Rochlis v. Walt Disney Co.

19 Cal. App. 4th 201, 23 Cal. Rptr. 2d 793, 93 Daily Journal DAR 12744, 93 Cal. Daily Op. Serv. 7515, 1993 Cal. App. LEXIS 1010
CourtCalifornia Court of Appeal
DecidedSeptember 14, 1993
DocketB066993
StatusPublished
Cited by39 cases

This text of 19 Cal. App. 4th 201 (Rochlis v. Walt Disney Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rochlis v. Walt Disney Co., 19 Cal. App. 4th 201, 23 Cal. Rptr. 2d 793, 93 Daily Journal DAR 12744, 93 Cal. Daily Op. Serv. 7515, 1993 Cal. App. LEXIS 1010 (Cal. Ct. App. 1993).

Opinion

Opinion

CROSKEY, J.

The plaintiff and appellant, Jeffrey A. Rochlis (Rochlis) appeals from a summary judgment entered against him on his four-count first amended complaint. He had sued the defendants and respondents, The Walt Disney Company (Disney), Walt Disney Imagineering (WDI) and Martin A. Sklar (Sklar) (collectively, the defendants) for damages arising out of his employment by Disney and WDI and the subsequent termination of that employment in 1989. Rochlis argues that summary judgment was improper because material issues of fact remain to be resolved with respect to each of his four alleged causes of action.

We conclude that the evidentiary showing made by the defendants demonstrated that they were entitled to judgment, as a matter of law, on each of Rochlis’s claims. We also reject Rochlis’s argument that the trial court improperly shifted to him the burden of providing evidence. We therefore will affirm the judgment.

*207 Factual and Procedural Background

As this matter comes to us as an appeal from a summary judgment, we examine the facts demonstrated by the admissible evidence submitted by the parties. 1 The following recitation of the facts is based upon Rochlis’s own deposition testimony and documentary evidence about which there is no dispute.

Rochlis went to work for Disney in February 1985 as an assistant to the chairman. In April of that year, he was appointed Senior Vice-President of Finance and Administration and given a written contract which provided for a $225,000 annual salary and a three-year term. As Rochlis conceded in his deposition, this was an important commitment by Disney which gave him job security. However, he admits also recognizing that neither he nor Disney would have any legal obligation for continued employment after the expiration of that contract.

Sometime prior to October 1987, Rochlis became unhappy with his position as it involved primarily administrative and managerial duties and he desired to become involved in more creative activity. Indeed, he expressed the view to a number of people that he would probably leave Disney when his contract expired if he could not be transferred to a more satisfactory job. 2

Disney, apparently anxious to retain Rochlis, sought to accommodate his desire for a new position and after some discussion offered him a position at WDI. 3 He accepted and, on October 6, 1987, became WDI’s executive vice-president, its second highest position. While his primary responsibilities were still to be in the area of finance and management, he was told he would have input, although not a decisionmaking role, in creative matters. 4

Apparently, the negotiations of the financial terms for this job were somewhat extended; but at their conclusion in the fall of 1988 it was orally *208 agreed that Rochlis’s salary of $225,000 would remain initially but at the end of 1988 it would increase to $250,000. In addition, he would be paid a discretionary bonus and would receive stock options. Disney offered 8,000 options; Rochlis insisted on, and ultimately received, an agreement for 20,000. As to the question of a contract for a term of years, Disney refused; 5 however, it was agreed that if Disney terminated the relationship then Rochlis would receive a year’s salary as severance pay. 6

Frank Wells, the President of Disney who negotiated the agreement with Rochlis, memorialized their agreement in a handwritten note which he gave to Rochlis with an invitation that Rochlis reduce to writing anything he thought appropriate as a further memorial. In neither Mr. Wells’s note, nor in the handwritten note Rochlis later delivered to Wells, is there any mention of an agreement that Rochlis would be employed for a term of years. Indeed, it appears that the converse is true. Wells’s note clearly specified that there would be “No K”; more to the point, Rochlis later signed the stock option agreement necessary to the vesting of his option rights and its provisions confirm the absence of any term agreement. 7

This employment change, unfortunately, did not provide Rochlis with the job satisfaction he was seeking. Apparently, the various projects on which WDI was working were not going well and were, in significant part, behind schedule and over budget. This was evident to Rochlis within a few weeks after he assumed his new duties. For example, by January 1988, he expressed the view in a written memo that Splash Mountain was “a disaster.” Indeed, by that time his “understanding was considerably different than what I was led to believe I was going to be doing when I got there.”

By January 1988, Rochlis was convinced that, rather than himself, someone with a top construction background was needed by WDI to handle the massive construction projects such as Splash Mountain. Ultimately, Rochlis and Wells concluded that it was necessary to hire a person with such skills and Rochlis was authorized to do so.

In spite of his reservations about his ability to solve WDI’s immediate problems Rochlis, in January 1988, felt that his compensation was inadequate for the size of the job and he proposed an increase in his salary from *209 $225,000 to $300,000. While Wells promised to consider the matter, nothing happened for several months. In July 1988, Rochlis reminded Wells of the matter and Wells proposed a one-time $100,000 special bonus but not a salary adjustment. Rochlis rejected this as inadequate. Wells also rejected Rochlis’s request that he be given the title as WDI’s president. However, as we have already described, there was an ultimate agreement on a salary increase to $250,000 (effective on January 1, 1989), plus a discretionary bonus.

Although no one at Disney had indicated that he might be fired and he had no expectation that he would be discharged, his increasing dissatisfaction with his job and the amount of his compensation led him to the conclusion that he had to leave. On January 27, 1989, he resigned. 8 Prior to doing so, he did not seek any other position with Disney. Several months later he entered into negotiations with a company known as King World. These negotiations ultimately resulted in a three-year employment contract beginning in February of 1990. The record reflects that the compensation provided for in such agreement was significantly more lucrative than what he had enjoyed at Disney. However, after seven months in that job he resigned from King World, claiming that he had been constructively discharged. He settled the ensuing dispute with King World and then filed this action against the defendants on October 31, 1990.

Rochlis asserted separate claims for breach of contract, fraud, defamation and conspiracy. After a successful demurrer, which resulted in the filing of a first amended complaint on January 30, 1991, defendants filed a motion for summary judgment.

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19 Cal. App. 4th 201, 23 Cal. Rptr. 2d 793, 93 Daily Journal DAR 12744, 93 Cal. Daily Op. Serv. 7515, 1993 Cal. App. LEXIS 1010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rochlis-v-walt-disney-co-calctapp-1993.