MacDougall v. Weichert

677 A.2d 162, 144 N.J. 380, 11 I.E.R. Cas. (BNA) 1411, 1996 N.J. LEXIS 784
CourtSupreme Court of New Jersey
DecidedJune 10, 1996
StatusPublished
Cited by107 cases

This text of 677 A.2d 162 (MacDougall v. Weichert) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacDougall v. Weichert, 677 A.2d 162, 144 N.J. 380, 11 I.E.R. Cas. (BNA) 1411, 1996 N.J. LEXIS 784 (N.J. 1996).

Opinions

The opinion of the Court was delivered by

HANDLER, J.

In this case, plaintiff was engaged as a salesperson for a real estate firm. He was also an elected member of the local municipal governing council. As a member of the municipal council, he voted for a parking ordinance that was opposed by a client of the real estate firm. Plaintiff was subsequently discharged from his real estate sales position because the client threatened to terminate his business relationship with the realtor if it continued to retain plaintiff as a sales associate.

Plaintiff claimed that his termination by his employer, the real estate firm, constituted a wrongful discharge and that the client tortiously interfered with his prospective economic relations by instigating his termination. Those claims were dismissed on the basis of summary judgments.

Because the record presents unsettled issues of fact, we remand this case for a retrial. Accordingly, we undertake to explain the standards that should govern retrial of the matter.

The initial issue that must be considered on remand is whether the working relationship between a real estate salesperson and the realtor is one of employment that is covered by the wrongful discharge doctrine. If the relationship is one of employment, the court must then determine whether the termination of that relationship because the salesperson’s vote to approve a municipal parking ban was contrary to the interests of the realtor’s customer constitutes a wrongful discharge. The court must further determine whether the customer’s' conduct constituted a tortious interference with the salesperson’s prospective economic relations.

[386]*386I

Plaintiff John W. MacDougall was a sales associate for defendant Weichert Co., Realtors (“Weichert”). He began working for Weichert on March 5, 1984, at Weichert’s Chester office. At the time, he was also an elected member of the Chester Borough Council (“the Council”) and its President. Defendant Robert Merriam was a real estate developer who used Weichert to sell his properties. He also owned a two-story office building in Chester, which had several tenants.

In the Spring of 1987, the Council began considering an ordinance that would ban public parking in front of Merriam’s office building. Merriam opposed the ordinance. Bernice Fisher, manager of Weichert’s Mendham office, telephoned MacDougall before the vote on the parking ban. Fisher said she was calling on behalf of her Mend Merriam and questioned MacDougall about the proposed ordinance. MacDougall did not know Merriam’s relationship with Weichert, and Fisher did not indicate that Merriam had a substantial business relationship with Weichert. When MacDougall told Fisher that the parking ban had been recommended by the police department in response to complaints from local residents about overparking and would probably be enacted, Fisher replied: ‘Well, in that case, just forget this call,” and hung up.

MacDougall voted in favor of the parking ban, which was passed on a split vote by the Council. Residents, however, complained almost immediately that the ordinance merely created parking problems further down the street. Their complaints prompted the Council to consider extending the parking ban to the entire street and to explore the possibility of providing an alternate parking location for the tenants of Merriam’s budding. To assist the Council, MacDougall went to Merriam’s property to photograph the cars parked there. When Merriam saw MacDougall, he ordered MacDougall off his property. Two days later, Merriam had a sign painted on the side of his building that read: “To [387]*387Councilman MacDougall, No Trespassing, and that’s carved in stone.”

Within a week after the initial vote, Charles Schultz, manager of Weichert’s Chester office, said to MacDougall: “I have a party very disturbed about the no parking ordinance.” MacDougall did not recall whether Schultz mentioned Merriam by name at that meeting. MacDougall told Schultz that he could not change his vote. Schultz replied: ‘Well, so be it.”

Shortly thereafter, defendant Walter J. Sherman, Weichert’s regional vice president, handed MacDougall a letter formally terminating him. The letter said:

Robert Mirriam [sic], the owner of a professional building in Chester, has involved us in his ongoing problem with the town in reference to his parking situation.
As you may know, Bob is a long time builder who has worked with our company for a number of years in the Somerset, Hunterdon, and Morris Counties.
Bob has advised us he can no longer do business with us due to your involvement with the council and our company as an Independent Contractor.
Regretfully, this dispute could have a substantial economic impact upon the company. In order to extract Weichert, Realtors from any involvement in this dispute, we deem it necessary to terminate your relationship with our company as an Independent Contractor effective immediately.
Please advise us where we can transfer your license.
Respectfully,
s/Walter J. Sherman
Regional Vice President

MacDougall filed a complaint, alleging essentially that (1) Weichert, James M. Weichert (President of Weichert), and Walter J. Sherman (collectively, Weichert defendants”) violated a clear mandate of public policy by terminating him in retaliation for his vote on the parking ordinance; (2) Merriam tortiously interfered with his relationship with Weichert by causing his termination; and (3) Merriam libeled him. Defendants moved for summary judgment. The trial court granted summary judgments, dismissing the claims relating to both wrongful discharge and tortious interference. By stipulation, the trial court dismissed the libel count with prejudice. The Appellate Division affirmed the trial [388]*388court’s decision. We granted plaintiffs petition for certification. 189 N.J. 183, 652 A.2d 172 (1994).

II

The initial question in this case is whether MacDougall was an employee of Weiehert for purposes of raising a wrongful discharge claim under Pierce v. Ortho Pharmaceutical Corp., 84 N.J. 58, 417 A.2d 505 (1980). That question was resolved by the trial court by summary judgment. The court found that MacDougall was an independent contractor and therefore not protected under the wrongful discharge doctrine. On appeal, the Appellate Division considered and affirmed the trial court’s grant of summary judgment on that ground.

The wrongful discharge doctrine is grounded in public policy and is designed to protect employees when failing to do so would violate a clear mandate of public policy. Id. at 72, 417 A.2d 505. It does not protect independent contractors. The doctrine grew out of a need to protect at-will employees, who are under the total control of the employer and without separate or independent contractual rights that provide employment protections. Id. at 65-67, 417 A.2d 505.

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677 A.2d 162, 144 N.J. 380, 11 I.E.R. Cas. (BNA) 1411, 1996 N.J. LEXIS 784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macdougall-v-weichert-nj-1996.