Verduzco v. General Dynamics, Convair Division

742 F. Supp. 559, 1990 WL 118224
CourtDistrict Court, S.D. California
DecidedApril 4, 1990
DocketCiv. 88-1813-G(M)
StatusPublished
Cited by5 cases

This text of 742 F. Supp. 559 (Verduzco v. General Dynamics, Convair Division) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Verduzco v. General Dynamics, Convair Division, 742 F. Supp. 559, 1990 WL 118224 (S.D. Cal. 1990).

Opinion

MEMORANDUM DECISION AND ORDER

GILLIAM, District Judge.

The defendant’s motion to dismiss or, in the alternative, for summary judgment, to *560 strike portions of the complaint, and for a more definite statement was heard on January 8, 1990, before the Honorable Earl B. Gilliam. Michael Crosby represented the plaintiff, Max R. Verduzco. Michael Tracy represented the defendant, General Dynamics, Convair Division. At the conclusion of the hearing, the court took under submission the motion to dismiss the third cause of action, which alleges retaliatory discharge in violation of public policy. Having considered the memoranda of points and authorities, the court issues this ruling denying the defendant’s motion to dismiss for failure to state a claim.

FACTS

Max R. Verduzco worked for General Dynamics for thirty-seven years. In 1984, General Dynamics told Verduzco that he had been targeted for termination because his work was unacceptable within the context of an overall work force reduction. Verduzco chose early retirement over the other options that General Dynamics offered to him.

On March 5, 1985, Verduzco filed a wrongful termination suit against General Dynamics in state court. On November 23, 1988, General Dynamics removed the case to this court. On September 11, 1989, the court permitted Verduzco to amend his complaint.

Verduzco’s first amended complaint alleges a claim for retaliatory discharge in violation of public policy. He claims that the public policy of the United States government and its Defense Department is that “private contractors obligated to fulfill government contracts must do so with reasonable care, under strict security procedures and using quality material assembled in a workmanlike manner.” First Amended Complaint, at 6. As a basis for that claim, Verduzco alleges that General Dynamics Convair Division is in the business of building weapons systems for the United States Department of Defense. Verduzco alleges that he was a production control supervisor in charge of subassemblies for the Cruise Missile, a defense department project.

Verduzco alleges that he confronted General Dynamics Convair Division’s head of security, Mr. Mendoza,

with serious charges that security was so lax that workers at the plant could walk off with blueprints and other material, dissemination of which, he reasonably believed, would compromise the nation’s security interests.

First Amended Complaint, at 5. Verduzco alleges that he complained, to whom he does not say, that workers with inadequate security clearances commonly reviewed documents that required a higher security clearance. Verduzco also alleges that he complained when the materials needed for assembly were shoddy or unavailable. Verduzco claims that he was repeatedly assured that General Dynamics would take care of the problems.

DISCUSSION

In a motion to dismiss, the court must consider only the face of the complaint, assuming the facts plead to be true and viewing them in the light most favorable to the nonmoving party. Powe v. Chicago, 664 F.2d 639, 642 (7th Cir.1981); California v. United States, 512 F.Supp. 36, 39 (N.D.Cal.1981). In a motion to dismiss for failure to state a claim, the court must decide whether the facts alleged, if true, would give rise to an enforceable legal right. De La Cruz v. Tormey, 582 F.2d 45, 48 (9th Cir.1978).

Verduzco is asking this court to recognize a public policy that is not based on or derived from a statute. In addition, because Verduzco never reported the alleged security violations to anyone outside General Dynamics Convair Division, he is asking the court not to require him to have done so in order to state a claim for retaliatory discharge in violation of public policy.

In Foley v. Interactive Data Corp., 47 Cal.3d 654, 254 Cal.Rptr. 211, 765 P.2d 373 (1988), the California Supreme Court expressly reserved ruling on whether the “public policy” alleged in a claim for retaliatory discharge in violation of public policy must be based on a violation of a statute or derived from a statute. Foley, 47 Cal.3d at *561 669, 254 Cal.Rptr. 211, 765 P.2d 373. Lower courts have gone both ways on this issue. Some courts have held that the state legislature is the only source of this type of public policy determination. Shapiro v. Wells Fargo Realty Advisors, 152 Cal.App.3d 467, 477, 199 Cal.Rptr. 613 (1984); see also Tyco Industries, Inc. v. Superior Court, 164 Cal.App.3d 148, 159, 211 Cal.Rptr. 540 (1985). Other courts have stated that courts, as well as the legislature, may enunciate fundamental public policy. Dabbs v. Cardiopulmonary Management Services, 188 Cal.App.3d 1437, 1443, 234 Cal.Rptr. 129 (1987); Koehrer v. Superior Court, 181 Cal.App.3d 1155, 1165, 226 Cal.Rptr. 820 (1986).

General Dynamics attempts to reconcile the opposing views by arguing that American Computer Corp. v. Superior Court, 213 Cal.App.3d 664, 261 Cal.Rptr. 796 (1989) (a case similar to and following Foley, involving an employee reporting alleged embezzlement to his employer), suggests the use of a balancing test to determine whether the plaintiff truly acted in the public interest — in effect, whether a public interest is implicated. General Dynamics contends that when the nexus between the plaintiffs conduct and the public interest is tenuous, as when no statute has been violated, the court should dismiss the claim unless the plaintiff complained to a public agency.

This analysis works in cases such as Foley and American Computer in which the public interest is not implicated at all unless the plaintiff reports the alleged wrongdoing to an outside agency. In both of those eases, reporting the embezzlement to an outside agency would have transformed the interest from purely private to public only because of a general public interest in promoting the reporting of crimes to the police.

General Dynamics’ reasoning, however, does not work in situations in which a fundamental public interest is implicated whether or not the plaintiff reports any alleged wrongdoing to an outside agency, and whether or not a statute has been violated. In Dabbs v. Cardiopulmonary Management Services, 188 Cal.App.3d 1437, 234 Cal.Rptr. 129 (1987), the California Court of Appeal held that the plaintiff had stated a claim for retaliatory discharge in violation of public policy based on general societal concerns for the health, safety, and welfare of hospital patients. The plaintiff, a certified respiratory therapist, boycotted work in protest of what she considered to be unsafe working conditions. Her employer had begun scheduling only one certified respiratory therapist for duty on a shift during which he customarily scheduled three such therapists. Id. at 1439, 234 Cal.Rptr. 129.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lark v. Montgomery Hospice, Inc.
994 A.2d 968 (Court of Appeals of Maryland, 2010)
Gantt v. Sentry Insurance
824 P.2d 680 (California Supreme Court, 1992)
Collier v. Superior Court
228 Cal. App. 3d 1117 (California Court of Appeal, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
742 F. Supp. 559, 1990 WL 118224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verduzco-v-general-dynamics-convair-division-casd-1990.