MEMORANDUM OPINION AND ORDER
THIS MATTER comes before the Court on Defendant Papa John’s Motion for Summary Judgment Re: Plaintiffs Breach of Contract Claim, filed August 29, 2012 (Doc. 92)(“MSJ”). The Court held a hearing on October 15, 2012. The primary issues are: (i) whether a reasonable jury could find that Defendant Papa John’s Inc., by its words and conduct, modified an express at-will employment contract, and communicated to Plaintiff Timothy Hart-nett that he would only be terminated for cause and in accordance with specified procedures; and (ii) whether, if an implied contract exists that modified the express contract, a genuine issue of material fact exists whether Papa John’s terminated Hartnett in accordance with that implied contract. Because the Court concludes that genuine issues of material fact are present and evidence exists to support all of Hartnett’s claims, the Court will deny Papa John’s motion. The Court is not persuaded that Papa John’s is entitled to judgment as a matter of law that no implied contract for employment exists that modified Hartnett’s at-will status. Although Papa John’s Management Agreement, filed August 29, 2012 (Doc. 92-3)(“Management Agreement”), and Papa John’s Corporate Restaurant Team Member Handbook, filed August 29, 2012 (Doc. 92-2)(“Team Member Handbook”), expressly provide Hartnett’s employment to be at-will, neither document disclaims the possibility of modifying Hartnett’s at-will status through either written or oral communications. Additionally, Hartnett attended five mandatory training workshops, at which he was taught that certain procedures must be followed prior to terminating an employee in certain instances, and was taught that guidelines, including investigating circumstances and communicating with the investigated team member, should be followed in a termination process. When Hartnett was promoted to a Director of Operations in 2003, he was told by a supervisor, Dan Braafhart, that he need not worry about leaving Papa John’s, as long as Hartnett continued to perform and did not violate company policy or procedures. Lastly, Hartnett, received a memorandum from a supervisor who oversaw his own termination process, Memorandum from Rick Woods Re: People Policies, filed September 12, 2012 (Doc. 101— 18)(“Woods Memo.”), which established mandatory policies and procedures that must be. followed by Directors of Operations, such as Hartnett, and applied to the termination of management team members, such as Hartnett. In light of the totality of Hartnett’s relationship with Papa John’s, the Court concludes that a reasonable jury could find that Hartnett could objectively and reasonably rely on Papa John’s words and conduct for Hart-nett’s expectation that his employment would only be terminated for cause, and after certain procedures were followed. Additionally, evidence exists to support Hartnett’s contention that Papa John’s
FACTUAL BACKGROUND
The parties do not contest each other’s facts.
I. Hartnett’s Management Agreement.
Hartnett’s Management Agreement with Papa John’s, signed on the day he was hired, provides:
Notice to Employees. This document does not grant, create or extend any contractual rights the above employee [sic] with respect to (i) such employee’s current or future employment, or (ii) any benefits in connection with such employment. The employee or the employer may sever the employment relationship at any time or for any reason at all.
Management Agreement, ¶ 6, at 1. Hart-nett signed the Management Agreement, affirming that the contract was executed and delivered to him, and that he relied upon the agreement to explain his “consideration [for] such employment” with Papa John’s. Management Agreement at 1.
2. Papa John’s Corporate Restaurant Team Member Handbook.
Papa John’s Corporate Restaurant Team Member Handbook provides that:
Neither this Code nor any of the policies described in this Code may be construed as an employment contract. Papa John’s does not create any contractual rights for any team member by issuing this code or other policies.
Employment At Will
Employment with Papa John’s is entered into voluntarily. Team members may resign at any time, for any reason, with or without notice. Similarly, Papa John’s is free to conclude the employment relationship at any time.
Neither this handbook nor any of the provisions contained in the handbook can or should be construed as giving rise to any sort of contractual or legal obligation on the part of Papa John’s. This team member handbook supersedes all previous team member handbooks. The effective date of this handbook is June 2006. 2
MSJ ¶ 17, at 4-5 (citing “Team Member Handbook”). Additionally, in the section of the handbook titled “Standards of Conduct and Corrective Action,” the handbook states:
Violation of Papa John’s standards of conduct in one of the following forms of corrective action [sic]: separation of employment, demotion, written warning, verbal warning, coaching or training. In arriving at the appropriate decision for corrective action, the following will be considered:
• the seriousness of the infraction;
• the past work record for the team member; and
• the circumstances surrounding the matter.
Team Member Handbook at 4 (Doc. 101-9). The Team Member Handbook then provides a “partial list of infractions which may result in corrective action up to and including separation of employment,” after which the Team Member Handbook states: “This list is intended to be representative of the types of activities which may result in corrective action. It is not intended to be comprehensive and does not alter the employment at-will relationship between the team member and Papa John’s.” Team Member Handbook at 5 (Doc. 101-9).
3. Dan Braafhart’s Statements to Hartnett.
Hartnett believed, while employed with Papa John’s, that his employment would not be terminated except for cause or under performance. See MSJ ¶ 13, at 3 (citing Hartnett Depo. at 62:20-63:3). This belief is based largely on a conversation Hartnett had with his then Regional Vice President, Dan Braafhart, in 2003, when Hartnett was given a promotion and asked to sign a Confidentiality and Non-Competition Agreement. See MSJ ¶ 13, at 3 (citing Hartnett Depo. at 62:20-63:3); Response ¶ 5, at 2. Hartnett was concerned about the terms of the agreement, and wanted more time to consider executing agreement, but Braafhart told Hartnett: “Don’t worry about it. As long as you perform, don’t violate any policies and procedures, you’ll be here forever.” MSJ
Hartnett’s “Confidentiality and Non-competition Agreement,” with • Papa John’s, executed in 2003, does refer to Hartnett’s at-will employment status. MSJ ¶ 18, at 5 (citing the Confidentiality and Non-Competition Agreement, filed Aug. 29, 2012 (Doc. 92-5)(“CNC Agreement”)). The CNC Agreement generally required Hartnett to not work in the pizza industry for eighteen months after leaving Papa John’s. See Response ¶ 3, at 1 (citing Hartnett Dep. at 62:22-23). The CNC Agreement states that signing executing the CNC Agreement is “a condition to the employment of Employee.” CNC Agreement ¶ 4, at 3.
