Fredrick P. Godfredson v. Hess & Clark, Inc.

173 F.3d 365, 1999 U.S. App. LEXIS 6266, 82 Fair Empl. Prac. Cas. (BNA) 199, 1999 WL 189899
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 8, 1999
Docket98-3348
StatusPublished
Cited by172 cases

This text of 173 F.3d 365 (Fredrick P. Godfredson v. Hess & Clark, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fredrick P. Godfredson v. Hess & Clark, Inc., 173 F.3d 365, 1999 U.S. App. LEXIS 6266, 82 Fair Empl. Prac. Cas. (BNA) 199, 1999 WL 189899 (6th Cir. 1999).

Opinion

OPINION

GILMAN, Circuit Judge.

Fredrick P. Godfredson began working for Hess & Clark, Inc. in August of 1990. Starting in 1992, he became the Director of Marketing for KenVet Nutritional Care, its new pet food division. Hess & Clark terminated his employment in 1995, citing the business failure of KenVet Nutritional Care and the consequential reduction in force. Shortly thereafter, Godfredson sued Hess & Clark for age discrimination, wrongful discharge in violation of Ohio’s public policy, the intentional infliction of emotional distress, and promissory estop-pel. The district court, after ruling that Godfredson had failed to make out a pri-ma facie case on any of these claims, granted summary judgment in favor of Hess & Clark. For the reasons set forth below, we AFFIRM the judgment of the district court.

*369 I. BACKGROUND

In August of 1990, Hess & Clark purchased Veratec, a Massachusetts-based agricultural-pharmaceutical and milk-filtration products business. Godfredson had worked in the sales and marketing departments at Veratec and its predecessor company since 1972. At the time of purchase, Hess & Clark offered employment to numerous Veratec employees, including Godfredson. He accepted Hess & Clark’s offer of employment and moved from Boston, Massachusetts to Ashland, Ohio.

Hess & Clark confirmed the terms of Godfredson’s employment in a July 12, 1990 letter that set forth Godfredson’s proposed salary, benefits, pension plan, and severance pay. Godfredson signed the letter agreement on August 3, 1990, and began his employment one week later. Two of the terms contained in the letter agreement are at issue on appeal. First, the severance provision states that “[i]f during the first twenty-four months of employment by Hess & Clark, Inc. you are involuntarily terminated ... for reason(s) other than miseonduetf,] you will receive one full year regular salary.” Second, the letter agreement provides that it is “not a contract of employment for a definite duration, and your employment continues at-will and may be terminated with or without cause at any time.”

Godfredson also signed two other documents titled “Employment Agreement” on August 11, 1990 and May 2, 1991, both of which begin with the following statement: “Each salaried exempt employee of [the company] will read and sign this Agreement to help establish a common understanding of 1) The general employment relationship, and of 2) The need to safeguard proprietary information.” (emphasis in original). Both documents clearly state that the employment is at-will, and that the company has the right to terminate the employment relationship “at any time without cause or notice.” Godfred-son, however, disputes the validity and enforceability of these agreements.

Concerned about his upcoming retirement, Godfredson testified that he had discussed his concerns with the president of Hess & Clark, Bruce Bookmyer, during a meeting in July of 1990. Godfredson said that he had told Bookmyer that he wanted to retire with the company at 65 years of age, to which Bookmyer allegedly responded: “I see no problem with you retiring at Hess & Clark.... [Y]ou should be able to work with Hess & Clark for the next ten years.” Bookmyer testified that he had no recollection of such a conversation.

When initially hired, Godfredson assumed marketing responsibility for two of Hess & Clark’s divisions — KenAg and KenVet. KenAg was consolidated with the general Hess & Clark business in May of 1992, at which time Godfredson became the Director of Marketing for KenVet. The parties dispute whether Godfredson still retained his responsibilities as Director of Marketing for KenAg after this consolidation.

In September of 1992, Hess & Clark developed KenVet Nutritional Care, a pet food business. Godfredson became the Director of Marketing for this new business, to which he devoted between 60 and 80 percent of his time. Based on his market research, Godfredson estimated that the pet food business could achieve approximately $ 59.9 million in sales and $ 12.9 million in profits during its first three years of operation. Although the record clearly reflects that Godfredson held a position of primary importance within Ken-Vet Nutritional Care, the parties dispute the extent to which Godfredson initiated and was responsible for this division. Godfredson also claims that despite the amount of time that he spent developing the pet food business, his salary came solely from the KenVet budget.

KenVet Nutritional Care was not a success. Although all of the pet food business’s start-up costs had been absorbed by July of 1995, and it was poised to sign several multi-million dollar deals, the busi *370 ness suffered a loss of greater than $10 million during its first three years of operation. Godfredson testified that he was not exclusively responsible for this loss. He also referred to Bookmyer’s deposition, in which Bookmyer stated that he did not know who was to blame for the division’s failure.

Ultimately, Hess & Clark decided to eliminate the pet food business. On July 23,1995, Bookmyer and Dr. Jeff Moorman, the Director of Operations, terminated Godfredson’s employment. Godfredson was then 59 years of age. Bookmyer and Moorman informed him that the reason for his termination was the poor performance of KenVet Nutritional Care and the corporate decision to eliminate the pet food business. Godfredson received $8,994 in severance pay. According to Godfredson’s testimony, Bookmyer had always been civil to him and was courteous to him during the termination meeting.

Once Hess & Clark decided to eliminate the pet food business, it restructured Ken-Vet and instituted a reduction in force. During July and August of 1995, it terminated 18 other KenVet and KenVet Nutritional Care employees, ten of whom were less than 40 years of age. Hess & Clark contends that this reduction in force was necessary because it had eliminated the pet food business, and that the reduction in force was the basis for Godfredson’s termination. Moreover, Bookmyer testified that without the pet food business, KenVet was not large enough to justify Godfredson’s continued employment as the Director of Marketing.

Godfredson, on the other hand, alleges that he was terminated because of his age, and that the reduction in force was pretex-tual. He claims that he was replaced by two younger employees, David House-wright and Jeff Moorman. Moreover, he argues that the 18 other employees who were terminated worked exclusively for KenVet Nutritional Care, and that no other employees who worked simultaneously for KenVet and KenVet Nutritional Care were terminated as part of the reduction of force. The record, however, does not clearly identify the divisions for which the other terminated employees worked. God-fredson further claims that he should have been given the opportunity to transfer within the company.

Another charge of discrimination related to Godfredson’s severance pay.

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Bluebook (online)
173 F.3d 365, 1999 U.S. App. LEXIS 6266, 82 Fair Empl. Prac. Cas. (BNA) 199, 1999 WL 189899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fredrick-p-godfredson-v-hess-clark-inc-ca6-1999.