Morgan v. Future Ford Sales

830 F. Supp. 807, 1993 U.S. Dist. LEXIS 12025, 1993 WL 330486
CourtDistrict Court, D. Delaware
DecidedAugust 26, 1993
DocketCiv. A. No. 92-122 MMS
StatusPublished
Cited by5 cases

This text of 830 F. Supp. 807 (Morgan v. Future Ford Sales) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Future Ford Sales, 830 F. Supp. 807, 1993 U.S. Dist. LEXIS 12025, 1993 WL 330486 (D. Del. 1993).

Opinion

OPINION

MURRAY M. SCHWARTZ, District Judge.

Defendants have moved for summary judgment on plaintiffs claim under the Fair Labor Standards Act (FLSA), as well as on plaintiffs two supplemental state law claims. Docket Item [“D.I.”] 62. In the first count of his amended complaint, plaintiff alleges retaliatory discharge under the FLSA. D.I. 16 at ¶¶ 17, 19 citing 29 U.S.C. § 215(a)(3) (1988). In his second and third counts, he alleges breach of an implied covenant of good faith and fair dealing under Delaware law. D.I. 16 at ¶¶ 25, 31. This Court has jurisdiction over the FLSA claim under 28 U.S.C. § 1331 and over the state law claims under 28 U.S.C. § 1367. For the reasons which follow, defendants’ motion for summary judgment will be granted.

I. Facts

In June, 1989, while plaintiff was working at another car dealership, defendants’ general manager, Joseph Healy III, offered plaintiff a job selling cars for defendants. D.I. 68 at B-34. In ensuing employment discussions, plaintiff informed Mr. Healy of a disability which limited plaintiffs ability to sell cars. D.I. 68 at B-34. Because of the disability, which caused fatigue, severe headaches and pain, plaintiff explained, “I couldn’t sell as many cars as ... I did when I used to sell fifteen cars a month.” D.I. 68 at B-65. Nevertheless, plaintiff told Healy he “was fully capable of performing the duties.” D.I. 68 at B-35. Mr. Healy, having learned of the disability, said he had no problem with accommodating plaintiff. D.I. 68 at B-37.1 Mr. Healy did not, however, offer to hold plaintiff to a lower standard of performance than other salespersons.

[809]*809On June 29, 1989, plaintiff completed an employment application and began to sell cars for defendants. D.I. 68 at B-9. Through the course of the summer and early fall, plaintiff apparently performed adequately for defendants took no exception to plaintiffs performance. In November, 1989, however, plaintiff sold only two cars and defendants began to assess plaintiffs role with them. D.I. 64 at A-153; D.I. 68 at B-278.2

In assessing any salesperson’s performance, defendants do not maintain a rigid formula to determine adequate performance. Instead, a number of factors are considered, including the amount of money a salesperson earns, the number of units a salesperson sells, and the gross commissions a salesperson generates. D.I. 64 at In weighing these factors, defendants also consider relevant context, including the time of year, a salesperson’s experience or any personal problems a salesperson may have. D.I. 64 at A-152, A-256, A-258; D.I. 68 at B-155. As approximate “rules of thumb”, defendants’ owner, Joseph Sheridan, explained a salesperson should make $18,000 a year and sell roughly ten units a month. D.I. 64 at A-150,

As others in defendants’ management pointed out, however, these figures are not litmus tests for termination. D.I. 64 at A-249. Indeed, defendants do not hold their employees to any minimum number of sales per month. D.I. 68 at B-78. Instead of employing a fixed formula for termination, Mr. Sheridan explained, “What we normally will do is at our manager’s meeting ... we would have a discussion with the management on the performance of the salespeople and look at those people that are poor performers----” D.I. 64 at A-143. Management would then approach the poorly performing salesperson in an attempt to improve his/her productivity. D.I. 64 at A-170. Thus, in November, 1989, when plaintiff sold only two cars, Mr. Healy and another manager, Eugene Tuer, spoke with plaintiff about his poor performance. D.I. 64 at A-128, A-171. In the effort to boost plaintiffs sales, management eventually took out an advertisement featuring plaintiff. D.I. 71 at Ex. 3.

Despite management’s efforts, plaintiff did not improve satisfactorily from his November performance. In December he sold 5 units when the other salespersons averaged 5.5. In January, the salesforce averaged 8.5 units, while plaintiff sold only 4.5 units. Finally, in February plaintiff sold 7.5 when the average was 8.8. D.I. 68 at D.I. 71 at These lower than average sales figures accompany similarly low income levels. According to plaintiff, for the eight full months during which he worked for defendants, plaintiff earned an annualized income of $14,446.4 As such, he was the lowest earner among defendants’ salesforce during the time he was employed.5 With respect to the gross commissions earned, only one other individual had a lower averaged gross com[810]*810missions than plaintiff during the relevant time frame. D.I. 67 at 11.6

While his performance was being evaluated, plaintiff became concerned with whether defendants were adhering to the Fair Labor Standards Act. Throughout plaintiffs tenure with defendants, all salespersons were required to attend mandatory staff meetings on the first working day of every month, as well as supplemental meetings when scheduled. D.I. 16, 17 at ¶ 8.7 Because of the compensation system used by defendants, defendants may have been responsible for paying some salespersons minimum wage for attending these meetings.8

On March 16, 1990, plaintiff contacted the United States Department of Labor, Employment Standards Administration, Wage and Hour Division, to determine whether the employees were owed minimum wage for the time spent in these meetings. D.I. 68 at B-208. In this initial phone call, plaintiff spoke with Compliance Officer James Kimball. Mr. Kimball informed plaintiff that defendants were required to pay the minimum wage for every hour employees were required to attend any meeting. D.I. 68 at B-208. Mr. Kimball told plaintiff to attend the next meeting, and if not compensated, he could file a complaint. D.I. 68 at 209. He also advised plaintiff not to talk with anyone about plaintiffs conversation with him. D.I. 64 at A-141.

After speaking with Mr. Kimball, plaintiff ignored Mr. Kimball’s advise and relayed the information he had been given to other salespersons. D.I. 68 at B-49, B-172. Not surprisingly, on Wednesday, March 21, 1990, plaintiff was asked by two of defendants’ managers, Gene Tuer and Alexander Morrow, if he had contacted the Department of Labor. D.I. 64 at Plaintiff told both managers that he had contacted the Department of Labor. D.I. 64 at 69. Finally, in a conversation that same day, plaintiff informed general sales manager Healy of the contact with the Department of Labor. D.I. 68 at B-206.9

Two days later, on March 23,1990, plaintiff was terminated. The precise details of how defendants made the termination decision are not clear. On the morning of March 23, 1990, a managers’ meeting was held at which time plaintiffs termination was discussed. D.I. 64 at A-155. At least one of the managers whom plaintiff claims knew about his contact with the Department of Labor, Gene Tuer, appears to have been at the meeting, but testified that the contact with the Department of Labor was not discussed. D.I. 64 at A-130. As to the actual decision to terminate plaintiff, Mr. Sheridan later explained, “it was strictly a unanimous vote in the sales manager’s force.... ” D.I.

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Bluebook (online)
830 F. Supp. 807, 1993 U.S. Dist. LEXIS 12025, 1993 WL 330486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-future-ford-sales-ded-1993.