Feaheny v. Caldwell

437 N.W.2d 358, 175 Mich. App. 291
CourtMichigan Court of Appeals
DecidedFebruary 23, 1989
DocketDocket 97770
StatusPublished
Cited by57 cases

This text of 437 N.W.2d 358 (Feaheny v. Caldwell) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Feaheny v. Caldwell, 437 N.W.2d 358, 175 Mich. App. 291 (Mich. Ct. App. 1989).

Opinion

Shepherd, J.

A jury trial was held on Thomas J. Feaheny’s claims for conspiracy, tortious interference with his employment contract with the Ford Motor Company, and tortious interference with his economic expectancy stemming from his employment with the Ford Motor Company. A bifurcated trial was held so that liability and damages would be separately tried to the same jury. Defendants moved for a directed verdict on all liability issues at trial. The trial court granted the motion on the conspiracy claim, but took the motion under advisement as to the remaining tortious interference claims. The jury found that defendants were not liable on the tortious interference with employment contract claim but that, except for defendant Harold MacDonald, they were liable for tortiously interfering with plaintiffs expectancy. The trial court vacated the jury’s verdict against the remaining five defendants and directed a verdict of no liability in favor of all defendants on the expectancy claim. Plaintiff appeals as of right. We affirm. Defendants have filed a cross-appeal that we do not address because we are affirming the judgment in their favor.

i

Although the majority of the defendants are now retired, they were all top executives of the Ford Motor Company at various times pertinent to this case. Except for defendant Peter Sherry, the vice-president of personnel and organization, each defendant at some time was either a direct superior of plaintiff or had a higher level of managerial *295 responsibility. Plaintiff, himself, was a long-term employee of the Ford Motor Company. In 1977, plaintiff was elected to vice-president and assigned to car engineering for the North American Automotive Operation (naao). 1 Beginning with calendar year 1979, the annual performance appraisal of plaintiff deteriorated. In 1980, plaintiff stopped receiving merit increases and, in 1981 and 1982, plaintiff was not awarded stock option benefits. After commencement of this lawsuit in 1983, the board of directors unanimously voted to fire plaintiff.

The six-year interval between plaintiff’s advancement to vice-president in 1977 and his discharge in 1983 was a time of significant changes in the company’s top executive personnel, the organizational structure of naao, and the financial well-being of the company. Some background on these changes is important to an understanding of this case.

In July, 1978, Henry Ford II fired Lee Iaccoca and replaced him with defendant Philip Caldwell, who was made vice-chairman. Later that year, plaintiff’s direct superior retired and was replaced by defendant John McDougall. A reorganization plan that affected the engineering and purchasing functions of naao was developed during 1978 and was put into effect at the beginning of 1979. Under the plan, certain engineers that previously reported to plaintiff were decentralized so as to have a direct line of reporting to the manufacturing activities for which their work was done. Trial *296 testimony indicated that it was a "divided house” in the automotive industry as to whether engineers should be centralized or decentralized.

Almost immediately after the reorganization plan was implemented, the economic condition of the automotive industry worsened and a great strain was put on management to cut costs. Market conditions were also changing as consumers demanded more fuel efficient vehicles. Plaintiff disagreed with some of the budget cuts that he was expected to make, as well as the organizational changes and their effect on his accountability and job responsibilities.

In September 1979, defendant Louis Ross replaced defendant McDougall as plaintiff’s direct superior. Defendant McDougall remained in naao at that time, with reporting responsibility to William Bourke, who was then in charge of naao. Bourke, who was not a named defendant in this lawsuit, considered engineering’s failure to effectively cut costs to be a problem. He called a meeting in November, 1979, to discuss the problem, at which plaintiff expressed his disagreement with the plan for the engineering program. Defendant Ross, characterizing plaintiff’s disagreement with management as an attitude problem, expressed this opinion in his first annual performance appraisal of plaintiff. This 1979 appraisal, which was concurred in by defendant McDougall, continued to rate plaintiff’s performance as outstanding, but indicated that the "outstanding rating is at the low end of the range resulting from attitude problems displayed in open meetings which indicated nonsupport of naao positions.”

