McKenny v. John v. Carr & Son, Inc.

922 F. Supp. 967, 1996 U.S. Dist. LEXIS 5368, 1996 WL 192014
CourtDistrict Court, D. Vermont
DecidedMarch 20, 1996
Docket2:94-cv-00030
StatusPublished
Cited by4 cases

This text of 922 F. Supp. 967 (McKenny v. John v. Carr & Son, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKenny v. John v. Carr & Son, Inc., 922 F. Supp. 967, 1996 U.S. Dist. LEXIS 5368, 1996 WL 192014 (D. Vt. 1996).

Opinion

OPINION AND ORDER

SESSIONS, District Judge.

This matter is before the Court on Defendant’s Motion for Summary Judgment in accordance with Fed.R.Civ.P. 56(e). Plaintiff opposes this motion. Both parties have filed affidavits and other documents in support of their memoranda. In his complaint, Plaintiff alleges breach of express or implied contract, promissory estoppel, age discrimination in violation of both state and federal law, and emotional distress. He seeks compensatory and punitive damages. The Court has jurisdiction based on diversity of citizenship pursuant to 28 U.S.C. § 1382(a). For the reasons stated below, the Motion is granted in part and denied in part.

Factual Background

Plaintiff is the former employee of Defendant. The gravamen of Plaintiffs complaint is that he was summarily terminated without just cause and because of his age. Defendant maintains that Plaintiff was an at will employee and that his position was eliminated as part of an economically motivated reduction in force (“RIF”).

Resolving all doubts in favor of the non-moving party for purposes of deciding the instant matter, the Court assumes the following facts are true. On June 16, 1993, Plaintiff, Ronald MeKenny, was released from his employment with John V. Carr & Son, Inc. (“Carr”). Plaintiff is a resident of Vermont. Carr operates a customhouse brokerage business with a principal place of business in Detroit, Michigan and branch offices in approximately a dozen states. Its purpose is to assist clients involved in international trade by providing, inter alia, advise on customs regulations, tariffs and foreign freight forwarding.

The relationship between Plaintiff and Carr first arose in 1984. At that time, Plaintiff, along with his brothers, Stanley McKen-ny and Douglas MeKenny, and Bruce Savage, owned a small customhouse brokerage business, doing business as C.S. Emery & Company, Inc. (“Emery”), in Derby Line, Vermont. On March 26, 1984, following a series of informal discussions between the Emery shareholders and representatives of Carr, the Plaintiff and his fellow shareholders agreed to transfer fifty-one percent of their capital stock to Carr for a purchase price based on the to-be-determined book value of Emery. See Def.’s Ex. 1A. 1 Executive Vice Presidents Stephen Marr and Richard Lowrie negotiated the agreement on behalf of Carr.

The transaction was based upon mutual trust and respect. In fact, testifying as to how the deal was concluded, Mr. Lowrie stated:

And we were in his [Stan MeKenny’s] parlor and at that time, there was a comfortable feeling and they said to us — all of them — we looked at them individually, it’s a deal, it’s a deal. I think we felt real comfortable in it because we trusted each other so much. And I know business isn’t done that way anymore and I think it’s a *971 damn shame it’s not but we did the deal on basically [a] handshake and discussion. Yes, we bought some other companies and some other people had attorneys involved but Steve [Marr], myself and the MeKen-nys and Mr. Savage basically did most of it on a handshake. I think besides trust, respect. I think we had a great deal of respect for each other. We had known not only each other but their families, their children, went to social events, it was that feeling.

Pl.’s Ex. 0, Lowrie Dep. at 15,16.

The agreement was reduced to writing in a document entitled “Agreement for Sale of Corporate Stock” (“Agreement”). It included an option to purchase the remaining shares of Emery. Pursuant to the Agreement, the happening of one or more specified events triggered the option. See Def.’s Ex. 1A at § 5.1. The Agreement included a general provision stating: “This Agreement contains the entire agreement of the parties and no representations, inducements, promises, agreements oral or otherwise, not embodied or referenced herein shall be of any force and effect unless in writing and signed by the parties hereto.” Id. at § 9.1. The terms of the Agreement are to be interpreted in accordance with Michigan law. Id. at § 9.6.

Although the Agreement did not address the subsequent employment of Plaintiff and the other Emery shareholders, two of the four Emery shareholders understood their employment to be secure as long as their job performance remained satisfactory. See Pl.’s Ex. B, Savage Dep. at 16, 26.; S. McKenny Dep. at 44. The remaining two Emery shareholders, Plaintiff and Doug McKenny, recall receiving specific oral assurances of continued employment as long as they performed their jobs to satisfaction.

Plaintiff testified that Mr. Marr and Mr. Lowrie told the Emery shareholders that “we would continue employment as long as performance was satisfactory” and that “we didn’t have to worry because Dick [Lowrie] and Steve [Marr] were going to be around a lot longer than we were because they were younger.” PL’s Ex. B, R. McKenny Dep. at 71, 69. Responding to a question about the amount of job security he thought the Emery shareholders would have after the sale, Doug McKenny stated that he felt “[p]ossibly more secure [than when his dad was running the company] because we had been verbally advised that our jobs were secure.” Pl.’s Ex. B, D. McKenny Dep. at 29.

Moreover, Defendant didn’t anticipate any changes in the Emery operations following the sale. When asked whether there was any agreement to continue the employment of the McKennys, Mr. Lowrie stated, “I think that it was in a discussion stage at several discussions, that it was assumed by both parties that things would remain the same.” Pl.’s Ex. B, Lowrie Dep. at 24. In a letter to Stan McKenny dated March 26, 1984, Mr. Marr stated, “we would anticipate retaining all current directors of C.S. Emery ... on the Board of Directors of that firm, and adding three or four directors from John Y. Carr & Son.” Pl.’s Ex. A. The letter also assured Stan McKenny that Carr’s bar on nepotism would not apply to the Emery shareholders and their family members. Id.

After the 1984 sale, the Emery shareholders continued in their employment and carried on business in the Emery name. Plaintiff remained Vice President of Vermont Operations. On January 2, 1986, Manufacturer’s Bank, N.A. (“Manufacturer’s”) acquired Carr, which then became a wholly owned subsidiary of Manufacturer’s. In 1990, Carr purchased the remaining shares of stock from Emery, although apparently none of the triggering events of the Agreement had occurred.

After the final transfer of stock, the Emery shareholders ceased doing business under the Emery name and began trading under Carr’s name. At the same time, Plaintiff was re-designated Carr’s Technical Advisor for Vermont Operations, although his duties remained the same. In 1992, Manufacturer’s merged with Comerica Bank, and Carr became a wholly owned subsidiary of Comerica.

On June 22,1992, Plaintiff received a copy of Carr’s new Employee Handbook. Plaintiff acknowledged receipt of the Handbook by signing a form that was placed in his personnel file.

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Cite This Page — Counsel Stack

Bluebook (online)
922 F. Supp. 967, 1996 U.S. Dist. LEXIS 5368, 1996 WL 192014, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenny-v-john-v-carr-son-inc-vtd-1996.