James Whelton v. Rema Tip top/north America, Inc.

CourtNew Jersey Superior Court Appellate Division
DecidedMarch 14, 2025
DocketA-0084-24
StatusUnpublished

This text of James Whelton v. Rema Tip top/north America, Inc. (James Whelton v. Rema Tip top/north America, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Whelton v. Rema Tip top/north America, Inc., (N.J. Ct. App. 2025).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-0084-24

JAMES WHELTON,

Plaintiff-Appellant,

v.

REMA TIP TOP/NORTH AMERICA, INC., REMA TIP TOP OF AMERICA, INC., REMA TIP TOP AG, OLAFUR GUNNARSSON, MICHAEL ÜBELACKER, and STAHLGRUBER OTTO GRUBER, AG,

Defendants-Respondents. _________________________________

Argued February 25, 2025 – Decided March 14, 2025

Before Judges Gilson, Firko, and Augostini.

On appeal from an interlocutory order of the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-2829-22.

Michael F. O'Connor argued the cause for appellant (McMoran O'Connor Bramley & Burns, PC, attorneys; Michael F. O'Connor, on the briefs). Lindsay A. Dischley argued the cause for respondents Rema Tip Top AG, Stahlgruber Otto Gruber, AG, and Michael Übelacker (Chiesa Shahinian & Giantomasi, PC, attorneys; Lindsay A. Dischley and Brigitte M. Gladis, on the brief).

Samuel J. Bazian argued the cause for respondents Rema Tip Top/North America, Inc. and Rema Tip Top of America, Inc. (Herrick Feinstein, LLP, attorneys; Samuel J. Bazian, on the brief).

PER CURIAM

This appeal from two interlocutory orders, involves a discovery dispute in

an unlawful retaliation case. Plaintiff James Whelton sued defendants Rema Tip

Top/North America, Inc. (Rema), Rema Tip Top of America, Inc. (Rema

America), Rema Tip Top AG (Rema AG), Olafur Gunnarsson, Michael

Übelacker, and Stahlgruber Otto Gruber, AG (Stahlgruber) (collectively

defendants) alleging he had been threatened with termination and passed over

for a promotion in violation of the Conscientious Employee Protection Act

(CEPA), N.J.S.A. 34:19-1 to -14.

Plaintiff appeals from the March 25, 2024 order denying his motion to

compel defendants to produce non-party Heinz Reiff for a deposition in New

Jersey and requiring plaintiff to subpoena Reiff to take his deposition. Reiff is

the chairperson of Rema AG's supervisory board, serves on Stahlgruber's

management board, and is a member of Rema America's board of directors.

A-0084-24 2 Reiff is a German citizen and resides in Germany. Plaintiff also appeals from

the April 9, 2024 order denying reconsideration of that decision. For the reasons

that follow, we reverse both orders and direct the trial court to enter an order

compelling defendants to produce Reiff for a deposition in person in New Jersey

because we conclude he is under their control.

I.

We derive the salient facts from the motion record. On May 31, 2023,

plaintiff filed a second amended complaint, the operative pleading for purposes

of this interlocutory appeal. Plaintiff, an attorney, has been the chief legal

officer (CLO) and chief of business affairs for Rema and has held those positions

for over eleven years. Rema is one of the world's leading manufacturers and

distributors of rubber products mainly used in the tire and automotive industries.

Rema is a wholly owned subsidiary of Rema America, a holding company.

Rema America is a Delaware corporation with a principal place of business in

Woodcliff Lake. Rema America is a wholly owned subsidiary of Rema AG, a

German corporation. Rema AG is a wholly owned subsidiary of Stahlgruber,

also a German corporation.

Gunnarsson was the former chief executive officer (CEO) and sole

director of Rema. Gunnarsson was also the managing director, president,

A-0084-24 3 secretary, and treasurer of Rema America and an employee of Rema and

Stahlgruber. Gunnarsson reported to Reiff and defendant Übelacker, the CEO

of Rema AG. Übelacker also serves on Rema AG's supervisory board and is a

member of Stahlgruber's board of directors.

At an August 24, 2021 executive meeting attended by plaintiff,

Gunnarsson stated that German management was forcing him to step aside from

day-to-day operations at the end of that year and wanted him to choose his

successor. According to plaintiff, the collective recommendation of the

meeting's attendees was that he was the best choice to succeed Gunnarsson.

On October 29, 2021, John Breheny, Rema's chief operating officer,

informed plaintiff that Gunnarsson insisted Breheny wire €99,500 to Werner

Heumüller, a former executive at the Rema Group in Germany, who was also

Gunnarsson's personal friend and "political ally." The wire request was

"purportedly based on an invoice for consulting services," which Gunnarsson

admitted to Breheny was "fraudulent." Breheny confirmed with plaintiff that

Heumüller did not provide consulting services to the company, and Gunnarsson

admitted the invoice was "a pretext for payment" because he believed that Reiff

and/or Übelacker "screwed" Heumüller on his exit package, and Gunnarsson

A-0084-24 4 wanted to "make it right." Plaintiff objected and advised Breheny against wiring

the funds, which were on deposit in a New Jersey bank.

On November 4, 2021, plaintiff, "in accordance with his fiduciary, ethical

and professional obligations," and after consulting several attorneys, informed

Übelacker of Gunnarsson's "unlawful and fraudulent" conduct. Subsequently,

Gunnarsson learned plaintiff had disclosed his wrongful conduct to Übelacker.

On both November 5 and 8, 2021, after Gunnarsson learned that plaintiff had

told Breheny about Gunnarsson's "unlawful conduct," Gunnarsson advised

plaintiff that neither he nor Breheny would "survive this." In addition, plaintiff

alleges Gunnarsson advised him that he "had intended to recommend" plaintiff

to Rema AG as his successor as Rema's CEO, but plaintiff "had cost himself the

opportunity to run the [c]ompany by reporting Gunnarsson's fraudulent

conduct."

Plaintiff then sought Übelacker's help, but he "turned a deaf ear" to

plaintiff's complaints. According to plaintiff, prior to Gunnarsson's departure

for Europe, he informed other Rema employees that plaintiff "would not be able

to retain his position upon Gunnarsson's return."

Between November 12 and 27, 2021, Gunnarsson traveled to Germany for

previously planned meetings with Rema AG's supervisory board, as well as

A-0084-24 5 meetings with Übelacker and Reiff, Übelacker's direct supervisor. While

Gunnarsson was in Germany, plaintiff attempted to contact Übelacker, who

failed to return his calls. According to plaintiff, by the time Gunnarsson

returned from Europe, neither Übelacker nor any other Rema or Rema AG

employee had responded to plaintiff's calls or recommendation for an "outside

investigation." After blocking the caller ID, plaintiff called Übelacker, who

answered the call. Übelacker advised plaintiff he was in a board meeting but

"promised" to return the call "in one hour's time," but never did. Plaintiff alleges

Übelacker told Gunnarsson to instruct plaintiff "to stop calling Germany."

On December 7, 2021, Gunnarsson allegedly informed plaintiff that he

had no future with Rema and advised him to start looking for a new job because

Gunnarsson intended to terminate him upon finding plaintiff's replacement.

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Bluebook (online)
James Whelton v. Rema Tip top/north America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-whelton-v-rema-tip-topnorth-america-inc-njsuperctappdiv-2025.