In re Carver Boat Corp.

157 B.R. 424, 1993 Bankr. LEXIS 1115, 1993 WL 301184
CourtDistrict Court, E.D. Wisconsin
DecidedJuly 23, 1993
DocketBankruptcy No. 91-22698-JES
StatusPublished

This text of 157 B.R. 424 (In re Carver Boat Corp.) 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
In re Carver Boat Corp., 157 B.R. 424, 1993 Bankr. LEXIS 1115, 1993 WL 301184 (E.D. Wis. 1993).

Opinion

DECISION

JAMES E. SHAPIRO, Bankruptcy Judge.

Carver Boat Corporation (“Carver”), the debtor in the above chapter 11 case, has objected to claim no. 644 of Keith Nelson (“Nelson”). In his claim, Nelson, who was laid off by Carver but later recalled to employment, seeks reinstatement of his claimed seniority rights under a purported contract with Carver. Carver asserts that there never was any employment contract and that Nelson had no fixed seniority rights. This dispute is now before the court on Carver’s motion for summary judgment. It is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(B).

The uncontroverted facts reveal that Carver filed its petition in bankruptcy under chapter 11 on April 19, 1991. On that date, Carver laid off all but 28 of its approximately 600 employees. Among those employees laid off was Nelson. Nelson is a truck driver, whose duties consist of delivering boats to dealers in different parts of the country. Nelson was first hired by Carver in January of 1977. On April 29, 1991, Carver recalled 6 truck drivers, but Nelson was not among this group. Nelson was, however, recalled later on November 18, 1991, and he continues to work for Carver as a truck driver.

Nelson maintains he should have been recalled on April 29, 1991, instead of November 18, 1991, because of his claimed seniority rights. Of the 6 drivers who were recalled on April 29, 1991, 3 had longer terms of service with Carver than Nelson. The remaining 3 were hired after Nelson was first employed by Carver. Nelson also asserts that, because he was improperly recalled “out of seniority,” he now holds a lower seniority status. This has resulted in Nelson receiving less desirable truck runs and lower paying truck loads.

This controversy is ripe for summary judgment pursuant to Rule 7056 of the Federal Rules of Bankruptcy Procedure and Rule 56 Federal Rules of Civil Procedure. Its disposition turns entirely upon a matter of law because there are no genuine issues of material fact involved. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986).

This court recognizes that summary judgment is an extreme remedy which should be exercised sparingly. There are, however, some situations where it is appropriate to grant summary judgment. That is the situation here.

The key inquiry centers upon whether a contractual relationship existed between Carver and Nelson. Nelson’s claim of a contractual relationship is based upon an employee handbook given to him by Carver after he became employed as well as upon certain oral representations made by Carver representatives regarding his alleged seniority rights. If Nelson is unable to establish such an express contract of employment, he is an at-will employee, with no seniority rights.

It is incumbent upon this court to look to Wisconsin law for a determination of Nelson’s substantive rights against Carver. Grogan v. Garner, 498 U.S. 279, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991); In re Ford, 125 B.R. 735 (E.D.Tex.1991); Mursch v. Van Dorn Co., 851 F.2d 990, 993 (7th Cir.1988). The controlling Wisconsin law on this subject is set forth in Bantz v. Montgomery Estates, Inc., 163 Wis.2d 973, 473 N.W.2d 506 (Wis.Ct.App.1991), and Ferraro v. Koelsch, 124 Wis.2d 154, 368 N.W.2d 666 (Wis.1985). In Bantz, the court held that an employee handbook did not provide a discharged employee with an employment contract. The Bantz handbook merely outlined general rules, regulations, and disciplinary procedures. No contract — express or implied — existed. Citing Ferraro, Bantz observed that Wisconsin courts will not “by implication alone convert a handbook produced by an employer for the guidance and orientation of employees into an express contract.” Bantz v. [426]*426Montgomery Estates, Inc., 163 Wis.2d at 978-79. Bantz also declared that an employee handbook may only alter an at-will employment relationship if it contained express provisions from which it could reasonably be inferred that the parties intended to bind each other to a different relationship than an at-will relationship. Ferraro v. Koelsch, 124 Wis.2d at 168, 368 N.W.2d 666.

Unlike Bantz, Ferraro, based on its particular facts, held that a contractual relationship did exist. There are, however, significant differences between the Ferraro handbook and the handbooks in Bantz and in the case at bar. The Ferraro handbook contained language which clearly evinced an intent to create more than an at-will relationship. The Carver handbook was more akin to that in Bantz, than in Ferraro. The following specific language in the Ferraro handbook established that acceptance by an employee of the terms in the handbook created an employment contract:

I hereby acknowledge having received and read the Hyatt Regency Milwaukee Employee’s Handbook. Furthermore, I understand the policies and rules and accept them as a condition of my continued employment (emphasis added).

Ferraro v. Koelsch, 124 Wis.2d at 158, 368 N.W.2d 666. No such language exists in the Bantz or Carver handbooks. In particular, the Carver handbook states the following:

Nothing contained in this book is to be construed as a guarantee of continued employment, (p. 1-2)

and:

... the Company does not guarantee continued employment to employees, (p. 2-1)

In Ferraro, an employee was obligated to provide 2-weeks’ notice of termination pursuant to a commitment contained within the handbook. The Carver handbook states that, although an employee was “expected” to give two weeks’ notification of intent to terminate employment, the employee had the right to terminate employment at any time. While the Carver handbook contains language dealing with seniority, as in the case of Mursch v. Van Dorn Co., 851 F.2d at 995, it was without any contractual guarantee or obligation. The following language in the Carver handbook makes that point clear:

Generally (emphasis added), employees will be recalled from lay off in the reverse order of the lay off. (p. 8-3)

In addition to the provisions referred to above, which disclaim any guarantee by Carver of continued employment, there are other provisions in the Carver handbook which do not appear in the Ferraro handbook. They are as follows:

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157 B.R. 424, 1993 Bankr. LEXIS 1115, 1993 WL 301184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-carver-boat-corp-wied-1993.