Kneeland v. Luzenac America, Inc.

1998 MT 136, 961 P.2d 725, 289 Mont. 201, 55 State Rptr. 541, 1998 Mont. LEXIS 118
CourtMontana Supreme Court
DecidedJune 2, 1998
Docket97-149
StatusPublished
Cited by27 cases

This text of 1998 MT 136 (Kneeland v. Luzenac America, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kneeland v. Luzenac America, Inc., 1998 MT 136, 961 P.2d 725, 289 Mont. 201, 55 State Rptr. 541, 1998 Mont. LEXIS 118 (Mo. 1998).

Opinion

JUSTICE REGNIER

delivered the opinion of the Court.

¶1 The plaintiff, Bruce G. Kneeland, brought this action alleging that he was wrongfully discharged by defendant Luzenac America, Inc. Kneeland appeals the decision of the Fifth Judicial District Court, Madison County, granting defendant’s motion for summary judgment on his breach of implied covenant claim. Kneeland also appeals the jury verdict finding that he was not wrongfully discharged by Luzenac. We affirm.

¶2 We restate the issues as follows:

¶3 1. Did the District Court err in granting summary judgment to Luzenac on Kneeland’s claim of post-termination bad faith?

¶4 2. Did the District Court properly instruct the jury?

¶5 3. Was there substantial evidence to support the jury verdict?

¶6 4. Did the District Court err in denying Kneeland’s motions for judgment as a matter of law, and motion for a new trial?

*204 FACTUAL AND PROCEDURAL BACKGROUND

¶7 In 1981, Bruce G. Kneeland was hired by Cyprus Industrial Minerals to work for the company’s Yellowstone Mine Operation. Later, Cyprus was renamed Luzenac America, Inc. Luzenac is a talc company with principal mine facilities in Montana and headquarters in Denver, Colorado. Luzenac’s Montana Mines Division has three mine sites in Montana that operate separately. The largest site is the Yellowstone Mine near Ennis. The company also operates the Beaverhead Mine, a small underground mine in the Ruby Mountains, and the Antler Mine, a surface mine located south of Silver Star.

¶8 In the early 1990s, the talc market was in a downturn. Talc, a commodity, is an industrial mineral. Talc companies face competition from other industrial mineral producers, such as clay and calcium carbonate companies. Also, in recent years, there has been a large influx of talc into the market from cheaper, foreign producers. As a result, the United States talc market accumulated a large supply of inventory.

¶9 Faced with these conditions, Luzenac’s Montana Mines Division reconfigured its workforce in late 1993 and mid-1994 to reduce its personnel by fifty-eight hourly positions. At first, Luzenac offered voluntary retirement and voluntary incentive packages to trim its workforce. However, these incentives did not result in a total reduction of fifty-eight hourly positions. Subsequently, the company reviewed its personnel needs and determined which job positions would be reduced in number and which positions would be eliminated completely or reconfigured.

¶10 The Montana Mines Division had a handbook applicable to all its hourly employees published by Cyprus, prior to the company’s name change in 1992. The handbook was amended from time to time. As of 1994, the handbook contained a policy dealing with downsizing. The handbook specifically outlined a process by which employees may “bid” for open positions, or “bump” into occupied positions in the event of a reduction in force. A bump from an employee would displace another employee currently occupying that position.

¶ 11 The employees of the Montana Mines Division were aware that it was over staffed and required downsizing. The employees approached Mike Toelle, the general manager, with their concerns. To achieve an equitable result acceptable to all personnel, Toelle formed a committee of hourly employees from all three mine sites. The purpose ofthe committee was to develop a consensus onhowthe downsizing should occur and revise the policy on reducing the workforce.

*205 ¶12 Under the policy the committee developed, Yellowstone Mine employees, like Kneeland, could bid for any open position available at their mine. These employees could also bump into any position at the Yellowstone Mine or into a designated “entry-level” position at the Beaverhead mine, if they had the necessary qualifications for the position and more seniority than the individual occupying the position.

¶ 13 Job descriptions were posted detailing the open positions available for bid, and the entry level positions vulnerable to bumping. Employees were requested to fill out bid and bump sheets identifying the position they were seeking. The person with the most seniority and necessary qualifications for the position would be chosen. A committee evaluated each application and an applicant was required to gain the consensus of the members of the committee before being selected for a position.

¶14 At first, Kneeland attempted to bid into the positions of plant maintenance and mobile maintenance at the Yellowstone Mine. However, those positions were filled by applicants with more seniority than Kneeland. He then attempted to bump into the position of underground mechanic at the Beaverhead Mine. That position was not vulnerable to bumping and his application was rejected. He also attempted to bump into the position of underground mine support at the Beaverhead Mine, but was unsuccessful because he lacked the published minimum qualifications for that position. Kneeland made no other attempt to bid upon or bump into any other position for which he was eligible. Therefore, after the application process was over, Kneeland was laid off in a reduction in force from Luzenac in mid-1994.

¶15 In July 1994, after the workforce reduction, Luzenac acquired Montana Talc Company, a competitor with a mine site adjacent to the Yellowstone Mine facility. Due to the acquisition, Luzenac hired five individuals whom they had recently terminated. Kneeland was not one of those hired back to work for Luzenac.

¶ 16 On September 27,1994, Kneeland filed a complaint in the Fifth Judicial District Court, Madison County, alleging wrongful discharge and related tort claims, including conspiracy. He also alleged a claim based on “post-termination bad faith,” arising out of Luzenac’s failure to reinstate, recall, or rehire him after acquiring the Montana Talc Company. On November 1,1994, Luzenac filed its answer to the complaint, denying the allegations and setting forth numerous affirmative defenses.

¶17 On December 1,1995, Luzenac filed motions, moving for summary judgment against all of Kneeland’s claims. Kneeland filed a motion to recover sanctions, alleging that Luzenac violated Rule 11 by *206 moving for summary judgment on all claims. A hearing was held and the parties stipulated that the claim based on civil conspiracy should be dismissed.

¶ 18 On February 6,1996, the court granted summary judgment to Luzenac on Kneeland’s claims of intentional infliction of emotional distress and post-termination bad faith. The court denied summary judgment on Kneeland’s wrongful discharge claim, finding that “a factual issue exists as to whether there has been a violation of express provisions of a written personnel policy in reduction of force.” The court also denied Kneeland’s request for the imposition of attorney fees and sanctions against Luzenac.

¶19 On February 13,1996, Kneeland filed a petition for reconsideration of the court’s ruling on summary judgment relating to Kneeland’s claim for post-termination bad faith. In the alternative, Kneeland requested that the court certify the claim as final pursuant to Rule 54(b), M.R.Civ.R, in order for this Court to review the issue.

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Cite This Page — Counsel Stack

Bluebook (online)
1998 MT 136, 961 P.2d 725, 289 Mont. 201, 55 State Rptr. 541, 1998 Mont. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kneeland-v-luzenac-america-inc-mont-1998.