Jones v. Unican Ohio, L.L.C.

2022 Ohio 948, 187 N.E.3d 1093
Ohio Court of Appeals·Decided March 24, 2022·No. 110564·Published·Cited by 1 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

LYNN JONES, :

Plaintiff-Appellant, :

No. 110564

v. :

UNICAN OHIO, LLC, :

Defendant-Appellee. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: March 24, 2022

Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-18-894267

Appearances:

McCarthy, Lebit, Crystal & Liffman Co., L.P.A., David M.

Cuppage, Ann-Marie Ahern, and Frank T. George, for appellant.

Duane Morris LLP, Drew T. Dorner, and J. Colin Knisely, for appellee.

FRANK DANIEL CELEBREZZE, III, P.J.:

{¶ 1} Appellant Lynn Jones (“Jones”) challenges the directed verdict granted by the Cuyahoga County Court of Common Pleas on his claims for age discrimination, breach of contract, and promissory estoppel against appellee Unican

Ohio, LLC (“Unican”). After a thorough review of the law and facts, we affirm the judgment of the trial court.

I. Factual and Procedural History

{¶ 2} Jones worked in the container business since the 1970s and had developed a large network of professional contacts in the industry. One of those contacts was Paul Hoogenboom (“Hoogenboom”), a former vice president at RPM International, Inc. (“RPM”).

{¶ 3} During the early part of 2012, Hoogenboom approached Jones to ask whether Jones could find a company that would be willing to open a can manufacturing plant in America to meet RPM’s can/container needs. There were very few can/container manufacturers in the country at this time, which had resulted in can prices being inflated.

{¶ 4} Jones contacted Envases Universales (“Envases”), an international can supplier, about the prospect of entering the U.S. market. Envases expressed interest, and Jones introduced RPM to Envases. The two companies reached a tentative agreement in which Envases would open a can/container plant in the U.S., and RPM would give the new plant its can/container business.

{¶ 5} At the time of the introduction and subsequent negotiations, Jones was not employed by RPM or Envases. He assumed that if he presented a mutually beneficial opportunity to the two companies, he would be compensated for his efforts in some manner. Isaias Zapata (“Zapata”) — a shareholder of Envases and a member of its board of directors — later asked Jones to work for him. In August 2012, at the age of 70, Jones entered into a contract (hereinafter the “Employment Agreement” or the “Agreement”) with Envases, where Jones was to serve as “Vice President of Sales and Corporate Development — USA.” Envases agreed to pay Jones a base salary of $180,000 and an annual bonus of “[o]ne-half of one percent (0.5%) of the total sales volume (seventy percent (70%) based on sales and thirty percent (30%) based on [EBITDA1]).” Jones was to be employed for an initial term ending on August 1, 2017, but Envases had the “right to extend [the] Agreement for an additional term of two (2) years on terms mutually acceptable to the parties.”

{¶ 6} Under the terms of the Agreement, Envases had the right to terminate Jones “at any time, with or without cause,” and Jones could terminate the Agreement “at any time, for any reason.” The Agreement further provided that it would “be assumed by any successor to [Envases] either in connection with a sale of its business, merger, consolidation or otherwise.” In the event of Jones’s termination, Section 5(c) states that “regardless of the reason for the termination, the Company shall pay Jones seventy-five percent (75%) of the base compensation remaining on the initial five (5) year term. Otherwise, the agreement shall continue for the initial term and the renewal term, if any.”

{¶ 7} As part of his employment with Envases, Jones agreed to develop a can/container plant in the U.S. and to finalize the purchase agreement he had helped to negotiate between RPM and Envases. In February 2013, Envases formed a wholly

1 EBITDA is a shorthand for earnings before interest, taxes, depreciation, and amortization.

owned subsidiary — Unican Ohio, LLC (“Unican”) — in order to manufacture and sell its cans in the U.S. Jones maintains that he became a Unican employee and began serving as its Vice President of Sales.

{¶ 8} Jones helped find a location for Unican’s manufacturing facility and negotiated a lease for the facility. He opened several sales accounts for Unican and finalized a purchase agreement between Unican and RPM, which he executed on behalf of Unican in his capacity as Vice President of Sales.

{¶ 9} Although Jones continued to report to Zapata, he testified that Unican held him out as being the “face of Unican.” Unican paid Jones pursuant to the terms of the Agreement, and Jones was even given a raise in January 2016.

{¶ 10} On March 1, 2017, Zapata wrote to Jones, stating that he had “talked to Laura [Zapata, the CEO of Envases] yesterday and she gave me the green light to pay you a retirement bonus equivalent to 0.5% of the sales done from March 1, 2017 until your retirement regardless of EBITDA level.” Zapata further asked, “What date would you like to set for your retirement?”

{¶ 11} Jones was troubled by the suggestion of his retirement. He replied to Zapata with the following proposal:

1. I would like to work for the next two years (end of 2018).

2. I would be paid a bonus instead of our original agreement, at the rate of ½% on all sales.

If I feel I have not achieved the goals I set for myself and Unican at the end of this time I hope you would let me continue in some capacity until I either fall over or feel I no longer can contribute.

{¶ 12} Zapata replied the same day to Jones’s email, stating, “Sounds good to me [Jones], thanks for your email. Count on it.” Jones believed that this email exchange (“March 2017 Emails”) demonstrated the company’s exercise of the renewal provision in the initial five-year contract.

{¶ 13} Jones testified that he relied on Zapata’s promise of bonus compensation and continued employment. He made “various financial decisions” based on this email exchange. For example, he decided not to sell his boat or his vacation home in South Carolina.

{¶ 14} On September 11, 2017, Zapata emailed Jones to set a meeting to “talk about [his] retirement.” Jones initially assumed that Zapata wanted Jones to remain employed even longer — that he wanted to discuss pushing Jones’s retirement date beyond the end of 2018. Jones met with Zapata several weeks later. He testified as follows regarding the conversation at the meeting:

[Zapata] said [Jones], I want to talk about your retirement. He said, we’ve got to set a date here. He said, you’re looking tired. You’re looking older. He said, you got to quit. You got to stop. He said, I want to set a retirement date of October 30th, I think he said, and I said, what? He said, yeah. He said, you know, why go on? He said, you know, we’ll give you a little bit of money for your retirement, and that’ll be it. You can go and live your life. Go play golf.

I said, [Zapata], I’m not ready to retire. We have an agreement. He said, well — he said, you know, at your age, why are you going to do this? And he just wouldn’t — I ran out of reasons why, and I said, I got to think about this. I was in shock, very frankly. I didn’t see this coming.

Jones reiterated that he had no intention to retire.

{¶ 15} Regardless, the following day, Zapata announced to other Unican employees that “[Jones] is going to be retiring.” Again, Jones objected to Zapata’s comments, insisting that he was “not retiring.”

{¶ 16} Jones testified that several days later, the following exchange occurred with Zapata:

I called him a few days later in early October — 7th, 8th, something like that — and I told him, I said, [Zapata], I said, there’s too much for me to do . . . . I said, I can’t retire right now. I said, we got to complete the agreement, and so forth. He said, [Jones], why do you want to continue at your age? He said, stop. He said, I already talked to the Board.

They’ve been advised. He said, I can’t take it back. He said, the 30th is the date.

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Jones v. Unican Ohio, L.L.C., 2022 Ohio 948, 187 N.E.3d 1093 (Ohio Ct. App. 2022).

2022 Ohio 948 (Jones v. Unican Ohio, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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