Crain v. Burroughs Corp.

560 F. Supp. 849, 115 L.R.R.M. (BNA) 5008, 1983 U.S. Dist. LEXIS 17894, 31 Empl. Prac. Dec. (CCH) 33,535
CourtDistrict Court, C.D. California
DecidedApril 7, 1983
Docket82 4582 AAH (Bx)
StatusPublished
Cited by17 cases

This text of 560 F. Supp. 849 (Crain v. Burroughs Corp.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crain v. Burroughs Corp., 560 F. Supp. 849, 115 L.R.R.M. (BNA) 5008, 1983 U.S. Dist. LEXIS 17894, 31 Empl. Prac. Dec. (CCH) 33,535 (C.D. Cal. 1983).

Opinion

FINDINGS OF FACT; CONCLUSIONS OF LAW

HAUK, Senior District Judge.

Plaintiff Ann Marie Crain filed the instant Complaint against Defendant Burroughs Corporation alleging breach of an employment contract, intentional infliction of emotional distress and age discrimination in employment pursuant to California Government Code Section 12941. The instant action was removed from the Superior Court for Orange County to this Court on the grounds of diversity of jurisdiction. Defendant Burroughs Corporation has filed a Motion for Summary Judgment in its favor on the First, Second, and Third Causes of Action on the grounds that Plaintiff’s own written employment contract clearly allowed for her dismissal at any time without cause and thus removed any issue of whether Plaintiff’s discharge was wrongful or without cause.

*851 This Court has considered the papers, evidence and arguments of the parties and hereby enters the following Findings of Fact and Conclusions of Law.

FINDINGS OF FACT

1. Plaintiff Ann Marie Crain was hired by Defendant Burroughs Corporation on December 17, 1979. Complaint at Paragraph 5. Defendant’s Answer at Paragraph 5.

2. On January 3, 1980 Plaintiff and Defendant signed a written employment contract in which Plaintiff was given the position of Marketing Management Trainee. Exhibit A to Defendant’s Memorandum of Points and Authorities in Support of its Motion for Summary Judgment (hereinafter referred to as “Motion”).

3. Paragraph 19 of the January 3, 1980 employment contract provided that either Plaintiff or Defendant could cancel and terminate the contract at any time. Exhibit A to Defendant’s Motion.

4. Paragraph 22 of the January 3, 1980 employment contract provided that there were no oral agreements or understandings affecting the contract in existence. Paragraph 22 further provided that no alteration or variation of the terms of the contract would be valid or binding unless made in writing and signed by both parties. Exhibit A to Defendant’s Motion.

5. Paragraph 23 of the January 3, 1980 employment contract provided that the agreement superseded and annulled all other employment and/or commission contracts between the parties and that the contract was to be construed according to the laws of the State of Michigan. Exhibit A to Defendant’s Motion.

6. Plaintiff and Defendant entered into two subsequent written employment agreements on April 24,1980 and January 9,1981 that contained provisions identical to the January 3, 1980 contract provisions described above. Exhibits B and C of Defendant’s Motion.

7. In March of 1981 Defendant ceased using separate contracts for each type of sales employee and initiated the use of a combined contract/personnel action notice, titled the Sales Representative Agreement/P.A.N. Exhibit D of Defendant’s Motion.

8. Paragraph 10 of the Sales Representative Agreement/P.A.N. states that this agreement supersedes all other commission or employment contracts between the parties and that the contract is to be construed according to the laws of the State of Michigan. Exhibit E of Defendant’s Motion.

9. Paragraph 9 of the Sales Representative Agreement/P.A.N., printed in darker, enlarged print, states that Defendant has the sole discretion to determine the duration of the employment of a sales representative and shall continue to employ sales representatives only for as long as Defendant desires his/her services. Exhibit E of Defendant’s Motion.

10. Paragraph 9 of the Sales Representative Agreement/P.A.N., provides that its provisions supersede Paragraph 3, which provides for the inclusion of all applicable portions of the Field Marketing Manual, letters, directives, contract riders, and Personnel Action Notices in the contract. Exhibit E of Defendant’s Motion.

11. Paragraph 8 of the Sales Representative Agreement/P.A.N. states that there are no oral agreements or understandings affecting the contract and that all alterations or variations of the contract’s terms must be in writing and signed by both parties to the contract. Exhibit E of Defendant’s Motion.

12. Plaintiff signed a Sales Representative Agreement/P.A.N. on April 21, 1981, June 1, 1981, August 27, 1981, and October 23, 1981. Exhibits E, F, G and H of Defendant’s Motion.

13. The Preface of the Field Marketing Manual clearly states that the Manual is informational only and that its provisions are not conditions of employment and may be modified, revoked or changed at any time with or without notice. The Preface of the Manual further states that the Manual was not intended to create, and is not to *852 be construed to constitute, a contract between Burroughs and any of its employees. Exhibit I of Defendant’s Motion.

14. At the end of two different sales courses Plaintiff received criticism concerning her lack of independence and understanding of Burroughs products and computer concepts. Exhibits J and K of Defendant’s Motion.

15. Plaintiff was placed on probation on September 2, 1981 because of her unsatisfactory marketing performance. Exhibit L of Defendant’s Motion.

16. As deficiencies in Plaintiff’s performance continued, Plaintiff was placed on supplemental probation on October 7, 1981. Exhibit M of Defendant’s Motion.

17. When Plaintiff’s deficiencies in performance persisted, she was terminated by Defendant on October 23, 1981. Exhibit N of Defendant’s Motion. At the time of her termination Plaintiff had less than two years of employment with Burroughs.

CONCLUSIONS OF LAW

1. In deciding a motion for summary judgment, a Federal Court is bound by the substantive law of the State in which the Federal Court is sitting. Accordingly, the law of the State of California governs this Motion for Summary Judgment. Erie Railway Co. v. Tompkins, 304 U.S. 64, 78, 58 S.Ct. 817, 822, 82 L.Ed. 1188 (1938).

2. California law provides that where a contract is unambiguous, as in the case at bar, the construction of the agreement is a question of law for the Court. United States Leasing Corp. v. DuPont, 69 Cal.2d 275, 284, 70 Cal.Rptr. 393, 444 P.2d 65 (1968); Larsen v. Johannes, 7 Cal.App.3d 491, 500, 86 Cal.Rptr. 744 (1970). California law further provides that a subsequent written contract supersedes a prior written contract. Cal.Civ.Code Section 1698; Crossen v. Foremost-McKesson, Inc., 537 F.Supp. 1076 (N.D.Cal.1982). Therefore the employment contract in existence at the time of Plaintiff’s termination, by its own terms as well as by law, supersedes all prior contracts between Plaintiff and Burroughs and is dispositive as to the terms and conditions of Plaintiff’s employment.

3. There cannot be a valid express contract and also a contradictory implied contract embracing the same subject matter.

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560 F. Supp. 849, 115 L.R.R.M. (BNA) 5008, 1983 U.S. Dist. LEXIS 17894, 31 Empl. Prac. Dec. (CCH) 33,535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crain-v-burroughs-corp-cacd-1983.