Gorwara v. AEL Industries, Inc.

784 F. Supp. 239, 7 I.E.R. Cas. (BNA) 1521, 1992 U.S. Dist. LEXIS 1677, 58 Fair Empl. Prac. Cas. (BNA) 506, 1992 WL 35555
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 11, 1992
DocketCiv. A. 89-6401
StatusPublished
Cited by9 cases

This text of 784 F. Supp. 239 (Gorwara v. AEL Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Gorwara v. AEL Industries, Inc., 784 F. Supp. 239, 7 I.E.R. Cas. (BNA) 1521, 1992 U.S. Dist. LEXIS 1677, 58 Fair Empl. Prac. Cas. (BNA) 506, 1992 WL 35555 (E.D. Pa. 1992).

Opinion

*241 MEMORANDUM AND ORDER

DITTER, District Judge.

This is an employment discrimination suit against an employer and a fellow employee. Plaintiff charged his employer with breach of express contract, breach of implied contract, negligent supervision, wrongful discharge, intentional interference with contractual relations, intentional infliction of emotional distress, and violations of Title VII, 42 U.S.C. § 2000e-2; the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.; and 42 U.S.C. § 1981. He charged the co-employee with intentional interference with contractual relations, intentional infliction of emotional distress, and defamation.

In an earlier opinion, Judge Lord 1 dismissed the negligent supervision, wrongful discharge, and intentional infliction of emotional distress claims against the employer only. Before me now are both defendants’ motions for partial summary judgment. The employer moves for summary judgment on the breach of express contract (count I), breach of implied contract (count II), and § 1981 (count X) claims. 2 The co-employee moves for summary judgment on the charges of intentional infliction of emotional distress (count VI) and defamation (count VII).

For the reasons that follow, I will grant the employer’s motion for summary judgment on the breach of implied contract claim and the § 1981 claim, and deny its motion on the express contract claim. I will grant the co-employee’s motion entirely.

I. BACKGROUND

Plaintiff, Ashok K. Gorwara, is an American citizen born in India. In February, 1988, Gorwara negotiated an employment contract with the defendant employer, AEL Industries, Inc., and its wholly-owned subsidiary, American Electronic Laboratories, Inc. (hereafter collectively called “AEL”). AEL designs and manufactures electronic systems for the military. AEL offered Gorwara the position of senior principal engineer in the microwave/hybrid engineering department with an annual salary of $70,000 and a maximum annual bonus of 10 percent. The agreement had no term setting duration.

Before Gorwara started work, he told AEL he was dissatisfied with his proposed title and salary, since he had received other managerial offers for $82,000 and for $73,-400 plus a car. Nonetheless, Gorwara told AEL on February 11,1988, he would accept the offer and he started work two weeks later.

After two months had passed, on April 11,1988, AEL promoted Gorwara from senior principal engineer to manager of his department. At that time, Gorwara received no corresponding increase in salary or benefits. On June 23, 1989, AEL fired him. Gorwara brought suit as described above. The charges on which AEL now seeks summary judgment are its alleged breach of express contract to increase Gor-wara’s salary upon promotion; its alleged breach of implied contract to employ him for a reasonable period; and its alleged discrimination, based on race and national origin, in the terms of Gorwara’s second (post-promotion) employment contract.

The defendant co-employee, Milton Nuss-baum, worked in AEL’s marketing department throughout Gorwara’s tenure with the company. He denies that any words or actions attributed to him by Gorwara amount to an intentional infliction of emotional distress or defamation.

II. ANALYSIS

To prevail on their motions for partial summary judgment, the defendants must show that the pleadings, depositions, answers to interrogatories, and admissions on *242 file, together with the affidavits, show that there is no genuine issue as to any material fact, and that defendants are entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); see Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). 3

A. AEL’s Motion for Partial Summary Judgment

1. Breach of Express Contract (Count I)

Gorwara alleges AEL breached the parties’ express, oral agreement when it failed to increase his salary, bonus, and benefits upon promoting him from senior principal engineer to department manager. 4 Gor-wara claims both Joe Iervolino, vice president of the microwave/hybrid engineering department, and Raymond Griffin, AEL’s director of human resources, promised during his employment negotiations that “if and when” Gorwara became manager, he would get a significant salary raise. Iervo-lino allegedly read Gorwara’s offers from the other companies and promised: “I am going to take this [the letters] as ... evidence for Mark Ronald [president of AEL] and show him this as to what your capability is, and if and when you become manager, we will make sure that you get this kind of salary.” “After you have proven your worth at AEL and when you become a manager, we will give you a higher salary.”

AEL contends neither Griffin nor Iervoli-no ever expressly promised Gorwara an increase in pay. 5 It claims even if Iervolino did state those words, he merely promised to consult with Mr. Ronald, not actually to deliver more money. In any case, AEL argues, promises of “a higher salary” and “this kind of salary” are by law too indefinite to enforce.

Under Pennsylvania law, it is Gorwara’s burden to establish the existence of an oral contract by “clear and precise” evidence. Browne v. Maxfield, 663 F.Supp. 1193, 1197 (E.D.Pa.1987). A contract is enforceable only if both parties manifested an intent to be bound, it is supported on both sides by consideration, and its terms are sufficiently definite. See Channel Home Centers, Div. of Grace Retail Corp. v. Grossman, 795 F.2d 291, 298-99 (3d Cir.1986).

Gorwara’s evidence is clear and precise. Iervolino referred to Gorwara’s other offers and said, “we will make sure you get this kind of salary,” as soon as Gorwara balked at AEL’s $70,000. 6 No one disputes the promise was supported on both sides by consideration. Since the parties’ contract was terminable at will (see § 1.2 infra), and Gorwara therefore had no enforceable obligation to work for AEL even after he had formally accepted, all promises made up to February 29, 1988, when he started working, constitute consideration for his taking the job. In any case, AEL does not deny the promotion from senior principal engineer to manager merits some raise in salary and bonus.

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784 F. Supp. 239, 7 I.E.R. Cas. (BNA) 1521, 1992 U.S. Dist. LEXIS 1677, 58 Fair Empl. Prac. Cas. (BNA) 506, 1992 WL 35555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorwara-v-ael-industries-inc-paed-1992.