Greene v. Armco, Inc.

696 F. Supp. 1328, 1988 U.S. Dist. LEXIS 10452, 1988 WL 94956
CourtDistrict Court, C.D. California
DecidedSeptember 1, 1988
DocketNo. CV 83-1196 MRP
StatusPublished

This text of 696 F. Supp. 1328 (Greene v. Armco, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greene v. Armco, Inc., 696 F. Supp. 1328, 1988 U.S. Dist. LEXIS 10452, 1988 WL 94956 (C.D. Cal. 1988).

Opinion

OPINION

PFAELZER, District Judge.

Plaintiff Walter Greene, Jr. sues Armco, Inc. (“Armco”), the law firm of Brobeck, Phleger & Harrison (“Brobeck”), and two of Brobeck’s members, attorneys James L. Meeder and William C. Anderson, for malicious prosecution, interference with prospective business advantage, and violations of 42 U.S.C. § 1981. The malicious prosecution claim is based on an abuse of process action that the defendants formerly brought against Greene. The interference with prospective business advantage claim is based on statements Meeder made to the California State Bar regarding Greene’s fit[1330]*1330ness to practice law. The § 1981 claim is based on the termination of Greene’s employment with a subsidiary of Armco, Bel-lefonte Reinsurance Company (“Belle-fonte” or “the company”). The defendants have moved for summary judgment as to each of the three claims. The Court now grants the defendants’ motion.

I. Background

This is one of eleven cases filed in state and federal courts involving this plaintiff and these and other defendants arising out of the termination of the plaintiff’s employment with Bellefonte. The volume of litigation does not reflect the complexity of the dispute that generated it. Indeed, the underlying facts are simple, albeit somewhat unusual.

Greene commenced work as a reinsurance underwriter for Bellefonte at its San Francisco office in 1978. On October 19, 1979, Bellefonte gave Greene a written offer of promotion to Regional Manager of a Los Angeles office that Bellefonte planned to open in August 1980. The promotion and a pay raise were to be effective March 1, 1980. On October 26, 1979, Greene accepted this offer in writing, thereby achieving the highest position of any black in that company, and perhaps in the entire reinsurance industry. See Greene v. Cohen, et al, No. 81-4386, Reporter’s Transcript of Proceedings 317, 329 (hereinafter “TR at ... ”) (testimony of Ronald Taimo). The next day, Greene made an offer on a house in Anaheim that he and his wife had found during an exploratory trip to Southern California, made in anticipation of relocation. See TR at 410-11. Agreeing with Greene that the Anaheim house was a bargain, Armco consented to its purchase in advance of the opening of the branch office. In order to assist Greene in the purchase of the Anaheim house, Armco loaned Greene and his wife, Katherine Greene, $72,500 with interest at 15% per annum (“the loan”). Armco waived the interest payments for three months and Bellefonte gave the Greenes $2,400 to cover the fourth and fifth month interest payments. The Greenes closed on the purchase of the Anaheim house on February 1, 1980, but continued to live in their Bay Area home.

On April 9, 1980, Bellefonte cancelled its plans to open a Los Angeles branch office. It is undisputed that the cancellation was necessitated by the impact on Bellefonte’s business of an unanticipated reduction in its “BEST” rating. That day, John Linne-man, Regional Manager of Bellefonte’s San Francisco office and Greene’s immediate supervisor, informed Greene of the decision and told him that BNellefonte would make sure that he and his family did not suffer financially as a result of the cancelled move. Greene was told that if he could not sell the Anaheim house, Bellefonte would buy it back from him at market value, or his purchase price, whichever was higher. Greene also was told that the interest on his loan would be deferred for 30 to 60 days to provide him time to try to sell the house on his own. The following day, Greene wrote a memorandum to his supervisor, acknowledging that the agreement to move him to Los Angeles was “voided.” At the time, the company had no knowledge that Greene’s memorandum did not reflect his real intentions. After April 9, he did not put his Anaheim home on the market, did not take his Bay Area home off the market, enrolled his children in Anaheim schools, and enrolled himself in a Southern California law school.

The first indication to Bellefonte that things were not going as it had anticipated came on May 5,1980 when Greene wrote to Linneman to complain that he was unsure about his status with Bellefonte and that he had asked the Equal Employment Opportunities Commission (“EEOC”) to make an investigation. The next day Greene met with Linneman to discuss the May 5 letter, at which time Greene stated that he intended to move to Anaheim and sue Bellefonte for expenses. He also stated that he thought he would make a sympathetic witness before a jury. Greene was told that a move to Anaheim was unacceptable and that Bellefonte would not finance it.

