Edelman v. Franklin Iron & Metal Corp.

622 N.E.2d 411, 87 Ohio App. 3d 406, 9 I.E.R. Cas. (BNA) 77, 1993 Ohio App. LEXIS 2547
CourtOhio Court of Appeals
DecidedApril 29, 1993
DocketNo. 13663.
StatusPublished
Cited by12 cases

This text of 622 N.E.2d 411 (Edelman v. Franklin Iron & Metal Corp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edelman v. Franklin Iron & Metal Corp., 622 N.E.2d 411, 87 Ohio App. 3d 406, 9 I.E.R. Cas. (BNA) 77, 1993 Ohio App. LEXIS 2547 (Ohio Ct. App. 1993).

Opinion

Brogan, Judge.

Appellant, Harold R. Edelman, appeals from an order of the Montgomery County Court of Common Pleas granting summary judgment to appellees, Franklin Iron & Metal Corporation (“Franklin”) et al.

The essential facts and procedural history of the case are as follows. Appellant began employment with Franklin on July 8, 1985. On August 27,1987, appellant entered into an employment contract with Franklin which contained, inter alia, the following two provisions:

“2. Term. Subject to the provisions for termination hereinafter provided, the terms of this agreement shall be effective as of the 8th day of July 1985, and shall end on the 7th day of July 1995. Either party may cancel or terminate this *408 agreement at any time with or without cause, provided the party so desiring to terminate and cancel same gives unto the other party written notice of such intention at least sixty (60) days prior to the date of such proposed cancellation or termination. •
« * * *
“13. Corporate Stock. Jack Edelman and Debra Edelman join in this agreement in order to authorize the issuance of thirty percent (30%) of the issued and outstanding corporate stock of Franklin Iron and Metal Corp. to Harold Edelman, in accordance with the terms of this paragraph * * *. The thirty percent (30%) of the issued and outstanding corporate stock of Franklin Iron and Metal Corp., as set forth in this paragraph, shall be transferred to Harold Edelman on the 7th day of July, 1995, in the event that said Harold Edelman is not in default of this agreement on said date * * *. It is understood that this transfer of corporate stock is contingent upon Harold Edelman being an employee of the corporation upon the occurrence of the event and not being in default in any matter regarding this agreement * * *.”

Franklin terminated appellant’s employment by letter dated February 6, 1992. Franklin alleged that the reasons for the termination were that appellant failed to meet certain expectations of the employer and engaged in certain inappropriate and unacceptable behaviors. To the contrary, appellant alleges that the only reason he was fired was because Franklin’s owners wished to cheat him out of the stock bonus contained in the employment contract.

Appellant filed suit against Franklin on April 7, 1992, alleging, inter alia, “bad faith” termination and breach of the employment contract. Franklin filed a motion for summary judgment. The trial court found that appellant was an at-will employee and, as such, could be lawfully terminated at any time, for any reason, so long as the termination was not based upon conduct specifically provided for or allowed by statute. Accordingly, the trial court granted summary judgment to Franklin on August 19, 1992. It is from this judgment that appellant' appeals.

Appellant advances the following two assignments of error: (1) the trial court erred in finding that, in the absence of statutory provisions to the contrary, an employer may terminate an employment contract in bad faith in order to avoid payment of a contract bonus or benefit without incurring liability for the bonus or benefit; and (2) the trial court erred in failing to construe the evidence most strongly in favor of appellant as required by Civ.R. 56, thus finding that appellant was terminated for cause.

*409 Because our discussion of appellant’s first assignment of error mil be dispositive of the issues presented by this appeal, we will not separately address appellant’s second assignment of error.

Civ.R. 56 controls summary judgment practice and states in pertinent part:

“(C) * * * Summary judgment shall be rendered forthwith if the pleading, depositions, answers to interrogatories, written admissions, affidavits, transcripts of evidence in the pending case, and written stipulations of fact, if any, timely filed in the action, 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 * * * A summary judgment shall not be rendered unless it appears from such evidence or stipulations and only therefrom, that reasonable minds can come to but one conclusion and that conclusion is adverse to the party against whom the motion for summary judgment is made * *

As we noted in Mercer Savings Bank v. Wooster (Nov. 18, 1991), Montgomery App. No. CA1273, unreported, 1991WL 239346, in construing Civ.R. 56, the Ohio Supreme Court has stressed that its language forms a tripartite test whereby the moving party must establish: (1) that there is no genuine issue as to any material fact; (2) that the moving party is entitled to judgment as a matter of law; and (3) that reasonable minds can come to but one conclusion, and that conclusion is adverse to the party against whom the motion is made, who is entitled to have the evidence construed most strongly in his favor. See, e.g., Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St.2d 64, 8 O.O.3d 73, 375 N.E.2d 46.

In addition, on a motion for summary judgment, the nonmovant may not rest on the mere allegations or denials of his pleading, but must set forth specific facts showing that there is a genuine issue for trial. Wing v. Anchor Media, Ltd. of Texas (1991), 59 Ohio St.3d 108, 570 N.E.2d 1095.

Appellant argues that the trial court erred in granting summary judgment to Franklin because there is a specific common-law exception to the employment-at-will doctrine which allows an action for wrongful discharge “when an employer terminates an employee in bad faith to avoid paying a contractually agreed upon bonus or benefit.”

Appellant bases his argument on two cases: one federal decision purporting to construe Ohio law and one fifty-year-old Ohio case, in which the courts arguably carve out a public policy exception to the right to terminate an employment-at-will contract when such termination is done in bad faith in order to avoid paying a bonus or benefit. Randolph v. New England Mut. Life (C.A.6, 1975), 526 F.2d 1383; Harding v. Montgomery Ward (App.1944), 41 Ohio Law Abs. 243, 58 N.E.2d 75. Unfortunately, we must conclude that these cases are manifestly contrary to current Ohio law.

*410 In Ohio, an employer’s right to terminate an at-will employment contract is restricted only when such termination is in violation of a specific statute. Greeley v. Miami Valley Maintenance Contractors, Inc. (1990), 49 Ohio St.3d 228, 551 N.E.2d 981. “Absent statutory authority, there is no common-law basis in tort for a wrongful discharge claim.” Tulloh v.

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622 N.E.2d 411, 87 Ohio App. 3d 406, 9 I.E.R. Cas. (BNA) 77, 1993 Ohio App. LEXIS 2547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edelman-v-franklin-iron-metal-corp-ohioctapp-1993.