Lyons v. Midwest Glazing, L.L.C.

235 F. Supp. 2d 1030, 2002 U.S. Dist. LEXIS 24288, 2002 WL 31833239
CourtDistrict Court, N.D. Iowa
DecidedDecember 18, 2002
DocketC01-3071-MWB
StatusPublished
Cited by11 cases

This text of 235 F. Supp. 2d 1030 (Lyons v. Midwest Glazing, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyons v. Midwest Glazing, L.L.C., 235 F. Supp. 2d 1030, 2002 U.S. Dist. LEXIS 24288, 2002 WL 31833239 (N.D. Iowa 2002).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING DEFENDANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT

BENNETT, Chief Judge.

TABLE OF CONTENTS

I.INTRODUCTION. CO CO o I-i

A. Procedural Background. CO CO o 7 — l

B. Factual Background. CO o T — I

II.LEGAL ANALYSIS.1089

A. Standards For Summarg Judgment.1039

1. Requirements of Rule 56.1039

2. The parties’ burdens.1040

B. Abuse Of Process Claim.1040

1. Legal Process Requirement.1040

2. Improper Purpose Requirement .1042

C. Defamation Claims.1043

1. Slander Claim.1044

2. Qualified Privilege Immunity To Libel Claim.1046

a. Good faith.1046

b. Interest to be upheld .1047

c. Scope of statements .1047

d. Proper occasion, manner and party.1047

D. FMLA Claim.1047

E. Contract Damages.1047

1. Emotional distress damages under contract claim.1048

2. Damages beyond the date of Lyons’new employment.1050

F. Punitive Damages.1051

III.CONCLUSION.1051

I. INTRODUCTION

A. Procedural Background

On July 23, 2001, plaintiffs Roger R. Lyons and Gretchen A. Eddy filed this lawsuit in the Iowa District Court In And For Winnebago County against Midwest Glazing, L.L.C. (“Midwest Glazing”), d/b/a Eddy’s Glass & Door (“Eddy’s Glass”). Midwest Glazing removed this case to this court on August 21, 2001, pursuant to 28 U.S.C. § 1441. In their petition, plaintiffs assert claims for breach of contract, abuse of process, defamation, violation of the Family Medical Leave Act (“FMLA”), 29 U.S.C. § 2601 et seq., violation of the Fair Labor Standards Act (“FSLA”), 29 U.S.C. § 201, and punitive damages against Midwest Glazing. 1 Specifically, plaintiff Lyons asserts that Midwest Glazing has breached a sales contract that it would not to terminate Lyons’s employment without good cause. On March 28, 2002, Midwest Glazing filed an amended and substituted answer in which it asserted counterclaims against Lyons for tortious interference and breach of fiduciary duty.

On November 4, 2002, Midwest Glazing filed a motion for partial summary judgment. In its motion, Midwest Glazing moves for summary judgment on plaintiff *1034 Lyons’s claims for abuse of process, defamation and violation of the FMLA. Defendant Midwest Glazing also seeks partial summary judgment relating to damages recoverable for breach of contract and punitive damages. On November 27, 2002, plaintiff Lyons filed a resistance to Midwest Glazing’s motion for partial summary judgment.

Pursuant to Midwest Glazing’s request, the court held telephonic oral arguments on Midwest Glazing’s motion for partial summary judgment on December 6, 2002. At the oral arguments, plaintiff Lyons was represented by Randall E. Nielsen of Pap-pajohn, Shriver, Eide & Nicholas, P.C., Mason City, Iowa. Defendant Midwest' Glazing was represented by Mark L. Zaiger of Shuttleworth & Ingersoll, P.L.C. The court turns first to a discussion of the undisputed facts as shown by the record, then to the standards applicable to motions for summary judgment and, finally, to the legal analysis of whether Midwest Glazing is entitled to summary judgment on any of the claims at issue in this litigation.

B. Factual Background

The following facts are undisputed. Eddy’s Glass & Door was formed by Douglas Eddy as a glazing and overhead door company. In 1976, Douglas Eddy married Gretchen Lyons. Gretchen Lyons changed her name to Gretchen Eddy. Plaintiff Roger Lyons is the son of Gretchen Eddy from a previous marriage. Lyons worked at Eddy’s Glass for his stepfather when he was in high school and began working full time for Eddy’s Glass in 1987. Douglas Eddy died on October 31,1996. Douglas Eddy’s will provided that the business be sold and the proceeds of the sale made part of his estate. The business was not willed to Roger Lyons. Gretchen Eddy was the sole beneficiary of Douglas Eddy’s estate.

Gretchen Eddy, through her counsel, attempted to find buyers for the business. Midwest Glazing in time bought Eddy’s Glass. A sales agreement was executed on December 29, 1997, by Gretchen Eddy for the estate of Douglas Eddy, Midwest Glazing and Iowa Glass Depot, Inc. (“Iowa Glass”). Iowa Glass purchased the real estate and Midwest Glazing purchased the business assets. Midwest Glazing operated the business after the transaction.

Gretchen Eddy wanted the sale of the business to Midwest Glazing to provide her son with job security. She intended that her son would benefit from the sale of Douglas Eddy’s business. As a result, paragraph seven of the Sales Agreement provided:

7. Buyer agrees to offer employment to all employees currently employed by Eddy’s Glass and Door as of said date of closing for a period of not less than six months from said date and further agrees to maintain the employment of key employees, namely: Kermith Bal-vance and Roger Lyons subject only to termination for cause on the part of said employees or voluntary resignation or termination at the option of said employees.

Defendant’s App. at 5.

Roger Lyons was first offered the position of manager at Eddy’s Glass by Midwest Glazing but declined the offer. After Lyons turned down the position, Kermith Balvance took the position as manager at Eddy’s Glass. In December 1998, Randy Taylor replaced Balvance as manager. He remained as manager until March, 2000. Balvance resumed being the manager of Eddy’s Glass when Taylor was fired. Bal-vance continues to work for Eddy’s Glass. On December 18, 2000, Balvance voluntarily stepped down as manager and was replaced by Julie Weide.

For the first four months after Midwest Glazing purchased Eddy’s Glass, Lyons was an hourly employee. On May 1, 1998, *1035 Midwest Glazing placed Lyons solely in charge of managing the overhead door side of the business at Eddy’s Glass and he became a salaried employee. Lyons declared himself to be the Product Manager and purchased a stamp that indicated such. Lyons’s increased responsibilities included scheduling, estimating bids, ordering parts, supervising crews, and installing doors when needed.

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Bluebook (online)
235 F. Supp. 2d 1030, 2002 U.S. Dist. LEXIS 24288, 2002 WL 31833239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyons-v-midwest-glazing-llc-iand-2002.