4. The Managing Within the Law Workshops.
Hartnett believed, based on Papa John’s internal program, “Managing Within the Law,” he would only be terminated for cause or under performance.' MSJ ¶ 15, at 4. Managing Within the Law is an annual workshop that Papa John’s’ human resources officers lead, and which Papa John’s requires its managers and officers to attend. See Response ¶¶ 7, 9, at 2. Hartnett attended the workshop five times over the course of his employment with Papa John’s. See Response ¶ 8, at 2. Hartnett received a participant’s guide for the workshop. See Response ¶ 10, at 2. The human resources officers at the workshops informed Hartnett that Papa John’s primarily terminated employees for violating company policy and poor performance, but did not give other reasons for termination. See Response ¶ 11, at 2 (citing Training Guide at 6, 22, Smith Dep. at 63:11-12). Papa John’s human resources officer did not state during the Managing Within the Law seminar, nor did the
Hartnett was told at Managing Within the Law that the three guidelines for due process are: (i) act fairly; (ii) act consistently; and (iii) act legally. See Response ¶ 15, at 3. Hartnett was told that to act fairly meant taking corrective. action on legitimate, non-discriminatory reasons, taking into account a team member’s performance record and past infractions when determining the appropriate corrective action, and determining if any circumstances beyond the team member’s control affected the team member’s behavior. See Response ¶ 15, at 3. Hartnett was told that to act consistently meant being consistent in applying corrective action, and ensuring that managers are not “coming down” especially hard on a- team member because of personal dislike of discriminatory facts. Response ¶ 15, at 3. Hartnett was told that to act legally meant acting promptly after a violation occurs, documenting the infraction, ensuring that any corrective action is fair, and asking oneself whether a reasonable person could interpret the corrective action as retaliation or whether the corrective action fits the offense. See Response ¶ 15, at 3. Hartnett was taught at Managing Within the Law that Papa John’s’ company guidelines would be applied equally to all employees, and managers should not ignore infractions committed by team members whom the managers personally like. See Response ¶ 16, at 3 (citing Training Guide at 6). Managing Within the Law taught Hartnett that, before terminating an employee for violating a company policy, certain actions were to be taken, including: (i) gather facts, interview witnesses, determine if the employee knew of the policy violation, and investigate any extenuating circumstances; (ii) decide if separation from the company is appropriate by ensuring that termination will be consistent with treatment of employees in similar situations, and ensuring that termination is both legal and fair to the employee; and (iii) contact human resources or a superior to determine if they support terminating the employee. See Response ¶ 17, at 4 (citing Training Guide at 22). Managing Within the Law taught Hartnett that an objective standard — “only a reasonably prudent man-would approve the termination” — would be used to determine if termination was proper. See Response ¶ 19 (citing Training Guide at 3). Hartnett believes, from Managing Within the Law, that after an investigation into an infraction was complete, human resources would thoroughly review the investigation before terminating an employee. See Response ¶ 20, at 4. Hartnett believes, from Managing Within the Law, that, Papa John’s human resources would not approve a termination that did not conform with the steps provided in Managing Within the Law. See Response ¶ 21,-at .4 (citing Hartnett Dep. at 68:3-18, 69:17-25, 70:1-8).
The Training Guide from Managing Within the Law discusses “Due Process” at the beginning of the materials and provides three “Guidelines for Following Due Process.” Training Guide at 5-6.
• Informing team members of unsatisfactory performance as soon as possible
• Giving team members an opportunity to respond
• Developing a plan to improve the behavior
• Ensuring documentation outlines the consequences for continued unsatisfactory performance ...
• Allowing team members a reasonable period of time to meet behavior or performance goals
• Following through on documented consequences
Training Guide at 5. Under the “Three Guidelines for Following Due Process” section, text purportedly from the “Participant’s Guide,” reads:
1.Act Fairly
• Take corrective action based on legitimate, non-discriminatory business reasons.
• Take into account a team member’s performance record and prior infractions when determining corrective action.
• Determine if any circumstances beyond the team member’s control affected the team member’s behavior.
• Determine if the team member knew and understood the penalties for the rule violation.
• Maintain perspective, don’t treat minor infractions the same as serious ones.
2. Act Consistently
• Be consistent in applying corrective action when a rule or standard is violated.
• Handle the same or similar infractions in the same way.
• Ensure managers are “not coming down” especially hard on a team member because of personal dislike or discriminatory factors.
• Ensure managers are not “looking the other way” on infractions of team members they personally like.
3. Act Legally
• Act promptly after a violation occurs, even if you’re just giving a verbal warning.
• Document the infraction, when it happened, the corrective action taken and when corrective action was taken [sic] Document as appropriate (managers of company owned restaurant send in documents as needed). Franchise managers send in documents as is appropriate.
• Ensure corrective action is fair and consistent in terms of what’s happened with other team members in the past.
• Ask whether a reasonable person could interpret your corrective action as retaliation for exercising legal rights.
• Ask whether a reasonable person could interpret your corrective action as discriminatory.
• Ask whether a reasonable person would feel your “corrective action” fits the “offense.”
Training Guide at 5-6.
The Training Guide also contains a page labeled “Participant’s Guide Text;” that is supposedly from the materials given to workshop attendees. Training Guide at 12. That page lists “Suggested Form of Corrective Action,” and describes different corrective action that may be used, but does not contain any words indicating that a certain corrective action must, as a matter of established policy, be used to respond to a particular action. Training Guide at 12. In the section that apparently outlines group activities to be used during the workshop, one particular activity suggests that “separation” is the proper form of corrective action for an employee who calls an hour before her shift and states that she cannot report to work, after the manager has had documented discussions with the employee in the past and the employee has not improved. Training Guide at 13. No further policies or procedures are discussed in this activity that must be taken before choosing to separate the employee from Papa John’s. See Training Guide at 13.
The Training Guide contains a section titled “Lecturette: Guidelines for Selecting Separation from the Company as a Corrective Action.” Training Guide at 25. Text is provided for the human resources officer to read, stating: “There are two primary reasons we separate team members from the company: for policy violations and poor performance----Each has guidelines that must be followed.” (emphasis added) Training Guide at 25. In the section labeled “Participant’s Guide Text,” three actions are listed “to take before separating team members from the company for policy violations.” Training Guide at 25.
1.Gather the facts
• Interview team members and witnesses
• Determine if the team member knew of the policy violation
• Investigate extenuating circumstances
2. Decide if separation from the company is appropriate
• Ensure you are being consistent with other similar situations
• Ensure you are being fair to the team member
• Ensure you are being legal
3. Contact your resources
• Find out if your DO/OVP/OP supports separation from the company
• Find out if you HR support suggests separation from the company
• Seek help with your documentation
Training Guide at 25. The following page lists five actions “to take before separating team members form the company for performance,” and provides similar, and more in depth steps, than the actions to be taken before separating an employee for a violation of company policy. Training Guide at 26.
The Training Guide contains a section on “Separation Meetings.” Training Guide at 27-28. The speaker is directed to discuss “Meeting Do’s and Dont’s,” on page 13 of the Participant’s Guide, the text of which is not included in the Training Guide. Training Guide at 27. The speaker is directed to discuss the “key ideas for conducting a separation meeting” with attendees. Training Guide at 27. “Suggested Answers” for the “key ideas” are listed, including:
• Conduct the meeting promptly and privately.
• Have a witness present. The witness should be another manager or HR support person, not a peer of the team member being separated from the company.
• Explain the meeting’s purpose.
• Provide a review of the violation or performance issue.
• Avoid making promises regarding benefits, another job, etc.
• Clearly state that the decision is final.
• Do not apologize as it often makes ■ the situation worse.
Training Guide at 27. Towards the end of the Training Guide, in the “Workshop Recap” section, the speaker is directed to ask what the “key points [are] to remember when conducting a separation meeting,” and the “Suggested Answers” include: (i) “Remain calm;” (ii) “Get to the point;” and (iii) “Focus on behavior.” Training Guide at 30.
