Frymire v. Painewebber, Inc. (In Re Frymire)

96 B.R. 525, 1989 Bankr. LEXIS 159, 1989 WL 11514
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedFebruary 10, 1989
Docket19-10188
StatusPublished
Cited by13 cases

This text of 96 B.R. 525 (Frymire v. Painewebber, Inc. (In Re Frymire)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frymire v. Painewebber, Inc. (In Re Frymire), 96 B.R. 525, 1989 Bankr. LEXIS 159, 1989 WL 11514 (Pa. 1989).

Opinion

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

A. INTRODUCTION

TOBIN FRYMIRE, the Debtor in this Chapter 13 case and the Plaintiff in this adversarial proceeding (hereinafter referred to as “the Plaintiff”), asserts what is, under the controlling Pennsylvania law, a most difficult cause of action on which to prevail, i.e., a case contending that his discharge from employment was actionably wrongful. We find that the Plaintiff has established two “wrongs” in his employment relationship to which he was subjected: (1) a reneging on a promise to compensate him $20,000.00 annually for conducting a training program for young stockbrokers on behalf of his employer-brokerage firm; and (2) the firm’s firing him and thereby preventing him from fulfilling an undertaking to repay an alleged $30,000 balance of an advance compensation award (hereinafter “ACA”) which would have been eliminated without payment had he remained with the firm for four years. However, we find that the Debtor has clearly not met the high level of proof necessary to justify more extensive relief for his wrongful discharge under any exceptions to the “termination at will doctrine,” or theories proferred based upon “deceit and fraud” or “promissory estop-pel.” Also, we conclude rather easily that he has also failed to establish that evaluate statements by his employer concerning his stint of employment were false or malicious, which would have been necessary to sustain his defamation claim. Therefore, we conclude that the Debtor is entitled only to relief directly related to the two “wrongs” he has established — an award of compensatory damages of $4,533.33 and elimination of his liability to repay the ACA.

B. PROCEDURAL HISTORY

The Plaintiff’s main bankruptcy case, filed on July 24,1987, by experienced bankruptcy counsel, has been rather uneventful. The Plaintiff’s former employer and the first-named Defendant herein, PAINEW-EBBER, INC. (hereinafter referred to as “PW”) filed, on two occasions, motions for relief from the automatic stay to pursue its claims against the Debtor before the National Association of Security Dealers (hereinafter “NASD”), wherein the Debtor had raised the claims set forth herein as counterclaims. The first of these motions was dismissed and the second was withdrawn. The Debtor’s plan was confirmed on April 7, 1988.

PW filed a proof of claim in the Debtor’s main bankruptcy case (no. 8) in the amount of $30,000.00 plus interest on December 10, 1987. This adversary proceeding was therefore commenced by the Debtor’s separate special counsel 1 in the form of a counterclaim by the estate against a party filing a proof of claim against the estate, i.e., PW, on February 17, 1988. It therefore *528 may be classified as a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(C). Furthermore, counsel for all of the active parties expressly consented, in a colloquy before us on February 2, 1989, that we may determine it. See 28 U.S.C. § 157(c)(2). 2 Therefore, we shall proceed to both hear and finally determine all issues raised in this proceeding.

Prior to trial, PW moved, at different times, to dismiss both the original Complaint and an Amended Complaint. The Amended Complaint was filed by permission of this court granted in ruling on the motion to dismiss the original Complaint, and added LEE H. LOVEJOY (hereinafter “Lovejoy”), the Plaintiffs supervisor at PW, as a defendant and the Standing Chapter 13 Trustee, EDWARD SPARKMAN, as a nominal defendant. The motion to dismiss the Amended Complaint elicited an Opinion of June 24, 1988, reported at 87 B.R. 856 (Bankr.E.D.Pa.1988). Therein, we recited the procedural history of the matter to that date, id. at 857-58, and proceeded to dismiss a Count based on a claim of intentional infliction of emotional distress. Id. at 860-62. We also discussed, in some detail, the parameters of a Count asserting a defamation claim arising from the contents of an evaluative form sent by Lovejoy to a subsequent employer of the Plaintiff. We observed that, in these circumstances, the Defendants enjoyed a qualified privilege which allowed the Plaintiff to succeed in such a claim only if the Plaintiff established that the published matter in issue was both false and malicious. Id. at 858-60.

We need not repeat the procedural history outlined in that Opinion and we have neither the space nor the inclination to recite the distasteful series of discovery disputes which arose between counsel thereafter. On August 15, 1988, about six weeks prior to the established trial date of September 27, 1988, PW and Lovejoy (referred to collectively hereinafter as “the Defendants”) filed a motion for summary judgment. The Brief in Reply thereto was not filed until September 15, 1988. In a Memorandum filed on September 27, 1988, the date of the commencement of trial, we granted Lovejoy’s request to dismiss the defamation action as to him on the ground of the applicable one-year statute of limitations, 42 Pa.C.S. § 5523(1). However, we again declined an invitation to dismiss the defamation claim in its entirety based on PW’s assertion that, in discovery, it was revealed that the Plaintiff had signed a form consenting to release of the allegedly defamatory evaluative form. We nevertheless declined to hold that such “consent” to publication rendered communications to outside third parties absolutely privileged.

The trial commenced on September 27, 1988, and proceeded about six hours daily on that date and on September 29, September 30, October 4, 1988, and October 5, 1988. At its close, the Plaintiff first indicated that he wished to procure a Transcript, then unsuccessfully moved for us to supply same in forma pauperis, then decided to purchase the Transcript after all. The Transcript was completed on December 8, 1988, and, rebuffing a misplaced effort of the Plaintiffs counsel to delay its filing, we issued an Order of December 9, 1988, requiring the parties to file their respective proposed Findings of Fact, Conclusions of Law, and Briefs on or before Janu *529 ary 9,1989 (Plaintiff), and January 80,1989 (Defendants).

On January 5, 1989, the Plaintiff moved to reopen the record to append, to a Deposition of same already of record in lieu of testimony, further testimony from one Ann Haviland, who had recently left her prior employment by PW as a sales assistant (secretary). Ms. Haviland had worked in PW’s Philadelphia office during the Plaintiff’s tenure there, and also worked in its Somers Point, New Jersey, office when the Plaintiff was considering an offer to work there. The proffered testimony rebutted trial testimony from Charles Donovan, the supervisor of the Somers Point office, that the Plaintiff had never met him at that office for an appointment. Although we believed that the materiality of this addition to the record was minimal, we allowed the Affidavit of Ms. Haviland’s proposed testimony to be added to the record, as a supplement to her Deposition, in an Order of February 2, 1989, thus closing the record on that date.

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Bluebook (online)
96 B.R. 525, 1989 Bankr. LEXIS 159, 1989 WL 11514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frymire-v-painewebber-inc-in-re-frymire-paeb-1989.