Jetter v. Knothe Corp.

200 F. Supp. 2d 254, 2002 U.S. Dist. LEXIS 1553, 2002 WL 142792
CourtDistrict Court, S.D. New York
DecidedJanuary 31, 2002
Docket00 CIV. 2124(NRB)
StatusPublished
Cited by2 cases

This text of 200 F. Supp. 2d 254 (Jetter v. Knothe Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jetter v. Knothe Corp., 200 F. Supp. 2d 254, 2002 U.S. Dist. LEXIS 1553, 2002 WL 142792 (S.D.N.Y. 2002).

Opinion

OPINION AND ORDER

BUCHWALD, District Judge.

Plaintiff Harold Jetter (“Jetter” or “plaintiff’) brings this action for age discrimination agamst his former employer, the Knothe Corporation (“Knothe”), and several of its officers (collectively, “defendants”). Jetter alleges that he was terminated by Knothe in violation of the Age Discrimmation in Employment Act (ADEA), see 29 U.S.C. §§ 621 et seq., the New York State Human Rights Law, see N.Y. Exec. L. §§ 290-301, and New York City Civil Rights Law, see N.Y.C. Admin. Code, Title 8, §§ 101 et seq. Plaintiff *257 further alleges state law breach of contract and fraud claims.

Now pending is defendants’ motion for summary judgment on all claims, and plaintiffs cross-motion for summary judgment on his breach of contract claim. For the following reasons, defendants’ motion is granted with respect to plaintiffs federal claims under the ADEA. As there is no other basis for federal jurisdiction over this case, we decline to exercise jurisdiction over the remaining claims under 28 U.S.C. § 1367. Accordingly, the remainder of defendants’ motion and plaintiffs cross motion are dénied without prejudice and the case is dismissed.

BACKGROUND

The facts as agreed upon by the parties are as follows. 1 Plaintiff and his two brothers, Seymour and Bernard, co-founded sleepwear manufacturer and distributor General Nitewear Corporation (“GNC”) in 1966. Plaintiff served as its President and Chief Executive Officer for the thirty plus years that the brothers operated the company together. Knothe, a former competitor of GNC, is mainly a sleepwear distributor. In late 1996 or early 1997, Knothe owner William Nomberg (“Nomberg”) and Chief Financial Officer Richard Bern (“Bern”) discussed rumors that GNC was having financial difficulties and was up for sale. Because Knothe executive Ely Minkoff knew plaintiff, Bern asked Ely Minkoff to approach plaintiff about these rumors. According to defendants, Ely Minkoff expressed concern at that time to Bern and his son, Knothe executive Brian Minkoff, that plaintiff was quite stubborn and would have a hard time relinquishing control of GNC. In fact, GNC’s financial condition had taken a downturn and under the advice of an informal committee of creditors directed by a company called MMG, plaintiffs brothers wanted to sell the company. Despite Ely Minkoffs reservations, Knothe negotiated a financial arrangement with plaintiff and GNC whereby Knothe purchased all of GNC’s assets and created a Knothe division called General Nitewear. The Asset Purchase Agreement (“the Agreement”), which was executed on June 27, 1997, covered all of the transactions between Knothe and GNC including employment agreements between Knothe and all three Jetter brothers. 2 Because plaintiff did not wish to retire, and because his brothers knew of his desire to continue working, plaintiff asserts that his employment with Knothe as managing director of General Nitewear was essential to the Agreement. 3 At that *258 time, plaintiff was 70 years old and his brothers Bernard and Seymour were 67 and 72 respectively.

Under the Agreement, Seymour and Bernard were given three year sales positions and compensated primarily by commission. See Jetter Aff., Attach. Ex. G. Bernard became ill and passed away several months after the Agreement was executed but Seymour continues to work for Knothe as a sales representative. Unlike Knothe’s agreements with his brothers, plaintiffs agreement provided for a 5 year employment contract at a yearly salary of $156,000, during which time plaintiff was to serve as Managing Director of the General Nitewear Division of Knothe. The contract provides that plaintiff was also to “perform such duties as the President of the Corporation shall from time to time assign to Employee which are commensurate with Employee’s position.” See Jet-ter Aff., Attach. Ex. E at 1-2. Further, the contract contains a non-compete covenant, which states that upon termination 4 , “the Employee hereby agrees that until one (1) year after termination of his employment with the Corporation, he shall not, without the prior written consent of the Corporation, engage, or become interested in any capacity.. .in any business. . .which business shall be competitive with any business of the Corporation.” 5 Id. at 4.

While plaintiff and defendants do not . completely agree on the scope of the problems that arose after plaintiff commenced his employment with Knothe, it is apparent from both accounts that the relationship was tenuous. Affidavits from six Knothe employees and executives describe myriad performance problems Knothe had with plaintiff once he took his position as the manager of the General Nitewear division. Problems raised in these affidavits include the untimely submission of orders, bypassing the required credit check by placing orders directly with the factories, offering customers unauthorized prices and terms, interfering in the workings of the production department, and buying fabrics without authorization. Knothe employees also describe how plaintiff frequently criticized Knothe’s management, openly saying “they do not know what they are doing.” Bern describes one incident in particular, where he accompanied plaintiff to the Tennessee factory for the announcement of its purchase and plaintiff, “basically in front of Mr. Nomberg and his plant manager, had a ten minute dissertation about how we screwed him out of his business. I’m not talking about a nice dissertation. I’m talking angry, fed up, like literally we had done something horrible to him.” See Defs.’ Ex. 2, Bern Depo. at 205. Further, affidavits from numerous Knothe employees and executives characterize plaintiffs workplace temperament as hostile, describing how plaintiff routinely yelled at his coworkers. In short, defendants present significant evidence that plaintiff was completely disorganized, difficult to work with, and wholly unwilling to conform his practices to the internal proce *259 dures required by Knothe subsequent to the asset purchase.

When asked about these performance issues at his deposition, plaintiffs responses were rather oblique. When asked whether he had difficulties working with anyone in the office, plaintiff responded, “I don’t remember.” When asked whether he argued with anyone, plaintiff answered, “Possibly.” Asked whether he ever yelled at anybody in the office, plaintiff attributed his yelling to bad hearing but admitted that when frustrated, he might have “yelled at the problem” but not at a person.

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Cite This Page — Counsel Stack

Bluebook (online)
200 F. Supp. 2d 254, 2002 U.S. Dist. LEXIS 1553, 2002 WL 142792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jetter-v-knothe-corp-nysd-2002.