DeFranco v. Storage Technology Corp.

622 F.3d 1296, 31 I.E.R. Cas. (BNA) 584, 2010 U.S. App. LEXIS 21591, 2010 WL 4116479
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 20, 2010
Docket08-1095
StatusPublished
Cited by4 cases

This text of 622 F.3d 1296 (DeFranco v. Storage Technology Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeFranco v. Storage Technology Corp., 622 F.3d 1296, 31 I.E.R. Cas. (BNA) 584, 2010 U.S. App. LEXIS 21591, 2010 WL 4116479 (10th Cir. 2010).

Opinion

EBEL, Circuit Judge.

Plaintiff-Appellant Thom DeFraneo was an employee of Defendanb-Appellee Storage Technology Corporation (“StorageTek”) in Colorado when he agreed to accept an overseas assignment in 2004. Before accepting the two-year job overseas, however, he received verbal assurances from three different StorageTek employees that he would have a “permanent job” when he returned from his work in the United Kingdom. After receiving those assurances, he signed a “Secondment Agreement” with Defendant-Appellee StorageTek International Services Corporation (“StorageTek International”), providing, among other things, that his employment with the company was strictly at will.

In 2005, Defendanb-Appellee Sun Micro-systems, Inc. (“Sun”) acquired StorageTek and spent most of 2005 and 2006 integrating StorageTek into Sun’s organization. DeFraneo claims that he received two promises from Sun employees — one while he was still abroad, the other after he had returned to Colorado — that he would have permanent employment at Sun. However, in October 2006, he was subjected to a reduction in force and terminated from Sun.

DeFraneo brought this lawsuit, claiming breach of contract and promissory estoppel. The district court granted summary judgment in favor of all Defendants. We possess jurisdiction pursuant to 28 U.S.C. § 1291, and affirm.

I. Background

Viewing the evidence in the light most favorable to DeFraneo, as the non-moving party, see Kerber v. Qwest Pension Plan, 572 F.3d 1135, 1144 (10th Cir.2009), the evidence in the record establishes the following:

A. DeFranco’s initial written employment contract with StorageTek

StorageTek hired DeFraneo in 2002 as a project manager. At that time, the company sent him a letter stating the terms of his employment, which DeFraneo signed. Among other things, that letter stated:

Your employment with Storage Tek will be “at-will.” This means that either you or Storage Tek may terminate your employment at any time, with or without cause, with or without notice, and for any reason or no. reason. Any contrary representations or agreements, which may have been made to you are superseded by this offer. The “at-will” nature of your employment described in this offer letter shall constitute the entire agreement between you and Storage Tek concerning the nature and duration of your employment.

(Aplt.App. at 203.)

B. DeFraneo accepts a position in England

In 2004, DeFraneo agreed to accept a position in England with a StorageTek affiliate, StorageTek UK. DeFraneo viewed the position as a promotion, and it included a 15% increase in salary. According to DeFraneo, his primary concern in weighing whether or not to accept this position and move his family from Colorado to England was whether he would have a job with StorageTek when his assignment in England ended. In response to these concerns, DeFraneo claims that three StorageTek executives “guaranteed” that he would have a position at StorageTek when he returned from England: Pat Martin, chairman and chief executive officer (“I have to give you a job when you come *1299 back”), Angel Garcia, executive vice president (promised DeFranco he would “be taken care of’), and Roger Gaston, executive vice president of human resources (“I have a requirement to place you when you come back”). These guarantees were made in June and August of 2004.

In September 2004, DeFranco signed a written “Secondment Agreement” with StorageTek International for services DeFranco agreed to provide StorageTek UK. 1 As relevant to the present dispute, the Secondment Agreement contained three important provisions. First, the Secondment Agreement provided that DeFranco’s employment was at will:

You and Company [defined by the Agreement as Storagetek International] each acknowledge that either party has the right to terminate your employment with Company at any time for any reason whatsoever, with or without notice or Cause, as defined in Section 11 below of this Secondment Agreement, or with or without advance notice. This at-will employment relationship cannot be changed except in a writing signed by an authorized representative of Company. It is understood and agreed by you and Company that this Secondment Agreement does not contain any promise or representation that alters your at-will employment status. In addition, any terms of your employment contained in this Secondment Agreement or in any other agreement between you and Company stated in units of years, months, and/or days does not mean and should not be interpreted to mean that you are guaranteed employment to the end of any period of time or for any period of time. In the event that Company terminates your employment for reasons other than Cause, you will be eligible to receive severance benefits (based on your completed years of service as of your employment termination date) in exchange for a signed Company legal release agreement.

(Id. at 207.)

Next, the Secondment Agreement specifically addressed DeFraneo’s possible job opportunities with StorageTek when he returned to the United States after his work in England ended:

It is anticipated that the Term [of the Secondment Agreement] will end September 10, 2006.... Upon the end of the Term, Company [StorageTek International] will make reasonable efforts as determined by the Company to return you to a position within Company, StorageTek, or a StorageTek Affiliate [defined by the Agreement as “any subsidiary of StorageTek and any entity controlled directly or indirectly by or under common control of StorageTek”] which is defined by Company as a position similar in duties, scope, and compensation (“Comparable Position”) to either the position which you held immediately preceding the secondment or the secondment position. It is understood that Company cannot guarantee that it will be able to return you to a comparable position, and that the selection of the position to be offered will be dependent upon your qualifications, business conditions, and the staffing requirements of Company, StorageTek, and the StorageTek Affiliates.
In the event that within sixty (60) days prior to September 10, 2006 you are offered a Comparable Position, and you decide to decline the offer, your employment will be terminated by Company for reasons other than Cause and you will *1300 not be eligible to receive the severance benefits described in Section 3 above. In [the] event that there is no Comparable Position available and offered to you, your employment will be terminated for reasons other than Cause by Company and you will be eligible to receive the severance benefits described in Section 3 above.

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Bluebook (online)
622 F.3d 1296, 31 I.E.R. Cas. (BNA) 584, 2010 U.S. App. LEXIS 21591, 2010 WL 4116479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/defranco-v-storage-technology-corp-ca10-2010.