Lamson v. Crater Lake Motors, Inc.

216 P.3d 852, 346 Or. 628, 29 I.E.R. Cas. (BNA) 1140, 2009 Ore. LEXIS 74
CourtOregon Supreme Court
DecidedAugust 20, 2009
DocketCC 04-2609-L3; CA A130759; SC S055625
StatusPublished
Cited by19 cases

This text of 216 P.3d 852 (Lamson v. Crater Lake Motors, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamson v. Crater Lake Motors, Inc., 216 P.3d 852, 346 Or. 628, 29 I.E.R. Cas. (BNA) 1140, 2009 Ore. LEXIS 74 (Or. 2009).

Opinion

*630 GILLETTE, J.

In this wrongful discharge action, plaintiff seeks review of a Court of Appeals decision overturning a jury verdict in his favor. Plaintiff argues that, contrary to the Court of Appeals’ view, his discharge was tortious, because he was fired for engaging in conduct that fulfilled an important societal obligation. For the reasons set out below, we reject that argument and affirm the decision of the Court of Appeals.

When this court reviews a grant of a directed verdict, which, according to the Court of Appeals, the trial court should have entered in this case, we view the facts in the light most favorable to the party opposing that motion — in this case, plaintiff. See Boothby v. D.R. Johnson Lumber Co., 341 Or 35, 38, 137 P3d 699 (2006) (using that standard). Plaintiff worked as a sales manager for defendant, a car dealership, for some 15 years before he was fired in 2004. Plaintiff liked working for defendant; he particularly appreciated the dealership’s low pressure approach to selling cars and, in his own words, its “high degree of ethics and integrity.” Plaintiff generally was a good employee and had no negative reviews or comments in his employment file.

In September 2003, the dealership hired an outside sales firm, Real Performance Marketing (RPM), to conduct a five-day special event, the focus of which would be selling used cars. Under the contract between defendant and RPM, RPM would promote and manage the event and provide its own manager and sales force. Defendant’s employees were not required to participate in the event but, if they did participate, RPM’s manager would process their sales. The agreement between RPM and Crater Lake contained, inter alia, provisions that (1) asserted that RPM had “developed certain professional methods to successfully manage sales events”; (2) promised to put on a sale and “coordinate[ ] every aspect of the sale”; (3) promised to provide an “Event Sales and Management Team,” including a “sales closer”; (4) stated that the relationship of the “team” to Crater Lake “will be that of independent contractor”; (5) promised that RPM would furnish “up to 10 salespeople to supplement [Crater Lake’s] sales staff’; and specified (6) that “the parties agree *631 that their relationship will, at all times, be that of independent contractor and client.” Crater Lake did not retain any right to control the actions of RPM or its employees at the sales event.

When plaintiff learned about the RPM event, he was apprehensive about “somebody taking over our sales office and dictating to our sales people and * * * customers.” Plaintiff also was concerned because he had heard that RPM was prone to use questionable sales practices. Still, plaintiff told the dealership’s upper management that he would attend the event and keep an open mind.

Plaintiff attended the first three days of the event. During that time, he observed RPM staff engaging in sales tactics that in his view were unethical and/or illegal, including misrepresenting the event as a “bank sale,” marking cars with inadequate and potentially misleading pricing information, “packing” monthly payments with various insurance and service contracts without the customers’ knowledge, and tricking customers into signing forms that authorized RPM to run credit checks. 1 On the third day of the event, plaintiff complained to the dealership’s general manager, Shevlin, about the unethical conduct that he had been observing; Shevlin told him to “just go home.” The next week, at a meeting of the dealership’s managers, plaintiff again voiced his concerns about RPM’s tactics and methods, and he specifically mentioned some of the conduct that he had observed during the first three days of the sales event. Plaintiff told the other managers, including Shevlin, that “if I had to do business that way, how RPM did it, I’d get out of the car business.”

Several weeks later, Shevlin called plaintiff into his office after a regular managers’ meeting. Shevlin complained to plaintiff that he had changed, that he “didn’t say thank you anymore,” that he was being outsold by as much as $600 per vehicle by another sales manager, and that he “just wasn’t getting the job done.” He then told plaintiff that the dealership would be having another RPM sales event in March *632 2004, and that he wanted to know if plaintiff intended to quit. Plaintiff told Shevlin that he needed his job and was not going to quit, and then added, “It sounds like you don’t want me here anymore.” Shevlin then responded, “You’re right, I don’t. I don’t want the [plaintiff] that’s been here the last two years.” Shevlin then insisted that he needed to know by the following Monday if plaintiff intended to attend the RPM sale or to quit.

Plaintiff thereafter wrote and delivered a letter to the dealership’s owner, Coleman. In the letter, plaintiff attempted to explain why plaintiff had decided not to participate in the RPM sales event, in spite of Shevlin’s ultimatum. The letter first quoted portions of the dealership’s policies and procedures manual, generally to the effect that employees were expected to deal fairly and honorably with customers and to avoid unethical and illegal conduct. It then stated that plaintiff had observed “consistent misrepresentation, fraudulent action, deceit, lying, immoral conduct, unethical conduct and illegal actions” during the first RPM event and that plaintiff was discouraged that defendant would consider adopting such sales tactics. The letter ended by encouraging Coleman to “rethink this profit at any cost mentality, and reaffirm the policies that [defendant] has adhered to in the past.”

A week later, Coleman met with plaintiff and the two men talked about plaintiffs concerns about the RPM event. At the end of that meeting, Coleman handed plaintiff a letter that stated that the dealership “intend[ed] to continue its objective of treating customers with the highest ethical standards,” stated that plaintiffs participation in the upcoming RPM event was mandatory, and warned that if plaintiff failed to participate, “[we] will have no choice but to take appropriate disciplinary action, including, but not limited to, discharge.”

Plaintiff responded to Coleman in yet another letter, which he personally delivered to Coleman on February 2 — a few weeks before the scheduled RPM sale. In the letter, plaintiff stated his intention to continue to deal honestly and fairly with the dealership’s customers and concluded: “It is *633 with this conviction I am basing my decision not to participate in the upcoming RPM sale or any other RPM sale in the future.” Coleman tried to talk plaintiff out of that decision: He told plaintiff that the dealership’s contract with RPM had been amended to provide that RPM would not engage in misrepresentations 2 and that Coleman would like plaintiff to be at the sale to make sure that unethical conduct did not occur. Plaintiff could not be persuaded. He believed that, if he worked at the second sale, he would be condoning what occurred at the first sale and would “lose [his] integrity as a salesman.” In the end, Coleman told plaintiff that he would talk to Shevlin and that either he or Shevlin would get back to him.

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Bluebook (online)
216 P.3d 852, 346 Or. 628, 29 I.E.R. Cas. (BNA) 1140, 2009 Ore. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamson-v-crater-lake-motors-inc-or-2009.