Giordano v. Aerolift, Inc.

818 P.2d 950, 109 Or. App. 122, 1991 Ore. App. LEXIS 1462
CourtCourt of Appeals of Oregon
DecidedOctober 2, 1991
Docket87-2115; CA A63452
StatusPublished
Cited by5 cases

This text of 818 P.2d 950 (Giordano v. Aerolift, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giordano v. Aerolift, Inc., 818 P.2d 950, 109 Or. App. 122, 1991 Ore. App. LEXIS 1462 (Or. Ct. App. 1991).

Opinion

*124 DEITS, J.

This is an action for intentional interference with an employment contract. Plaintiff was employed by defendant Aerolift, Inc. (Aerolift), in various positions relating to the design, construction and testing of air ships that were being developed to perform cargo lifts with higher payloads at lower costs than conventional helicopters. Mahaffey (defendant) was employed by Aerolift as chief operating officer. Plaintiff alleges that defendant intentionally and wrongfully interfered with his employment contract by causing him to be fired. The jury returned a verdict for $5,000 in general damages and $20,000 in punitive damages. 1 Defendant assigns error to the court’s denial of his motion for directed verdict, denial of his motion to strike the allegation of improper motives and of his motion to amend his amended answer to deny the existence of an implied obligation of good faith and fair dealing in the employment contract and to the giving of an instruction on that issue. We affirm.

Defendant argues that the trial court should have granted his motion for directed verdict. He contends that a party to a contract cannot be liable for tortious interference with that contract. He asserts that, as a managing officer of Aerolift, he is a party to Aerolift’s contract with plaintiff and, therefore, cannot be liable for interference with that contract. He relies on Lewis v. Oregon Beauty Supply Co., 302 Or 616, 733 P2d 430 (1987), in which the Supreme Court held that a corporate employer may not be liable in its role as a plaintiffs employer for interfering with the employment contract. The court explained:

“[The corporation], as a party to the contract, cannot be liable for interference with that contract. If the rule were otherwise, every discharge not otherwise ‘wrongful’ would become a potential contractual interference claim. The Restatement (Second) of Torts §§ 766 to 766C, which we have cited in the past, requires that defendant’s alleged interference involve a relationship between plaintiff and a third party.” 302 Or at 625. (Footnotes omitted.)

*125 Defendant contends that that rationale applies here. We disagree. The rationale is that an employer as an entity cannot interfere with its own contract. Defendant is not plaintiffs employer and is not a party to the employment contract. Moreover, defendant’s argument was implicitly rejected in Welch v. Bancorp Management Services, 296 Or 208, 675 P2d 172 (1983), mod 296 Or 713, 679 P2d 866 (1984), and other cases that hold that, under certain circumstances, an officer or employee can be liable for interfering with his employer’s contract with a third party. The necessary premise of those cases is that the employer and the employee do not stand in the same posture with respect to the contract. As a party, the employer can only breach it. See Sakelaris v. Mayfair Realty, Inc., 284 Or 581, 588 P2d 23 (1978). As a non-party, however, an employee can interfere with it. We reject defendant’s contention that he was a party to the contract and, therefore, was entitled to a directed verdict.

Defendant also makes the related argument that, as a “managing officer” of Aerolift, with authority to hire and fire employees, he should be immune for interference with an employment contract between it and plaintiff. The court said in Welch v. Bancorp Management Services, supra, 296 Or at 215:

“[W]hen officers or employes of a corporation induce the corporation to breach its contract with a third party in order to serve interests other than those of the corporation, then the officers and employes are not immune from personal liability in an action for tortious interference with that contract.”

Although defendant does not fully explain why that principle should be less applicable to managing officers than other officers, presumably the reasoning is that, at least in the context of employment contracts, there is no real distinction between the employer and the officer who handles personnel matters on its behalf. The employer acts only through that officer.

According to defendant, the issue is a matter of first impression in Oregon. It is true that the precise question has not been directly addressed in any Oregon appellate decision, *126 but the answer to it necessarily follows from Welch v. Bancorp Management Services, supra, and related cases. The principle of those cases is that an officer or employee ceases to enjoy immunity if his actions that interfere with his employer’s contract are done without any motive to benefit his employer, but solely with improper motives or purposes. In other words, the immunity is lost because the officer is not acting in his employment capacity, but out of some improper motive of his own. It is inconsistent with that principle to say that that officer may, nevertheless, retain immunity on the theory that he is the alter ego of the employer that his actions are not designed to serve.

There is no reason why the rule should be different for managing officers. They are as capable as other officers of acting with improper motives to interfere with their employer’s contracts. Defendant maybe correct in suggesting that an officer with authority to hire and fire might less often than other officers have a demonstrable absence of motives to benefit the employer in connection with personnel decisions. However, that is a matter of proof. We reject the per se rule that defendant advocates.

Defendant also assigns error to the court’s instructing the jury on the intentional interference claim. Because the claim properly went to the jury, it was not error to instruct on it. It cannot be said, as a matter of law, that a claim for intentional interference with a contract cannot be brought against a managing officer, and the trial court did not err by denying defendant’s motion for directed verdict.

Defendant next assigns error to the trial court’s denial of his motion to strike the specification of improper motives. The pertinent allegation reads:

“On August 17, 1987, defendant W. Larry Mahaffey intentionally interfered with plaintiffs contract of employment for one or more of the following wrongful reasons or by one or more of the following wrongful means:
“(a) Because defendant Mahaffey personally did not want plaintiff to work for defendant Aerolift, Inc. and not because plaintiffs performance was in any way detrimental to defendants;
*127 “(b) By causing and directing production and preparation of false written statements alleging that plaintiff had been insubordinate and thereafter asserting said allegations of insubordination as grounds for termination.”

Defendant argues:

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Cite This Page — Counsel Stack

Bluebook (online)
818 P.2d 950, 109 Or. App. 122, 1991 Ore. App. LEXIS 1462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giordano-v-aerolift-inc-orctapp-1991.