Phelps v. Field Real Estate Co.

793 F. Supp. 1535, 2 Am. Disabilities Cas. (BNA) 93, 14 Employee Benefits Cas. (BNA) 2483, 1991 U.S. Dist. LEXIS 20175, 58 Empl. Prac. Dec. (CCH) 41,387, 57 Fair Empl. Prac. Cas. (BNA) 1508, 1991 WL 336658
CourtDistrict Court, D. Colorado
DecidedDecember 31, 1991
DocketCiv. A. 89-M-2019
StatusPublished
Cited by3 cases

This text of 793 F. Supp. 1535 (Phelps v. Field Real Estate Co.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phelps v. Field Real Estate Co., 793 F. Supp. 1535, 2 Am. Disabilities Cas. (BNA) 93, 14 Employee Benefits Cas. (BNA) 2483, 1991 U.S. Dist. LEXIS 20175, 58 Empl. Prac. Dec. (CCH) 41,387, 57 Fair Empl. Prac. Cas. (BNA) 1508, 1991 WL 336658 (D. Colo. 1991).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER

MATSCH, District Judge.

The plaintiff, John F. Phelps (“Phelps”), was born and raised in a politically and socially prominent family in Pueblo, Colorado. He obtained Bachelor of Science and Master of Business Administration degrees from Arizona State University. From 1972 through 1974 he served in the United States Army, including service in Viet Nam with a military assistance command team. Phelps was a real estate salesman in Pueblo after returning from military service. In 1979 he began work with Fuller & Company in Denver, selling commercial real estate, including undeveloped land. He obtained his real estate broker’s license in 1983. Phelps was successful in real estate sales but wanted to move to a management position. In 1984 he interviewed with Ray Stanley (“Stanley”), then president of Field Real Estate Company (“Field”). Western Capital Investment Corporation (WCIC) was incorporated in December, 1984 as a publicly held unitary savings and loan holding company to own and operate the following subsidiary corporations: Bank Western, a federal savings bank; Field Real Estate Company; Field Mortgage Company; Institutional Investors Corp. and West *1537 ern Insurance Service, Inc. Before the formation of WCIC, Midland/Western Federal Savings was an operating financial institution and the owner of Field. Field, a Colorado corporation, is a full-service real estate brokerage firm, offering commercial and residential real estate services, including sales, leasing, management, and maintenance of properties in Colorado. W. Douglas Poole became chairman of the board and chief executive officer of Field in November, 1984. After his interview with Stanley, the plaintiff wrote a letter, dated December 17, 1984, setting forth his view of the position to which he aspired. Included with that letter were budget projections for Field to operate as a third party commercial sales and leasing brokerage. The principal business of Field had been service to Bank Western and its predecessor, Midland/Western Federal Savings. A letter, dated January 9, 1985, signed by Stanley and Phelps set forth the mutual understanding of the terms and conditions under which Phelps joined the Field organization as vice president of the commercial real estate division. That letter specifically provided that it was not to be considered as a contract. The letter set out a compensation package of $60,000 per year plus 2>lk% of net commissions generated by the division, with a guarantee of $82,000 during the first two years. The letter did not include any description of the duties of the position. (Plaintiffs Exhibit 5). Phelps was also interviewed by Poole and by Juni-us Baxter, the chief executive officer and chairman of Bank Western and WCIC.

The plaintiff began his work at Field in February, 1985. At that time, a job specification and description was created for the commercial real estate division manager. (Plaintiffs Exhibit 7) Generally speaking, the position was described as managing the operation of the division and did not call for any direct selling. That was consistent with the plaintiffs wishes. Poole told Phelps that his budget projections were too low and Poole provided substantially higher budget projections. When Phelps said these were unrealistic and too optimistic, Poole said that Phelps had no idea of the volume that would be generated by Bank Western. Based on his prior experience, Phelps was working on the premise that when Field was fully operational, each sales agent would be expected to generate $2 million in sales per year; but Poole said he expected $8 million per agent in each year.

