Kurtzman v. Applied Analytical Industries, Inc.

480 S.E.2d 425, 125 N.C. App. 261, 12 I.E.R. Cas. (BNA) 899, 1997 N.C. App. LEXIS 87
CourtCourt of Appeals of North Carolina
DecidedFebruary 4, 1997
DocketNo. COA96-50
StatusPublished

This text of 480 S.E.2d 425 (Kurtzman v. Applied Analytical Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kurtzman v. Applied Analytical Industries, Inc., 480 S.E.2d 425, 125 N.C. App. 261, 12 I.E.R. Cas. (BNA) 899, 1997 N.C. App. LEXIS 87 (N.C. Ct. App. 1997).

Opinion

McGEE, Judge.

This is an employment contract dispute in which plaintiff, Lewis Kurtzman, brought several claims against defendant, Applied Analytical Industries, Inc. (AAI) including his claim for breach of employment contract. AAI is a company based in Wilmington, North Carolina that provides scientific services to assist clients in securing FDA approval of pharmaceutical products. Although there was conflicting testimony at trial, there was evidence of the following employment arrangement between plaintiff and defendant. In late 1991, AAI contacted plaintiff about leaving his position as national sales manager of E.M. Separations Technology, a Rhode Island company. After some initial reluctance and extensive negotiations which included job security assurances from AAI, plaintiff accepted a position as director of sales for AAI with a minimum yearly salary of $125,000.

Plaintiff found temporary housing in Wilmington and began his employment with AAI on 30 March 1992. A few months later, he and his wife sold their home in Massachusetts and made a permanent move to Wilmington. Eight days after beginning his employment with AAI, plaintiff was asked to complete an employment application which included language that employees could be terminated for any reason deemed sufficient by AAI. Plaintiff signed the application, but considered it a simple formality since he had (1) already engaged in extensive negotiations which included assurances as to job security; (2) already accepted a position with AAI; (3) resigned from his employment with E.M. Separations Technology; and (4) relocated from Massachusetts to Wilmington.

On 2 November 1992, AAI terminated plaintiff. Despite extensive efforts, plaintiff was unable to secure different employment, so he started a consulting business which paid substantially less than the salary he received while working at AAI. On 2 February 1993, plaintiff filed suit against AAI alleging breach of employment contract, tor-tious interference with contractual relations, intentional infliction of emotional distress and by amendment, negligent misrepresentation. All claims except the breach of contract action were dismissed either voluntarily or by summary judgment. The remaining claim for breach of contract proceeded to a jury trial. On 1 June 1995, the jury returned a verdict in plaintiffs favor and awarded him $350,000.00 in damages.

The trial court entered judgment on the jury verdict on 26 June 1995 and subsequently amended judgment on 3 August 1995 to [264]*264include an award of post-judgment interest. AAI moved the trial court to set aside the verdict or, in the alternative, for a new trial. These motions were denied. Both plaintiff and AAI have appealed to this Court. AAI contends the trial court erred (1) in denying its motion for directed verdict and (2) in allowing the $350,000.00 award to stand because it is too speculative. Plaintiff has appealed the trial court’s denial of prejudgment interest from the date of the breach of contract.

I. Denial of the Directed, Verdict

The question this Court must consider with a motion for directed verdict is whether the evidence was sufficient to entitle plaintiff to have a jury pass on the matter. Smith v. Price, 74 N.C. App. 413, 418, 328 S.E.2d 811, 815 (1985), aff’d in part and rev’d in part on other grounds, 315 N.C. 523, 340 S.E.2d 408 (1986). The evidence is to be reviewed in a light most favorable to the non-moving party and the non-movant is entitled to every inference which may legitimately be drawn from the evidence. Id. All conflicts are resolved in favor of the non-movant. Id.

In arguing the trial court erred in denying its motion for directed verdict, AAI contends North Carolina is an employment-at-will state with relatively few exceptions. AAI argues plaintiffs heavy reliance on Sides v. Duke University, 74 N.C. App. 331, 328 S.E.2d 818, disc. review denied, 314 N.C. 331, 333 S.E.2d 490 (1985) as allowing an exception to employment-at-will in cases where the employee gives special consideration such as removing his residence from one place to another in order to accept employment is misguided and that under these facts, Sides is inapplicable. AAI contends this Court’s holding in Sides is narrow and creates an exception to employment-at-will for public policy reasons in cases where the employee is asked to engage in unlawful behavior. Furthermore, AAI argues any reference in Sides to “removal of residence” is dicta and not part of the Court’s holding. AAI urges “the ‘removal of residence’ concept would be an unsound basis on which to base an exception to the principle of employment-at-will [and] further, such an exception would be contrary to precedent.” We disagree.

