Mannix v. Butte Water Company

854 P.2d 834, 259 Mont. 79, 50 State Rptr. 691, 1993 Mont. LEXIS 181, 1993 WL 205179
CourtMontana Supreme Court
DecidedJune 11, 1993
Docket91-621
StatusPublished
Cited by9 cases

This text of 854 P.2d 834 (Mannix v. Butte Water Company) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mannix v. Butte Water Company, 854 P.2d 834, 259 Mont. 79, 50 State Rptr. 691, 1993 Mont. LEXIS 181, 1993 WL 205179 (Mo. 1993).

Opinions

JUSTICE HARRISON

delivered the Opinion of the Court.

Appellant Gary Mannix (Mannix) appeals from a judgment entered pursuant to a special jury verdict in the Second Judicial District, Silver Bow County, and from the denial of his request for a new trial. The present case stems from the same set of facts and circumstances as our opinion in Mannix v. Butte Water Co. (1991), 249 Mont. 372, 816 P.2d 441. For clarity, we will refer to the Butte Water Company (BWC) and Dennis Washington (Washington) collectively as respondents. We affirm.

The following issues are raised on appeal:

1. Whether the District Court erred in sustaining respondents’ hearsay objections;

2. Whether the District Court abused its discretion in granting respondents’ motion for change of venue;

[83]*833. Whether the District Court erred in sustaining respondents’ objection to lay witness opinion testimony;

4. Whether the District Court erred in granting respondents’ motion in limine;

5. Whether the District Court abused its discretion in not allowing Mannix’s expert witness to testify;

6. Whether the District Court erred in dismissing all claims based on breach of the implied covenant of good faith and fair dealing;

7. Whether the District Court abused its discretion in instructing the jury.

Mannix began working for BWC as a laborer in 1973. He was eventually promoted to engineer, then to superintendent, then to vice-president and operations manager and member of the board of directors. When the general manager retired in 1983, Mannix was promoted to president and general manager, the position he occupied at the time this action arose.

Before this action arose, Atlantic Richfield Company (ARCO) owned a majority of BWC’s outstanding shares. In September 1985, while negotiating a deal to buy ARCO’s mining properties in Butte, Montana, Washington learned that BWC was also for sale. Washington and ARCO eventually entered a letter agreement whereby Washington would purchase ARCO’s Butte mining properties, approximately 35,000 acres of property around Georgetown Lake, and BWC. At that time, BWC carried a $4.5 million note payable to ARCO. The agreement originally called for the full amount of the debt to be forgiven. However, from what he learned in meeting with Mannix and what he learned about the Public Service Commission’s rate making process, Dorn Parkinson, who was the president of Washington Corporations, determined that it would be beneficial for BWC to retain some debt.

Washington and ARCO agreed to modify the original agreement to retain a $2 million debt in BWC. Washington arranged a $2 million, six-month loan with a Minnesota savings and loan association where he had a substantial personal line of credit. Washington personally guaranteed payment of the loan. The $2 million from the loan was to be paid directly to ARCO for its stock in BWC, and the purchase price for the properties was to be reduced by $2 million. The result was that Washington would receive the BWC stock free of debt to ARCO, while BWC would have a six-month note payable to the savings and loan association for $2 million. ARCO did not inform Mannix of the details of this arrangement.

[84]*84On December 12,1985, Mannix received a call from John Thiebes, counsel for Washington Corporations. Mannix had left the office, so he returned the call the next day. Mannix claims Thiebes requested he travel to Missoula to sign some resolutions, the $2 million note, and some other papers. Mannix refused to do so because he wanted to check with ARCO’s legal counsel. He called Gene Tidball, an attorney for ARCO, who informed him that he could sign the note and other papers.

Mannix discussed the matter with Mike Patterson and Bill Mufich, members of BWC’s board of directors, and with Skip Dunfee, BWC’s secretary-comptroller. According to Mannix, they determined that it was not in BWC’s best interest to obligate it to a $2 million note, the terms and circumstances of which they knew little or nothing about. Eventually, however, Mannix, Patterson, and John O’Brien, another board member, signed a resolution authorizing board member Frank Gardner to sign the note.

Washington testified that while in Denver, Colorado, during the final negotiations, he overheard a telephone conversation between Tidball and Mannix. Washington described this as a “big argument” in which Tidball said, “This is complete insubordination. And this is grounds for termination.” Although Washington admitted that he might have fired Mannix had Mannix been as insubordinate to him as Mannix was to ARCO, Washington also made it clear that he admired Mannix for standing up to ARCO and held no prejudice against him for having done so. He felt Mannix “had a lot of guts.” Washington and ARCO closed the deal in Denver on December 18, 1985. Through Thiebes, Washington requested the resignation of all BWC board members that day. As sole shareholder, Washington elected himself, Parkinson, and Thiebes to the new board of directors. At a board meeting held the day after closing, either on the plane trip from Denver or when they landed in Missoula, the newly elected board authorized Parkinson to meet with Mannix to determine whether he should remain as president of BWC. Parkinson testified that the new board wanted him to meet with Mannix because the events surrounding the closing of the deal and Mannix’s unfavorable reaction to the deal “basically raised a flag in our mind as to — is there some kind of fundamental problem here.... ” Parkinson testified that he had any option available in dealing with Mannix’s employment after that meeting.

Parkinson went to Butte the next day, December 20, and met with Mannix. The parties dispute what happened at that meeting. Park[85]*85inson testified that Mannix described the manner in which the sale was transacted as immoral and unethical and that Mannix characterized Washington as immoral; that Mannix said he would do the same thing again (apparently referring to his refusal to sign the note); that Mannix said he would always do what he thought was in BWC’s best interest; and that Mannix did not offer to put the past behind them and get on to the future. Mannix testified that although he felt the events surrounding the sale had created a severe problem, he said to Parkinson that he thought their only option was “to roll up our sleeves and go on from here.” Mannix testified that he did not tell Parkinson that he could not go on as president of BWC; that he did not say anything to Parkinson that would lead Parkinson to believe that he did not want to continue as president; and that he did not resign or express any reluctance to continue as president.

Parkinson fired Mannix as a result of that meeting. Mannix maintains that he was fired in retaliation for his refusal to sign the $2 million note and that the decision to fire him actually was made at the board meeting held on December 19.

Mannix told his fellow employees and the press that he had been fired because of a “fundamental difference in business philosophy.” Both men agree that Parkinson suggested this phrase as an explanation. On his “CLAIMANT’S DISCHARGE STATEMENT” filed in pursuit of unemployment compensation benefits, Mannix stated under oath that this was the reason for his termination.

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Mannix v. Butte Water Company
854 P.2d 834 (Montana Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
854 P.2d 834, 259 Mont. 79, 50 State Rptr. 691, 1993 Mont. LEXIS 181, 1993 WL 205179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mannix-v-butte-water-company-mont-1993.