Gulledge v. Dyncorp, Inc.

24 Va. Cir. 538, 1989 Va. Cir. LEXIS 423
CourtFairfax County Circuit Court
DecidedApril 17, 1989
DocketCase No. (Law) 88798
StatusPublished

This text of 24 Va. Cir. 538 (Gulledge v. Dyncorp, Inc.) is published on Counsel Stack Legal Research, covering Fairfax County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulledge v. Dyncorp, Inc., 24 Va. Cir. 538, 1989 Va. Cir. LEXIS 423 (Va. Super. Ct. 1989).

Opinion

By JUDGE LEWIS HALL GRIFFITH

This case is before the Court on the demurrer of the two defendants, Dyncorp and its president, Dan R. Bannister, to the motion for declaratory judgment and damages.

This case involves an alleged breach of an employment contract in which the corporation agreed to hire the plaintiff as a consultant upon his retirement from the corporation. The contract provided in part:

Employment and Term

The Company covenants and agrees to and does hereby employ Gulledge and Gulledge hereby does accept employment . . . and (ii) upon termination of Gulledge’s service as such President and Chief Executive Officer, then as advisor and consultant to the Company for a period of [539]*539five years from the time of such termination, and thereafter on a year to year basis terminable at any time: (a) by the Company on one year’s prior written notice to Gulledge or, in lieu of such notice and at the option of the Company, by the payment of one year’s compensation to Gulledge, exclusive of any bonus or additional compensation, or (b) by Gulledge oh three months’ prior written notice to the Company.

The plaintiff alleges that he was discharged in breach of this contract because he was given notice during the last year of the five-year period that he would be terminated at the end of that year. According to the plaintiff’s interpretation of the contract, the one-year notice cannot be given until after the initial five-year period. Therefore, the earliest he could be terminated was at the end of the first year following the five-year period. The plaintiff also alleges that he was terminated because he did not vote in favor of a merger proposal presented at a directors’ meeting. The motion asks for a declaratory judgment determining the corporation’s contract obligations as well as damages for tortious interference with contract and retaliatory discharge.

The defendants demur to the breach of contract claim on the grounds that the contract was not in fact breached. According to the defendants’ interpretation of the contract, the defendants could properly give the plaintiff notice that the contract would be terminated at the end of the fifth year. The demurrer to this claim is denied. In order to sustain the demurrer on these grounds, the Court would be required to interpret the contract. At this stage of the proceedings, the Court may only consider whether plaintiff has stated a cause of action. The bill of complaint is sufficient because it alleges that a contract existed and that it was breached. Payne v. Grant, 81 Va. 164 (1885). The interpretation of the contract and the question of whether it has been breached are matters left for determination at trial.

In addition, the defendant argues that this is not a proper matter for a declaratory judgment, that the action is premature because plaintiff has not yet been terminated, and that damages may not be granted. The Court finds that [540]*540a declaratory judgment is proper to determine the rights of parties to a contract. Virginia Code § 8.01-184 provides that "controversies involving the interpretation of deeds, wills and other instruments of writing . . . may be so determined." The action is not premature because the Supreme Court held in Fairfield Development Corp. v. City of Virginia Beach, 211 Va. 715 (1971):

A declaratory judgment may guide parties in their future conduct in relation to each other, thereby relieving them from the risk of taking undirected action incident to their rights, which action, without direction, would jeopardize their interests.

In response to the defendant’s final argument, the Court is not precluded from awarding damages in addition to a declaratory judgment.

The plaintiff’s second claim is for damages from defendant Bannister only for tortious interference with contract. The plaintiff contends that Bannister terminated his contract because of malice toward the plaintiff for failing to vote for a corporate merger. The defendants again base their argument on the ground that the contract was not actually breached. They contend that Bowman v. State Bank of Keysville, 229 Va. 534 (1985), requires an allegation that the contract was breached as a result of the interference. The Court once again finds that the determination of whether the contract was actually reached cannot be decided until trial. The demurrer as to this argument is denied.

The defendant also objects to the claim for punitive damages against defendant Bannister. This ground is also denied because where the breach of the contract amounts to an independent, willful tort, exemplary damages may be recovered under proper allegations of malice, wantonness or oppression. Kamlar Corporation v. Haley, 224 Va. 699 (1983). The plaintiff has sufficiently alleged that the defendant was motivated by malice and ill will toward the plaintiff.

The defendant also argues that a party to a contract cannot interfere with its own contract, and the demurrer on this ground is sustained. Although a party to a contract [541]*541may conspire with a third party to interfere with its own contract, a party to a contract acting alone cannot interfere with its on contract. Stauffer v. Fredericksburg Ramada, Inc., 411 F. Supp. 1136 (E.D. Va. 1976); Fox v. Deese, 234 Va. 412 (1987). The plaintiff’s allegations that the defendant was motivated by his personal malice toward the plaintiff are not sufficient to support a finding that the defendant was not acting within the scope of his employment. As the president of Dyncorp, Bannister cannot interfere with his own contract. The proper remedy against a party to a contract is a claim for damages from breach, not a separate claim for tortious interference.

The plaintiff’s last count prays for damages for retaliatory discharge or discharge contrary to public policy. The defendants argue that the plaintiff has not sufficiently alleged that his termination violated public policy, as required by Bowman, supra. Furthermore, the defendants assert that the plaintiff should not be protected because his contract with the corporation was against the shareholders’ interest. As support for this proposition, the defendants assert that Virginia Code § 13.1-691 presumes that contracts between a corporation and its directors are voidable unless certain conditions are met.

The Court is not persuaded by this argument. The Bowman case allowed a claim for retaliatory discharge by employees who were discharged for exercising their statutory right to vote as shareholder. The voting rights of directors are similar to those of shareholders and should also be protected by public policy. The plaintiff has alleged that he voted according to his independent judgment as required by his fiduciary responsibility to the corporation and its shareholders, and public policy requires protection of this voting right. The demurrer on this argument is denied.

The defendants also argue that a claim for retaliatory discharge may only be raised by an "at will" employee, and the Court finds this argument persuasive. In Miller v. SEVAMP, Inc., 234 Va. 462 (1987), the Supreme Court noted that Virginia does not recognize "a generalized cause of action for the tort of ‘retaliatory discharge’," and that the claim allowed in Bowman v. State Bank of Keysville, 229 Va. 534 (1985), was a "narrow exception

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Related

Bowman v. State Bank of Keysville
331 S.E.2d 797 (Supreme Court of Virginia, 1985)
Miller v. Sevamp, Inc.
362 S.E.2d 915 (Supreme Court of Virginia, 1987)
Fox v. Deese
362 S.E.2d 699 (Supreme Court of Virginia, 1987)
Fairfield Development Corp. v. City of Virginia Beach
180 S.E.2d 533 (Supreme Court of Virginia, 1971)
Kamlar Corp. v. Haley
299 S.E.2d 514 (Supreme Court of Virginia, 1983)
Stauffer v. Fredericksburg Ramada, Inc.
411 F. Supp. 1136 (E.D. Virginia, 1976)
Payne v. Grant
81 Va. 164 (Supreme Court of Virginia, 1885)

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Bluebook (online)
24 Va. Cir. 538, 1989 Va. Cir. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulledge-v-dyncorp-inc-vaccfairfax-1989.