Phelps had been successful in real estate sales by being active in the community and “networking” with others. Poole’s business background was in retail sales. He had long experience with Allied Department Stores and was president of Denver Dry Goods Company for seven years before coming to Field in November, 1984. Poole had no experience in the real estate business. He believed in “cold calling,” to initiate sales. Despite these differences, the two men got along well and in Poole’s opinion, Phelps did a “good job” in 1986 and in 1987.

The commercial real estate division was divided into two parts,, a commercial sales division and a commercial leasing division. Phelps was manager of the commercial sales division and Stanley was the manager of the commercial leasing division. Phelps reported directly to Poole.

In November, 1986, Phelps learned that he had tested positive for the Human Im-muno-Deficiency Virus (HIV), the virus which causes the disease Acquired Immu-no-Deficiency Syndrome (AIDS). Blood tests confirmed Phelps’ suspicion that he was HIV-positive based on a probable period of exposure between 1981 and 1983. Phelps was not ill, had no symptoms of disease and his condition did not interfere with his ability to perform his job. Phelps kept the fact that he was HIV-positive secret and did not disclose his medical condition to anyone, including friends, co-employees and anyone in management at Field.

By letter dated January 22, 1987, Poole verified the understanding of the employment arrangement for Phelps by extending the employment letter of January 9, 1985 with the same compensation provisions and company benefits, except that Phelps was to be granted listing agreements. Specifically, the property known as the “Midland *1538 Building” was given to him for listing for Field beginning January, 1987. Additional listing assignments were to be selected by Poole. Phelps indicated his agreement with this arrangement by his signature, dated January 28, 1987.

On May 8, 1987, Phelps and Norman R. Marsh (“Marsh”) were made senior vice presidents of Field. Marsh was the manager of accounting, administration and personnel at Field. He was, essentially, an executive officer serving Poole. Marsh’s background was in accounting. Phelps was pleased with this recognition of his performance as well as the performance review reports given to him. The practice at Field was to make an annual written performance review on a printed form with evaluations in prescribed areas of performance on a numerical rating of 5 through 1, with 5 being for outstanding performance. Poole wrote the performance reviews and gave Phelps mostly 3’s for the 1986 evaluation. The only written comment under “areas for growth” was “needs to take a more hands-on approach to job.” (Plaintiffs Exhibit 6).

In the annual review for the calendar year 1987, Phelps was given mostly 4’s. Under areas for growth, Poole wrote “more personal involvement in development of third party business” and “reduce amount of time devoted to outside activities in order to fully concentrate on development of commercial sales division.” (Plaintiff’s Exhibit 18) The comment about time devoted to outside activities reflected the disagreement between the men concerning the importance of such activities in generating sales. Poole was jealous of time away from the office. Yet, Poole and Phelps continued to have a good working relationship. Phelps had developed several big real estate transactions for Field. Things changed in March, 1988, when Poole found an anonymous note on his desk, which read as follows:

Mr. Poole:
Some of us overheard a telephone conversation John Phelps was having with his doctor. There’s no doubt that [he] has a fatal blood desease [sic].

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Related

Arnett v. Tuthill Corp., Fill-Rite Div.
849 F. Supp. 654 (N.D. Indiana, 1994)
Phelps v. Field Real Estate Company
991 F.2d 645 (Tenth Circuit, 1993)
Phelps v. Field Real Estate Co.
991 F.2d 645 (Tenth Circuit, 1993)

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Bluebook (online)
793 F. Supp. 1535, 2 Am. Disabilities Cas. (BNA) 93, 14 Employee Benefits Cas. (BNA) 2483, 1991 U.S. Dist. LEXIS 20175, 58 Empl. Prac. Dec. (CCH) 41,387, 57 Fair Empl. Prac. Cas. (BNA) 1508, 1991 WL 336658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-v-field-real-estate-co-cod-1991.