The end of the Training Guide contains questions for the speaker to ask the audience regarding an “effective separation meeting,” and “[suggested answers.” Training Guide at 27. The speaker was given text to say that HR support “can help you before your separation meeting,” and “[w]hen in doubt, call your HR support.” Training Guide at 27.
In his deposition, Smith, as human resources director for Papa John’s who has also taught Managing Within the Law, referred to Managing Within the Law as a “training workshop,” and “not a policy.” Smith Dep. at 66:23-24. Smith also testified that Papa John’s terminates employees for poor performance and policy violations, “among other things.” Smith Dep. at 66:18-21.
5. Hartnett’s Experience Working with Papa John’s.
Throughout the nine years that Papa John’s employed Hartnett, Hartnett was required to comply with Papa John’s policies regarding employee discipline, and he worked with Papa John’s human resource department. See Response ¶ 22, at '4-5. Working with the human resources department confirmed to Hartnett what he had learned from Managing Within the Law. See Response ¶ 23, at 5 (citing Hartnett Dep. at 67:19-25). In general, a human resource officer would participate in the termination of an employee so as to ensure that the investigation was thorough and complete, and that good cause existed for the termination of the employee. See Response ¶ 24, at 5 (citing Jackson Dep. at 42:3-10, 66:3-10, 66:18-25). Human resources officers generally ensure that an operations manager seeking discipline is doing so for the right reasons, and a human resources officer generally seeks a legal opinion from the corporate legal division before termination of an employee. See Response ¶¶ 26-27, at 5 (citing Smith Dep. at 80:1-16; Woods Memo. ¶ 3(c), at 1; Jackson Dep. at 176:11-13, 218:l-4).
6. The Memorandum from Rick Woods.
In paragraphs 25 and 28 of his facts, Hartnett cites to a Memorandum from Rick Woods, an Operations Vice President for Papa John’s, dated February 15, 2005. See Response ¶¶ 25-28, at 5 (citing to Ex. 18, Woods Memo.).
a. Terminations of a [sic] salaried manager must be communicated to the OYP and PSD prior to communication to the team member12
b. Termination must be preceded by documented coaching and action plan to correct the performance issues (reviewed by PSD prior to termination) Exceptions to this include theft, manipulation, harassment, etc [sic]
c. All pertinent company policies must be followed during the termination process (PSD is resource for ensuring compliance to all policies)
Woods Memo. ¶ 3, at l.
7. Papa John’s Termination of Hart-nett.
The false reporting incident that led to Hartnett’s termination began when Hart-nett reported a work-related accident to Rick Thompson, Vice President of Operations for Papa John’s, on August 14, 2007. See Response ¶39, at 7 (citing Hartnett Dep. at 116:1-12). Thompson did not turn Hartnett’s workers’ compensation claim over to insurance, as Papa John’s company policy requires him to do. See Response ¶ 40, at 7 (citing Smith Dep. at 28:15-25, 29:1-17, 50:19-25, 51:1-4). On October 2, 2007, Hartnett informed Laura Jackson, who works in Papa John’s human resources department, that he would be unable to attend the management invento
Papa John’s expects its employees to conduct themselves 'in an honest and ethical manner during their employment. See MSJ ¶ 9, at 3. Hartnett understood that violating Papa John’s code of ethics and business conduct policy could result in an employee’s termination, and that any falsification of a report for Papa John’s could result in the employee’s termination. See MSJ ¶ 10-11, at 3. Hartnett believed Papa John’s would not terminate an employee’s employment unless it was for cause, or
Hartnett’s termination was approved by the director of human resources, Robert Wesley Smith, who had not reviewed the investigation and documents submitted by Jackson, another human resources officer. See Response ¶ 68, at 9 (citing Smith Dep. at 39:9-24). The human resources employee who approved Hartnett’s termination did not know that he had been injured in a work-related accident, and was only performing light duty. See Response ¶¶ 69-70, at 9-10 (citing Smith Dep. at 31:17-25, 32:1-8). The human resources employee who approved Hartnett’s termination did not have knowledge of Hart-nett’s past, including his “experience, his integrity, and his credentials.” Response ¶ 71, at 10 (citing Smith Dep. at 33:10-14). Hartnett was terminated at a Wendy’s restaurant patio, during the afternoon of October 17, 2007. See Response ¶ 74, at 10 (citing Managing Within the Law, Training Guide at 20, filed September 12, 2012 (Doc. 101-7)(“Training Guide”); Jackson Dep. at 85:1-25, 87:4-15).
After his termination, Hartnett found a store inspection form from one of the stores he visited on September 22, 2007, which he submitted to Jackson. See Response ¶¶ 77-78, at 10 (citing Jackson Dep. at 110:1-25). Thompson then contacted store managers who had previously given statements to determine if Hartnett in fact conducted a store inspection on September 22, 2007. See Response ¶ 79, at 10 (citing Jackson Dep. at 54:11-25, 55:1-21). Additionally, Thompson directed a store manager to visit the hotel in Los Lunas, New Mexico, to determine if Hartnett had stayed at the hotel on September 22, 2007. See Response ¶ 80, at 11 (citing Thompson Dep. at 89:1-25; id ', at 90-92).
PROCEDURAL BACKGROUND
On October 8, 2010, Hartnett filed a complaint in the Second Judicial District, County of Bernalillo, State of New Mexico. See Complaint for Damages for Wrongful Termination, Retaliatory Discharge, Defamation of Character, and Punitive Damages, filed in State Court Oct. 8, 2010, filed in federal court Nov. 19, 2010 (Doc. 1-1). On November 19, 2010, Papa John’s removed the action, pursuant to 28 U.S.C. § 1441(a) and 1446 to the United States
Hartnett filed a Motion for Summary Judgment on May 25, 2011 (Doc. 29), and Papa John’s filed a Cross Motion for Summary Judgment on June 14, 2011 (Doc. 33). See Memorandum Opinion and Order, filed October 7, 2011,
Papa John’s moves the Court, pursuant to rules 54(b) and 56 of the Federal Rules of Civil Procedure, and D.N.M. LR-Civ. 56.1(d), for summary judgment in its favor and against Hartnett on its breach of implied contract claim. See MSJ at 1. Papa John’s asserts that there is no genuine issue of material fact and that Papa John’s is entitled to judgment as a matter of law. See MSJ at 1. Papa John’s asserts that, under New Mexico law, employment is terminable at will unless an express contract exists to the contrary. See MSJ at 5 (citing Gormley v. Coca-Cola Enters.,
Papa John’s contends that, when determining if an implied contract for employment exists, the “ultimate question is whether the employer, by sufficiently specific words or conduct, has created in the employee a ‘reasonable expectation’ of job security.” MSJ at 6 (quoting Hartbarger v. Frank Paxton Co.,
Papa John’s argues that no implied contract exists in this case. Papa John’s argues that Hartnett’s belief that he had an implied contract is in “direct contrast to the language in his management contract and the Handbook.” MSJ at 7. Papa John’s argues that Hartnett cannot rely on his long tenure with Papa John’s as evidence that an implied contract existed. Papa John’s contends that the Supreme Court of New Mexico has ruled that reliance upon a long tenure of employment, or an employer’s practice of only firing for-cause, is insufficient to create an implied contract that termination would only be for-cause. See MSJ at 7 (citing Hartbarger v. Frank Paxton Co.,
Papa John’s also contends that, even if an implied contract existed, Papa John’s was justified under New Mexico law in terminating Hartnett. See MSJ at 8-9 (citing N.M.R.A., UJI 13-2306 (1999)). Papa John’s argues that Hartnett was terminated for having falsified company documents — specifically, the mileage on an expense report Hartnett submitted for September expenses. See MSJ at 9. Papa John’s asserts that Hartnett understood that he was expected by Papa John’s to conduct himself in an honest and ethical manner during his employment. See MSJ at 6. Papa John’s asserts that Hartnett understood that falsifying any report for Papa John’s could result in his termination. See MSJ at 6. Papa John’s argues that Hartnett’s supervisor, Thompson, investigated Hartnett’s expense reports in conjunction with Jackson, from Papa John’s’ human resources department. See MSJ at 9. Papa John’s asserts that Jackson’s Incident Report on Hartnett concluded that Hartnett had falsified the mileage on his September expense report. See MSJ at 9-10. Papa John’s argues that falsifying mileage is an offense that warrants immediate termination, and Hartnett knew these consequences would occur. Papa John’s thus argues that it had cause to terminate Hartnett, and thus Hartnett’s termination was within the terms of his employment agreement even if an implied contract existed. See MSJ at 10.
