Boothby v. Texon, Inc.Boothby v. Texon, Inc.
The parties have now been through two trials of the same issues.
2
After the first verdict in favor of the plaintiff,. Colin E. Boothby, the judge allowed the motion of Texon, Inc. (Texan), for a new trial, determining that the verdict was against the weight of the evidence. At the second trial with a different judge, the jury again awarded Boothby
Texon appeals from the denials of motions for judgment notwithstanding the verdict and for new trials. The standard for reviewing the denial of a motion for judgment notwithstanding the verdict is “whether ‘anywhere in the evidence, from whatever source derived, any combination of circumstances could be found from which a reasonable inference could be drawn .in favor of the plaintiff.’
Poirier
v.
Plymouth,
Coliu Boothby, a British citizen, worked for Bata Corporation for thirty years, beginning when he was sixteen years old. Bata was the biggest shoe company in the world. Boothby worked his way up, eventually serving on the personal staff of the owner and chief executive from 1972 until 1978. In 1978, Boothby became the general manager for Bata’s operation in Thailand where he was in charge of three
Texon, headquartered in South Hadley, Massachusetts, manufactured and sold insoles for shoes. Bata was one of its biggest customers, purchasing over two million dollars worth of insoles each year. From 1972 until 1978, Boothby and Lee Asseo, the president of Texon, handled the transactions between the two companies. In the first trial, Boothby testified that he considered Asseo to be “a man of high integrity and honesty,” For Boothby, Asseo’s “word was his bond.”
Because Texon perceived a gap in its senior management, it was interested in recruiting Boothby. Texon had tried to lure Boothby away from Bata in 1976 and again in 1980. In both trials, Asseo said that he discussed the possibility of hiring Boothby with Texon’s board of directors at every board meeting from March, 1980, through August, 1981. Dudley Schoales, the chairman of the board, agreed that there were discussions at the board level about hiring Boothby. When asked if the board had authorized Asseo to meet with Boothby, Schoales said, “We sure pressed him to do it.” When asked what authority the board gave Asseo, Schoales stated, “I said anything that you can do to get him we ought to do.”
Asseo met with Boothby in Bangkok, Thailand, in late January, 1981. Boothby communicated his concerns about leaving Bata to Asseo, noting that the promotional expectations he had made him very happy at Bata. Boothby “wasn’t prepared to make any move out of Bata or to even consider making any move out of Bata unless something was going to be attractive, something was going to be a challenge to [him], something was going to be permanent.” Boothby said that he informed Asseo that he had “almost one hundred percent job security with Bata due to [his] record, thirty years’ service, [his] present position and the need” for senior managers like him. In a follow-up letter, Asseo noted that Texon would be “giving [Boothby] an essentially permanent opportunity to spend the rest of your professional career in the so-called totally civilized side of the world.” In response,
Boothby and Asseo met again in South Hadley in July, 1981. Asseo told Boothby that Texon would be merging with Emhart Corporation (Emhart). Boothby testified that he informed Asseo that he was not going to make a move to Texon unless he had “absolute security.” He also told Asseo that this point was non-negotiable. Asseo assured him that, should he accept the position, Boothby would spend the rest of his working career at Texon.
As part of the merger, Texon was required to inform Em-hart of any employees whose compensation was over $75,000. Boothby’s name was not included, on the advice of an attorney, because he had not yet begun work. The attorney suggested that it would be appropriate for Asseo to call the accepted offer of employment to Emhart’s attention. Asseo did discuss the accepted offer with Steven R. Ruffi who was the executive vice president of Emhart and who agreed that Boothby’s name did not belong on the schedule.
The merger went through and, effective September 4, 1981, the resultant corporation was known as Texon, Inc. Boothby began working at Texon on October 13, 1981. In February, 1983, there was a reorganization in which Asseo became the president of the Footwear Materials Group (FMG). The rest of the footwear concerns were encompassed in the Footwear Industries Group (FIG), headed by Thomas Bleasdale. Boothby’s title was vice president/North American operations in FMG.
