Frank X. Losacco v. F.D. Rich Construction Co., Inc.

992 F.2d 382, 37 Fed. R. Serv. 1329, 1993 U.S. App. LEXIS 10508, 1993 WL 141110
CourtCourt of Appeals for the First Circuit
DecidedMay 10, 1993
Docket92-1886
StatusPublished
Cited by35 cases

This text of 992 F.2d 382 (Frank X. Losacco v. F.D. Rich Construction Co., Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank X. Losacco v. F.D. Rich Construction Co., Inc., 992 F.2d 382, 37 Fed. R. Serv. 1329, 1993 U.S. App. LEXIS 10508, 1993 WL 141110 (1st Cir. 1993).

Opinion

TORRUELLA, Circuit Judge.

At trial, appellant claimed that appellee ended his employment improperly. The jury determined that appellant was terminated for just cause and therefore found no violation of his employment contract. Appellant now claims that the district court gave the jury an erroneous instruction as to “just cause” and wrongly excluded admissible relevant evidence at trial. Appellant thus asks this court to vacate the judgment and order a retrial. Because we find no error in the district court’s instructions or evidentiary rulings, we do not grant appellant his requests.

THE FACTS

Appellant is a structural engineer with an expertise in pre-cast concrete construction. He worked as a consultant on matters involving pre-cast concrete at appellee’s Stamford, Connecticut headquarters. Appellee soon determined that it would be more profitable to make pre-cast products instead of buying them from outside vendors. The company thus set up a factory for this purpose in Pittsfield, Massachusetts and hired appellant to manage it.

The details of the employment contract are in sharp dispute. Appellant contends that he agreed to manage the Pittsfield facility for a minimum of three years, in exchange for salary and benefits including housing in Pittsfield for the three year term. Appellee, on the other hand, contends that appellant was an at-will employee, as were all other employees of the company. In any event, appellant began work in Pittsfield in August, 1987.

In October 1987, the company’s senior managers visited the plant, announced its immediate closure, and terminated all employees, including appellant. Appellant claims that appellee closed the plant to thwart union activity. Appellee, however, contends that it decided to close the plant because the sharp downturn in the Northeast real estate market affected its construction projects. Appellee also claimed that appellant’s performance was inadequate.

Appellant sued, claiming that appellee was bound by contract to employ him for three years. Appellee responded that no contract was formed, but that even if one existed, the termination was for “just cause” and therefore proper under Massachusetts law. During the trial, appellant attempted to cross-examine a former supervisor about testimony at a National Labor Relations Board hearing to the effect that there was plenty of work at the plant. The hearing occurred shortly before the plant’s closing. The district court judge disallowed this questioning, finding it *384 beyond the scope of direct examination and more prejudicial than probative.

At the close of evidence, the district court instructed the jury that if a contract existed, termination for “just cause” would be proper. The district court judge defined “just cause” as 1) poor performance by appellant on the job or 2) a good faith determination that the economic needs of the business required appellant’s discharge. During deliberations, the jury asked the judge to repeat its definition of “just cause.” The jury finally found that a contract for fixed-term employment existed between the parties, but that “just cause” allowed appellee to fire appellant. This appeal followed, in which appellant seeks a retrial on only the breach of contract claims.

DISCUSSION

Appellant urges two errors in the jury instruction. First, he contends that the instruction does not reflect the law in Massachusetts as to the definition of just cause. Second, he claims that the instruction improperly invaded the province of the jury, by settling a question of fact, in violation of Massachusetts law. As appellant claims that the jury instruction incorrectly stated Massachusetts contract law, we review it de novo. Salve Regina College v. Russell, 499 U.S. 225, 111 S.Ct. 1217, 113 L.Ed.2d 190 (1991) (mandating de novo review of a district court’s state law determinations).

The suspect instruction reads as follows:

An employer has just cause to discharge an employee if, one, there is a reasonable basis for employer dissatisfaction with an employee, for reasons such as lack of capacity or diligence, failure to conform to usual standards of conduct, or other culpable or inappropriate behavior. Or two, the discharge is reasonably related, in the employer’s honest judgment, to the economic needs of his business.

The district court derived this instruction almost verbatim from a duo of Massachusetts cases, Goldhor v. Hampshire College, 25 Mass.App.Ct. 716, 521 N.E.2d 1381, 1385 (1988), and Klein v. President and Fellows of Harvard College, 25 Mass.App.Ct. 204, 517 N.E.2d 167, 169 (1987). Although those cases stated the entire just cause definition, they focussed on the first prong, holding that the employee either did or did not meet the performance standard. Because the holdings did not invoke the second prong of the definition, appellant argues that the economic needs standard is not a part of Massachusetts law, but, rather, dicta by intermediate state courts. As such, it cannot support a jury instruction.

We disagree. When the highest state court has not issued a definitive ruling on the precise issue at hand, the federal courts may refer to analogous decisions, considered dicta, scholarly works, or other reliable sources to ascertain how the highest court would rule. Redgrave v. Boston Symphony Orchestra, Inc., 855 F.2d 888, 903 (1st Cir.1988) (en banc), cert. denied, 488 U.S. 1043, 109 S.Ct. 869, 102 L.Ed.2d 993 (1989). The decisions of intermediate state appellate courts are trustworthy data for ascertaining state law. CPC International, Inc. v. Northbrook Excess & Surplus Insurance Co., 962 F.2d 77, 91 (1st Cir.1992).

The Massachusetts Supreme Judicial Court has not answered the precise issue at hand — whether an employer may terminate a fixed-term employee due to economic considerations. The plaintiffs in Goldhor and Klein were fixed-term employees and therefore similarly situated to appellant. As such, the considered dicta in those cases concerning terminations due to economic necessity represents a reliable statement of the law in Massachusetts. The district court did not err in relying on it. There is no indication that the highest court of Massachusetts would define just cause any differently.

To the contrary, we note that Massachusetts courts have defined just cause, or similar language, in a virtually identical manner in other contexts. Goldhor and Klein derived the definition of just cause from G & M Employment Service, Inc. v. Commonwealth, 358 Mass. 430, 265 N.E.2d 476 (1970).

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Bluebook (online)
992 F.2d 382, 37 Fed. R. Serv. 1329, 1993 U.S. App. LEXIS 10508, 1993 WL 141110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-x-losacco-v-fd-rich-construction-co-inc-ca1-1993.