online)
543 F. Supp. 2d 712, 2008 U.S. Dist. LEXIS 10420, 2008 WL 408524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chires-v-cumulus-broadcasting-llc-mied-2008.