Cruey v. Gannett Co.

64 Cal. App. 4th 356
CourtCalifornia Court of Appeal
DecidedMay 29, 1998
DocketA075459
StatusPublished
Cited by35 cases

This text of 64 Cal. App. 4th 356 (Cruey v. Gannett Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cruey v. Gannett Co., 64 Cal. App. 4th 356 (Cal. Ct. App. 1998).

Opinion

64 Cal.App.4th 356 (1998)

DANIEL S. CRUEY, Plaintiff and Appellant,
v.
GANNETT COMPANY, INC., et al., Defendants and Respondents.

Docket No. A075459.

Court of Appeals of California, First District, Division Four.

May 29, 1998.

*360 COUNSEL

Tarkington, O'Connor & O'Neill, John D. O'Connor and Laura E. Malkofsky for Plaintiff and Appellant.

Littler, Mendelson, Fastiff, Tichy & Mathiason, Lindbergh Porter, Jr., and Michael Mankes for Defendants and Respondents.

[Opinion certified for partial publication.[*]]

OPINION

SALDAMANDO, J.[*]

Appellant Daniel S. Cruey (Cruey) appeals dismissal of his case following entry of an order granting summary judgment of his complaint for wrongful termination from his position as general manager of the San Francisco market of his former employer, respondent Gannett Company, Inc., doing business as USA Today (Gannett), a newspaper publishing and distribution enterprise.[1] Causes of action for libel and slander claims against Gannett and respondent Christine Lacy (Lacy), an employee formerly supervised by Cruey, were also summarily adjudicated. Cruey *361 asserts that the trial court erred in finding that there were no triable issues of fact as to any cause of action.

I. Standard of Review

(1) An appellate court reviewing a judgment of dismissal after an order granting summary judgment must review the record de novo to determine whether the moving party is entitled to summary judgment as a matter of law or whether there exist genuine issues of material facts. (Lee v. Crusader Ins. Co. (1996) 49 Cal. App.4th 1750, 1756 [57 Cal. Rptr.2d 550].)

Code of Civil Procedure section 437c, subdivision (o)(2), mandates a burden-shifting which requires defendant to show a complete defense to the action or that one or more elements of the cause of action cannot be established. If defendant makes this showing, the burden shifts to the plaintiff to show that a triable issue of one or more material facts exists as to that cause of action or defense thereto.

II. Background

Cruey had been with Gannett since 1983 and had received several promotions including his latest to general manager in 1991. Cruey did not have a formal employment contract which covered termination; he claims to have had an implied agreement not to be terminated except for good cause. He was terminated in December 1994, nearly three months after Lacy, a regional manager supervised by him, filed complaints with both the federal Equal Employment Opportunity Commission (EEOC) and Gannett alleging sexual harassment by Cruey. Gannett's stated reason for termination was that Cruey's "`style of management of employees and philosophy were inconsistent with [Gannett's] goals and policies.'"

Cruey claims that Gannett's stated reasons for firing him were pretextual and violated Gannett's employee guidelines which call for progressive discipline and prohibit age and sex discrimination. He asserts that the impetus behind his sudden termination was Gannett's "calculated decision" that it would be less detrimental for the company to defend a lawsuit brought by a discharged white male executive than to defend a lawsuit for sexual harassment brought by a woman who already had retained a high-profile attorney to represent her.

Gannett argues that Cruey was an at-will employee who was terminable without good cause. Gannett points out that 11 months after being promoted to general manager, a promotion which apparently required that he move from Philadelphia to the Bay Area, Cruey signed a 24-page "Tenant in Common Agreement" (Agreement) with Gannett which subsidized $60,000 of the purchase price of Cruey's new home in recognition of his move to a *362 more expensive housing market. Paragraph 3, entitled "Co-ownership and Division of Profits" (original emphasis), contained an acknowledgment in subdivision (c) that Cruey's employment was at-will and terminable at any time by Gannett without cause.[2] Cruey admitted in his deposition that he read Paragraph 3 when he executed the Agreement.

Gannett further argues that even assuming existence of an implied contract requiring good cause, Cruey failed to raise a triable issue of fact as to whether good cause existed. Instead, in Gannett's view the evidence demonstrated that Gannett made a good faith decision which was both within its managerial discretion and consistent with the law.

III. Cruey Is an At-will Employee

(2) In relevant part, Labor Code section 2922 provides that "[a]n employment, having no specified term, may be terminated at the will of either party on notice to the other...." This section has been construed in Foley v. Interactive Data Corp. (1988) 47 Cal.3d 654 [254 Cal. Rptr. 211, 765 P.2d 373] to create a presumption of at-will employment unless superseded by a contract, express or implied, which limits the employer's right to discharge the employee. (At p. 665.) Apart from consideration and express terms, other factors which can be used to ascertain the existence and scope of an employment agreement include (1) the personnel policies or practices of the employer, (2) the employee's longevity of service, (3) actions or communications by the employer reflecting assurances of continued employment, and (4) the practices of the industry in which the employee is engaged. (Foley v. Interactive Data Corp., supra, 47 Cal.3d at p. 680.)

When an employment agreement has both express and implied terms which are contradictory, the express terms control. (Shapiro v. Wells Fargo Realty Advisors (1984) 152 Cal. App.3d 467, 482 [199 Cal. Rptr. 613]; Rochlis v. Walt Disney Co. (1993) 19 Cal. App.4th 201, 211-212 [23 Cal. Rptr.2d 793], disapproved on other grounds in Turner v. Anheuser-Busch, Inc. (1994) 7 Cal.4th 1238, 1251 [32 Cal. Rptr.2d 223, 876 P.2d 1022].) This is true even if the written terms are not contained in an integrated employment *363 contract. (Camp v. Jeffer, Mangels, Butler & Marmaro (1995) 35 Cal. App.4th 620, 630 [41 Cal. Rptr.2d 329] (Camp), citing Gerdlund v. Electronic Dispensers International (1987) 190 Cal. App.3d 263, 272 [235 Cal. Rptr. 279].)[3] For example, in Camp a husband and wife hired by a firm acknowledged in writing a short time after hiring that their employment was at-will and terminable at any time without good cause. When they were later terminated from their jobs they filed a lawsuit alleging a violation of an implied-in-fact contract requiring good cause. Citing Shapiro, the Camp court found that there could not exist at the same time both a valid express contract and implied contract each embracing the same subject but requiring a different result. Under such circumstances, the express written acknowledgment controlled even though it had not been contained in an integrated employment contract. (Camp, supra, 35 Cal. App.4th at p. 630.)

(3) In the case at bench, the express at-will employment term was not contained in an integrated employment contract but was in the subsequently executed Agreement, which related to Cruey's employment in that it provided an additional financial benefit to him as part of a job promotion within the company.

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Bluebook (online)
64 Cal. App. 4th 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruey-v-gannett-co-calctapp-1998.