Hartnett agrees that New Mexico law provides for employment to be at will, unless an implied contract is created either by the employer expressing that termination will only be for cause, or by the employer providing procedural protection before termination. See Response at 11 (citing West v. Washington Tru Solutions LLC,
Hartnett also argues that he and Papa John’s had an implied agreement to follow particular procedures in discharging him. See Response at 13. Hartnett asserts that the Managing Within the Law workshops informed Hartnett that, when investigating a supposed infraction, following an interview, an investigator would take statements from team members directly — an understanding that Hartnett asserts Jackson’s statements supports. See Response at 13-14. Hartnett contends that Managing Within the Law taught him that any investigation would be conducted in confidence, a term of the alleged agreement that Hartnett argues was broken by Papa John’s communications with other managers in Hartnett’s termination process. See Response at 14-15. Hartnett also contends that the reasonableness of his termination is a question for a jury to decide, as “there are multiple issues which raise an issue of whether or not.a reasonable man would have terminated Mr. Hartnett.” Response at 15.
Papa John’s responds that, even accepting Hartnett’s testimony as true, in light of Hartnett’s Management Agreement and the Handbook, Hartnett cannot establish, as a matter of law, that “he had an objectively reasonable expectation that Papa John’s could only fire him for cause or only after following certain procedures.” Papa John’s Reply at 1-2. Papa John’s contends that the Court must “begin with the proposition that employment without a definite term is presumed to be at will.” Papa John’s Reply at 2 (internal alterations omitted)(quoting Trujillo v. N. Rio Arriba Elec. Coop.,
In support of its argument that Hart-nett’s emplojunent with Papa John’s was mutually at will, Papa John’s points to the Management Agreement which Hartnett signed the first day he was hired. The Management Agreement states that it does not “grant, create, or extend any contractual right ... to [Hartnett’s] current or future employment,” and that Papa John’s “may sever the employment relationship at any time for any reason at all.” Papa John’s Reply at 3 (quoting Management Agreement). Papa John’s also points to the Handbook, which contains a section entitled “Employment At Will,” which states that employees “may resign at any time, for any- reason, with or without notice,” and that Papa John’s “is free to conclude the employment relationship at any time.” Papa John’s Reply at 3-4.
Papa John’s further re-states its argument that it did not violate any implied contract in terminating Hartnett’s employment. See Papa John’s Reply at 9. Papa John’s once again argues that Hartnett violated a company policy by falsifying the mileage on his expense report, an infraction which warrants termination. See Papa John’s Reply at 9. Papa John’s asserts that Hartnett knew such an infraction would lead to termination. See Papa John’s Reply at 9.
The Court held a hearing on this motion on October 15, 2012. At the outset, the Court inquired of Papa John’s whether the facts are uncontested, as neither party indicated any disputes to the other party’s facts in their respective briefings on the MSJ. See Tr. at 3:16-4:1 (Court). Papa John’s replied that it did not contest Hart-nett’s facts — Papa John’s does “[not] think it matters.” Tr. at 4:2-4 (Prynkiewicz). Papa John’s stated that the facts “will be uncontested at trial, at least from the facts that the plaintiff put forward.” Tr. at 4:4-
Papa John’s then asserted that there is “no evidence before the Court that there was any promise, in terms of a specific length of time or a definite term,” and Papa John’s employment “is presumed to be at will.” Tr. at 3:5-9 (Prynkiewicz). Papa John’s pointed to the Management Agreement, which Hartnett asserted is an “express contract between Plaintiff and Papa John’s,” that provides that Papa John’s will hire Hartnett to supervise and oversee several restaurants in exchange for Hartnett agreeing to the terms of the agreement. Tr. at 3:10-15 (Prynkiewicz).
The Court inquired of Papa John’s whether the motion for summary judgment turned entirely on Braafhart’s statements because the facts are uncontested. See Tr. at 4:10-13 (Court). Papa John’s asserted that the result would be the same even with Braafhart’s statement. See Tr. at 4:16-18 (Prynkiewicz)(“No. Even if its in I think the result is the same.”). Papa John’s stated that, even assuming that Braafhart’s statement is true, and that Hartnett was told what he alleges he was told at Managing Within the Law, there is still no triable issue of fact. See Tr. at 4:24-5:5 (Prynkiewicz). Papa John’s contended that there is no triable issue, because Hartnett must overcome the presumption of at-will employment, and Hartnett must show that the express contract should be ignored or somehow modified. See Tr. at 5:5-7 (Prynkiewicz). Papa John’s argued that the cases which support finding an implied contract all did so where there was no express contract for at-will employment. See Tr. at 5:9-18 (Prynkiewicz). Papa John’s asserted that the one case to which Hartnett cited, where a plaintiff had an express contract for at-will employment, see McGinnis v. Honeywell, Inc.,
The Court inquired whether there were other New Mexico cases which have held that the words and conduct of a corporation may amend an express contract, and Papa John’s admitted that New Mexico cases do so provide. See Tr. at 6:16-12 (Court, Prynkiewicz). Papa John’s argued that, nonetheless, it is unaware of any case that would allow an implied contract to modify an express contract based on the facts that Hartnett has put forward. See Tr. at 6:23-7:3 (Prynkiewicz). Papa John’s asserted that this case is unique from most cases, where an implied contract modifies the presumption of at-will employment, because an express contract existed for Hart-nett’s employment by Papa John’s. See Tr. at 8:11-18 (Prynkiewicz). Papa John’s contended that there is not a case where the representation which Hartnett has put forward modify an express contract. See Tr. at 8:19-21 (Prynkiewicz).
