Foley v. One Harbor Drive Homeowners Assn. CA4/1

California Court of Appeal·Decided April 30, 2013·No. D060174·Unpublished

Opinion

Filed 4/30/13 Foley v. One Harbor Drive Homeowners Assn. CA4/1

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

ANNE MARIE FOLEY, D060174 Plaintiff and Appellant,

v. (Super. Ct. No. 37-2010-00088787-

CU-WT-CTL)

ONE HARBOR DRIVE HOMEOWNERS ASSOCIATION et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Steven R.

Denton, Judge. Affirmed.

In this defamation and wrongful termination action, plaintiff Anne Marie Foley appeals from the grant of summary judgment in favor of the defendants, who are (1) her former employer, defendant One Harbor Drive Homeowners Association (Association); and (2) David Grimes, Donald Messmer, and Ray Stewart (collectively the individual defendants), all of whom were Association homeowners, and two of whom (Grimes and

Messmer) were members of the Association's Board of Directors (the Board) when this action arose. This action arose when Grimes allegedly made slanderous statements about Foley and her compensation at the Association's April 2009 annual homeowners meeting, Foley thereafter complained through her attorney, and the Association later terminated her employment based on proffered budgetary reasons after the individual defendants allegedly made additional defamatory statements about her.

In her complaint Foley asserted causes of action for slander per se against all of the individual defendants and for libel against Stewart, as well as claims against the Association for wrongful termination in violation of public policy, breach of the implied covenant of good faith and fair dealing, and breach of an implied contract not to terminate her employment except for good cause.

Foley contends the court erred in granting summary judgment because (1) with respect to her slander per se and libel claims, the individual defendants' statements are provably false and issues of material fact exist as to malice; (2) with respect to her claim for wrongful termination in violation of public policy, issues of material fact exist as to whether retaliation was the true reason for her termination, and thus as to whether the Association's proffered budgetary reason was a mere pretext; and (3) with respect to her claims for breach of implied contract and breach of the implied covenant of good faith and fair dealing, which are based upon the same factual allegations, ample evidence establishes an implied contract, and issues of material fact exist as to whether the Association acted in bad faith by retaliating against her. For reasons we shall discuss, we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND1 A. The Complaint's Causes of Action and Factual Allegations As pertinent here, Foley's complaint asserted five causes of action:2 (1) slander per se (first cause of action), alleged against all three of the individual defendants; (2) libel (second cause of action), alleged against Stewart only; (3) wrongful termination in violation of public policy (third cause of action), alleged against the Association based on Labor Code section 6310, which prohibits employers from retaliating against employees who complain about unsafe or unhealthy working conditions; (4) breach of the implied covenant of good faith and fair dealing (fourth cause of action), alleged against the Association; and (5) breach of an implied contract not to terminate her employment except for good cause (fifth cause of action), also alleged against the Association.

In support of these claims, Foley's complaint alleged she had worked for the Association as director of concierge services and special events for nearly 15 years, she had competently performed her duties in a diligent and professional manner, and she had received annual bonuses and raises with the exception of one year. She alleged that Grimes, a member of the Board and homeowner who was concerned he would lose at the upcoming Board election, "verbally attacked" and slandered her at the April 2009 annual meeting of the Association's members by falsely stating to other homeowners and others

1 The parties provide cursory and incomplete summaries of the complicated procedural background in this case.

2 Foley dismissed with prejudice a sixth cause of action for violation of Labor Code section 201.

that she was overpaid and that the reason she did not leave was that she could not find a job elsewhere. Foley also alleged Grimes made additional slanderous comments at other Association meetings that injured her in her occupation, by falsely stating that she was earning a base annual salary of $96,000 when she was earning significantly less than that amount and that she had received a 10 percent bonus, and that Grimes made these false statements to cause homeowners and others to wrongly believe she was overpaid and to demand her resignation.

Foley's complaint also alleged that Messmer and Stewart made slanderous comments about her by repeating Grimes's false comments and that Stewart also falsely stated she was overpaid, she did not work six weeks a year, and she did not have the necessary skills to do her job.

Foley also alleged she met with Raj D'Souza, the Association's general manager, after the Association's April 2009 annual meeting, and D'Souza represented to her that her job was safe and she was not going to be fired. She also alleged that to restore her good reputation, she retained counsel, who sent a written complaint to the Board about Grimes's "wrongful conduct", Grimes and "others" at the Association thereafter embarked on a retaliation campaign against her for complaining about Grimes's "slanderous remarks", and Grimes said to at least one other person that Foley "had another thing [sic] coming" if she thought she could sue Grimes or the Association or otherwise hold him accountable for his conduct.

Foley alleged that General Manager D'Souza was instructed to make working conditions unpleasant for her in an effort to get her to resign. She further alleged that

"[d]efendants, through their conduct and defamatory statements, created an unsafe and unhealthy working environment for [her]," and the Association terminated her employment "in retaliation for her complaints about the unsafe and unhealthy working conditions" in violation of Labor Code section 6310.

The complaint also alleged that Grimes and the Board terminated Foley's employment without cause on September 25, 2009, during an executive Board session organized by Grimes, "in retaliation for [her] complaints about Defendants' prior wrongdoing." It further alleged her employment "was purportedly terminated because the [Association] wanted to eliminate her position and save money under the revised 2010 budget," but her position was "not eliminated as a cost saving measure and all her job duties [were] currently being performed" by Michael Cockerham, who previously was the Association's doorman. Messmer also voted to terminate Foley's employment, but two other Board members voted against terminating her employment. In addition, the complaint alleged that according to the bylaws, all discussions regarding budgetary issues must be open to the homeowners, and the decision to terminate Foley's employment "could not have been for budget related issues only" because the Board's executive session was not open to all homeowners.

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