On August 31, 1983, Asseo resigned as president of FMG and from Texon. Asseo testified that he had worked with Boothby from October, 1981, through August, 1983, and, at the time he left, knew of no valid reasons for firing Boothby. He also had not noted any inadequacies in Boothby’s per
Asseo said that he had conversations with Ruffi and Bleasdale concerning the naming of his successor. Asseo explained that he had offered the names of George Oks, vice president in charge of European operations, Boothby, and an individual from outside Texon. Bleasdale suggested A. Peter Clackson and William Scanlon, the president of the Shoe Machinery Group. Asseo did not think that the candidates Bleasdale suggested were as appropriate as his own recommendations. Clackson was chosen as Asseo’s replacement.
Boothby testified that Mario del Greco, an employee of twenty-five years, was promoted to regional marketing director for the Americas region. On July 10, 1984, Boothby presented del Greco’s job description to Clackson. Clackson declared that del Greco’s job was a “nothing job” and instructed Boothby to fire him. Boothby declared that this was not proper. They discussed the matter further. Clackson testified that he suggested Boothby demote del Greco to a job below the one from which he had been promoted. Boothby did not want to do this either. In the deposition Clackson said that he then ordered Boothby to fire del Greco. Boothby refused to do so, suggesting that Clackson should do it himself if he felt so strongly about it. Del Greco was not fired. In his deposition, in response to a question, Clackson said: “If I have a manager who reports to me who won’t do what he is told, it isn’t up to me to do what he should have done, it is up to me to rectify that situation.” On August 16, 1984, Clack-son called Boothby into his office to notify him that Clackson was reorganizing FMG and that Boothby’s job was being eliminated. He was told to leave the next day.
Asseo stated that Texon’s informal policy was to terminate employees only for cause and that, before terminating them from the organization, Texon would make efforts to place the employees elsewhere in the company. Emhart had a similar policy. The deposition testimony of Royal Cowles, the vice president for human resources of Emhart Corporation, indicated that he and Clackson did not discuss the possibility of
Asseo said that, during his tenure, no manager had ever been fired for failing to achieve the projection of profits indicated in a submitted budget. He also noted that all layers of management would tinker with the budgets, making modifications.
The plaintiff sued the corporation and three of the officers on various theories. During the proceedings, the plaintiff waived his allegation of breach of implied contract. The judge dismissed the plaintiff’s allegation of promissory estoppel, granted Bleasdale’s motion for summary judgment of the count of intentional interference with an advantageous relationship, and granted Clackson’s motion for a directed verdict on the same count at the close of the plaintiff’s evidence. Another judge dismissed the plaintiff’s allegation of negligence. Special questions were submitted to the jury on the question of the breach of an express contract. The jury in the first trial found that (1) Boothby sustained the burden of proving that Texon entered into a permanent employment contract with Boothby guaranteeing him employment until death or retirement unless earlier terminated for unsatisfactory performance or lack of appropriate work; (2) he sustained the burden of proving that Texon’s board of directors either authorized or ratified the action of Asseo in entering the employment contract; (3) Texon failed to sustain the burden of proving that it had justifiable cause for terminating Boothby’s employment; and (4) Texon failed to sustain the burden of proving that there was no other appropriate work at Texon for Boothby to undertake at the time of his termination.
That jury also returned a verdict as to damages. The jury awarded Boothby $296,100 plus interest as damages from the date of his termination until the date of trial. It also awarded $3,598,866 for future damages. Texon moved for
On April 26, 1989, Black & Decker Corporation acquired Emhart. Black & Decker sold off the shoe manufacturing business on March 30, 1990. The case proceeded to a second trial on a count for breach of express contract only. Again, the jury were presented with special questions. The judge noted that the jury “found there was an oral express contract for permanent employment under the principle set forth in
Carnig v. Carr,
Boothby moved to amend the order to include provision for interest and costs. The judge denied the motion. Texon moved for judgment notwithstanding the verdict and for a remittitur or a new trial. The judge denied the motions, con-' eluding that “there was evidence on which the jury could find Boothby had an excellent secure job with an international concern, Bata Shoe, that he was one of a small number close to the top, that he had excellent security and pension benefits [and] could have retired at age 60, that he did not want to consider a move unless he was sure the position would be permanent with excellent security, that Texon recruited him strenuously and risked loss of a good customer to get Boothby.” The judge continued: “I cannot say there was no basis for the jury’s verdict particularly when two juries have
Texon s Appeal.