Papa John’s then argued that the statement upon which Hartnett relies, made to him by Braafhart, is very similar to that in Hartbarger v. Frank Paxton Co., which
The Court stated that Hartnett’s case seemed to have more than the plaintiffs had in either Hartbarger v. Frank Paxton Co. or Zarr v. Washington Tru Solutions, LLC, because Hartnett had both statements from Braafhart and the managerial training from Managing Within the Law. See Tr. at 10:19-24 (Court). The Court stated that, while managerial training may not be enough, Braafhart’s oral, statements caused the Court concern. See Tr. at 11:1-3 (Court). The Court also stated that having five separate managerial training workshops, in which good cause seemed to be the exclusive reason for terminating an employee, was evidence of a stronger magnitude than Papa John’s had characterized Managing Within the Law. See Tr. at 11:19-24 (Court). The Court noted that Hartnett was not referring to his experience in disciplining employees alone, but had managerial training that seemed to state the exclusive reason to terminate an employee was for cause. See Tr. at 11:15-19 (Court). Papa John’s argued that New Mexico cases have held handbooks that “[express] the way the company does business and the way [it] applies [its] policies,” are not contractual promises. See Tr. at 12:7-15 (Prynkiewicz).
Regarding Hartnett’s argument that the implied contract for employment was breached, Papa John’s contended that the correct standard to apply is whether “Papa John’s reasonably believe[d] that there was a falsification [of] the expense report,” not “whether a reasonable person [would] have gotten a statement or whether a reasonable person would have done any number of things,” as Papa John’s asserted Hartnett contends. Tr. at 13:9-16 (Prynkiewicz). Papa John’s argued that Hartnett must bring evidence to show that the decision-makers could not have reasonably believed that Hartnett falsified an expense report, because Hartnett agrees that falsifying an expense report is grounds for termination. See Tr. at 13:16-21 (Prynkiewicz). The Court inquired why the standard was not whether Papa John’s was correct, rather than “good-faith belief,” as Papa John’s argues. Tr. at 14:3-5 (Court). Papa John’s contended that New Mexico’s jury instruction, see N.M.R.A., Civ. UJI 13-2306, supports the use of “reasonable belief’ as the standard to determine whether terminating Hartnett was proper, arguing that the case is similar to the way discrimination cases are handled. Tr. at 14:10-20, 24-25 (Prynkiewicz). The Court stated that it was not aware of such a standard being used in an implied contract case. See Tr. at 15:16-19 (Court).
Hartnett then responded, and began by stating that the jury instruction was actually a two-prong test, requiring a dis
Turning to his allegation that an implied contract existed, Hartnett argued that Braafhart’s statements track those of the supervisor in Kestenbaum v. Pennzoil, which the Supreme Court of New Mexico found were sufficient to create an implied contract. See Tr. at 16:21-17:5 (Fogel). Fogel argued that Papa John’s stated through the Managing Within the Law workshops that Papa John’s only fires or terminates for poor performance, under performance, and for violation of policies, without qualifying that employment with Papa John’s is at will. See Tr. at 17:24-18:1 (Fogel). The Court inquired whether Hartnett’s case turned on the admittance and use of Braafhart’s stamens, and Hart-nett stated that he did not know. See Tr. at 18:3-10 (Court, Fogel). The Court inquired whether Hartnett could sustain his case based only on the Managing Within the Law workshops, which the Court stated are similar to an employee merely observing progressive discipline and attempting to claim an implied contract off of the employee’s observations' — evidence that New Mexico cases have held is insufficient to create an implied contract. See Tr. at 18:16-19:5 (Court). Hartnett argued that human resources officers testified that practices enunciated at Managing Within the Law are company policies, specifically regarding confidentiality in the termination process. See Tr. at 19:6-23 (Fogel). Hartnett argued that Managing Within the Law is a mandatory course and that statements made at Managing Within the Law are statements of company policy, unlike the statements made in Hartbarger v. Frank Paxton Co. See Tr. at 20:1-13 (Fogel). Hartnett pointed to the Smith Deposition in support of Managing Within the Law being a forum where company policy is taught. See Tr. at 20:9 (Fogel).
Hartnett then argued that the express Management Agreement was modified in 2003. See Tr. at 20-15-18 (Fogel). Hart-nett asserted that, but for Braafhart’s statements in 2003,, he would not have signed the CNC, Agreement. See Tr. at 20:23-25 (Fogel). The Court inquired whether Hartnett .agreed that th,ere was an express contract in, place in 1998, and Hartnett agreed. See Tr. at 21:19-24 (Court, Fogel).
Papa John’s responded first by stating that both sides agree that an express contract for employment was in place in 1998 — the Management Agreement. See Tr. at 21:10-12 (Prynkiewicz). Hartnett argued that the existence of an express contract is crucial, and that no party has cited a case where an oral agreement modified an express contract. See Tr. at 22:2-5 (Prynkiewicz). Hartnett admitted that it would be possible to modify an express contract orally, but that' there was not a reported case where it has been done. See Tr. at 22:10-13 (Prynkiewicz). Papa John’s argued that neither Managing Within the Law or Braafhart’s statements were sufficient to support an implied contract, much less a modification of an express contract. See Tr. at 22:17-23:5 (Prynkiewicz). Papa John’s contended that, Braafhart’s statements were not in relation to the CNC Agreement, which Braafhart did not even mention, and were only an expression of opinion. See Tr. at 22:17-24 (Prynkiewicz). Papa John’s pointed to the CNC Agreement not even referencing the Management Agreement as evidence that the CNC Agreement was not a modification of the Management Agreement. See Tr. at 22:20-22 (Prynkiewicz). Regarding Managing Within the Law, Papa John’s contended that because
LAW REGARDING SUMMARY JUDGMENT
Rule 56(a) of the Federal Rules of Civil Procedure states: “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R.Civ.P. 56(a). The movant bears the initial burden of “showing] that there is an absence of evidence to support the non-moving party’s case.” Bacchus Indus., Inc. v. Arvin Indus., Inc.,
The party opposing a motion for summary judgment must “set forth specific facts showing that there is a genuine issue for trial as to those dispositive matters for which it carries the burden of proof.” Applied Genetics Int'l Inc. v. First Affiliated Sec., Inc.,
To deny a motion for summary judgment, genuine factual issues must exist that “can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party.” Anderson v. Liberty Lobby, Inc.,
When reviewing a motion for summary judgment, the court should keep in mind three principles. First, the court’s role is not to weigh the evidence, but to assess the threshold issue whether a genuine issue exists as to material facts requiring a trial. See Anderson v. Liberty Lobby, Inc.,
RELEVANT NEW MEXICO LAW REGARDING CONTRACT INTERPRETATION
In contract cases, “the role of the court is to give effect to the intention of the contracting parties.” Bogle Farms, Inc. v. Baca,
The question whether an agreement contains an ambiguity is a matter of law. See Mark V., Inc. v. Mellekas,
RELEVANT NEW MEXICO LAW REGARDING EMPLOYMENT CONTRACTS
“The general rule in New Mexico is that an employment contract is for an indefinite period and is terminable at the will of either party.” Hartbarger v. Frank Paxton Co.,
“An employer creates an implied contract where the employer’s action ‘was intended, or reasonably could be interpreted by [the employee] to be confirmation of an implied contract or modification of the employment relationship.’ ” Sullivan v. Am. Online, Inc.,
A promise, or offer, that supports an implied contract might be found in written representations such as an employee handbook, in oral representations, in the conduct of the parties, or in a combination of representations and conduct. See Abreu v. New Mexico Children, Youth and Families Dept.,
The Tenth Circuit has found that, when presented with an express employment contract that provided for at-will employment, oral representations from managerial employees are not always sufficient to create an implied contract that modified the express agreement. In Cory v. Allstate Ins.,
Where parties have entered into an express employment contract, the Supreme Court of New Mexico has held that attempting to establish an implied contract is unnecessary to the extent an employer’s action was in violation of the terms of the express contract. In McGin
In Hartbarger v. Frank Paxton Co., the Supreme Court of New Mexico did not agree with an employee, Hartbarger, that an implied contract had been created by an employee handbook, the employer’s custom of retaining employees for a long time and firing only for a good reason, and oral statements by the employee’s supervisor. See
As a matter of policy, this Court will not consider evidence that a company does not usually, fire employees without a good reason as by itself establishing that the company does not maintain an at willemployment policy. To do so otherwise would encourage employers to occasionally fire employees for no other reason than to show that they maintain the freedom to do so.
