Foust v. San Jose Construction Co.
198 Cal. App. 4th 181
| Cal. Ct. App. | 2011Background
- San Jose Construction hired Foust in 1999 as a project manager under a written letter agreement detailing salary, bonuses, and benefits.
- On day one, Foust signed the policy manual stating at-will employment and merit-based salary adjustments.
- In 2000, Foust received a salary increase to 160,000 with some late bonuses but no further quarterly bonuses.
- In Sept/Dec 2000, Foust drafted compensation outlines reflecting a different bonus formula; he says DiManto urged him to prepare them.
- In 2001, Foust’s salary rose to 175,000; a meeting suggested a 10% performance bonus going forward, which Foust alleges he did not accept in writing; he continued working.
- In 2003, Foust’s salary was reduced to 150,000; changes were implemented without a documented objection, and he filed suit after DiManto’s death; trial record lacked sworn testimony from DiManto.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the letter agreement was modified | Foust asserts no modification occurred | San Jose Construction asserts modification through the at-will policy and subsequent practice | Modification found; no breach shown on appeal |
| Whether the incomplete record defeats meaningful review | Record lacks a reporter’s transcript to rebut trial findings | Record insufficient to challenge credibility/credibility findings | Inadequate record prevents merits review; affirmance upheld |
| Whether sanctions for a frivolous appeal are warranted | (Not explicitly stated in brief) | Appeal frivolous and improper purpose | Sanctions imposed: $8,743 to San Jose Construction and $6,000 to the clerks; appeal deemed frivolous |
Key Cases Cited
- Denham v. Superior Court, 2 Cal.3d 557 (Cal. 1970) (presumption of correctness and need for affirmative showing of error in the record)
- Maria P. v. Riles, 43 Cal.3d 1281 (Cal. 1987) (necessity of adequate record for review in some appeals)
- Ballard v. Uribe, 41 Cal.3d 564 (Cal. 1986) (requirements for reviewing the record on appeal when transcripts are missing)
- Flaherty, 31 Cal.3d 637 (Cal. 1982) (sanctions standard for frivolous appeals)
- Pierotti v. Torian, 81 Cal.App.4th 17 (Cal. App. 2000) (basis for monetary sanctions to opposing party and court)