Montemayor v. Jacor Communications, Inc.

64 P.3d 916, 2002 Colo. App. LEXIS 1817, 2002 WL 31387067
CourtColorado Court of Appeals
DecidedOctober 24, 2002
Docket00CA1434
StatusPublished
Cited by21 cases

This text of 64 P.3d 916 (Montemayor v. Jacor Communications, Inc.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montemayor v. Jacor Communications, Inc., 64 P.3d 916, 2002 Colo. App. LEXIS 1817, 2002 WL 31387067 (Colo. Ct. App. 2002).

Opinion

Opinion by

Judge JONES.

Defendants, Jacor Communications, Inc.; NSN Network Services, LTD.; Robert L. Lawrence; and William Suffa, appeal from a judgment in favor of plaintiff, Martha L. Montemayor, on a jury verdict awarding damages for breach of contract and the trial court’s award of certain damages. Plaintiff cross-appeals the trial court’s refusal to grant a new trial on damages. We affirm in part, vacate in part, and remand for further proceedings.

NSN was incorporated in 1988. In 1990 the NSN board of directors appointed plaintiff president, an office to which the board reappointed her annually and that she held until October 1997. Plaintiff was removed from that position shortly after Jacor Broadcasting of Knoxville, Inc., a subsidiary of Jacor, and NSN entered into an asset purchase agreement. After the acquisition, the Jacor subsidiary changed its corporate name to NSN.

At the time of the acquisition, plaintiff entered into an Executive Employment and Non Competition Agreement (Agreement) with NSN that provided that she was to act as a senior executive officer of NSN for a period of two years, or until NSN discharged her for cause or disability, or until she terminated the Agreement for “good reason,” which included leaving within six months of “any material reduction in the scope of [her] duties and responsibilities for the Company from those duties undertaken by [her] for the Company on the date of this Agreement.”

Pursuant to the Agreement, plaintiff was to be consulted on all “major strategic decisions” regarding NSN. The Agreement further provided that NSN would pay plaintiff a base salary of $100,000 and an annual bonus. The Agreement also stated that the “senior management of [Jacor] ... shall recommend to the Compensation Committee of the Board of Directors of [Jacor] (which shall retain discretion over the grant of any options) that within [twelve] months of the date of this Agreement, Employee be granted incentive stock options for 8,000 shares of [Jacor] common stock under the [Jacor] 1993 Employee Stock Option Plan.”

Shortly after the acquisition, an NSN vice president and its sales manager engaged in ongoing harassment directed against plaintiff. NSN took no real steps to abate the harassment. Jacor directed its human resources director to disregard plaintiffs complaint concerning the harassment, having decided that was no longer a “formal complaint.”

Thereafter, Jacor’s president ordered plaintiff to work closely with the sales manager, even though NSN had determined he had been harassing her. NSN’s general manager then informed plaintiff that she was no longer president of NSN, that management had eliminated her authority to make any decisions, that no employees would report to or work for her, and that her job *920 duties were limited to acting as a resource and consultant to the sales staff.

Plaintiff then terminated the Agreement with NSN, citing “good reason.” She filed this action, claiming interference with contract, breach of contract, conspiracy, and a violation of the Colorado Wage Claim Act (CWCA), § 8 — 4—101, et seq., C.R.S.2002.

The parties stipulated to submit the conspiracy and contract claims to the jury and the CWCA claim to the trial court as finder of fact. The trial court entered judgment in favor of plaintiff on the jury’s verdict concerning the breach of contract claim and the conspiracy claim against Jacor, although the jury made no finding of damages as to the conspiracy claim. The court also found in favor of plaintiff after a hearing on the CWCA issues.

Defendants appeal the judgment and damages entered against them. Plaintiff cross-appeals the trial court’s denial of her motion for mistrial and its refusal to grant a new trial on damages related to the jury verdict on her civil conspiracy claim against Jacor.

I.

Defendants first contend that plaintiff did not present sufficient evidence to establish a prima facie case of breach of contract. We disagree.

To prove breach of contract, a plaintiff must show: (1) the existence of a contract; (2) performance by the plaintiff or justifiable nonperformance; (3) the defendant’s failure to perform the contract; and (4) damages to the plaintiff. Western Distrib. Co. v. Diodosio, 841 P.2d 1053 (Colo.1992).

The intent of the parties to a contract must be determined from the contract itself. If the terms of a contract are complete, clear, and unambiguous, no extraneous evidence may be considered in ascertaining the intent of the contracting parties. Christie v. San Miguel County Sch. Dist., 759 P.2d 779, 782 (Colo.App.1988)(citing Radiology Prof'l Corp. v. Trinidad Area Health Ass’n, 195 Colo. 253, 577 P.2d 748 (1978)).

In ascertaining whether certain provisions of an agreement are ambiguous, the language of the instrument must be examined and construed in harmony with the plain and generally accepted meaning of the words employed. Written contracts that are complete and free from ambiguity will be found to express the intention of the parties and will be enforced according to their plain language. Ad Two, Inc. v. City & County of Denver, 9 P.3d 373 (Colo.2000).

When “a promisor is himself the cause of the failure of performance of a condition upon which his own liability depends, he cannot take advantage of that failure.” Navajo Freight Lines, Inc. v. Moore, 170 Colo. 539, 543, 463 P.2d 460, 462 (1970); see also Hofer v. Polly Little Realtors, Inc., 37 Colo.App. 86, 543 P.2d 114 (1975)(employer cannot discharge employee to avoid payment of compensation otherwise due).

A.

Defendants first assert that NSN did not breach its contract with plaintiff when it demoted her from company president to sales consultant. They argue that, regardless of the status at which plaintiff was hired, pursuant to the Agreement, all terms regarding her employment remained subject to the authority of the board of directors and senior officers, therefore reserving to NSN discretion and final authority concerning her employment. We disagree.

The record reflects that plaintiff, in being demoted and required to work under the direct supervision of the persons who harassed her, was deprived of the specific responsibilities she contracted for, namely (1) that she would act as a senior executive; and (2) that NSN senior management would “consult with [her] and other senior employees ... on major strategic decisions.”

Ordinarily, an employment agreement does not obligate an employer to furnish work for an employee. However, such an obligation may be inferred depending on the circumstances under which the agreement is made or the nature of the employment itself.

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Bluebook (online)
64 P.3d 916, 2002 Colo. App. LEXIS 1817, 2002 WL 31387067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montemayor-v-jacor-communications-inc-coloctapp-2002.