1.
The existence of an enforceable contract for permanent employment.
Both parties discuss
Carnig
v.
Carr,
a.
Evidence of authority of Asseo to enter into a lifetime contract.
The defendant, citing
Rydman
v.
Dennison Mfg. Co.,
Boothby introduced evidence tending to prove that the board of directors of Texon had given Asseo the authority to bind Texon to a lifetime contract. Asseo said that the board of directors agreed that Texon needed someone with international experience to direct North American operations. He testified that the board members either knew Boothby personally or by reputation. Asseo reported to the board on his negotiations with Boothby and told the board members that it was job security, not salary, that most concerned Boothby. Asseo and Schoales both said that at one board meeting Schoales, chairman of the board of directors, told Asseo to do whatever necessary to get Boothby to leave Bata and join Texon. None of the other directors objected. The evidence presented entitled the jury to find that Texon considered Boothby especially important. The repeated attempts to recruit Boothby, Asseo’s initiation of communication regarding Boothby’s future, his actual letters to Boothby and his traveling to Bangkok support this characterization. Boothby thus introduced sufficient evidence to allow the jury to find that Texon’s board of directors authorized Asseo to enter into a contract for permanent employment. See
Bloomberg
v.
Greylock Broadcasting Co.,
b.
The term of the contract.
Boothby claimed that he entered into a contract for permanent employment. As stated above, what the parties mean when using the term “permanent employment” depends on the specific circumstances.
In
Campion v. Boston & Me. R.R.,
we held that the “defendant by inviting bids for a ‘permanent vacancy’ did not agree to employ a man for life or for any definite period of time without regard to his fitness for the position. Notwithstanding the plaintiff was hired to fill a ‘permanent vacancy,’ he could later be discharged by the defendant at any time it no longer desired his services.”
Id.
at 581. That case is distinguishable because the facts and circumstances surrounding the advertisement of the permanent vacancy and the acceptance do not lead to the conclusion that “permanent” meant lifetime but rather to the conclusion that “permanent” meant “not temporary.” Boothby testified that he had excellent prospects and substantial benefits at Bata. By accepting employment with Texon, he increased his tax burden and was required to relocate himself and his family to South Hadley, Massachusetts, from Thailand. He repeatedly communicated his concerns about job security to Asseo who in turn expressed them, to Texon’s board of directors. Boothby argued that, to assuage those concerns, Texon offered him a contract for permanent employment. Boothby thus introduced sufficient evidence to allow the jury to find that he had been offered an express contract for permanent employment. Cf.
O’Brien
v.
Analog Devices, Inc.,
c.
The applicability of the Statute of Frauds.
The defendant next argues that, even if a contract existed, the Statute of Frauds would prohibit its enforcement. The defendant
The Statute of Frauds “applies only to contracts which by their terms cannot be performed within the year. It does not apply to contracts which may be performed within, although they may also extend beyond, that period.”
Doherty
v.
Doherty Ins. Agency, Inc.,
2.
Texon’s right to terminate Boothby for failing to perform satisfactorily.
Texon also appeals the denial of its motion for judgment notwithstanding the verdict or for a new trial on the ground that the judge improperly instructed the jury on the question of Texon’s right to terminate Boothby
Texon asserts that the judge erred in instructing the jury that it should use a reasonable person standard when determining whether Boothby’s performance satisfied Texon. 4
In
G & M Employment Serv., Inc.
v.
