Terrence Shaughnessy v. Interpublic Group of Companies

506 F. App'x 369
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 21, 2012
Docket11-1764
StatusUnpublished
Cited by8 cases

This text of 506 F. App'x 369 (Terrence Shaughnessy v. Interpublic Group of Companies) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terrence Shaughnessy v. Interpublic Group of Companies, 506 F. App'x 369 (6th Cir. 2012).

Opinion

CLAY, Circuit Judge.

In this diversity case, Plaintiff Terrence P. Shaughnessy sued his former employer, Defendant Interpublic Group of Companies, Inc. (“IPG”), under Michigan law for breach of contract and wrongful discharge, alleging that he was terminated after reporting a fellow employee’s unlawful conduct. On appeal, Plaintiff challenges orders by the district court that granted Defendant’s motion to dismiss and denied Plaintiff leave to file an amended complaint. For the reasons that follow, we AFFIRM.

BACKGROUND

The facts, as pleaded by Plaintiff and taken as true for the purposes of this appeal, are as follows:

IPG is a global holding company that owns a family of thirty-eight subsidiary advertising and marketing agencies. In July of 2003, IPG hired Plaintiff to work at its subsidiary company, Momentum Worldwide (“Momentum”). At some unspecified date, Plaintiff was transferred to another of IPG’s subsidiaries, GM R*Works, a company whose sole client is the automotive manufacturer, General Motors Company (“General Motors”). During Plaintiffs five-year tenure with IPG-affiliates, his position was designated “at-will.” Plaintiff was “highly qualified” for his positions and consistently received “outstanding” performance ratings.

On a yearly basis, IPG required its employees to sign a form formally acknowledging their receipt, awareness, and understanding of the company’s written “Code of Conduct” (hereafter the “Code of Conduct” or the “Code”). The Code of Conduct consisted of two parts, titled: “Part 1: Confidentiality and Non-Solicitation Agreement,” and “Part 2: Code of Conduct.” The two parts outlined IPG’s policies on matters such as confidentiality and non-solicitation, conflicts of interest, the receipt of gifts, and prohibitions against trading on inside information.

Significant to the present suit, the Code of Conduct included the following relevant clauses:

A closing statement in Part 1 which, after outlining IPG’s policies on confidentiality and non-solicitation, stated that, “[n]othing herein shall change the at-will nature of my employment relationship with the Company.”

A preamble to Part 2 stated that IPG “take[s] pride in a reputation of high moral and ethical standards” and has a “commitment as a Company and as Individuals” to “act with fairness, honesty and integrity in all of our business dealings.” The preamble also provided:

This Code of Conduct expresses in general terms the standards of conduct that have always been and continue to be expected of all Company employees in their day-to-day activities and in their relationships with those with whom the Company does business ... The Code of Conduct is not a comprehensive document intended to address every legal or ethical issue that you might face, nor is it a description of all the laws and poli- *371 des that apply to Company businesses. It should be used as a guide and a resource to alert you to significant legal and ethical issues that frequently arise.

In addition, the Code encouraged employees to “feel free” to bring up sensitive matters and to direct their questions to IPG’s Human Resources Director or Corporate Legal Department. The Code of Conduct referenced a company “Alertline” for employees to call in order to report violations of the Code or of any of IPG’s other policies and procedures. 1

In the closing section of Part 2, under a heading titled “Compliance,” the Code of Conduct stated that, “[n]o retaliation will be taken against any employee for raising any concern, question or complaint in good faith.”

In addition to the Code of Conduct, Plaintiff also appended to his complaint three other documents as exhibits: (1) an electronic “signature” page confirming that Plaintiff signed his 2008 Code of Conduct form and an electronic note (of unspecified origin, but presumably authored by Plaintiff), in which the writer stated that he reported a Code of Conduct violation in 2007 and was disappointed that his complaint was not handled confidentially; (2) an IPG “Risk Management Bulletin,” generally describing how to “repor[t] corruption when you see it,” and (3) a May 30, 2007 email from IPG’s CEO, Michael Roth, urging employees to complete IPG’s online “Code of Conduct Course,” as a “very important,” “key component” of IPG’s “pledge to be Sarbanes-Oxley compliant by the end of the year.” 2

The complaint alleges that, at some unspecified date, Plaintiff discovered that “at least one management employee” was “engaging in illegal conduct.” Plaintiff discovered that the unnamed employee was falsely billing General Motors for personal expenses, stealing General Motors property and selling it online, using General Motors property for personal purposes, and misusing General Motors funds. Plaintiff reported this misconduct to IPG’s corporate attorney who in turn directed Plaintiff to notify senior management. Plaintiff, relying on IPG’s Code of Conduct and its written confidentiality and anti-retaliation policies therein, reported the misconduct via IPG’s Alertline on March 17, 2007 and April 7, 2007. 3

Shortly after he made the reports, Plaintiff alleges Defendant began retaliating against him by, inter alia, “removing important job assignments, assigning important job functions to other staff members, degrading Plaintiff in front of his clients and co-workers, and [overly scrutinizing] his work performance.” Plaintiff does not specifically state who in the corporation was involved either in his report of misconduct or in any of the alleged retaliatory actions. Plaintiff contends that the retaliatory conduct continued until he was terminated on November 3, 2008. Defendant informed Plaintiff that he was terminated as part of a reduction in force attributable *372 to General Motors’ financial difficulties during the 2008 financial crisis.

Plaintiff filed this diversity suit on May 29, 2010, alleging claims under Michigan law for breach of contract and wrongful discharge in violation of public policy. On April 23, 2010, Defendant moved to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure. Plaintiff filed a response opposing dismissal and a motion for leave to file a first amended complaint, seeking to add some paragraphs to his original causes of action and an additional claim for promissory estoppel.

The district court held oral argument before issuing an order granting Defendant’s motion to dismiss and denying Plaintiff leave to file an amended complaint. Shaughnessy v. Interpublic Grp. of Cos., Inc., No. 09-12077, 2010 WL 2630164 (E.D.Mich. June 28, 2010). Plaintiff moved for reconsideration, focusing on the district court’s ruling that his promissory estoppel claim was futile, but was unsuccessful.

This timely appeal followed. Original jurisdiction for this diversity action exists pursuant to 28 U.S.C. § 1332. Appellate jurisdiction lies under 28 U.S.C.

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Bluebook (online)
506 F. App'x 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrence-shaughnessy-v-interpublic-group-of-companies-ca6-2012.