Oden v. Associated Materials, Inc.

945 N.E.2d 1123, 191 Ohio App. 3d 314
CourtOhio Court of Appeals
DecidedDecember 8, 2010
DocketNo. 25120
StatusPublished
Cited by1 cases

This text of 945 N.E.2d 1123 (Oden v. Associated Materials, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oden v. Associated Materials, Inc., 945 N.E.2d 1123, 191 Ohio App. 3d 314 (Ohio Ct. App. 2010).

Opinion

Belfance, Presiding Judge.

{¶ 1} Appellants, Associated Materials, Inc. and Gentek Building Products, Inc., appeal the decision of the Summit County Court of Common Pleas that granted partial summary judgment in favor of appellee, Hartley Oden. We affirm the judgment of the trial court.

[316]*316BACKGROUND

{¶ 2} Oden began his employment with Gentek Building Products in 1976 with the company’s information-technology department in the Warren Systems office in Warren, Ohio. In 1997, Gentek began to consider closing the Warren Systems office. In July 1997, Gentek’s management met with Oden and subsequently sent him a letter confirming the substance of the parties’ meeting. The main paragraphs of the 1997 letter speak to guarantees made to Oden in the event of closure of the Warren Systems office and Oden’s severance package should Gentek terminate him without cause. The 1997 letter provides:

This will confirm the following items that were discussed at our meeting yesterday at the Cleveland office:
1. In the event that the decision is made to close or relocate the Warren Systems office, you will be able to remain with Gentek in your same position. You will have the choice of working at Gentek’s Cleveland office or telecommuting for a six[-]month trial period. If you choose to telecommute, the telecommuting arrangement can be extended indefinitely at the conclusion of the six[-]month trial period upon the mutual consent of both you and the Company.
2. If the situation arises where your employment with Gentek is involuntarily terminated for any reason other than cause, you will receive an extra six months of separation pay in addition to any separation pay you would be entitled to receive under the Gentek Separation Pay Policy.
•At * *
On behalf of Gentek, we are very pleased that you have decided to remain with the Company and look forward to many mutually rewarding years in the future.

Oden remained employed with Gentek at the Warren Systems office.

{¶ 3} In February 1998, Gentek changed its company-wide Separation Pay Policy by reducing the duration of the benefits available under the policy. Oden was concerned whether the changes affected his prior severance agreement with Gentek as represented in the 1997 letter, which provided that he would receive benefits as calculated under the pre-February 1998 policy, plus an extra six months of severance pay. Oden sent an e-mail to Gentek management explaining his concerns. Oden did not recall receiving a responsive e-mail or attending a meeting exploring his concerns; however, in April 1998, Oden received a letter addressing his severance package. The 1998 letter stated:

This will confirm that if the decision is made to close or relocate the Warren Systems Office, you will be covered by the same policy that applied when the Warren Headquarters Office was moved to the Cleveland area in 1996. The major components of that policy are as follows:
[317]*3171. If your position is eliminated and as a result, your employment is involuntarily terminated for any reason other than cause, you will be covered by the Gentek Building Products, Inc. Severance Pay Plan that was in effect prior to February 16,1998. * * *
2. If your position is moved to the Cleveland area or any other area that is not within a reasonable commuting distance of your home, and you choose not to relocate or commute, you will be eligible for the Severance Pay Plan described in Number 1 above.
The items described above would be in addition to the extra six months of separation pay that you were granted in [the 1997 letter].

The 1998 letter confirmed that Oden would receive severance as calculated under the pre-February 1998 policy, plus an extra six months of severance pay.

{¶ 4} Gentek closed its Warren Systems office in late 1998, after Oden received the 1998 letter. Oden continued to work for Gentek by telecommuting from his home.

{¶ 5} At some point after closure of the Warren Systems office, Gentek became a wholly owned subsidiary of Associated Materials, Inc. (“AMI”). On March 28, 2008, AMI eliminated Oden’s position and terminated his employment, without cause. AMI did not provide Oden with the severance package as described in the 1997 letter and confirmed in the 1998 letter. Instead, AMI offered Oden severance as calculated pursuant to the AMI plan in affect in 2008. The AMI severance plan would provide Oden with less severance pay than the preFebruary 1998 plan, and he would not receive the extra six months’ pay promised to him by Gentek. Oden believed that the 1997 and 1998 letters constituted a contract entitling him to severance pay as provided in Gentek’s pre-February 1998 plan upon his termination without cause. Oden initiated an action against AMI and Gentek (collectively “the company”) seeking ‘to enforce the terms of the severance package as outlined in the letters.

{¶ 6} In the trial court, the company and Oden each sought partial summary judgment on the issue of which severance package the company was obligated to provide Oden: (1) Gentek’s pre-February 1998 policy, plus an additional six months of pay or (2) AMI’s policy in effect at the time of Oden’s termination. The company argued that the 1997 and 1998 letters provided that Oden was only entitled to severance calculated pursuant to Gentek’s policy, plus six months, if he was terminated without cause when the company closed the Warren Systems office. The company argued that because Oden remained employed long after the closure, the company was no longer bound by the 1997 and 1998 letters. Oden countered that the language of the letters does not lead to the interpretation alleged by the company. Instead, Oden asserted that the letters provided that if Oden’s position was eliminated and he was terminated without cause at [318]*318any time after the closure of the Warren Systems office, he would be entitled to the severance package described in the 1997 letter and confirmed in the 1998 letter. Oden argued that each of those events occurred, thus the company’s obligation with respect to severance arose.

{¶ 7} The trial court agreed with Oden. It stated that it was undisputed that the Warren Systems office closed, Oden’s position was eliminated, and he was terminated; thus, the company’s duties were triggered pursuant to the letters. Further, “[the letters] incorporate[ ] no time limitation or duration.” The court granted Oden’s motion for partial summary judgment, finding that he was entitled to severance pay as outlined in the 1997 and 1998 letters. The court denied the company’s motion for partial summary judgment. The parties subsequently reached an agreement as to the amount of damages to be awarded to Oden by the trial court. The damages award was subsequently journalized by the trial court.

{¶ 8} The company appealed the trial court’s judgment. Oden filed a responsive brief and included a cross-assignment of error. The company filed a motion to strike the cross-assignment of error, alleging that it was an improperly filed cross-appeal.

SUMMARY JUDGMENT

{¶ 9} This court reviews a trial court’s ruling on a motion for summary judgment de novo and applies the same standard as the trial court. Chuparkoff v. Farmers Ins. of Columbus, Inc., 9th Dist. No.

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945 N.E.2d 1123, 191 Ohio App. 3d 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oden-v-associated-materials-inc-ohioctapp-2010.