More changes in top executive personnel occurred in 1980 when Henry Ford II retired and Bourke left. Defendant Caldwell became chairman of the board and. Donald Petersen, who was not *297 named as a defendant in this lawsuit, became president. Defendant Harold Poling replaced Bourke as head of naao, while defendant McDougall transferred out of naao to head international operations.

Also in 1980, Ross recommended that plaintiff be replaced due to his uncooperative attitude. He submitted the recommendation to defendant Poling, who took it up the chain of command to the president. As a result, plaintiff was removed as vice-president of car engineering in September, 1980, and placed on special research assignment. In December 1980, plaintiff became vice-president of vehicle research. Plaintiff’s performance for 1980 was, however, once again prepared by defendant Ross, who opined that plaintiff’s performance rating had deteriorated to "s+” (satisfactory plus) as a result of his “negative personal characteristics” and his failure to accept managerial decisions. Defendant Ross concluded that plaintiff “has a keen mind and intellect, and if he can improve his interpersonal relations, his potential would be exceptional.” Defendant Poling concurred with the appraisal.

Plaintiff responded to the negative performance rating with a letter in May 1981 stating, in part:

I believe I have made a significant contribution to the Company during my career. Unfortunately, however, the Company and naao have suffered major losses primarily because of management mistakes both of commission and omission over the past 10 years. I became "controversial” during this period because I anticipated most of the changes in the market and other external factors (including government regulation and litigation) and diligently tried to secure management support to anticipate the future better.
If I have failed in my career as I look back at it, it is because I was not more convincing and persis *298 tent in my arguments. It is now apparent that my failure to communicate successfully results from a difference in management approach between me and the prevailing Ford top management style.

Despite the change in plaintiff’s assignment, he continued to receive his then current salary. Defendant Caldwell, however, did not recommend plaintiff for merit increases or stock option benefits, and the compensation and option committee of the board of directors did not make any such awards to plaintiff. Plaintiff was then seeking other employment, and the possibility of plaintiffs being separated from the company was discussed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hall v. UBS Financial Services Inc.
Supreme Court of South Carolina, 2021
Salsberg, C. v. Mann, D.
2021 Pa. Super. 185 (Superior Court of Pennsylvania, 2021)
Michael Haygood v. General Motors LLC
Michigan Court of Appeals, 2020
Ron Klosowski v. City of Bay City
696 F. App'x 707 (Sixth Circuit, 2017)
Saab Automobile AB v. General Motors Co.
953 F. Supp. 2d 782 (E.D. Michigan, 2013)
Knight Enterprises, Inc. v. RPF Oil Co.
829 N.W.2d 345 (Michigan Court of Appeals, 2013)
Chambers v. City of Detroit
786 F. Supp. 2d 1253 (E.D. Michigan, 2011)
German Free State of Bavaria v. Toyobo Co., Ltd.
480 F. Supp. 2d 958 (W.D. Michigan, 2007)
Everton v. Williams
715 N.W.2d 320 (Michigan Court of Appeals, 2006)
L.Y.L.E Enterprizes, Inc. v. Kroger Co.
165 F. App'x 405 (Sixth Circuit, 2006)
Health Call of Detroit v. Atrium Home & Health Care Services, Inc
706 N.W.2d 843 (Michigan Court of Appeals, 2005)
Feyz v. Mercy Memorial Hospital
692 N.W.2d 416 (Michigan Court of Appeals, 2005)
Bayati v. Bayati
691 N.W.2d 812 (Michigan Court of Appeals, 2005)
Discover Group, Inc. v. Lexmark International, Inc.
333 F. Supp. 2d 78 (E.D. New York, 2004)
Liggett Restaurant Group, Inc. v. City of Pontiac
676 N.W.2d 633 (Michigan Court of Appeals, 2004)
United Rentals v. Keizer
Sixth Circuit, 2004
Sahadi v. Per-Se Technologies, Inc.
280 F. Supp. 2d 689 (E.D. Michigan, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
437 N.W.2d 358, 175 Mich. App. 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feaheny-v-caldwell-michctapp-1989.