Commonwealth,
Texon asserts that Massachusetts courts “permit ‘substantial scope for the exercise of subjective judgment’ where an employee holds a management position.”
Goldhor
v.
Hampshire College,
The question of satisfactory performance is a question of fact for the jury.
Chaplain
v.
Dugas,
Texon, in its brief, argues that Boothby’s refusal to follow Clackson’s order that he fire del Greco was insubordination and thus an additional reason for Texon to terminate Boothby. In
Mansfield
v.
Lang,
3.
Was there work for Boothby to do once the footwear materials business was soldi
Texon moved for judgment notwithstanding the verdict and for a new trial on the ground that Boothby did not present sufficient evidence that there was work of the nature for which he was hired that he could have done. Texon asserts that there was not. Black & Decker Corporation purchased Emhart and then sold off the shoe materials business in March, 1990. Texon claims that Boothby was hired because of his expertise in the shoe industry, and that, as a result of Black & Decker’s sale of the shoe materials business, Texon was no longer in the business for which Boothby had been hired. Therefore, Texon asserts, any obligation it had to Boothby under a contract for permanent employment would cease.
Carnig
v.
Carr, supra
at 547. Boothby argues that he was hired as a manager; that Texon actively recruited him because he had the general management skills Texon needed. He presented evidence that other individuals from the shoe materials business had moved to other areas within the larger Emhart. He also argues that a jury could infer from the size of Black & Decker that there would have been work available for a manager like Boothby.
5
4.
The instruction on permanent employment.
Texon argues that it was error for the judge to decline to instruct the jury in accordance with one of their proposed instructions.
6
See
Boleman
v.
Congdon & Carpenter Co.,
5. The calculation of damages. The jury in the second trial awarded $91,000 to Boothby as damages from the date that Black & Decker sold the shoe business, March 30, 1990, to the date of the verdict and $1,096,500 in future damages. 7 Texon moved for judgment notwithstanding the verdict because it claimed “there was insufficient evidence to support a finding that [pjlaintiff will incur any recoverable damages in the future” and that “an award of front pay in this case is too uncertain, contingent or speculative to be susceptible of trustworthy proof.”
Texon argues that there was “no factual basis upon which the jury could have based any award of damages after March 30, 1990. There was no evidence of any salaries or bonuses paid to allegedly comparable employees at Texon, Emhart, or Black & Decker from March 30, 1990, until the date of trial, and Boothby did not identify any position at Black & Decker for which he claims to have been qualified after the footwear materials business was sold.” This, Texon claims, shows that the jury based its award on impermissible conjecture, surmise, and speculation. Texon also claims that Boothby introduced no evidence tending to prove that Black & Decker had a management incentive program, how bonuses, if any, would be computed, or the value or replacement costs of his lost fringe and pension benefits. Finally, Texon argues that the jury’s valuation of pension benefits was pure guesswork absent expert testimony.
The judge determined: “The jury heard considerable evidence as to Boothby’s pay, his bonuses, the pay of other executives in Texon and Emhart, their bonuses, the additional retirement benefits which were considerable and valuable, the retirement benefits he gave up at Bata, the fringe benefits
In
Cutter
v.
Gillette,
In
Maddaloni
v.
Western Mass. Bus Lines, Inc.,
The judge instructed the jury that “whatever you determine' he’s entitled to for prospective damages, future damages, should be reduced to its present economic value.” The judge told the jury that “using its common sense and its understanding and its knowledge of mathematics, may, without the aid of any experts, determine the value, the present economic value of prospective or future earnings.” There was ample evidence as to damages. There was no error.
Boothby’s Cross-appeal. 8
1. Boothby’s allegation of intentional interference with an advantageous relationship. Boothby claimed that Clackson intentionally interfered with Boothby’s relationship with Texon. Clackson moved for a directed verdict, which the judge granted. Boothby appeals.
In
Gram
v.
