Larry Downs v. Bel Brands USA, Inc.

613 F. App'x 515
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 2, 2015
Docket14-6185
StatusUnpublished
Cited by11 cases

This text of 613 F. App'x 515 (Larry Downs v. Bel Brands USA, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larry Downs v. Bel Brands USA, Inc., 613 F. App'x 515 (6th Cir. 2015).

Opinions

ALICE M. BATCHELDER, Circuit Judge.

Plaintiff-Appellant Larry Downs appeals the district court’s granting of a Federal Rule of Civil Procedure 12(b)(6) motion to dismiss for failure to state a claim. In his complaint, he alleged that various supervisors at his employer, Defendant-Appellee Bel Brands USA, Inc. (“Bel”), authorized him to sell old pallets. Almost thirty years later, Bel investigated the pallet sales and terminated Downs. Downs sued Bel, raising claims for age discrimination and promissory estoppel. Finding that Downs has not alleged facts that state a claim upon which relief can be granted, we AFFIRM.

I.

Downs’s complaint states the relevant facts. Bel employed Downs at its Leichtfield, Kentucky facility from May 20, 1975, to May 13, 2013. During the course of Downs’s employment, Bel promoted him from a worker to an assistant warehouse supervisor to a warehouse supervisor for shipping. Sometime during the late 1980s or early 1990s, Downs realized that old and damaged pallets accumulated regularly at the Bel facility and so he volunteered to organize the removal of the pallets. [517]*517After Downs graded and sorted the pallets, a distributor collected them and issued Downs a small reimbursement check. Bel’s plant manager at the time, Jean-Pierre Plessis, authorized Downs’s keeping the reimbursement check. This practice continued over the years, and in 2010, a new plant manager, Francine Moudry, allowed it to remain in effect. Similarly, in 2012, Downs’s interim supervisor left the practice intact.

In January of 2013, Bel began offering “many older employees” the option of early retirement and buyout packages. Five months later, Bel’s supply chain supervisor began investigating the pallet procedure. Downs cooperated fully with the investigation and disclosed that he had received numerous reimbursement checks. Shortly after this conversation, Bel placed Downs on administrative leave. A few days later, Downs returned from leave and attended a meeting with the supply chain supervisor and the current plant manager. He asked that Bel contact Plessis and Moudry to confirm the pallet policy. The supply chain supervisor stated that he had contacted Plessis and Moudry but they had not confirmed Downs’s account of the policy. The plant manager then terminated Downs without offering a “full explanation as to why he was being discharged.” After the meeting, Downs called Plessis, who indicated that Bel had never contacted him and that Downs’s recollection of the pallet policy was correct.

Citing these facts, including his claim that he had “acted in reliance on a policy that was affirmed three times, one time as recently as six months prior to discharge, and was in force for over twenty years” and that based on “information or belief, other older employees have been discharged for questionable reasons,” Downs filed a suit against Bel in Kentucky state court. He raised three claims: 1) wrongful termination and discrimination on the basis of age in violation of KRS § 344.040; 2) ■ promissory estoppel for Bel’s violating its published discrimination policies; and 3) promissory estoppel for Bel’s terminating of Downs despite its long-standing pallet policy. Bel removed the case to the Western District of Kentucky on diversity grounds and filed a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). Downs filed a response to Bel’s motion to dismiss, as well as motions to supplement his response with affidavits from Karen Roof, a former employee at Bel’s facility, and his former plant manager, Jean-Pierre Ples-sis. The district court denied the motions to supplement and granted Bel’s motion to dismiss. Downs timely appealed.

II.

As an initial matter, Downs contends on appeal that the district court erred by not considering his two affidavits. In its opinion, the district court noted that it had discretion to convert a Rule 12(b)(6) motion to a Rule 56 motion for summary judgment when matters outside of the pleadings are presented, but declined to do so. “The decision to convert the motion and consider matters outside the pleading is within the discretion of the trial court.” Riestenberg v. Broadview Fed. Sav. & Loan Co., 843 F.2d 1392, 1988 WL 28803, at *1 (6th Cir.1988) (table). “Even when materials outside the pleadings are filed with the trial court, an appellate court will treat the motion as one to dismiss for failure to state a claim when the order of the trial court indicates the motion was so treated.” Id. “Therefore, before the district court and likewise on appeal to this court, matters outside the pleading are not properly considered and all well-pleaded facts must be accepted as true.” Id.

[518]*518The district court’s decision to treat Downs’s motion as a motion to dismiss was within that court’s discretion. For this reason, we will not consider the two affidavits, but rely on the facts pled in Downs’s complaint.

III.

On the merits, the district court granted Bel’s motion to dismiss all three claims. We review de novo the district court’s order granting a Federal Rule of Civil Procedure 12(b)(6) motion to dismiss. D’Ambrosio v. Marino, 747 F.3d 378, 383 (6th Cir.2014). To survive a motion to dismiss under Rule 12(b)(6), a complaint “must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (internal quotation marks omitted).1 A claim is plausible on its face “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. “[A] plaintiffs obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal quotation marks, brackets, and citations omitted). In reviewing the order, we accept as true the plaintiffs factual allegations, but we need not accept as true the plaintiffs legal conclusions. See Gean v. Hattaway, 330 F.3d 758, 765 (6th Cir.2003).

Because this case is before us on diversity jurisdiction, we “must apply state law in accordance with the then controlling decision of the highest state court.” Grantham & Mann, Inc. v. Am. Safety Prods., Inc., 831 F.2d 596, 608 (6th Cir.1987) (internal quotation marks omitted).

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