Woodward v. Emulex Corp.

854 F. Supp. 2d 149, 2012 WL 1245586, 2012 U.S. Dist. LEXIS 51983
CourtDistrict Court, D. Massachusetts
DecidedApril 13, 2012
DocketCivil Action No. 10-11382-RGS
StatusPublished
Cited by3 cases

This text of 854 F. Supp. 2d 149 (Woodward v. Emulex Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodward v. Emulex Corp., 854 F. Supp. 2d 149, 2012 WL 1245586, 2012 U.S. Dist. LEXIS 51983 (D. Mass. 2012).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ AMENDED MOTION FOR SUMMARY JUDGMENT

RICHARD G. STEARNS, District Judge.

This is an unusual employment case. Plaintiff Frank Woodward’s former em[152]*152ployer, defendant Emulex Corporation,1 admits that it may have made a mistake in terminating one of its most productive salesmen. What is lacking, however, is any evidence that the decision was motivated by discriminatory animus or improper purpose. Because the employment discrimination laws do not authorize federal courts to revise non-discriminatory personnel decisions, however much they may harm affected employees like Woodward, summary judgment will enter for defendants.

PROCEDURAL BACKGROUND

On June 22, 2010, Woodward commenced this action in the Massachusetts Superior Court against Emulex. Woodward brought claims for “illegal discrimination on account of his age” under Mass. Gen. Laws ch. 151 B, §§ 4 and 9 (Count I); “breach of express contract” stemming from Emulex’s alleged failure to reimburse him for certain business-related expenses and to give him a full accounting of his 2009 commissions, and “breach of implied contract” based on Emulex’s allegedly false assurances of long-term employment (Count II).2 Woodward also alleges that codefendant Jeff Hoogenboom, Emulex’s senior vice president of sales, tortiously interfered with Woodward’s advantageous business relationship with Emulex “by advocating for [his] termination on account of his age.” (Count III). Defendants are California residents and Woodward is a resident of Massachusetts. Defendants removed the case to federal district court on diversity grounds, 28 U.S.C. § 1332. After a lengthy, and at times fractious, exchange of discovery, Emulex and Hoogenboom brought this motion for summary judgment. The court heard oral argument on March 27, 2012.

FACTUAL BACKGROUND3

The facts are taken in the light most favorable to Woodward as the nonmoving party. Levy v. FDIC, 7 F.3d 1054, 1056 (1st Cir.1993). Emulex hired Woodward as an account manager in April of 2000. At that time, Woodward signed an “Acknowledgment of Ab-Will Employment.” Defs.’ SOF ¶ 1. The Acknowledgment read as follows.

I understand that my employment relationship with Emulex is at-will. Accordingly, I have the right to resign from employment for any reason at any time, and Emulex has the right to discharge me at any time for any reason not prohibited by statute, with or without good cause, and with or without prior notice. I understand and agree that the at-will relationship will remain in effect [153]*153throughout my employment with Emulex, and that such at-will nature of employment can only be modified by a specific written employment contract signed by me and the President/CEO of Emulex. This Acknowledgment supersedes any prior discussions or agreements regarding the at-will nature of employment, and contains the full and complete agreement regarding such at-will employment.

Id. 2. After three years as an account manager, Woodward was promoted to director of sales, and the following year to senior director of sales (his technical title in Emulex’s nomenclature was Senior Director OEM Account Manager).4 In his role as a senior director, Woodward was responsible for the sale of certain products to EMC, one of Emulex’s major clients.5 Emulex describes Woodward’s duties with respect to the EMC account as follows. “Woodward was responsible for EMC revenue, had quota responsibility for EMC revenue, had forecasting responsibility for EMC revenue and was responsible for coordinating sales activities for EMC products with other parts of the global sales organization.” Defs.’ Reply SOF ¶ 12. Two junior Emulex employees reported to Woodward and assisted him in servicing the EMC account.

Fred Gill, Emulex’s former vice president of sales who recruited Woodward to Emulex, testified that he

proved his worth almost immediately upon being hired, when he was assigned to address the issues of a bad product, Product 8000.... He demonstrated one of his signal strengths, which was knowing who to approach and contact at the executive level of the [EMC] account to help keep the customer calm during the search for a solution.

Gill Aff. ¶ 8. Woodward earned a number of “design wins”6 at EMC and had excellent relationships with its key executives. See PL’s Ex. 4 at 13-14. Woodward was universally admired by clients and coworkers, and over his years at Emulex brought in substantial revenues. Woodward Aff. ¶35 (“EMC was the third or fourth largest customer for Emulex, and provided more than 10% of the company’s revenues.”); Gill Aff. ¶ 10 (“The EMC account Mr. Woodward was responsible for produced some ten percent or so of Emulex’s business, and was one of the three major accounts at Emulex, along with HP and IBM.”).

Trouble manifested itself in the first quarter of 2007, when Emulex’s sales to EMC, particularly the sales of “host bus adapters” (HBAs) (a mainstay for Woodward’s sales team), declined.7 Defs.’ Reply [154]*154SOF ¶ 7. According to Mark Baxter, Emulex’s East Coast senior sales director, “Emulex makes products for blade servers and stand-alone servers that tie into storage. The shift in the industry started bringing a lot more blade servers into the OEM market.”8 Baxter Dep. at 50. As a consequence, Emulex placed “a lot of [its] focus ... on that piece of the business.” Id. However, EMC chose not to sell blade servers.

Woodward faults Emulex’s decision as a mistaken business strategy and maintains that from the perspective of his thirty years of experience in the industry the “sales of HBAs for storage and servers remained strong during 2008 and 2009, and are still strong today.” Woodward Aff. ¶ 52. Woodward contends that Emulex made several other errors in business judgment that negatively impacted the EMC account.9 Among these, Woodward cites Emulex’s decision to exit product lines (AD 1500 and AD2500) that had been designed into applications at EMC (“Invista” and “Reeoverpoint”). Pl.’s Ex. 4 at 4 (Woodward Performance Review). He also faults Emulex’s chronic inability to timely deliver EMC product, its reduction of field support to his EMC sales team, and its practice of shipping product inventory to distributors prior to sale (“preshipping”), which often led to revenue losses on the account. Woodward Aff. ¶¶ 29, 37, 60-61. Finally, Woodward claims that Emulex began to transition responsibility for some EMC sales to other OEM sales managers, appropriating EMC revenues for which he otherwise would have been credited.

Early in 2009, Emulex hired Jeff Hoogenboom as its senior vice president of sales. At their first sales meeting, Hoogenboom informed Woodward that he was expected to “re-energize his [EMC] team.” Woodward Dep. at 194. Woodward later came to believe that Hoogenboom’s statement possibly was a coded reference to the age of his team — known to be Emulex’s “oldest sales team.” Id. at 194-195.

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Bluebook (online)
854 F. Supp. 2d 149, 2012 WL 1245586, 2012 U.S. Dist. LEXIS 51983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodward-v-emulex-corp-mad-2012.