Malmstrom v. Kaiser Aluminum & Chemical Corp.

187 Cal. App. 3d 299, 231 Cal. Rptr. 820, 2 I.E.R. Cas. (BNA) 180, 1986 Cal. App. LEXIS 2254
CourtCalifornia Court of Appeal
DecidedNovember 25, 1986
DocketA030073
StatusPublished
Cited by75 cases

This text of 187 Cal. App. 3d 299 (Malmstrom v. Kaiser Aluminum & Chemical Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malmstrom v. Kaiser Aluminum & Chemical Corp., 187 Cal. App. 3d 299, 231 Cal. Rptr. 820, 2 I.E.R. Cas. (BNA) 180, 1986 Cal. App. LEXIS 2254 (Cal. Ct. App. 1986).

Opinion

Opinion

BENSON, J.

Carl M. Malmstrom appeals from a judgment entered after the trial court granted the motion for summary judgment of his former employer, Kaiser Aluminum & Chemical Corporation, to the first and second causes of action of the first amended complaint. We affirm the judgment.

I

Pleading and Procedural Background

The first cause of action of the first amended complaint for breach of contract alleges breach of an implied contract to employ Malmstrom until his retirement, subject only to discharge for cause. It also alleges breach of Kaiser’s written policies concerning placement and relocation of terminated employees. The second cause of action alleges tortious breaches of the duty of good faith and fair dealing implied in the contract. This cause of action incorporates the allegations of the first cause of action and adds *307 allegations of specific breaches of the duty (1) by terminating him without making a good faith attempt to place him elsewhere within the company or with another company, (2) by refusing to purchase his home in Florida and (3) by terminating him and replacing him with a younger employee.

Kaiser filed its motion for summary judgment on the first cause of action on the grounds: (1) it was barred by the statute of frauds; (2) Malmstrom’s admissions reveal no promise of protection against layoff; (3) Malmstrom signed a contract providing his employment was terminable at will thus precluding an implied agreement; and (4) Kaiser laid off Malmstrom for good cause. Kaiser’s grounds for summary judgment on the second cause of action were: (1) Kaiser had no contractual duty to buy Malmstrom’s home; (2) the statute of frauds bars the alleged contract to purchase the home; (3) the age discrimination claim is preempted by the provisions of the California Fair Employment and Housing Act and is barred by failure to file the claim required by the act; and (4) the claim that Kaiser failed to pursue good faith efforts to help Malmstrom find a job is groundless.

In opposition to the motion for summary judgment on the first cause of action, Malmstrom argued: (1) the employment agreement is not barred by the statute of frauds since it is conditioned upon satisfactory performance and may be performed within one year; (2) if it were subject to the statute, Kaiser is estopped to raise the statute of frauds because he would be unconscionably injured by the losses he suffered due to his move to Florida; (3) Kaiser admits Malmstrom asked for and received assurances of permanent employment if he transferred to Florida; and (4) whether Kaiser had good cause to terminate Malmstrom is a question of fact.

In his opposition to the motion for summary judgment on the second cause of action, Malmstrom abandoned his claim based on age discrimination admitting he had not filed a notice of discrimination with the appropriate governmental agency. Rather than arguing Kaiser breached the duty of good faith by failing to make a good faith effort to place him elsewhere in the company and by failing to purchase his Florida home, as alleged in the first amended complaint, Malmstrom argued that once Kaiser elected to breach its agreement with him, it had a good faith duty to pay all damages he suffered as a result of the breach.

The trial court granted summary judgment on both causes of action on the ground the oral contract was barred by the statute of frauds. We determine the decision below is correct, although on grounds different from that relied on by the trial court. The California Supreme Court presently has before it the issue of whether oral employment agreements are barred by the statute *308 of frauds. 1 Since the nature of the resolution of that issue remains uncertain at this time, and because other grounds exist which support the decision of the trial court, we decline to rule on the propriety of the statute of fraud ruling in this case. It is well settled that “If the decision of the lower court is right, the judgment or order will be affirmed regardless of the correctness of the grounds upon which the court reached its conclusion. Two theories seem to be involved here: First, that the appellate court reviews the action of the lower court and not the reasons for its action; second, that there can be no prejudicial error from erroneous logic or reasoning if the decision itself is correct.” (9 Witkin, Cal. Procedure (3d ed. 1985) Appeal, § 259, p. 266.)

II

Factual History

The facts presented to the trial court are not in dispute although the inferences to be drawn from the facts are contested. Malmstrom was hired by Kaiser to work in its aluminum can division at the San Leandro, California plant. He commenced work as a district customer service representative on January 2, 1977, four days before his fifty-sixth birthday.

Malmstrom had worked for Continental Can Company for 27 years before coming to Kaiser. He had been a general foreman. In 1976, Malmstrom learned the Continental plant was being sold and his job was being eliminated. Malmstrom was offered and took early retirement from Continental. Kaiser sought out Malmstrom after his layoff had been decided but, while he was still employed at Continental.

During the prehiring interviews conducted by Kaiser, Malmstrom questioned his interviewers about the permanency of the position he was offered. He was assured the job would continue as long as he performed his work satisfactorily. Malmstrom testified that at the time he was hired Mr. Johnson of Kaiser told him “any employee in Kaiser who does a commendable job, credible job, would have a longlasting job. He indicated this in a general statement that they never—it wasn’t a matter of temporary layoff or anything like that, it would be a permanent position.” Mr. Johnson also told Malmstrom “as long as one [does] a commendable job up to their expectations, *309 that you had no fear of being laid off.” Mr. Johnson also said “they never laid off anyone unless there was due cause obviously of some nature.” When Malmstrom was asked during his deposition if this guarantee extended even if there were a shut down of a plant or division of Kaiser, he replied “[t]hat never entered the conversation.”

On January 3, 1977, Malmstrom signed a one-page agreement with Kaiser concerning his employment. The agreement consists of six numbered paragraphs. Paragraph 1 provides “Employer employs and shall continue to employ Employee at such compensation and for such a length of time as shall be mutually agreeable to Employer and Employee.” Paragraphs 2 through 5 contain provisions concerning inventions made by the employee and confidential information of Kaiser. Paragraph 6 provides “This agreement shall supersede all previous agreements by and between Employer and Employee and shall be retroactive to the date on which Employee commenced his employment.” This written agreement is not mentioned in Malmstrom’s complaint.

In April 1981, Malmstrom’s supervisor told him Kaiser had decided to decentralize the customer service representative functions and his job was being transferred to the Kaiser plant in Jacksonville, Floridá.

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Cite This Page — Counsel Stack

Bluebook (online)
187 Cal. App. 3d 299, 231 Cal. Rptr. 820, 2 I.E.R. Cas. (BNA) 180, 1986 Cal. App. LEXIS 2254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malmstrom-v-kaiser-aluminum-chemical-corp-calctapp-1986.