Hohlbein v. Heritage Mutual Insurance

106 F.R.D. 73, 1 Fed. R. Serv. 3d 1519, 1985 U.S. Dist. LEXIS 19718
CourtDistrict Court, E.D. Wisconsin
DecidedMay 20, 1985
DocketNo. 85-C-0157
StatusPublished
Cited by16 cases

This text of 106 F.R.D. 73 (Hohlbein v. Heritage Mutual Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hohlbein v. Heritage Mutual Insurance, 106 F.R.D. 73, 1 Fed. R. Serv. 3d 1519, 1985 U.S. Dist. LEXIS 19718 (E.D. Wis. 1985).

Opinion

MEMORANDUM AND ORDER

WARREN, District Judge.

BACKGROUND

This action was initiated on January 31, 1985, when the plaintiffs, all individual residents of states other than Wisconsin, filed their complaint against the corporate defendant, which maintains its principal office in Sheboygan, Wisconsin. Invoking the Court’s diversity jurisdiction as established under 28 U.S.C. § 1332(a)(1), the plaintiffs aver that the amount in controversy exceeds the sum or value of $10,-000.00, exclusive of interest and costs, and is between citizens of different states.

Although the complaint is framed in twelve discrete counts, each of the four individual plaintiffs articulates three, independent causes of action under parallel theories of false or reckless misrepresentation, fraud, and breach of promise. The factual basis common to the claims of all four plaintiffs is that each was purportedly contacted and interviewed by the defendant’s representatives in connection with executive employment positions; that the defendant made material misrepresentations of [75]*75fact and failed to disclose other material information with respect to those executive positions during the course of the respective interviews; and, specifically, that the plaintiffs were not advised that their employment with the corporate defendant would be subject to a probationary period.

At the same time, the particular circumstances under which each of the four plaintiffs was allegedly misled to his damage are unmistakably different. Plaintiff Norbert Hohlbein was purportedly interviewed by the defendant’s representatives on various occasions in February of 1982 for the position of Vice President of Sales. Despite its apparent initial decision not to fill that position, the defendant allegedly renewed negotiations with this plaintiff from October through December of 1982, during which it made material misrepresentations of fact with respect to, among other things, the present performance of the duties of the Vice President of Sales; the nature and scope of the authority vested in the individual hired to fill that position; its intention regarding the promotion of that employee to the President’s post; and the financial assistance to be provided to the prospective employee to facilitate his relocation to the State of Wisconsin—all representations made knowingly or with reckless disregard for the truth, or so the complaint charges. This plaintiff further claims that the defendant failed to disclose that his employment would be subject to a period of probation during which he could presumably be terminated at will—a failure of disclosure purposely undertaken to induce the plaintiff to accept the job offer.

Although this plaintiff apparently began his employment with the defendant on December 6, 1982, he resigned some two months later, on February 10, 1983, principally because he “was not given the duties and authority the defendant represented he would have and ... was not provided the relocation assistance defendant represented would be provided____” Plaintiffs’ Complaint at 5 (January 31, 1985). Based on these claims, this plaintiff seeks $211,-634.00 in actual damages, together with punitive damages in an amount not less than five times that sum.

By his discrete claims in the complaint, plaintiff Winston Howell states that he, too, was interviewed by the defendant for the position of Vice President of Sales, although on various occasions in April of 1981. During the course of those negotiations, the defendant’s representatives allegedly made material misrepresentations with respect to both the authority and responsibility attendant upon the sales position and the corporation’s expectations for the promotion and future responsibilities of the individual selected to fill that spot. This plaintiff claims that, in reliance on the defendant’s representations, he began his employment on or about June 1, 1981, only to terminate some two months later, on or about August 6, 1981, upon discovering that the duties and authority of the sales vice presidency were not as the defendant’s representatives had stated.

Like all of his co-plaintiffs, this party claims to have “sustained substantial damages ... including but not limited to, loss of income, loss of future income, damage to his professional reputation, inconvenience, and emotional distress” all as direct and proximate result of the defendant’s material misrepresentations and omissions. Plaintiffs’ Complaint at 13 (January 31, 1985). Pursuant to his three counts of false or reckless misrepresentation, fraud, and breach of promise, he seeks actual damages in the amount of $104,070.00 and punitive damages totaling a sum not less than five times that figure.

Plaintiff James R. Beckey alleges that he applied for the position of Regional Claims Manager for the defendant and was interviewed for that job on various occasions in August and September of 1983. The material misrepresentations purportedly made to him during the course of his discussions with the defendant’s representatives included certain guarantees with respect to the manager’s responsibilities for overall claims administration and a promise that he would be paid temporary living expenses during the period of his relocation to Wis[76]*76consin. Like the others, he also charges that he was not notified that the conditions of his employment included an initial, probationary period.

Relying on the defendant’s material misrepresentations and omissions, this plaintiff purportedly accepted the employment offer on or about October 3, 1983, and was thereafter advised that he would not be provided with the temporary living and preemployment interview expenses to the extent previously indicated. He also charges that he was not accorded the duties and responsibilities of the position as described to him during the course of employment negotiations. Characterizing the defendant’s material misrepresentations and omissions as willful, malicious, and in complete disregard for his rights, this plaintiff seeks actual damages totaling $102,500.00, together with punitive damages in a sum not less than five times that amount.

Finally, it is the principal allegation of plaintiff Edward White that he, too, was materially misled during interviews with the defendant, in his case, for the position of Training and Educational Specialist, conducted in the month of March of 1982. Among other things, those material misrepresentations allegedly included a promise that he would be responsible for supervising all of the defendant corporation’s training activities when it moved to a new home office. Paralleling the charges of his co-plaintiffs, this party avers that his reliance on the defendant’s various promises and concomitant failure to disclose the probationary nature of the employment relationship led him to accept the offered position in June of 1982. However, upon his entry of service, he was purportedly not given the position of Training Manager but was instead terminated some three months later, in September of 1982.

As a direct and proximate result of the defendant’s material misrepresentations and omissions regarding the job, this plaintiff claims to have suffered damages, including losses attendant upon his move and sale of his previous home in New York, all in the amount of $143,750.00. In addition, he seeks punitive damages totaling not less than five times that figure.

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Cite This Page — Counsel Stack

Bluebook (online)
106 F.R.D. 73, 1 Fed. R. Serv. 3d 1519, 1985 U.S. Dist. LEXIS 19718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hohlbein-v-heritage-mutual-insurance-wied-1985.