Applying New Mexico law, the Tenth Circuit has held that an employee, who received four separate documents that expressly provided for her employment to be at will, could not reasonably expect a personnel manual, management training, or oral representation to have created an implied contract superseding her at-will employment. See Sullivan v. Am. Online, Inc.,
Nor were the statements from Sullivan’s supervisor that employees are “not ever slammed without cause,” and that the “only two ways you can get fired from AOL are to have an attendance issue or just be plain stupid,” sufficient to create an implied contract for employment.
The Court has previously found that an employee manual'with non-specific statements regarding procedures did not mandate employees or the employer to follow the procedures, was insufficient to create an implied contract that the procedures in the manual would be followed in every instance. See Clayton v. Vanguard Car Rental, U.S.A., Inc.,
Similarly, the Court of Appeals of New Mexico found that summary judgement was proper because no implied contract could have reasonably and objectively been expected to exist in Zarr v. Washington Tru Solutions, LLC. See
On the other hand, the Supreme Court of New Mexico has held that an employer’s statements made during the oral negotiation of the terms of employment can be sufficient to create an implied contract to terminate only for cause. See Kestenbaum v. Pennzoil, Co.,
The Supreme Court of New Mexico has held that “a personnel manual gives rise to an implied contract if it controlled the employer-employee relationship and an employee could reasonably expect his employer to conform to the procedures it outlined.” Newberry v. Allied Stores, Inc.,
In Newberry v. Allied Stores, the Supreme Court of New Mexico found that a policy manual given to an employee during his training constituted an implied contract for employment. See
Lastly, in Lukoski v. Sandia Indian Mgmt. Co., the. Supreme Court of New Mexico found that an employee handbook amended an oral agreement for one-year employment. See
NEW MEXICO LAW REGARDING AN EMPLOYER’S COMPLIANCE WITH AN IMPLIED AGREEMENT TO TERMINATE FOR CAUSE ONLY
N.M.R.A. Civ. UJI 13-2306 provides the standard for courts to use when determining if an employer has complied with its implied contract to discharge an employee only for cause:
If _ (employer) agreed, that _ (employee) could be discharged only for cause,_(employer) could discharge _ (iemployee) without violating the agreement if_ (employer) in fact believed that [he] [she] had a sufficient cause to justify the discharge of _ (employee) and that belief was reasonable.
N.M.R.A. Civ. UJI 13-2306. This instruction is to be given if the instruction for finding that an implied contract to terminate an employee for cause only is also given. See N.M.R.A. Civ. 13-2306; N.M.R.A. Civ. UJI 13-2302 (2008). “The Supreme Court of New Mexico’s adoption of uniform jury instructions proposed by standing committees of the Court establishes a presumption that the instructions
A New Mexico Court of Appeal has held that this standard is both a subject and objective one. See Gingrich v. Sandia Corp.,
Where an implied agreement required good cause for termination is found, discharge of the employee cannot be justified on the basis of the employer’s good faith, but rather must be supported by “reasonable grounds [for the employer] to believe that sufficient cause existed to justify [the employee’s] termination.” ... This is an “objective standard of reasonable belief.”
N.M.R.A. Civ. UJI 13-2302 cmt. (quoting Kestenbaum v. Pennzoil, Co.,
For example, in Newberry v. Allied Stores, Inc., the Supreme Court of New Mexico found that an employer wás justified in terminating an employee for that employee’s violation of an express policy in the policy manual, when the Supreme Court had already found that the manual controlled the employer-employee relationship. See
On the other hand, in Kestenbaum v. Pennzoil, Co., the Supreme Court of New Mexico found that an employer did not have sufficient cause to terminate an employee under an implied contract to terminate for cause only. See
ANALYSIS
Genuine issues of material fact are present, and the Court may not rule as a matter of law in favor of Papa John’s. The Court accepts all of Hartnett’s evidence as true and construes all justifiable inferences in favor of Hartnett. See Fed. R.Civ.P. 56(a)(“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”); Hunt v. Cromartie, 526 U.S. at 552,
I. PAPA JOHN’S AND HARTNETT ENTERED INTO AN EXPRESS AGREEMENT FOR EMPLOYMENT AT WILL.
The parties do not contest that Hartnett entered into an express contract for at-will employment with Papa John’s on August 17, 1998. See Tr. at 21:19-24 (Court, Fogel); id. at 21:10-12 (Prynkiewicz). Neither party argues that the Management Agreement is ambiguous. Because the role of the Court is to “ascertain and enforce the intent of the parties as shown by the contents of the instrument,” and neither party has argued that the Management Agreement is ambiguous, whether regarding its terms or as a whole, the Court concludes that the terms of the Management Agreement created a valid and binding contract for Hartnett’s employment to be at will with Papa John’s. Bogle Farms, Inc. v. Baca,
Notice to Employees. This document does not grant, create or extend any contractual rights the above .employee [sic] with respect to (i) such employee’s current or future employment, ór (ii) any benefits in connection with such employment. The employee or the employer may sever the employment relationship at any time or for any reason at all.
Management Agreement, ¶ 6, at 1. Hart-nett signed the Management Agreement, afBrming that the contract was executed and delivered to him, and that he relied upon the agreement to explain his “consideration [for] such employment” with Papa John’s. Management Agreement at 1. The Court thus concludes that Hartnett’s initial employment with Papa John’s was for at-will employment. See McGinnis v. Honeywell,
II. A GENUINE ISSUE OF MATERIAL FACT EXISTS REGARDING WHETHER AN IMPLIED CONTRACT MODIFIED HARTNETT’S AT-WILL EMPLOYMENT WITH PAPA JOHN’S.
