Silberstein v. Pro-Golf of America, Inc

750 N.W.2d 615, 278 Mich. App. 446
CourtMichigan Court of Appeals
DecidedApril 1, 2008
DocketDocket 275195
StatusPublished
Cited by113 cases

This text of 750 N.W.2d 615 (Silberstein v. Pro-Golf of America, Inc) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silberstein v. Pro-Golf of America, Inc, 750 N.W.2d 615, 278 Mich. App. 446 (Mich. Ct. App. 2008).

Opinion

PER CURIAM.

In this action seeking damages for wrongful discharge, defendants appeal as of right the November 8, 2006, judgment entered in plaintiffs favor. Defendants also appeal the March 20, 2006, order granting, in part, plaintiffs motion for summary disposition and the December 6, 2006, order denying defendants’ motion for remittitur. We affirm.

In August of 1999, defendant Ajay Sports, Inc. (Ajay), hired plaintiff Ronald Silberstein as its chief financial officer (CFO) and chief administrative officer (CAO). Thereafter, plaintiff became the CFO and CAO for defendants Pro-Golf International, Inc. (PGI), Pro-Golf, com, Inc. (PGC), and Pro-Golf of America, Inc. (PGOA). Ajay is the publicly traded parent company of PGI, PGC, and PGOA, a franchise company. Tom Itin is the chief executive officer (CEO) and chairman of the board for all four corporate defendants. 1

Defendants terminated plaintiffs employment on January 5, 2004. Itin testified that Ajay and its subsidiary companies suffered financially from 1999 to 2003, and that the board of directors voted to discharge plaintiff in order to reduce costs. Plaintiff subsequently filed a complaint against defendants, alleging wrongful discharge in violation of public policy, tortious interference with an advantageous business relationship or expectancy, and conversion. Specifically, plaintiff alleged that Itin pressured him to “cook the books” by *449 making accounting entries in violation of securities and franchise laws and regulations, and that defendants discharged him because of his refusal to do so. Defendants then filed a motion for summary disposition on all counts, arguing that plaintiffs termination did not fall under the public-policy exception to the at-will employment doctrine, that he was terminated because of poor performance and work force reductions, and that his termination was justified by after-acquired evidence of his own misconduct. Defendants alleged that during discovery, they learned that plaintiff stored pornography on his company computer, sexually harassed other employees, received “kickbacks,” and made “questionable” expense charges.

In March of 2004, PGOA filed a counterclaim against plaintiff, alleging breach of contract, breach of fiduciary obligations, and fraud. The counterclaim alleged that plaintiff breached his confidentiality agreement with PGOA, that he received “kickbacks” from PGOA’s independent auditors, and that he used PGOA funds to reimburse himself for personal expenses. PGOA asked that plaintiff disgorge any benefits that he wrongfully retained. Plaintiff subsequently filed a motion for summary disposition with regard to PGOA’s counterclaim.

Following a February 2006 hearing, Judge Rae Lee Chabot ruled on both parties’ motions for summary disposition. The court stated, in relevant part:

All right, as to Plaintiffs motion for summary disposition as to the counter-claim, as to the breach of contract claim, the Court is granting that motion.
[Defendants] have failed to present any evidence that Plaintiff breached the confidentiality agreement other than speculation. ...
Regarding the breach of fiduciary duty claim, this is also dismissed, or granted, as Defendants have failed to provide *450 sufficient evidence in support of this claim. However, the claim for fraud relating to the expense account, the summary disposition is denied. There is sufficient evidence that Plaintiff has charged certain items to the corporate Defendants during his employment and has failed to return those items after his termination, thus, that portion of the motion is denied.
All right, regarding [Defendants’] motion for summary disposition. Again, I’m going to grant in part and deny in part. The motion to dismiss the claim for wrongful termination is denied as Plaintiff has alleged he was terminated due to his refusal to violate not only generally accepted accounting principles [GAAP], but also Sarbanes-Oxley, as well as SEC and FTC rules and regulations. However, to the extent that Plaintiff claims he was terminated for failure to disobey GAAP this claim is dismissed pursuant to [Suchodolski v Michigan Consolidated Gas Co, 412 Mich 692; 316 NW2d 710 (1982)].
All right, [Defendants’] assertion that Plaintiff was terminated due to a work force reduction is denied as sufficient [evidence] has been presented to indicate this was a pretext for the wrongful termination such that the issue should be decided by the ultimate fact finder.
[Defendants’] assertion that Plaintiffs claim is barred by the After Acquired Evidence Doctrine is also denied. This doctrine serves to limit damages, not to limit claims. Thus, that portion of the motion is denied but it may be considered as to damages.
Finally, regarding Plaintiffs claim for conversion, this claim is dismissed ... as Plaintiff has failed to sufficiently allege or to present substantively admissible evidence in support of this claim. I think I hit them all.

The court issued its findings in an order dated March 20, 2006, reiterating that plaintiffs motion for summary disposition was granted with regard to PGOA’s counterclaim “concerning purported ‘referral fees’ and/or ‘kickbacks

*451 At trial, Judge Charles W Simon, Jr., refused to admit evidence of plaintiffs alleged “kickbacks” in light of the March 20, 2006, order. The jury returned a verdict in favor of plaintiff, awarding him $700,000 in economic damages and $150,000 in damages for emotional injury. Thereafter, the trial court issued an amended judgment for $1,320,168.43, including the $850,000 jury verdict, attorney fees, costs, and interest. Defendants subsequently filed a motion for a new trial, judgment notwithstanding the verdict (JNOV), and remittitur. Following a December 6, 2006, hearing, the trial court denied the motion.

I

Defendants first argue that the trial court improperly instructed the jury on the public-policy exception to the at-will employment doctrine. We disagree.

Claims of instructional error are generally reviewed de novo on appeal. Cox v Flint Bd of Hosp Managers, 467 Mich 1, 8; 651 NW2d 356 (2002). But, when the standard jury instructions do not adequately cover an area and a party requests a supplemental instruction, the trial court is obligated to give the instruction if it properly informs the jury of the applicable law and is supported by the evidence. Bouverette v Westinghouse Electric Corp, 245 Mich App 391, 401-402; 628 NW2d 86 (2001). The determination whether a supplemental instruction is applicable and accurate is within the trial court’s discretion. Stoddard v Manufacturers Nat’l Bank of Grand Rapids, 234 Mich App 140, 162; 593 NW2d 630 (1999).

Generally, employment relationships are terminable at will, with or without cause, “at any time for any, or no, reason.” Suchodolski, supra at 695. There is, however, an exception to the at-will employment doctrine *452

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Bluebook (online)
750 N.W.2d 615, 278 Mich. App. 446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silberstein-v-pro-golf-of-america-inc-michctapp-2008.