Johnston v. Dunlap & Kyle Company, Inc.

CourtDistrict Court, N.D. Alabama
DecidedSeptember 5, 2025
Docket2:23-cv-00554
StatusUnknown

This text of Johnston v. Dunlap & Kyle Company, Inc. (Johnston v. Dunlap & Kyle Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnston v. Dunlap & Kyle Company, Inc., (N.D. Ala. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

MICHAEL JOHNSTON, ) ) Plaintiff, ) ) v. ) Case No. 2:23-cv-00554-NAD ) DUNLAP & KYLE COMPANY, ) INC., et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

For the reasons stated below and on the record in the oral argument motion hearing, the court GRANTS IN PART and DENIES IN PART the motion for summary judgment filed by Defendants Dunlap & Kyle Company, Inc., Gateway Tire, Inc., Richard Dunlap, and Doug Dunlap (Doc. 36). On the seven claims for relief alleged by Plaintiff Michael Johnston, the court GRANTS summary judgment on Counts 1, 2, 3, 4, 5, and 7, and DENIES summary judgment on Count 6 (quantum meruit). By separate order, the court will set this case for a status conference. INTRODUCTION This case is about Johnston’s “on again, off again” employment relationship with Defendants Dunlap & Kyle and Gateway Tire (collectively, DK) from 2018 to 2022. At all relevant times, DK was a family-run business that was owned and o perated by members of the Dunlap family, including Defendants Richard Dunlap and Doug Dunlap. And, at all relevant times, Johnston was over 40 years old. See

Doc. 1. Johnston stopped working for DK in June 2022, at the latest. After receiving an EEOC right to sue letter, Johnston filed this action, alleging the following seven

claims for relief: (1) retaliation under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621 et seq., based on allegations that he was terminated and not allowed to return to an outside sales position after complaining about age discrimination (Doc. 1 at 24–25); (2) age discrimination under the ADEA, based on allegations of disparate treatment in which he was treated differently from younger employees (Doc. 1 at 25–27); (3) hostile work environment, based on allegations that he and other older employees were “treated in a very hostile and demeaning manner on a regular basis” such that it altered the terms and conditions of his employment (Doc. 1 at 27–28); (4) violation of the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., based on allegations that he was not paid from August 13, 2021, to October 29, 2021, and from May 13, 2022, to June 30, 2022 (Doc. 1 at 28–30); (5) breach of contract, based on allegations that DK violated an implied contract to pay him $120,000 per year (Doc. 1 at 30–31); (6) quantum meruit (and/or unjust enrichment), based on allegations that he was not paid the reasonable value of his services after July 20, 2020 (Doc. 1 at 31–32); and, (7) fraudulent suppression, based on allegations that Richard Dunlap and Doug Dunlap “fraudulently suppressed the fact that he had been terminated on May 13, 2022, and taken off the payroll” (Doc. 1 at 32, labeled “Count 8” in the complaint). Doc. 1. Johnston seeks reinstatement, unpaid and lost wages, compensatory, liquidated, and punitive damages, out of pocket expenses, and loss of benefits. Doc. 1 at 33–34. On Defendants’ summary judgment motion (Doc. 36), there are genuine issues of material fact for trial on Johnston’s quantum meruit claim (Count 6), but

Defendants otherwise are entitled to judgment as a matter of law on Johnston’s remaining claims (Counts 1, 2, 3, 4, 5, and 7). BACKGROUND

A. Factual background The record evidence shows the following: Dunlap & Kyle is a tire wholesaler headquartered in Batesville, Mississippi, which shares ownership and operations with Gateway Tire, a tire warehouse in

Birmingham, Alabama. Doc. 37-3 at 5; Doc. 37-4 at 4–5; Doc. 37-5 at 3; Doc. 37- 1 at 1. Bob Dunlap—who is over 90 years old—is the CEO of DK. Bob Dunlap is

the father of Defendant Richard Dunlap and Michael Dunlap, and the grandfather of Richard’s son, Defendant Doug Dunlap, and Michael’s son, Robert Dunlap—all of whom worked at DK at relevant times. Doc. 37-4 at 4–5; Doc. 37-5 at 4–5; Doc. 3 7-11 at 4–5. At relevant times, Dennis King worked in management for DK (Doc. 37-4 at