Liberty Mut. Ins. Co.,
Boothby’s evidence tended to prove that Clackson was angry because Boothby refused to fire del Greco. See
supra
at 473. Boothby’s evidence was that Clackson had poor “people skills” and had engendered low morale by stating that the older workers should have been fired instead of being offered early retirement. The judge ruled that Boothby’s evidence as
2. Boothby’s request for the addition of interest. Boothby moved that the judgment be amended to include interest of twelve per cent from the date of the breach to the date of the verdict. The judge denied the motion, ruling that it would present a windfall to the plaintiff. On appeal, Boothby requests that we “set forth a method that fairly recognizes the substantial losses of use of money to him in this matter and compensates Boothby fully for the loss of the money.” Texon violated the contract in 1984. The second jury rendered the verdict in 1991. The jury did not receive a special interrogatory requesting that it award damages on an annual basis. In his memorandum and order, the judge determined that the plaintiff could have requested súch a question and that Texon did suggest it. In these circumstances, Boothby cannot complain of the judge’s decision not to include interest. In the absence of damages on an annual basis or some other breakdown of the jury’s verdict, there is no way to assess interest. There was no error.
Judgment affirmed.
Notes
Generally, an order for a new trial is not reviewable until after the new trial is held and a final judgment is entered. See
Allied Chem. Corp.
v.
Daiflon, Inc.,
In its brief, Texon notes, “To simplify this appeal, Texon has focused on the denial of judgment notwithstanding the verdict in the first trial. . . .” On the related issues of whether there was just cause for Boothby’s dismissal, and whether a position existed for Boothby after March 30, 1992 (after the first trial in 1988), Texon has focused exclusively on the second trial. We have adopted this simplification.
The judge instructed, “So the question you will then have to determine is whether or not the plaintiff did do his work satisfactorily. And on that issue, the standard for that is whether or not a reasonable employer, a reasonable person in the employer’s position, would he have been satisfied with the plaintiffs performance. The standard that you have to employ is the standard of a reasonable person.
“And to determine whether or not the defendant was justified in terminating the plaintiff, you would have to be satisfied that there was a reasonable basis for the employer’s dissatisfaction with an employee, which was entertained in good faith for reasons such as lack of capacity or diligence, failure to conform to standards of conduct, or other culpable or inappropriate behavior or grounds for discharge reasonably related in the employer’s honest judgment to the needs of his business.
“The fact as to whether or not you would have agreed with it is not the test. The fact is whether or not a reasonable employer would have been dissatisfied, and that’s what you have to determine is whether or not Texon-Emhart, as a reasonable employer, would they, would a reasonable employer have been satisfied that his performance was or was not adequate?”
Boothby asserts that the court should focus on whether there was work available at the time of the breach. He suggests that the question should
Texon’s proposed instruction read: “In determining the intent of the parties, you should consider whether Mr. Asseo’s statements to Mr. Boothby should be interpreted as mere assurances of an employment opportunity with Texon, expected to last into the indefinite future, rather than as a contract of permanent employment for a definite period. You may consider whether Mr. Asseo was rendering friendly advice to Mr. Boothby as to what it was best for Mr. Boothby to do, in other words, hopeful encouragement, sounding only in prophecy, rather than promising permanent employment until retirement or death.”
Texan has not appealed the jury’s awards of damages from the date of termination to March 30, 1990.
The judge in the first trial allowed Texon’s motion for directed verdict on the promissory estoppel count. The judge said the situation between Boothby and Texon did not illustrate a situation where consideration was lacking and reliance took its place. We need not discuss the issue given our decision to affirm the jury’s finding that a contract existed.
Boothby asserts that the judge should have considered Clackson’s comment that it was up to Clackson “to rectify the situation.” Boothby claims that statement “speaks volumes.” The statement, however, was not made at the time Boothby was terminated, but in response to a question during a deposition in October, 1985. The judge could consider that the statement was made to justify Boothby’s termination and did not relate to actual malice at the time of the termination.