Meyers v. Hutton

1 Ohio App. Unrep. 47
CourtOhio Court of Appeals
DecidedFebruary 8, 1990
DocketCase No. 11586
StatusPublished

This text of 1 Ohio App. Unrep. 47 (Meyers v. Hutton) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meyers v. Hutton, 1 Ohio App. Unrep. 47 (Ohio Ct. App. 1990).

Opinion

BROGAN, J.

Shearson Lehman Hutton, appellant, and Robert David Meyers, appellee cross-appellant, appeal the judgment of the trial court reflecting a jury verdict in favor of Meyers.

On April 1, 1988, Meyers filed his complaint against Shearson Lenman Hutton, (Shearson), wherein three causes of action were set forth.

Count one contained a cause of action for breach of written employment contract, count two contained a cause of action for breach of oral contract, count three contained a cause of action for tortious interference with a business contract.

Meyers prayed for monetary damages as follows:

(1) Monetary damages for breach of contract in the amount of approximately $50,000.00.
(2) Monetary damages for the interference of business contracts in the approximate amount of $100,000.00.
(3) Punitive damages in the approximate amount of $100,000.00.

[48]*48On June 10,1988, following the grant of an extension of time to file an answer, Shearson moved to stay proceedings and refer the matter to arbitration. This motion was based upon an employment application generated by Shearson and completed by Meyers, discussed more fully infra, wherein Meyers allegedly agreed to arbitrate any controversy with Shearson. Shearson argued that this application comprised a legally enforceable employment contract. The trial court overruled this motion citing its prior decision in the case of Patterson and BancOhio Co-Executors v. Merill Lynch, Pierce, Fenner & Smith (July 21, 1988), Montgomery County Court of Common Pleas, Case No. 88-1118, unreported, wherein the court held that a signed employment application, while perhaps enforceable, is not contractually sufficient to create employment rights. Further, the court found the application lacking in consideration with regard to the arbitration provision. In its answer, Shearson did not plead the affirmative defense of arbitration.

On December 12, 1988, Shearson filed its answer. Thereafter, on February 13 and 14, 1989, a jury trial was held and the following evidence was adduced.

In the spring of 1987, Meyers, a stockbroker employed by Prudential-Bache, engaged in negotiations with Larry Hayes, a Senior Vice President of Shearson, regarding employment with Shearson. (Tr. 34-35). These negotiations included a number of meetings where the parties discussed Meyers' salary and his need of an assistant. (Tr. 35). On August 28, 1987, Hayes sent a letter to Meyers stating,

Obviously I am quite excited about your move to Shearson Lehman and let me just suggest that I will do everything to make your transition as smooth as possible.Over the next few weeks, you will certainly get to know Marcella Lehar, my Administrative Manager, as far as preparing mailing lists, account documentation, etc. Just to put on paper and review our financial deal, I was able to get Mr. Kobak to go for the following guarantee:
- $11,000 Monthly guarantee for 6 months vs a 50% payout whichever is greater.
- You will have retroactive Bogy levels of 60% at $200,000, 65% at $250,000, 70% at $300,000. There will be a red ink stop-loss at $33,000 although all accelerated payouts continue. Bob, obviously we will have time to review any concerns and I will look forward to talking to you next week. Believe me, with your production, you will keep some of our current young FC's on their toes.

(Plaintiffs Ex. 1). Meyers testified to his belief that this letter reflected "the final terms and conditions of employment" with Shearson. (Tr. 37). Meyers indicated: "That figure was negotiated between myself and Mr. Hayes as an income level for myself, $ 11,000 monthly guaranty for at least six months * * *." (Id.) Counsel for Shearson did not object to the introduction of this evidence reflecting Meyers' interpretation of the letter of August 28.

Subsequently, Meyers agreed to begin work at Shearson on September 25, 1987. (Tr. 38). On September 7, 1987, Meyers completed a document from Shearson entitled "Application for Employment" (Defendant's Ex. D). (Id.) The employment application contained these questions, among others, to which Meyers responded, "no":

Has any permanent or temporary injunction ever been entered against you?
In your previous business connections or employment in any capacity, have transactions under your attention ever been the subject of complaint or irregular proceeding?
Are you now or have you ever been subject to an order of the S.E.C. or any other regulatory agencies or association which bars or suspends you from becoming associated with a broker-dealer?

Further, the employment application contained a section entitled, "Representationby Applicant" which contained, inter alia, the following sections:

I understand that any employment by Shearson Lehman Brothers Inc. ("Shearson Lehman") or its subsidiary companies is conditioned upon positive responses from my references, acceptance by the bonding company, continued adherence to Shearson Lehman's rules and regulations and job performance satisfactory at all times to Shearson Lehman.
* * *
[49]*49I understand that my status is that of an employee at will, meaning that I have no contractual right, express or implied, to remain in Shearson Lehman's employ. In consideration of my employment, I specifically agree that my employment or the terms and conditions thereof including compensation, can be changed or terminated with or without cause, and with or without notice, at any time, at the option of Shearson Lehman. I understand that no representative of Shearson Lehman other than Human Resources Department in conjunction with a corporate officer has any authority to enter into any agreement for employment for any specified period of time or make any agreement contrary to the foregoing.
I hereby represent and warrant that all my answers on this application are true and accurate. I understand that any misrepresentation of facts, failure to disclose information required on this application or material change in any information provided which is not reported to Human Resources shall be cause for dismissal regardless of when discovered by Shearson Lehman.
I hereby agree that any controversy arising out of or in connection with my compensation, employment or termination of employment shall be submitted to arbitration before the National Association of Securities Dealers, Inc., the New York Stock Exchange, Inc. or the American Stock Exchange Inc. and be resolved in accordance with the rules, then in effect, of such entities. Judgment upon any award rendered by the arbitrators may be entered in any court having jurisdiction thereof. In the event I fail to abide by these terms, this section shall in no way limit or impair the Company's other legal rights, including the right to enforce said provisions in a court of competent jurisdiction.

Regarding his familiarity with the above-stated provisions, Meyer testified: "I was just told to put previous employment history, my education, experience, and to sign it and that's what I did." (Tr. 93).

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Bluebook (online)
1 Ohio App. Unrep. 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyers-v-hutton-ohioctapp-1990.