4), and Mike Griffin worked in middle management and sales for DK (Doc. 37-13 at 4–6). With the exception of Defendant Doug Dunlap (and at all pertinent times), the relevant management of DK was over 40 years old. See, e.g., Doc. 37-1 at 2;

Doc. 37-2 at 2. 1. Johnston’s initial employment with DK (2018–2019) Johnston began working for DK as an outside salesman in 2018 after meeting with Bob Dunlap, Dennis King, and Michael Dunlap. Doc. 37-3 at 5, 16; Doc. 37-

17 at 4; see Doc. 37-7 at 13. At that meeting, Bob Dunlap offered Johnston a salary of $120,000 per year, and that was Johnston’s salary when he began working for DK. Doc. 37-3 at 16; Doc. 44-1. Johnston was in his late 40s at the time that he

first was hired at DK. Doc. 37-3 at 23. As an outside salesman, Johnston called on customers for new business and delivered tires. Doc. 37-3 at 17. When he started working for DK, Johnston signed a handbook acknowledging that he was an at-will employee without a contract. Doc.

37-7 at 18. Johnston testified in his deposition that he never signed a written contract with DK. Doc. 37-3 at 66. On or about November 7, 2019, Johnston was terminated and removed from

the payroll at DK. Doc. 37-3 at 21. Johnston was paid severance. Doc. 37-1 at 2; D oc. 37-7 at 11. Johnston testified in his deposition that he continued to work for DK and “was

assured that he would be put back on the payroll,” despite being removed from the payroll and from DK’s insurance program. Doc. 37-3 at 22, 25, 34–35. Johnston testified that DK management told him to “keep doing what you’re doing,” that

management was “aware” that Johnston was “setting up accounts and trying to help sell the company tires,” and that management told Johnston he would be put back on the payroll. Doc. 37-3 at 35–36. Johnston testified that he had no documentary or written evidence that he was told he would be put back on the DK payroll. Doc.

37-3 at 37. 2. Johnston’s second period on DK payroll (February–July 2020) On February 1, 2020, Johnston filled out a rehire application. Doc. 37-3 at 23; Doc. 37-7 at 2. Under the salary section of the application, Johnston wrote “TBT from the Dunlap family.” Doc. 37-3 at 23; Doc. 37-7 at 3. Johnston also sent an

email stating that he was fine with whatever pay Michael Dunlap decided; the email had a handwritten note stating that Johnston would receive the same pay. Doc. 44- 2. Johnston testified that when he was rehired in 2020 his salary “was discussed

verbally” and he was “led to believe it would be what he was previously hired at.” Doc. 37-3 at 23. On February 28, 2020, Johnston was placed back on the DK payroll as an o utside salesman reporting to Michael Dunlap, who had rehired him. Doc. 37-3 at 23. Johnston also received backpay, and his pay was backdated to January 1, 2020.

Doc. 44-3. On July 17, 2020, Johnston was removed from the DK payroll for a second time; this time in connection with a contract which he signed related to a warehouse,

and which resulted in litigation. Doc. 37-3 at 26, 33; Doc. 37-7 at 52. Johnston’s DK company email was deactivated at that time. Doc. 37-3 at 39. Johnston was terminated by King, with the approval of Bob Dunlap. Doc. 37-1 at 2; Doc. 37-4 at 6.

On August 1, 2020, Johnston was provided COBRA paperwork. Doc. 37-7 at 128. Other employees were told that Johnston was no longer a DK employee. Doc.

37-7 at 55. A letter from King at that time indicated that some DK employees, including Griffin, expressed happiness that Johnston had been terminated. Doc. 37- 7 at 53–54.

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