Hartnett contends that Braafhart’s statements, made when Hartnett executed the CNC Agreement, and the management training Hartnett received at five separate Managing Within the Law Workshops, modified his employment-at-will status. See Response at 12, 13. Papa John’s contends that the Management Agreement and Team Member Handbook expressly provide for Hartnett’s employment to be at will. See MSJ ¶¶ 16-17, at 4-5. Papa John’s also argues that the statements made by Braafhart could not be reasonably interpreted as a promise on behalf of Papa John’s that Hartnett’s at-will status was altered. See MSJ at 8. Papa John’s also contends that the matters discussed at Managing Within the Law were not inconsistent with an at-will policy, and that the workshops explanation of Papa John’s “general approach to disciplining employees ... did not contain the type of definite, specific, or explicit statements that could have created a reasonable expectation” in Hartnett, or any other employee, “that Papa John’s was contractually bound to terminate its employees only for good cause and only after following certain procedures.” Papa John’s Reply at 8.
A. THERE ARE FIVE SEPARATE CATEGORIES OF RELEVANT EVIDENCE REGARDING HART-NETT’S EMPLOYMENT STATUS.
There are five categories of relevant evidence of Hartnett’s employment status. Some do not, alone, suggest finding that the at-will-employment relationship was altered. In totality, however, they support a conclusion that there is a genuine issue of material fact whether the express contract was altered.
1. Braafhart’s Statements.
Papa John’s'requested Hartnett to sign the CNC Agreement on January 7, 2003, which required Hartnett to not work in the Pizza industry for eighteen months after leaving Papa John’s. See Response ¶ 2, at
Were the only evidence before the Court the Management Agreement and the statements that Braafhart made when Hartnett signed the CNC agreement, the Court would likely find that the statements alone were insufficient to modify Hartnett’s express contract for at-will employment. As the Tenth Circuit explained in Cory v. Allstate Ins., even statements that managers and supervisors made to a contractor were insufficient to modify an express contract for employment to be at will. See
Braafhart’s statements do not seem to be as informal as the, “off the record” statements that the supervisor made in Hartbarger v. Frank Paxton Co., which did not give rise to an implied contract for employment.
2. The Team Member Handbook.
The Team Member Handbook does not help Hartnett’s belief. The Team Member Handbook contains three separate disclaimers, which all unambiguously state that the Team Member Handbook does not create any contractual right or modify the at-will nature of employment with Papa John’s. See Team Member Handbook at 3, 4 (Doc. 92-2); Team Member Handbook at 5 (Doc. 101-9). The Team Member Handbook is thus similar to the handbook distributed in Sullivan v. Am. Online, Inc., which stated that “the employee and AOL have the right to terminate employment at will, with or without cause, at any time,” and thereby helped to defeat the reasonableness of Sullivan’s belief that she had an implied contract to be terminated only for cause. See
3. The Managing Within the Law Workshops.
The.Managing Within the Law annual workshop was mandatory for Papa John’s’ managers and officers, and was taught by Papa John’s’ human resources director. See Response ¶ 9, at 2. The human resources director teaching the workshop informed Hartnett that employees were terminated “primarily for violation of company -policy and poor performance,” and did not state that employment would be terminated for another reason. Response ¶ 11, at 2. The materials used to teach Managing Within the Law do not discuss the at-will employment status of employees who attend the workshops.
Hartnett’s managerial training received at Managing Within the Law could be sufficient to create a reasonable expectation that Papa John’s would abide by the procedures taught at the workshop, were that the only piece of evidence before the Court. See Lukoski v. Sandia Indian Mgmt. Co.,
The Training Guide, and the sections excerpted from the Participant’s Guide, refers to some procedures as “Guidelines,” Training Guide at 5, “Suggested Form of Corrective Action,” Training Guide át 12, and “Characteristics of Good Documentation,” Training Guide at 16. These terms are equivocal', and could lead to a conclusion that materials and information provided at Managing Within the Law were “of a non-promissory nature and merely a declaration” of Papa John’s “general approach to the subject matter discussed,” and not sufficient to create an implied contract modifying Hartnett’s at-will employment. Sanchez v. The New Mexican,
The Supreme Court of New Mexico held that “[a] personnel manual gives rise to an implied contract if it controlled the employer-employee relationship and an employee could reasonably expect his employer to conform to the procedures it outlines,” and found that a policy manual given to an employee at his managerial training created an implied contract. Newberry v. Allied Stores, Inc.,
Unlike other cases, however, Hartnett entered into an express agreement for his employment to be at will before attending Managing Within the Law. See Newberry v. Allied Stores, Inc.,
Hartnett relies on his understanding of the “general” practice of human resources officers in support of his assertion that an implied contract modified his at-will status. See Response ¶¶. 23-33, at 5-6. New Mexico courts have been wary, however, of finding an implied contract to terminate only for cause was created by an employer’s practice of only terminating for cause alone. As the Supreme Court of New Mexico explained in Hartbarger v. Frank Paxton Co., “this Court will not consider evidence that a company does not usually fire employees without a good reason as by itself establishing that the company does not maintain an at will policy.”
5. The Memorandum From Rick Woods.
Rick Woods, Papa John’s Operations Vice President, sent on February 15, 2005, a memorandum to all “Star Papa Directors of Operations.” See Woods Memo, at 1, 3. The Court sees no reason, on the whole record before the Court, why Hartnett would not have received and read this memorandum, as he was promoted to a Director of Operations in 2003. See Hartnett Dep. at 62:20-22. Rick Thompson signed the Woods Memo, as the “Director of Operations,” and he investigated and approved the termination of Hartnett. Woods Memo, at 3; Incident Report at 1-2. This memorandum is more specific than Managing Within the Law, in that the Woods Memo, states that it is an “official communication on procedures for handling ... terminations ... of all management team members .... [and] all policies listed herein take effect immediately.” Woods Memo. ¶ 1, at 1. The “Terminations” section contains three sub-headings, each of which states that the procedure defined therein “must be” followed. Woods Memo. ¶ 3. The third paragraph provides that “[a]ll pertinent company policies must be followed during the termination process.” Woods Memo. ¶ 3(c).
The Woods Memo., thus, could be found to control Hartnett’s relationship with Papa John’s, not only because of the mandatory language contained therein, but also because the Woods Memo, relates to a wide range of employment matters: the memorandum proscribes specific procedures for Hartnett to follow while executing his duties, and the Court can reasonably infer one of Hartnett’s supervisors sent it to him. Further, unlike Managing Within the Law, that could have been construed as training for Hartnett to apply, rather than training that applied to him,
Although the parties have not alleged that Hartnett was still a “management team member” when terminated in 2007, because he had been promoted to a Director of Operations in 2003, Papa John’s has argued that Hartnett’s Management Agreement still applied to Hartnett’s employment status when he was terminated. See Hartnett Dep. 62:20-23; Papa John’s Reply at 3-4 (arguing that the Management Agreement established Hartnett’s employment to be at will, and that the terms of the agreement were not altered). Further, as the Court must draws all reasonable inferences in Hartnett’s favor, in the absence of facts to the contrary, the Court will infer that the Woods Memo, established procedures that applied to Hartnett’s employment. Given this inference, the Woods Memo, is unlike the training the employee received in Sullivan v. Am. Online, Inc. that did not apply to her specifically and thus could not form the basis of an implied contract. See
B. UNDER A TOTALITY OF THE CIRCUMSTANCES, A GENUINE ISSUE OF MATERIAL FACT EXISTS WHETHER PAPA JOHN’S ENTERED INTO AN IMPLIED CONTRACT TO TERMINATE HARTNETT ONLY FOR CAUSE, AND AFTER FOLLOWING CERTAIN PROCEDURES.
