Loeffler v. Kjellgren

884 S.W.2d 463, 1994 Tenn. App. LEXIS 270, 73 Fair Empl. Prac. Cas. (BNA) 1325
CourtCourt of Appeals of Tennessee
DecidedMay 18, 1994
StatusPublished
Cited by64 cases

This text of 884 S.W.2d 463 (Loeffler v. Kjellgren) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loeffler v. Kjellgren, 884 S.W.2d 463, 1994 Tenn. App. LEXIS 270, 73 Fair Empl. Prac. Cas. (BNA) 1325 (Tenn. Ct. App. 1994).

Opinion

OPINION

LEWIS, Judge.

This is an appeal by plaintiff from the trial court’s judgment dismissing plaintiffs claim for breach of contract, order granting the defendants a new trial, judgment entered in favor of defendants and dismissing plaintiffs age discrimination cause of action, and order denying plaintiffs motion for a new trial. Plaintiff filed his complaint against defendants Fred M. Kjellgren and Fleetline Products, Inc., alleging breach of a written contract of employment and violation of Tennessee’s statute prohibiting discrimination on account of age, the Tennessee Human Rights Act. TenmCode Ann. § 4-21-101, et. seq.

The pertinent facts are as follows. In early 1988 plaintiff held the position of president of Aeropro, a Richmond, Indiana company that manufactured and sold plastic sheets. Defendant Fleetline Products, Inc. (Fleetline) was a customer of Aeropro. Through this business relationship, plaintiff and defendant Kjellgren, president and owner of Fleetline, began discussing the possibility of Fleetline manufacturing its own plastic sheets, with the assistance of plaintiff. Defendant Kjellgren and plaintiff first attempted to purchase Aeropro; however, the owners of Aeropro refused to sell the company to them. Plaintiff also proposed they form a new company. Under plaintiffs proposal, he' would be forty percent (40%) owner, the necessary capital would be raised based upon defendant Kjellgren’s credit, and plaintiffs forty percent (40%) interest in the company would be purchased by payment of $25,000 per year for four years, beginning at some point after the first three years. However, defendant Kjellgren did not elect to pursue the proposal. Thereafter, the parties began negotiating the employment of plaintiff by defendant Fleetline.

In August 1988, defendant Kjellgren flew to the Dayton, Ohio airport to meet with plaintiff and to discuss the terms of plaintiffs proposed employment. Subsequent to this meeting, defendant Kjellgren sent plaintiff a letter dated 15 August 1988, which stated in pertinent part as follows:

This letter will confirm my interest in employing your services to establish and run a plastic company (splash guards).
As you requested, I have outlined your expectations for compensation:
1) First year salary $45,000.00
2) Second year salary $50,000.00
3) Participation in group insurance plan provided by Fleetline.
4) Reimbursement for relocation to Tennessee.
5) After working for four (4) years, you will be provided a $25,000.00 per year for four (4) years for consulting fees.
Thanking you, in advance, and hoping to hear from you in the very near future, I remain,
Yours very truly,
Fred M. Kjellgren
President

Plaintiff testified the above letter constituted an employment contract. He further testified the $100,000.00 for consulting services, which was to be paid over four years, was his pay-out for his contribution to the company! Furthermore, in November 1989, plaintiff prepared an Employment Agreement retroactively dated 12 September 1988, the day he began working at Fleetline, which he submitted to defendant Kjellgren. Plaintiff testified he prepared the Employment Agreement because “we still had not really provided for a pay-out of my $100,000.00 benefit and I wanted to make sure that it would be paid to my heirs or to my estate.” Defendant Kjellgren, however, refused to sign the agreement. In fact, defendant Kjellgren testified that when plaintiff presented the Employment Agreement to him, he responded by telling plaintiff that “he was crazy; he *467 didn’t have a contract.” Plaintiff testified that defendant Kjellgren responded by telling him that the Employment Agreement was not necessary and that he would “stick with the [15 August 1988] letter.”

Defendant Kjellgren called plaintiff into his office at the close of business on Friday, 8 March 1991, and informed him that he was being “laid off.” Plaintiff testified that defendant Kjellgren explained that business was bad and that the business could not afford to keep him. Plaintiff further testified that while he was working for Fleetline, his job functions became increasingly focused on sales in the plastics department. However, his job was not exclusively focused on sales. Plaintiff was employed as the manager of the plastics department. Among other things, his job duties included: managing employees in the plasties department; maintaining quality control; ordering raw materials; maintaining efficiency in the plastics department; improving procedures in the plastics department; maintaining the equipment; and scheduling the operation of the machinery. Plaintiff was age sixty-six at the time of his termination.

Stephen O’Connell began working as sales manager for Fleetline on Monday, 11 March 1991. Mr. O’Connell’s duties focused exclusively on sales. He was not hired to work in the plastics department; instead, he was hired to focus on the sale of the entire Fleet-line product. Mr. O’Connell turned forty years of age the day following his hire by Fleetline.

Plaintiff filed suit against defendants on 27 June 1991, alleging breach of a written contract of employment and violation of Tennessee’s statute prohibiting discrimination on account of age, the Tennessee Human Rights Act. The case was first tried to a jury on 21, 22, and 23 September 1992. At the close of plaintiff's proof, the court granted defendants’ motion for a directed verdict as to the breach of contract claim, finding that the 15 August 1988 letter did not constitute an offer. The court, however, denied defendants’ motion for a directed verdict as to the age discrimination claim. The jury found in favor of plaintiff and returned a total verdict of $277,157.00. Defendants then filed a motion for judgment in accord with the motion for a directed verdict, or, in the alternative, a motion for a new trial. The court denied the motion for judgment in accord with the motion for a directed verdict, but granted the motion for a new trial.

On 17, 18, and 19 May 1993, the second trial was tried to a jury on the age discrimination claim only. The jury returned a verdict in favor of defendants. Plaintiff filed a motion for a new trial, but the court denied the motion.

Plaintiffappellant presents the following issues for our review:

I. The trial judge erred in granting a directed verdict on the contract claim;
II. The trial court abused its discretion in granting Defendants] a new trial;
III. The trial court erred in using Defendants’ proffered jury instructions in the second trial;
IV. The trial court erred in its jury instructions regarding the elements to be proved by the plaintiff in the second trial;
V. The [e]ourt erred in refusing to instruct the jury on the availability of punitive damages;
VI. The trial court made prejudicial comments on the evidence;
VII.

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Bluebook (online)
884 S.W.2d 463, 1994 Tenn. App. LEXIS 270, 73 Fair Empl. Prac. Cas. (BNA) 1325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loeffler-v-kjellgren-tennctapp-1994.