DAVID F. CALABOTTA VS. PHIBRO ANIMAL HEALTH CORPORATION (L-1979-17, BERGEN COUNTY AND STATEWIDE)

213 A.3d 210, 460 N.J. Super. 38
New Jersey Superior Court Appellate Division·Decided June 27, 2019·No. A-1576-17T3·Published·Cited by 23 cases

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-1576-17T3

DAVID F. CALABOTTA, Plaintiff-Appellant, APPROVED FOR PUBLICATION

June 27, 2019

v.

APPELLATE DIVISION

PHIBRO ANIMAL HEALTH CORPORATION, DEAN J. WARRAS, and DANIEL A. WELCH,

Defendants-Respondents.

Argued May 13, 2019 – Decided June 27, 2019 Before Judges Sabatino, Sumners and Mitterhoff.

On appeal from the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-1979-17.

Kathryn Kristine Mc Clure and Mary Anne Sedey (Sedey Harper Westhoff, PC) of the State of Missouri bar, admitted pro hac vice, argued the cause for appellant (Smith Eibeler, LLC, and Mary Anne Sedey, attorneys; Kathryn K. Mc Clure and Mary Anne Sedey, of counsel and on the briefs; John D. Lynn (Sedey Harper Westhoff, PC) of the State of Missouri bar, admitted pro hac vice, of counsel and on the briefs).

Martin Warren Aron argued the cause for respondents (Jackson Lewis PC, attorneys; Martin Warren Aron, of

counsel and on the briefs; Mary L. Moore and Katerina Rose Mantell, on the briefs).

James Edward Burden argued the cause for amicus curiae NELA-NJ (Smith Mullin, PC, attorneys; James Edward Burden, on the brief).

James Patrick Flynn argued the cause for amicus curiae ANJMA (Epstein Becker & Green PC, attorneys; James Patrick Flynn, of counsel and on the brief; David Wayne Garland, on the brief).

James R. Michael, Deputy Attorney General, argued the cause for amicus curiae the Attorney General of New Jersey (Gurbir S. Grewal, Attorney General, attorney; Jason Wade Rockwell, Assistant Attorney General, of counsel; James R. Michael, on the brief).

The opinion of the court was delivered by SABATINO, P.J.A.D.

This lawsuit is brought by an Illinois resident against his New Jersey-

based former employer. Plaintiff alleges the company wrongfully denied him a promotion to a position in New Jersey and thereafter wrongfully terminated him from his job with its subsidiary in Illinois.

Plaintiff claims the company engaged in "associational" discrimination against him, in violation of the New Jersey Law Against Discrimination ("NJLAD"), based on the fact that his wife was then terminally ill with cancer. The company maintains it treated plaintiff fairly, that he never applied for the

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promotion, and that it justifiably discharged him for engaging in inappropriate conduct at a trade show.

The appeal raises two important and novel questions of law.

First, under principles of statutory construction, can the NJLAD protect nonresident workers and job applicants, despite the fact that the statute's preamble refers to "inhabitants" of this state?

Second, even if the NJLAD can extend to certain out-of-state plaintiffs, do choice-of-law principles weigh in favor of applying the law of Illinois instead to plaintiff's respective failure-to-promote and wrongful discharge claims?

The trial court concluded that Illinois law, rather than the NJLAD, must apply to plaintiff's claims of discrimination because he lived in Illinois and worked for defendants' subsidiary in Illinois. Given that Illinois law has yet to recognize a cause of action for associational discrimination, the court granted defendants' motion to dismiss plaintiff's claims with prejudice.

For the reasons that follow, we conclude that the NJLAD, notwithstanding the solitary reference to "inhabitants" in its preamble, can extend in appropriate circumstances to plaintiffs who reside or work outside of this state. However, whether the NJLAD applies to a particular nonresident's claims turns upon a weighing of the multiple choice-of-law factors set forth in

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the Restatement (Second) of Conflicts of Laws (Am. Law Inst. 1971) (the "Second Restatement"), as adopted and construed by the New Jersey Supreme Court.

We hold that New Jersey law, and specifically the NJLAD's ban against associational discrimination, applies to defendants' alleged failure to give plaintiff fair consideration for a promotion to a position in New Jersey. The Second Restatement factors strongly weigh in favor of applying New Jersey law, not Illinois law, to this failure-to-promote claim. We therefore reverse the trial court's dismissal of that discrete claim.

As to plaintiff's wrongful discharge claim, we vacate its dismissal and remand the choice-of-law issue pertaining to that claim to the trial court for further analysis. We do so to enable the further development of critical facts bearing on the Second Restatement factors. Among other things, the record needs to be developed more fully and definitively concerning such things as: the location(s) of the person(s) within the company who took part in the decision to terminate plaintiff; the sole or dominant place, if any, that the decision was made; and the location(s) of plaintiff's conduct that precipitated his discharge. After those and other facts pertinent to the choice-of-law analysis are more fully developed, the trial court shall reassess which state has

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the "most significant relationship" overall to plaintiff's wrongful discharge claim.

I.

We glean the following facts and allegations from plaintiff's complaint and related pleadings, mindful that discovery has not yet been conducted and credibility determinations have not been made.

A.

Plaintiff's Work in Illinois for Phibro's Subsidiary

Defendant Phibro Animal Health Corporation ("Phibro"), a company headquartered in Teaneck, New Jersey, develops and sells animal food additives. Prince Agri Products Incorporated ("Prince Agri"), a subsidiary of Phibro, handles marketing, product management, research, development, and technical support. Prince Agri's office is located in Quincy, Illinois, where plaintiff resided at all times relevant to this case.

In 2008, Phibro hired plaintiff to serve as a Vice President of Marketing and Technology Deployment at Prince Agri's office. He worked in that position at Prince Agri in Illinois until his termination in 2016.

When plaintiff was hired, he signed three employment-related form agreements: a Noncompetition and Nonsolicitation Agreement, an Employee Invention Agreement, and a Confidentiality and Nondisclosure Agreement.

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All three agreements contained the following provision:

THIS AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE STATE OF NEW JERSEY WITHOUT REGARD FOR CONFLICTS OF LAW PRINCIPLES. I EXPRESSLY CONSENT TO VENUE IN, AND THE PERSONAL JURISDICTION OF, THE STATE AND FEDERAL COURTS LOCATED IN NEW JERSEY FOR ANY LAWSUIT ARISING FROM OR RELATING TO THIS AGREEMENT.

[(Emphasis added).]

Each agreement further stated: "This Agreement does not alter the status of my employment as an at-will employee of [Phibro]."

Defendant Dean J. Warras, the President of Prince Agri, was plaintiff's direct supervisor. Defendant Daniel A. Welch worked as Phibro's Senior Vice President of Human Resources.

Plaintiff maintains that Warras's and Welch's offices were located at Phibro's headquarters in Teaneck. However, in connection with defendants' motion to dismiss the complaint, Warras certified that his own employment was based out of Prince Agri's office in Illinois, the state where Warras maintained a primary residence until approximately August 2016.

While at Prince Agri, plaintiff supervised a team of approximately forty employees who managed existing product portfolios, identified new products, conducted research on product use and development, and provided customer

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DAVID F. CALABOTTA VS. PHIBRO ANIMAL HEALTH CORPORATION (L-1979-17, BERGEN COUNTY AND STATEWIDE), 213 A.3d 210, 460 N.J. Super. 38 (N.J. Ct. App. 2019).

213 A.3d 210 (DAVID F. CALABOTTA VS. PHIBRO ANIMAL HEALTH CORPORATION (L-1979-17, BERGEN COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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