Kluss v. Alcan Aluminum Corp.

666 N.E.2d 603, 106 Ohio App. 3d 528
CourtOhio Court of Appeals
DecidedSeptember 25, 1995
DocketNos. 66255, 68459.
StatusPublished
Cited by19 cases

This text of 666 N.E.2d 603 (Kluss v. Alcan Aluminum Corp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kluss v. Alcan Aluminum Corp., 666 N.E.2d 603, 106 Ohio App. 3d 528 (Ohio Ct. App. 1995).

Opinion

James M. Porter, Judge.

Defendant-appellant Alcan Aluminum Corporation appeals from a jury verdict of $400,000 in favor of plaintiff-appellee Geoffrey H. Kluss arising out of defamation when he was terminated from his employment at Alcan (case No. 68459). Defendant claims that the trial court erred in not granting it summary judgment, a directed verdict or a new trial. The defendant also claims that the verdict was excessive, the result of passion and prejudice, and influenced by plaintiffs improper final argument relying on evidence of damages for economic loss on the withdrawn wrongful discharge claim. In the absence of a new trial, defendant claims remittitur is appropriate. Plaintiff Kluss appeals the trial court’s denial of his claim for prejudgment interest (case No. 66255). Plaintiff asserts error in the court’s failure to hold a prejudgment interest hearing and defendant’s failure to make a good faith offer of settlement. We find no reversible error in case No. 68459 and affirm for the reasons hereinafter stated. We reverse and remand in case No. 66255 for an oral hearing on prejudgment interest.

*532 Plaintiff is thirty-seven years old, married, without children. He joined Alcan in 1985 when his previous employer was purchased by Alcan. At the time of the purchase, plaintiff was the traffic coordinator of a Kentucky smelting plant. He retained the same job title and responsibilities under Alcan. In 1986 he was promoted to the position of Supervisor of Traffic and Warehousing at Alcan’s Cleveland headquarters. He had overall responsibility for all the transportation and warehousing of aluminum ingots and other products of Alcan in the United States and abroad.

Plaintiff was recognized as a very good Alcan employee and received good evaluations, awards and bonuses for his initiatives in cost saving and management. His base annual salary rose to about $51,000 in 1990, with a yearly expense account of about $80,000.

Plaintiff participated in Alcan’s college tuition reimbursement program for those promising employees who attended college and earned degrees. Plaintiff was encouraged by his then superiors to pursue a two-year M.B.A. program, which he entered at Baldwin Wallace College in the fall of 1989. When he enrolled, his superior had business cards printed listing plaintiff as Manager of Transportation and Warehousing and told plaintiff it was a “cinch” that his job would be upgraded to manager from supervisor. He received his M.B.A. in 1991 after discharge.

Plaintiff testified that he felt he had secure, future employment with Alcan and he planned to remain permanently with Alcan until retirement. Plaintiff was able to continue working full-time for Alcan while pursuing his M.B.A. on weekends during the two-year program. He received tuition reimbursement under the plan, except for $4,500 that was not reimbursed after his discharge and was at issue in the lawsuit.

Plaintiffs discharge arose out of a claim of conflict of interest involving a trucking company which serviced Alcan. Plaintiffs friend, Charles Redmon, owned a trucking agency known as Distribution Concepts in Owensboro, Kentucky. The company was one of more than forty companies that received truck hauling assignments through plaintiffs work for Alcan. Redmon informed plaintiff of his desire to establish a foreign trade zone in western Kentucky and consulted with plaintiff in formulating the program since plaintiff was working on his M.B.A.

Plaintiff testified that Distribution Concepts had no assets so he acted as an unpaid consultant as part of his M.B.A. work, that plaintiff gave no trucking assignments to Redmon after March 1989 to avoid potential conflicts of interest, and that plaintiffs immediate supervisor at Alcan and the Vice President of Sales knew that plaintiff was an unpaid consultant for Distribution Concepts in establishing the Kentucky trade zone and had no objection to the arrangement.

*533 However, after plaintiff enrolled at Baldwin Wallace in 1989, his previous superiors left Alcan’s employment and were replaced by new managers. Plaintiff claimed that the new managers were not familiar with plaintiffs past work or with his consulting arrangement with Distribution Concepts. Nor were they aware that the prior managers had encouraged plaintiff, recommended that he pursue the M.B.A. program at Baldwin Wallace and told him that it would enhance his opportunities for promotion by completing his course work.

On Sunday, March 10, 1991, plaintiffs new supervisor turned on plaintiffs computer and discovered letters and other information relating to Distribution Concepts. He became suspicious and reported his findings to the new Vice President of Sales, who ordered an immediate investigation by Alcan’s senior legal counsel and personnel manager. The investigators concluded that plaintiff had become an employee of Distribution Concepts, since they found in his company computer a letter addressed to the Mayor of Owensboro, Kentucky, relating to' the free trade zone and listing plaintiff as Executive Vice President of Distribution Concepts. They also found the Articles of Incorporation for Distribution Concepts listing plaintiff as Vice President of Finance. They also found that plaintiff had charged numerous long distance phone calls and Federal Express communications involving Distribution Concepts to his Alcan expense account.

The Alcan officials confronted plaintiff with this information on April 3, 1991 in a conference room at Alcan’s Cleveland headquarters. Plaintiff told them that he knew Charles Redmon and that Distribution Concepts was Redmon’s company; that he was not an employee of Redmon or Distribution Concepts; that he was unaware and did not authorize his name to be placed on Distribution Concepts’ Articles of Incorporation as its Vice President of Finance; that the letter found on his company computer addressed to the Mayor of Owensboro, Kentucky was never mailed to anyone; that he had not taken any money from Redmon; and that he had not given any of Alcan’s trucking business to Redmon in exchange for money. The chief legal officer accused him of taking money under the table (“kickbacks”), and he was terminated. Plaintiff argued that his new superiors wanted to get rid of him because he had not gone through channels in sending critical suggestions to Alcan’s Montreal office and that the conflict of interest claim was a subterfuge.

The following day, April 4, 1991, the new manager prepared a memorandum under his signature addressed “To all Alcan Ingot and Alcan Recycling Employees,” stating:

“This is to advise that Geoffrey Kluss is no longer employed by Alcan as of April 3, 1991.
*534 “It had come to our attention that he was employed by another company and that this company was on the list of transportation companies to use.
“All matters concerning warehousing and onward transportation should be referred to me until further notice.”

The memorandum was disseminated to everyone on the seventh floor of Alcan headquarters, which included various computer people working for an independent contractor at Alcan. It was faxed to Alcan’s offices in Los Angeles, Dallas and Atlanta. A copy was also posted on the company bulletin board.

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Bluebook (online)
666 N.E.2d 603, 106 Ohio App. 3d 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kluss-v-alcan-aluminum-corp-ohioctapp-1995.