Mott v. Anheuser-Busch, Inc.

910 F. Supp. 868, 24 Media L. Rep. (BNA) 1353, 1995 U.S. Dist. LEXIS 19308, 1995 WL 765358
CourtDistrict Court, N.D. New York
DecidedDecember 29, 1995
Docket5:90-cv-01047
StatusPublished
Cited by6 cases

This text of 910 F. Supp. 868 (Mott v. Anheuser-Busch, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mott v. Anheuser-Busch, Inc., 910 F. Supp. 868, 24 Media L. Rep. (BNA) 1353, 1995 U.S. Dist. LEXIS 19308, 1995 WL 765358 (N.D.N.Y. 1995).

Opinion

MEMORANDUM-DECISION AND ORDER

MUNSON, Senior District Judge.

This is a suit for defamation and wrongful termination arising out of plaintiffs former employment as the supervisor of a wastewater treatment laboratory located at Anheuser-Busch’s brewery in Baldwinsville, New York (“treatment plant” or “plant”). Plaintiffs claims for relief stem from the circumstances attendant to Anheuser-Buseh’s public announcements that three of its employees (one of whom, though remaining unnamed in the announcements, was plaintiff) had engaged in illegal conduct at the treatment plant, that the employees’ activity had been undertaken without the knowledge of other corporate officials, and that the employees had been terminated following an internal investigation. Presently before the court is defendants’ motion for summary judgment on all counts. Defendants argue first that plaintiffs wrongful termination claims should be dismissed because plaintiff was terminable at-will, and second that plaintiffs defamation claims should be dismissed because plaintiff cannot establish that defendants’ actions in conducting and reporting the results of its internal investigation were grossly irresponsible. The court heard oral argument in Syracuse, New York on May 12, 1995.

BACKGROUND

On February 6, 1989, the Syracuse Post-Standard reported claims by a former Anheuser-Busch employee that other employees at the Baldwinsville treatment plant were falsifying reports to the New York State Department of Environmental Conservation (“DEC”), See Exhibit (“Exh.”) C, attached to Meagher Affidavit, Document (“Doe.”) 31. In response to this allegation AnheuserBusch, through its General Counsel Walter Suhre, initiated an internal investigation. The investigation revealed that plant supervisory employees had engaged in an ongoing program of taking and reporting misrepresentative samples of the plant’s effluent, resulting in false reports to the DEC that the treatment plant was in compliance with its State wastewater permit.

The investigation specifically found that personnel were guilty of: (i) pre-testing plant effluent for phosphorous to see if results of a sample taken at that time would meet State standards, while refraining from sampling when they knew the samples would show impermissibly high phosphorus levels; (iij treating the wastewater with alum, a phosphorus-reducing chemical, immediately before and in conjunction with taking samples for purposes of reporting phosphorus content to the State, thereby artificially reducing the phosphorus values reported; (iii) taking required samples immediately after “alum-dosing” on consecutive Saturdays and Sundays, using the Saturday result as the sample for the preceding week and the Sunday result as the sample for the following week, thereby giving a deliberately false view of the general phosphorus levels of the effluent; and (iv) using hoses to bypass part of the wastewater treatment system.

The Anheuser-Busch investigation concluded that four treatment - plant officials knew about, were responsible for, or participated in these activities: the Manager of' Environmental Operations, Richard Moore; his subordinate, the manager of the wastewater treatment plant, Robert Cordell; a laboratory supervisor, plaintiff Lyndi Mott; and her predecessor, Ann Marie Meehan. As a result, Moore and Cordell were terminated, plaintiff resigned, and Meehan was reprimanded.

The results of the investigation were summarized in a 56-page report submitted by Anheuser-Busch to the DEC in April, 1989. In connection with these events, the State brought civil charges against AnheuserBusch for violations of its State Pollutant *870 Discharge Elimination System (“SPDES”) permits. In September, 1989, AnheuserBusch settled these charges by signing, together with the DEC and the New York Attorney General, an order on consent that included paying a $925,000 penalty to the State. See Order on Consent, Exh. G, attached to Meagher Affidavit, Doc. 31. Later, on September 13, 1989, Anheuser-Busch pleaded guilty to three misdemeanor counts for violation of the SPDES permits, and consented to an additional fine of $75,000. See Transcript of Sentencing, Exh. H, attached to Meagher Affidavit, Doc. 31. As part of the plea agreement Anheuser-Busch and all its officers and employees other than Moore, Cordell, and plaintiff were released from further civil or criminal exposure. Id. The State’s criminal investigation for environmental and related violations remained open as to Moore, Cordell, and plaintiff. Id.

On September 14, 1989, Anheuser-Busch officials held a press conference at which defendant Suhre issued a news release. Suhre read aloud, in pertinent part, as follows:

Anheuser-Busch, Inc. has agreed to pay $75,000 in fines and $925,000 in civil penalties to settle issues with the State of New York relating to the operations of the company’s Baldwinsville brewery wastewater treatment facility.
These issues center around actions by three employees at the treatment plant, undertaken without the knowledge of their supervisors and contrary to company policies. The company immediately began an internal investigation after learning of possible problems through a newspaper account, which was based on allegations made by a former employee at the waste-water treatment plant.
The company has taken steps to correct the problems and ensure that they will not occur again. Two of the employees were dismissed and the third resigned. Anheuser-Busch voluntarily supplied the New York Department of Environmental Conservation with a full report of the company’s investigation.
Although the company did not have pri- or knowledge of the actions of these three individuals, it is legally responsible for the on-the-job activities of its employees. Therefore, Anheuser-Busch agreed to the present settlement.

News Release, Exh. J attached to Meagher Affidavit, Doc. 31. The news release was initially drafted by Anheuser Busch’s public relations firm. It was revised and redrafted several times by various employees of Anheuser-Busch, including Suhre.

In response to questions at the press conference, Suhre is alleged to have stated that:

Nobody in St. Louis knew that that plant was not being operated the way it was supposed to;
Our investigation left no stone unturned and nobody above Moore could have known what was going on;
We are convinced without question that knowledge of what went on, and participation of what went on was limited to senior management at the wastewater treatment plant.

These statements were allegedly published in various media. See Amended Complaint, Doc. 7, at 10-11.

On September 17,1989, the Syracuse Herald-American published an editorial entitled “Pollution Problems; Brewery Tries to Shift Blame,” which accused Anheuser-Busch of engaging in a deliberate cover-up at the treatment plant by “shift[ing] the blame onto its former workers to distance its good name from the whole affair.” See Defendants’ (“Def.”) Memorandum (“Mem.”) of Law in Support of Their Motion for Summary Judgment, Doc. 30, at 21.

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910 F. Supp. 868, 24 Media L. Rep. (BNA) 1353, 1995 U.S. Dist. LEXIS 19308, 1995 WL 765358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mott-v-anheuser-busch-inc-nynd-1995.