On May 7, 1980, Greene flew to Los Angeles and registered and paid the tuition for two summer law school classes at [1331]*1331Western State University Law School in Fullerton, California. He then submitted to Bellefonte a written request for tuition reimbursement. Bellefonte had been reimbursing Greene for tuition expenses at a Bay Area law school, but rejected this request to fund classes because of the school’s location. Greene wrote a letter of protest, in which he argued that the classes were on weekends and thus would not create insurmountable commuting problems. In fact, one of the classes met on a weeknight. Greene did not mention in the letter that he intended to live in Anaheim.

On May 15, 1980, Bellefonte flew Greene to its corporate offices in Ohio to discuss his dissatisfaction with Bellefonte. Greene was told that Bellefonte wanted him to stay and that a proposed solution would be sent to him in two weeks. On May 28, 1980, Greene entered into a contract for the sale of his Bay Area home. On May 29 and 30, he moved his family and possessions to the Anaheim house and charged the expenses to Armco.

Unaware that Greene had moved to Anaheim, Bellefonte officials met on May 30 to discuss what should be proposed to Greene. It was agreed that Greene would be given two options: (A) Greene would remain with Bellefonte as Regional Casualty Manager and receive a raise as well as reimbursement for the expenses of his abortive move to Anaheim; or (B) Greene would leave Bellefonte and receive the paid services of an executive search firm in Los Angeles, retention on the payroll for one month, two weeks severance pay, and, if Greene desired, the purchase of the Bay Area home by Bellefonte and relocation expenses to Los Angeles.

On June 2, 1980, Greene flew, at Belle-fonte’s expense, from Southern California to Oakland, rented a car, and drove to Bellefonte’s San Francisco office. While in the office, he called Dan Cohen, Belle-fonte’s personnel manager who was located at the company’s headquarters in Ohio, and told Cohen that he had a contract to sell his Bay Area home. Greene did not mention that he had already moved to Anaheim.

On June 5, 1980, Bellefonte flew Greene to the Ohio offices to present him with options A and B. Greene indicated that he would probably accept option A and remain with Bellefonte, but raised the problem that he had already contracted for the sale of his Bay Area home. Cohen suggested that Greene discuss with his realtor the possibility of getting out of the contract.

On June 10, Greene again flew to San Francisco at Bellefonte’s expense and went to the company’s office. On the telephone, he discussed the contract for sale of his Bay Area home with Cohen. Cohen told Greene that Bellefonte would not finance Greene’s move to another Bay Area house.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Allen v. McCurry
449 U.S. 90 (Supreme Court, 1980)
Sandra Silver v. Kca, Inc.
586 F.2d 138 (Ninth Circuit, 1978)
Power Systems, Inc. v. National Labor Relations Board
601 F.2d 936 (Seventh Circuit, 1979)
Greene v. Cohen
804 F.2d 145 (Ninth Circuit, 1986)
Centers v. Dollar Markets
222 P.2d 136 (California Court of Appeal, 1950)
Jaffe v. Stone
114 P.2d 335 (California Supreme Court, 1941)
Coleman v. Gulf Insurance Group
718 P.2d 77 (California Supreme Court, 1986)
Barquis v. Merchants Collection Assn.
496 P.2d 817 (California Supreme Court, 1972)
Bertero v. National General Corp.
529 P.2d 608 (California Supreme Court, 1974)
Murdock v. Gerth
150 P.2d 489 (California Court of Appeal, 1944)
Crawford v. Roadway Express, Inc.
485 F. Supp. 914 (W.D. Louisiana, 1980)
Kyriazi v. Western Electric Co.
469 F. Supp. 672 (D. New Jersey, 1979)
Bartulica, Md v. Paculdo, Md
411 F. Supp. 392 (W.D. Missouri, 1976)
Hayden v. Chrysler Corp.
486 F. Supp. 557 (E.D. Michigan, 1980)
Proulx v. Citibank, N.A.
659 F. Supp. 972 (S.D. New York, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
696 F. Supp. 1328, 1988 U.S. Dist. LEXIS 10452, 1988 WL 94956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-armco-inc-cacd-1988.