Lamson v. Crater Lake Motors, Inc.

173 P.3d 1242, 216 Or. App. 366, 2007 Ore. App. LEXIS 1713
CourtCourt of Appeals of Oregon
DecidedDecember 5, 2007
Docket042609L3; A130759
StatusPublished
Cited by6 cases

This text of 173 P.3d 1242 (Lamson v. Crater Lake Motors, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon 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., 173 P.3d 1242, 216 Or. App. 366, 2007 Ore. App. LEXIS 1713 (Or. Ct. App. 2007).

Opinion

*368 EDMONDS, P. J.

Plaintiff initiated this action against defendant, his former employer, alleging that he was wrongfully discharged for complaining about and refusing to participate in a new and used car sales event conducted on defendant’s property. Plaintiffs claim was tried to a jury, and the jury returned a verdict in favor of plaintiff. Defendant appeals, arguing that the trial court should have granted its motion for a directed verdict, that the court erred in instructing the jury, and that the court erroneously allowed the jury to consider evidence of what occurred at the sales event. For the reasons stated below, we conclude that the trial court should have granted the motion for a directed verdict, and we therefore reverse the judgment.

Because the jury found in favor of plaintiff, we state the facts in the light most favorable to him. Boothby v. D.R. Johnson Lumber Co., 341 Or 35, 38, 137 P3d 699 (2006). From 1989 until his termination in 2004, plaintiff was a sales manager for defendant, a car dealership. Plaintiff was a good employee and was generally happy with his job. He particularly valued defendant’s philosophy that “customers come first.” In plaintiff’s view, defendant was unique in the car dealership industry in that respect and was known for its less aggressive sales approach. Defendant also had a reputation among its own employees for adhering to a high standard of ethics and integrity.

In September 2003, with sales lagging, defendant hired an outside sales firm, Real Performance Marketing Company (RPM), to conduct a sales promotion at defendant’s dealership. The contract provided that RPM would focus primarily on used car sales and would bring its own sales force. The promotional event was to run for five days, from November 19 to November 23, 2003 (the November 2003 sale).

Plaintiff became concerned when he heard about the upcoming sale. He was particularly apprehensive about the prospect of a third party taking over the sales office and determining prices for customers. He was also concerned because he had heard from other people that RPM was “kind *369 of high pressure, they might do some things that [he] might not agree with.” Nonetheless, plaintiff testified that he approached the November 2003 sale with an open mind.

Plaintiff was present for the first two and a half days of the sale. During that time, he personally observed or was informed of a number of activities that he considered to be unethical or unlawful or both. For instance, before the November 2003 sale, RPM created a video that was sent to potential customers. It represented that all vehicles would be reduced in price; plaintiff believed that that representation was misleading, because the only vehicles that turned out to be reduced for purposes of the sale were the vehicles in the video. Plaintiff also believed, among other things, that RPM salespersons were misrepresenting the sale as a “bank sale,” and that RPM was attempting to “pack the payments,” i.e., provide customers with an inflated monthly payment that included, without the customers’ knowledge, things such as life insurance, gap insurance, and service contracts.

On the third day of the November 2003 sale, plaintiff reported those practices by RPM that he believed to be unethical or unlawful to defendant’s general manager, Bill Shevlin. Shevlin told plaintiff that he “should just go home then[,]” and plaintiff left the sale. The following week, defendant held a meeting to discuss the results of the November 2003 sale. At that meeting, plaintiff again detailed his concerns that RPM had engaged in unethical and illegal activities. He stated that, “[i]f [he] had to do business that way, how RPM did it, [he’d] get out of the car business.”

On January 2, 2004, following a regularly scheduled sales meeting, plaintiff was summoned to Shevlin’s office. Shevlin began the meeting with plaintiff by criticizing plaintiffs recent performance and attitude. He told plaintiff that plaintiff no longer picked up trash around the dealership or said “thank you” to other employees. He also complained that plaintiff was being outsold by Tom King, another sales manager, “per retail by $600.00 a car.” Shevlin subsequently drafted a note for plaintiffs personnel file that recapped the contents of the meeting, including Shevlin’s criticism of plaintiffs sales numbers and treatment of other employees. Plaintiff, for his part, examined the sales records for 2003 *370 and found that the difference between his sales and King’s sales “was less than $100.00 per retail, per car deal.”

During that same January 2 meeting, Shevlin informed plaintiff that defendant was going to have another RPM sale in March 2004 and asked plaintiff if he was planning to quit rather than participate in the sale. Plaintiff told Shevlin that he needed the job and was not going to quit. Plaintiff then said, “Bill, it sounds like you don’t want me here anymore.” Shevlin responded, “You’re right, I don’t. I don’t want the [plaintiff] that’s been here the last two years.” Shevlin told plaintiff that his attendance at the upcoming RPM sale was mandatory and that he needed to let Shevlin know whether he was going to participate.

"When plaintiff returned to work on January 5, he delivered a letter to defendant’s owner, Jim Coleman, about the RPM sale planned for March. Plaintiff delivered the letter to Coleman rather than Shevlin because he believed that Shevlin was “trying to get [him] to quit.” The letter began,

“This letter is a response to the direct order from Bill Shevlin General Manager Crater Lake Motors Inc. on January 2nd 2004 for my mandatory participation in the upcoming R.P.M. sale the first week of March 2004. I am basing my decision not to participate in this event on the following convictions.”

The letter then recited various parts of defendant’s policies and procedures manual regarding ethics, customer satisfaction, and sales protocol. The letter concluded:

“I personally viewed 2 full days of R.P.M.’s consistent misrepresentation, fraudulent action, deceit, lying, immoral conduct, unethical conduct, and illegal actions. In my conversation with Bill on the 2nd of January, he himself described them as Carnies. It is with this assumption that all of the values, ethics, morals, and honorable dealings Crater Lake Motors and me as a representative of Crater Lake Motors has always stood for will once again be compromised.
“It is discouraging beyond words to think that after nearly 15 years I find I am now working for a Company that is adopting sales tactics that totally contradict its Policies and Procedures Manu[a]l. In my opinion it was adherence *371 to the high ethical standards contained in that Manu[a]l that has given Crater Lake Motors, Jim Coleman, and its employees the fine reputation it enjoys in Southern Oregon. I question whether you are willing to sacrifice this reputation by going forward with this ill advised direction we are now heading. I encourage you to rethink this profit at any cost mentality, and reaffirm the policies that Crater Lake Motors has adhered to in the past. Jim Coleman, his employees, and the community will be better off for that decision.”

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Cite This Page — Counsel Stack

Bluebook (online)
173 P.3d 1242, 216 Or. App. 366, 2007 Ore. App. LEXIS 1713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamson-v-crater-lake-motors-inc-orctapp-2007.