Mita v. CHUBB COMPUTER SERVICES

767 A.2d 989, 337 N.J. Super. 517
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 2, 2001
StatusPublished
Cited by4 cases

This text of 767 A.2d 989 (Mita v. CHUBB COMPUTER SERVICES) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mita v. CHUBB COMPUTER SERVICES, 767 A.2d 989, 337 N.J. Super. 517 (N.J. Ct. App. 2001).

Opinion

767 A.2d 989 (2001)

Cynthia L. MITA, Plaintiff-Appellant,
v.
CHUBB COMPUTER SERVICES, INC., Chubb Professional Resources, Inc. and Richard M. Sargent, individually and in his official capacity, Defendant-Respondent.

Superior Court of New Jersey, Appellate Division.

Argued February 7, 2001.
Decided March 2, 2001.

*990 W. Cary Edwards and Jamie P. Clare, Hawthorne, argued the cause for appellant *991 (Edwards & Caldwell, attorneys for appellant; Mr. Edwards, of counsel; Thomas G. Griggs, on the brief).

Brian D. Sullivan, New York City, argued the cause for respondent (Roberts & Finger, attorneys; Joel L. Finger, of counsel; Mr. Sullivan, on the brief).

Before Judges BAIME, WALLACE, and LINTNER.

The opinion of the court was delivered by BAIME, P.J.A.D.

Plaintiff appeals from a summary judgment dismissing her complaint for wrongful termination of employment. She asserts that defendants Chubb Professional Resources, its division Chubb Computer Services, Inc., and the division's chief executive officer Richard Sargent violated their agreement not to fire her for refusing to sign a non-compete clause. We disagree and affirm the summary judgment.

I.

Plaintiff commenced her employment with Chubb Computer Services in 1990 as a technical manager. She was subsequently promoted to operations director. Chubb trained and placed computer professionals with various businesses. Plaintiff's job was to recruit and assign such professionals in return for commissions.

At the time plaintiff was hired she signed an "Employee Acknowledgment" which evidenced her status as an at-will employee. The acknowledgment read:

The employment of any Chubb Programmer Resources employee can be terminated by Chubb Programmer Resources or the employee, with or without cause and with or without notice, at any time.

Plaintiff also received an employee handbook which re-emphasized her at-will status, stating in pertinent part:

The employment relationship which exists between The Chubb Institute and each of its employees is employment-at-will. Under this relationship, any employee is free to end his or her employment with The Chubb Institute at any time for any reason with or without prior notice. Likewise, The Chubb Institute may, at any time, decide to end an individual's employment with or without cause or prior notice, at its sole discretion.
This handbook sets forth certain procedures and guidelines which The Chubb Institute may or may not choose to follow. The statements and contents of this handbook are not promises of any kind by the Chubb Institute, and The Chubb Institute reserves the right to terminate an individual's employment with or without cause, or to charge wages and/or any other term or condition of employment of any employee without any prior consultation or agreement with any employee.

The handbook, amended in 1995, also outlined the procedure whereby an employee's status could be changed. The handbook stated that an employee's at-will status could be changed only by written documentation which: (1) was signed by Chubb Computer Services' President and the individual employee, (2) specifically named the individual employee, (3) expressly stated that the named employee was not employed at-will, and (4) set forth the specific duration and terms of the individual's employment by Chubb Computer Services.

In April of 1995, Chubb decided to expand the use of its non-compete clause throughout the organization to include those thought to be "major salespeople." In May of 1995, at a meeting conducted by her immediate supervisor, Henry Crouse, plaintiff and other sales representatives were requested to sign a non-compete agreement. The agreement stated in relevant part:

During the term of this agreement and for one (1) year following termination of *992 Employee's employment with [Chubb] for any reason, Employee will not directly or indirectly solicit or accept any business that is competitive with [Chubb] with respect to any of (15) customers of [Chubb] which will be identified by [Chubb] at the time of such termination.

Crouse informed those in attendance that they should review the non-compete agreement and formulate any questions, which would be addressed at a subsequent meeting.

A second meeting regarding the non-compete agreement was held in May 1995, with plaintiff in attendance. At this meeting, plaintiff and her fellow employees voiced their concerns regarding the agreement, and submitted a list of questions to Crouse about the ramifications for failing to sign the agreement. Crouse then consulted with Richard Sargent.

During a third meeting, Crouse presented plaintiff and the other employees with answers to many of their questions. Particularly, plaintiff was told that those employees who chose not to sign the non-compete agreement would have their commissions reduced by 15%. Crouse also stated that Chubb would not provide any sort of "package" for those employees who signed the agreement and were subsequently terminated. Plaintiff asked Crouse whether or not the 15% reduction was a "tradeoff," in that she would not be later fired for her refusal to sign. Crouse answered that he did not know, and would have to refer the question to Sargent.

Within a day or two of the third meeting, Sargent conducted a lunch meeting with plaintiff. Plaintiff attempted to convince Sargent that it was unnecessary for her to sign the agreement because she only placed computer professionals with a Chubb subsidiary[1]. Plaintiff and Sargent also discussed the consequences of plaintiff's refusal to sign the agreement. Plaintiff stated that Sargent told her she would not be fired if she did not sign the agreement. Plaintiff admitted, however, that Sargent never directly stated that she would not be fired in the future for not signing the non-compete clause. Plaintiff nevertheless "felt as though it was implied." Plaintiff stated that Sargent "gave [her] the impression ... that this problem was never going to come up again, that [she] was not going to be asked to sign this again, and that [she] would not be fired for—it was an exchange."

After conferring with Sargent, Crouse memorialized the 15% reduction in commission in a memorandum to plaintiff dated May 17, 1995. The memorandum stated in relevant part:

If you choose not to sign the agreement your commission eligible account revenue will be reduced by 15% effective June 1, 1995. This reduction will affect all account revenue, not just new placement for future commissions.
The reduction of commissions for non-signature is a one-time levy, and will not be re-adjusted in the future.
This agreement is not to be viewed as a negative reflection on your performance, or lack of trust, but it is necessary to further protect the expanding interest of [Chubb].

Plaintiff, thereafter refused to sign the non-compete agreement, and her commissions were reduced by 15% starting in June 1995.

In July 1995 plaintiff was informed that Sargent had directed that she could not open new accounts with clients other than Chubb subsidiaries because of her failure to sign the agreement. Moreover, plaintiff was told that she would not be promoted or receive additional account responsibilities, and any salary increases would be reduced.

*993

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Cite This Page — Counsel Stack

Bluebook (online)
767 A.2d 989, 337 N.J. Super. 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mita-v-chubb-computer-services-njsuperctappdiv-2001.