Miller v. Fairchild Industries, Inc.

629 A.2d 1293, 97 Md. App. 324, 1993 Md. App. LEXIS 130
CourtCourt of Special Appeals of Maryland
DecidedSeptember 1, 1993
Docket1429, September Term, 1992
StatusPublished
Cited by66 cases

This text of 629 A.2d 1293 (Miller v. Fairchild Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Fairchild Industries, Inc., 629 A.2d 1293, 97 Md. App. 324, 1993 Md. App. LEXIS 130 (Md. Ct. App. 1993).

Opinion

BLOOM, Judge.

The dispute that resulted in this appeal, after seven years of spirited litigation, began with an announcement by appellee Fairchild Industries, Inc. (Fairchild), in August 1983, that it intended to close its main plant in Hagerstown, Maryland, thereby putting about 2,800 employees out of work. Three of those employees began the litigation by filing in the Circuit Court for Washington County a complaint against Fairchild and its chief executive officer, appellee Edward G. Uhl, asserting claims for fraud, intentional misrepresentation, and negligent misrepresentation. The complaint was amended to add a claim for abusive discharge; two new parties were substituted for two of the original plaintiffs, continuing the action with the three plaintiffs who are the appellants herein; appellants’ motion for class certification was denied; and the court ruled *329 that limitations prevented appellants from amending to add 272 more plaintiffs.

Ultimately, all claims were disposed of in favor of appellees, either by dismissal or summary judgment, and this appeal followed.

Facts

We shall briefly summarize the pertinent facts as gleaned from the pleadings below. At its plant in Hagerstown, Maryland, Fairchild manufactured aircraft, principally the Air Force A-10, and aircraft parts, including sections of the Boeing 757. In 1981, Uhl allegedly advised employees that Fairchild had transferred certain aircraft production work from the Hagerstown plant to another plant where workers “had better attitudes,” allegedly referring to some Hagerstown employees’ vocal opposition to Fairchild’s dumping of toxic wastes in and around its plant.

On 2 September 1982, a Washington County Grand Jury indicted Fairchild on 86 counts of dumping, discharging, and abandoning liquid pollutants in excess of permitted effluent limitations in violation of §§ 8-1418 and 8-1416(b) of the Natural Resources Article of the Maryland Code. Appellants contend that the investigation by the Maryland Attorney General’s Office leading to that indictment was initiated and fueled by information supplied by cooperating members of the affected class of former employees of the Hagerstown plant. Appellants have never identified the specific employees who cooperated with the state in its investigation, however.

In March of 1983, Uhl allegedly suggested to a member of the Hagerstown Chamber of Commerce in a private meeting that the Hagerstown plant would be closed and all employees discharged if the Attorney General followed through with his threatened prosecution of Fairchild for toxic waste dumping. Shortly thereafter, in April of 1983, a Washington County jury convicted Fairchild on five felony counts, and the company was fined $100,000.

*330 In a bulletin distributed by hand at the plant on 29 August 1983, less than four months after Fairchild’s conviction, the company announced the closing of its main plant in Hagerstown and the attendant discharge of its employees.

Procedural History

The preceding events led three former employees of appellee Fairchild Industries to file a complaint against the company and Uhl on 28 August 1986 purportedly on behalf of themselves and numerous other former employees of the Hagerstown plant. 1 Their complaint alleged that Uhl and Fairchild had made false representations to employees regarding their job security and had fraudulently failed to inform employees in advance of the company’s decision to close its Hagerstown plant. The employees also claimed that appellees had negligently misrepresented the employees’ job security.

Appellants premised their fraud and misrepresentation claims on various public and private statements made by Uhl and other Fairchild representatives prior to the plant closing. First, in February of 1983, the Herald Mail, a Hagerstown newspaper, reported that Uhl predicted a rosy and positive future for the Hagerstown plant, which he said would be busy with work on a contract to manufacture Boeing 757’s (the “757 contract”) through the year 2000.

Next, in July of 1983, Uhl allegedly made a speech in which he urged Hagerstown employees to disregard rumors of a plant closing and assured them that the Hagerstown plant would remain in operation for another forty years. 2 Appellants assert that Uhl also indicated that there was no reason for employees not to proceed with plans to make major *331 purchases and/or to take vacations. This speech, referred to as the “tarmac speech,” was allegedly made at a compulsory assembly held on company time on an airstrip at the plant.

Finally, in August of 1983, Fairchild mailed the August issue of its internal monthly publication, Fairchild World, to all employees. The newsletter reported that “deliveries of subassemblies for the Boeing 747 and 757 were about even with last year’s totals both in the second quarter and six months.” World noted that production of Air Force A-10’s was scheduled to cease in early 1984 unless additional orders or sales were received, but that production of spare parts would be “ongoing.” A rise in Fairchild stock was also reported.

The complaint alleged that Fairchild’s upbeat predictions about the company’s future belied the fact that officials were at least contemplating closing the Hagerstown plant at the time the statements were made. Appellants supported this claim by citing various statements allegedly made by company officials. For instance, sometime in early 1983, prior to Fairchild’s conviction, Uhl allegedly told members of the Hagerstown Chamber of Commerce that the future of the Hagerstown plant was uncertain and that if the Maryland Attorney General continued “to give Fairchild a hard time,” he would move the company out of state. Shortly thereafter, Uhl allegedly threatened to close the plant and fire the employees if the Attorney General actually prosecuted the company. On 28 April, a Hagerstown newspaper announced Fairchild’s conviction and reported that the trial court publicly censured the company for making (in the wake of its conviction) inappropriate threats to move the corporate headquarters out of state. Moreover, interrogatory answers submitted by Uhl indicate that as early as May of 1983 he first became aware that the 757 contract might be in jeopardy and might be turned back to Boeing, but did not warn employees.

Fairchild put forward evidence indicating that negotiations with Boeing over the fate of the 757 contract were proceeding satisfactorily as late as 4 August 1983. It was not until 12 *332 August 1983 that Fairchild asked Boeing to relieve the company of its obligations under the 757 contract and that Fairchild officials first began to question the viability of the Hagerstown plant. On 16 August 1983 the company circulated a bulletin to employees in which it announced impending layoffs at the plant. Finally, Fairchild contends that the company did not actually decide to close the plant until 25 August 1983.

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629 A.2d 1293, 97 Md. App. 324, 1993 Md. App. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-fairchild-industries-inc-mdctspecapp-1993.