Havens v. C&D Plastics, Inc.

842 P.2d 975, 68 Wash. App. 159, 8 I.E.R. Cas. (BNA) 294, 1992 Wash. App. LEXIS 502
CourtCourt of Appeals of Washington
DecidedDecember 28, 1992
Docket27209-8-I
StatusPublished
Cited by4 cases

This text of 842 P.2d 975 (Havens v. C&D Plastics, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Havens v. C&D Plastics, Inc., 842 P.2d 975, 68 Wash. App. 159, 8 I.E.R. Cas. (BNA) 294, 1992 Wash. App. LEXIS 502 (Wash. Ct. App. 1992).

Opinion

Forrest, J.

C&D Plastics, Inc. (C&D) appeals an award for breach of contract and promissory estoppel damages to Lamar D. Havens (Havens). In his cross appeal, Havens requests this court to reverse the trial court's orders dismissing Havens' wrongful discharge and negligent misrepresentation claims, excluding certain evidence, and to modify the award of attorneys' fees and costs and pre- and postjudgment interest. We reverse and remand for a new trial.

Lamar Havens was hired by C&D on October 23, 1986, to set up and manage Northwest Composites, a Washington division of the California corporation. The hiring was the culmination of two discussions between James Downey, owner and chief executive officer of C&D, Joseph Moran, president of C&D, and Havens. The meetings were informal, and the discussions memorialized only in a set of notes. *162 Following an oral agreement of employment, Havens wrote a confirming letter. Havens understood he had a 1-year contract with C&D, at a salary of $70,000 per year and a $15,000 guaranteed bonus. C&D does not dispute it hired Havens, but insists it did not hire Havens for any specified period. The parties agree that they never discussed the issue of just cause for dismissal. Havens left his position at Heath Tecna, where he earned $56,000 annually, and went to work for C&D on October 28, 1986.

Havens was responsible for getting C&D's Northwest Composites division up and running in Marysville, Washington. This included finding a plant site, locating equipment, and hiring and training personnel. Havens kept a business diary of these activities and his feelings about his position with C&D. Testimony by Downey, Moran and Havens indicates several disagreements between the parties about Havens' performance. Four incidents are important to this appeal:

1. Havens hired a friend for the plant maintenance position, at $32,000 per year when C&D employees in California performing the same job were paid $20,000 per year. Downey rebuked Havens for paying too much. In response, Havens "dehired" his friend.

2. Moran sent Tim Johnson, a C&D quality control assistant, to Havens to interview for the quality control manager position. Havens told Johnson he was not qualified for the position, and offered him an assembly line position instead.

3. Havens chose an electrical contractor to install equipment at the plant because installation involved getting an electrical permit and running conduit. Downey told Havens not to hire the contractor, that a C&D employee would install the equipment, and that a permit was not required.

4. Havens told Downey that Boeing should be informed of the new plant prior to shipping or manufacturing, which would give Boeing time to inspect and certify the plant as part of its quality control program. Downey disagreed, and told Havens not to worry about it. Havens followed Downey's instruction.

*163 These incidents illustrate what Havens refers to as C&D's interference with his "promised authority". C&D views these incidents as illustrative of Havens' inability to accept directives from his superiors (Downey and Moran) and the difference in philosophy between Havens and Downey.

C&D discharged Havens on February 3, 1987, because "the chemistry with us does not mix well at all. We are appreciative of your effort but the differences we feel are irreconcilable." C&D promised him 3 months' severance pay, with an additional 3 months' severance pay if he had not found employment by then.

Havens filed suit when C&D terminated severance payments after 6 weeks in response to Havens' threat to file suit. Havens alleged (1) breach of a 1-year contract, (2) a right of permanent employment with discharge only for just cause based on promissory estoppel, (3) wrongfiol discharge, (4) negligent misrepresentation, (5) age discrimination, (6) defamation, and (7) breach of the Consumer Protection Act. Prior to trial, Havens voluntarily dismissed the defamation and Consumer Protection Act claims, and the comí; granted C&D's motion to dismiss the wrongfiil discharge claim. At the end of Havens’ case, the court also granted C&D's motion to dismiss the negligent misrepresentation claim.

The jury rendered a special verdict awarding damages for breach of a 1-year contract ($65,901), breach of the severance pay agreement ($26,900) and for discharge without just cause ($363,958) based on promissory estoppel, but found no age discrimination.

The trial court denied C&D's motion for judgment n.o.v. or, alternatively, a new trial, on the promissory estoppel claim.

Issues

1. Did the trial judge err in refusing to dismiss the promissory estoppel claim where there was a valid and enforceable employment contract?

2. If promissory estoppel does apply, is there substantial evidence in this case that C&D made a promise of some *164 thing other than terminable-at-will employment to Mr. Havens?

3. Did the trial judge err in instructing the jury?

4. Did the trial judge err in excluding certain evidence?

5. Was it error for the trial judge to dismiss Havens' wrong-fill discharge claim (cross appeal)?

6. Was it error for the trial judge to dismiss Havens' negligent misrepresentation claim (cross appeal)?

7. Was it error for the trial judge to dismiss Joseph Moran individually after the jury verdict (cross appeal)?

8. Did the trial judge correctly calculate attorney fees and prejudgment interest?

Promissory Estoppel

C&D contends that the doctrine of promissory estoppel is not applicable to the facts of this case and that the jury verdict based thereon must be set aside. The Restatement (Second) of Contracts § 90 (1981) is the classic statement of the doctrine of promissory estoppel.

Promise Reasonably Inducing Action or Forbearance (1) A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.

C&D argues that promissory estoppel could never arise from negotiations for an employment contract which culminate in an express contract of employment. Certainly, such a case would be unusual, but we find it unnecessary to decide whether a case could arise where the promises which form the basis for promissory estoppel are so distinct from the promises of the express contract, and where the promisee's action in reliance on the estoppel promises is so distinct from his action pursuant to the express contract that an action for promissory estoppel would lie. Clearly, that is not this case.

As stated in Hatfield v. Columbia Fed. Sav. Bank, 57 Wn. App. 876, 885, 790 P.2d 1258 (1990) (citing J.

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842 P.2d 975, 68 Wash. App. 159, 8 I.E.R. Cas. (BNA) 294, 1992 Wash. App. LEXIS 502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havens-v-cd-plastics-inc-washctapp-1992.