North Carolina is an employment-at-will state. An employee who is not offered employment for a definite term is considered “an employee at will and may be discharged without reason.” Coman v. Thomas Manufacturing Co., 325 N.C. 172, 175, 381 S.E.2d 445, 446 (1989). This rule is subject to several exceptions including an “addi[265]*265tional consideration” exception. Mortensen v. Magneti Marelli U.S.A., 122 N.C. App. 486, 488, 470 S.E.2d 354, 356, disc. review denied, 344 N.U 438, 476 S.E.2d 120 (1996). In Mortensen we said:

The providing of additional consideration by the employee does not convert every employment-at-will agreement into an enforceable contract. If, however, the employment agreement expressly or impliedly provides that the employment will be permanent, for life or terminable only for cause and the employee gives an independent valuable consideration other than his services for the position, see Sides v. Duke University, 74 N.C. App. 331, 345, 328 S.E.2d 818, 828, disc. rev. denied, 314 N.C. 331, 335 S.E.2d 13 (1985); Salt v. Applied Analytical, Inc., 104 N.C. App. 652, 658-59, 412 S.E.2d 97, 101 (1991), cert. denied, 331 N.C. 119, 415 S.E.2d 200 (1992); Tuttle v. Lumber Co., 263 N.C. 216, 219, 139 S.E.2d 249, 251 (1964); John D. Calamari & Joseph M. Perillo, The Law of Contracts § 2-9 at 60-63 (3d ed. 1987); see also 30 C.J.S. Employer-Employee § 43, at 83 (1992), the employment can be terminated only for cause until the passage of a reasonable time. See 3A Arthur L. Corbin, Corbin on Contracts § 684 (1960 & Supp. 1994); Tuttle, 263 N.C. at 219, 139 S.E.2d at 251; 30 C.J.S. Employer-Employee § 43, at 83 (1992). After the passage of a reasonable time the employment relationship can be terminated without cause.

Id.

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Related

Mortensen v. Magneti Marelli U.S.A., Inc.
470 S.E.2d 354 (Court of Appeals of North Carolina, 1996)
Steelcase, Inc. v. Lilly Co., Inc.
379 S.E.2d 40 (Court of Appeals of North Carolina, 1989)
Smith v. Price
328 S.E.2d 811 (Court of Appeals of North Carolina, 1985)
Sides v. Duke University
328 S.E.2d 818 (Court of Appeals of North Carolina, 1985)
Smith v. Price
340 S.E.2d 408 (Supreme Court of North Carolina, 1986)
Sides v. Duke University
335 S.E.2d 13 (Supreme Court of North Carolina, 1985)
Sides v. Duke University
333 S.E.2d 490 (Supreme Court of North Carolina, 1985)
Thomas v. Catawba College
104 S.E.2d 175 (Supreme Court of North Carolina, 1958)
Coman v. Thomas Manufacturing Co.
381 S.E.2d 445 (Supreme Court of North Carolina, 1989)
Burkhimer v. Gealy
250 S.E.2d 678 (Court of Appeals of North Carolina, 1979)
Salt v. Applied Analytical, Inc.
412 S.E.2d 97 (Court of Appeals of North Carolina, 1991)
Tuttle v. Kernersville Lumber Co.
139 S.E.2d 249 (Supreme Court of North Carolina, 1964)
Mortensen v. Magneti Marelli U.S.A.
476 S.E.2d 120 (Supreme Court of North Carolina, 1996)
Metromont Materials Corp. v. R.B.R. & S.T.
463 S.E.2d 305 (Court of Appeals of North Carolina, 1995)

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Bluebook (online)
480 S.E.2d 425, 125 N.C. App. 261, 12 I.E.R. Cas. (BNA) 899, 1997 N.C. App. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kurtzman-v-applied-analytical-industries-inc-ncctapp-1997.