Kraemer v. Edward Kraemer & Sons, Inc.

783 F. Supp. 1040, 7 I.E.R. Cas. (BNA) 1788, 1991 U.S. Dist. LEXIS 19436, 58 Fair Empl. Prac. Cas. (BNA) 281, 1991 WL 315485
CourtDistrict Court, N.D. Ohio
DecidedMay 8, 1991
DocketCiv. No. 3:90CV7360
StatusPublished

This text of 783 F. Supp. 1040 (Kraemer v. Edward Kraemer & Sons, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kraemer v. Edward Kraemer & Sons, Inc., 783 F. Supp. 1040, 7 I.E.R. Cas. (BNA) 1788, 1991 U.S. Dist. LEXIS 19436, 58 Fair Empl. Prac. Cas. (BNA) 281, 1991 WL 315485 (N.D. Ohio 1991).

Opinion

OPINION AND ORDER

JOHN W. POTTER, District Judge:

This cause is before the Court on defendants’ motion for summary judgment, plaintiff’s opposition, and defendants’ reply. In the alternative to opposing defendants’ motion, plaintiff moves this Court under Fed.R.Civ.P. 56(f) to postpone ruling on defendants’ motion and grant plaintiff additional time to engage in discovery so that he can develop sufficient facts to oppose defendants’ motion. Previously, in reference to the instant motion, the Court said:

The Court mentioned above the other motions pending in this case. Also mentioned was the fact that a trial in this cause is set to commence on April 22, 1991. The Court will meet with counsel and the parties at the final pretrial conference on Monday, April 15, 1991. At this time, the Court will rule on the other pending motions. Counsel should attend the final pretrial prepared to discuss the pending motions.

Memorandum and Order April 9, 1991. Based on the briefs now before the Court and a review of the docket sheet, the Court finds defendants’ motion well taken and plaintiff’s alternative request not well taken.

The Court outlined the pertinent facts in its previous order. This case presents a feud between two brothers for control of the family business. Defendant Edward S. Kraemer & Sons, Inc. (EKS) is a construction company that was founded by plaintiff’s grandfather. Plaintiff was an employee of EKS from 1969 until 1989. Plaintiff was once Vice President and General Manager of EKS’ Clay Center Division, White Rock Quarry. In addition, up until 1986, plaintiff owned shares of class B nonvoting stock in EKS. Due to a deadlock in the management of EKS, defendant David R. Kraemer and his father Rudolph Kraemer formed a corporation named Eames, Ltd. (Eames) for the purposes of buying all the voting stock in EKS. After purchasing all of the voting stock in EKS, Eames turned its attention to purchasing all of the nonvoting stock of EKS. In January, 1986, plaintiff sold all of his class B non-voting stock in EKS to Eames for the sum of $850,000.00. A document was signed to memorialize this transfer of stock. In Article III of this document, the parties bargained for the following provision.

3.1 As part of the consideration and inducement to Shareholder [plaintiff] to enter into this agreement, Buyer [Eames] agrees that it shall cause the Corporation [EKS] to continue the employment of Edward Kraemer [plaintiff] for not less than twelve (12) months after closing at his present compensation and benefits (including club dues [to the Toledo Club]), subject to general increases made by the Corporation, from time to time, for the benefit of its supervisory employees consistent with past practice. This provision shall not prevent the Corporation from terminating the employment of any employee who is guilty of wilfull [sic] and wanton misconduct or gross negligence detrimental to the interests of the business of the Corporation. The Corporation shall continue compensation and benefits for Edward Kraemer at the level existing at employment termination, for 18 months after termination of employment. On termination of employment, Shareholder shall be entitled to purchase from the Corporation the automobile then furnished to him for his use; the purchase price shall be the value then shown for such automobile on the books of the Corporation.

Complaint Exhibit A at 3. Plaintiff was represented by Attorney Willis Jones at the time he signed this document. On October 30, 1989, plaintiff was removed from his position as General Manager. Plaintiff claims that he was terminated from employment with EKS effective January 4, [1042]*10421990. Based on the above, plaintiff filed his complaint on July 19, 1990 setting forth three causes of action.

In his first cause of action, plaintiff claims that “[defendant [EKS] terminated Plaintiff because of his age and in violation of the Age Discrimination in Employment Act [ADEA], 29 USC § 623(A)(1).” In his second cause of action, plaintiff claims that the language quoted above in Article III of the stock purchase agreement guaranteed him continued employment subject to termination for wilful and wanton misconduct or gross negligence. Plaintiff claims that defendant EKS breached its contract with plaintiff by terminating him in violation of the terms of the stock purchase agreement. In his third cause of action, plaintiff claims that defendant David R. Kraemer, as a guarantor under the stock purchase agreement, is personally liable for defendant EKS’ actions in terminating plaintiff.

The Court finds it most proper to first rule on plaintiffs request under Fed. R.Civ.P. 56(f) for additional time to pursue discovery. In its entirety, the Rule provides:

(f) When Affidavits are Unavailable. Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present by affidavit facts essential to justify the party’s opposition, the court may refuse the application for judgment or may order a continuance to permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other order as is just.

Fed.R.Civ.P. 56(f). Plaintiff introduces the affidavit of David M. Schnorf, one of the counsel of record for plaintiff, to support his Rule 56(f) request. Mr. Schnorf claims that he has “good reason to believe that additional discovery may have to be taken by [plaintiff] in order to fully and completely respond to the Motion for Summary Judgment of [defendants].” Affidavit of David M. Schnorf at 114. Mr. Schnorf ends his affidavit with a list of individuals he would like to depose before being required to “fully and completely” respond to defendants' motion. See Id. at II8.

In the Sixth Circuit, the definitive statement on the propriety of granting or denying a Rule 56(f) motion comes from the case of Emmons v. McLaughlin, 874 F.2d 351 (6th Cir.1989). That case involved an appeal from a judgment of this Court’s former Judge Richard B. McQuade. In Emmons, Judge McQuade granted summary judgment in favor of defendants and denied plaintiff’s request under Rule 56(f). The United States Court of Appeals for the Sixth Circuit held that Judge McQuade had not abused his discretion in denying plaintiff’s request. Id. at 356-57. After holding that the scope of discovery is within the sound discretion of the trial court, the Em-mons court said:

Rule 56(f) is not a shield that can be raised to block a motion for summary judgment without even the slightest showing by the opposing party that his opposition is meritorious. A party invoking its protections must do so in good faith by affirmatively demonstrating why he cannot respond to a movant’s affidavits as otherwise required by Rule 56(e) and how postponement of a ruling on the motion will enable him, by discovery or other means, to rebut the mov-ant’s showing of the absence of a genuine issue of fact. Where ... a party fails to carry his burden under Rule 56(f), postponement of a ruling on a motion for summary judgment is unjustified.

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Bluebook (online)
783 F. Supp. 1040, 7 I.E.R. Cas. (BNA) 1788, 1991 U.S. Dist. LEXIS 19436, 58 Fair Empl. Prac. Cas. (BNA) 281, 1991 WL 315485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraemer-v-edward-kraemer-sons-inc-ohnd-1991.