The Court must weigh all of the evidence before it, not only the Management Agreement, and determine if “a reasonable jury could find that the words and conduct support an objectively reasonable expectation that the employees would be dismissed only in accordance with specified procedures and for specified reasons.” Gerald v. Locksley,
The Court is presented with a number of pieces of evidence that could support either parties’ argument regarding the existence of an implied contract. First of all, Hartnett has an express Management Agreement with Papa John’s that provides for employment to be at will, a piece of evidence that sets this case apart from many in.which New Mexico courts have found an implied contract to exist. On one hand, the Management Agreement is an express contract, which purports to control the employment relationship, as did the
Although Hartnett’s Management Agreement and the Team Member Handbook affirm Hartnett’s at-will status, his training from Managing Within the Law, in conjunction with Braafhart’s statements and the Woods Memo; could support a belief that Papa John’s established a procedure that would be followed in terminating Hartnett’s employment. Unlike the four separate documents in Sullivan v. Am. Online, Inc., all of which expressly disclaimed any modification to the employee’s at-will status, only two of the documents given to Hartnett expressly disclaim a modification to his at-will status, and he signed only one in receipt and acknowledgment-the Management Agreement. Further, the Management Agreement does not disclaim the possibility of a modification, either in writing or through oral representations.
The Woods Memo, is a direct, written communication from a supervisor who had the power to terminate Hartnett, and the memorandum requires certain procedures to be followed prior to a termination. By the limited facts before the Court, the Woods Memo, applied to Hartnett and could reasonably be found.to have established procedures, regarding Hartnett’s termination. The Woods Memo, requires only .three procedures before terminating an employee, and not all three of the procedures are equally specific. The procedures required are: (i) communication of the termination, to the OVP and PSD before terminating the employee;, (ii) implementing a documented coaching and action plan to correct a performance issue prior to termination; and (iii) following all pertinent company policies in, the termination process. Under a totality of the circumstances, these procedures, published to Hartnett in 2005, could objectively be viewed as confirmation of the training Hartnett received at Managing Within the Law, beginning in 2002 and on four subsequent occasions. The “pertinent company policies” to which the Woods Memo, refers could be viewed, as requiring Directors of Operations to following their training from Managing Within the Law, as Hartnett asserted he was taught “company policy” at those workshops.
The Court is thus not persuaded that there is no genuine issue of material
Braafhart’s statements, upon which Hartnett relies for his contention that an implied contract providing for his termination to be for cause only was established, are more ambiguous. By referring to company policies, these statements could be consistent with Hartnett’s training from Managing Within the Law, and the procedures outlined in the Woods Memo., which told him that procedures and company policies must be followed in a termination. Braafhart’s statements were not specific, but were made in the context of Hartnett executing the CNC Agreement with Papa John’s. Hartnett stated that he wanted more time to sign the CNC Agreement, but Braafhart assured him that this was not necessary. See Response ¶ 4, at 2. Hartnett states that he signed the CNC Agreement “[b]e-cause of Braafhart’s statement.” Response ¶ 6, at 2. These statements are not made in an informal context, as were the statements in Hartbarger v. Frank Paxton Co., that did not give rise to an implied employment contract. See
To the extent that Braafhart’s statements purport to limit Papa John’s ability to terminate employees to only situations where-the employee was not performing, or was violating policies or procedures,however, the statements are in isolation, and the totality of Hartnett’s relationship with Papa John’s do not support such a contention. See Response ¶ 5, at 2. No other evidence contains such a specific disclaimer of Papa John’s ability to terminate an employee. The Training Guide does not delineate exclusive reasons for which Papa John’s may terminate an employee; rather, the Training Guide states that the two “primary” reasons are for policy violations and under performance. Training Guide at 25. Furthermore, the Team Member Handbook provides a “partial list” of infractions that may result in a team members’ separation from Papa John’s, and includes many infractions that Braafhart did not mention to Hartnett. Team Member Handbook at 4 (Doc. 101— 9). Nor does the Woods Memo, refer to any acceptable or unacceptable reasons for terminating an employee or initiating the termination process. Braafhart’s statements, thus, does not support a. finding that Papa John’s limited its ability to terminate employees to only situations of under performance or violations of company policy or procedures.
Under a totality of the circumstances, Papa John’s has thus not shown that there is no evidence to support Hartnett’s claim that an implied contract existed. See Bacchus Indus., Inc. v. Arvin Indus., Inc.,
III. A GENUINE ISSUE OF MATERIAL FACT EXISTS WHETHER PAPA JOHN’S BREACHED AN IMPLIED CONTRACT OF EMPLOYMENT WITH HARTNETT.
The Court finds that Papa John’s has not met its burden on this - motion for
A. A GENUINE ISSUE OF MATERIAL FACT IS PRESENT WHETHER PAPA JOHN’S COMPLIED WITH ITS AGREEMENT TO TERMINATE HARTNETT FOR cause'. ■
Papa John’s contends that it had reasonable belief sufficient to warrant terminating Hartnett. See MSJ at 8-10. Papa John’s contends that Hartnett knew that falsifying mileage reports could lead to termination and that Papa John’s- determined Hartnett had falsified mileage reports. See MSJ at 8-10. Hartnett’s dispute regarding the reasonableness of Papa John’s belief is based on his contention that- Papa John’s failed to follow the proper procedures in investigating Hartnett and that Papa John’s did not apply the correct standard in determining whether terminating Hartnett was warranted. See Response ¶¶ 44-78, at 7-10; id. at 15. Hartnett contends that Papa John’s investigation was flawed. See Response ¶¶ 44-78, at 7-10. Hart-nett argues that proper procedures would include a more thorough investigation, including gathering' first-hand statements from witnesses, and required Thompson to visit all of the stores that were listed on Hartnett’s -mileage report to confirm his attendance. See Response ¶¶ 47-48, at 7; id. ¶ 64, at 9. Additionally, Jackson admitted that the statements taken from one of the stores -in the investigation were faulty and unusable. See Response ¶ 65, at 9 (citing Jackson Dep. at 216:11— 13). Jackson also informed other human resources employees that she had obtained statements from all the stores, when' she did had not. See Response ¶ 67, at 9 (citing Herren Letter at 1; Montoya Letter at 1; Jackson Dep. at 107:14-16, 108:1-4).
Hartnett also contends that a genuine issue of material facts exists whether Papa John’s had a reasonable belief sufficient to warrant terminating Hartnett. See Response at 15. Hartnett states that Papa John’s did not have a defined policy regarding how to fill out mileage reimbursement and expense reports, and Hartnett states that different managers have been trained in different methods of filling out the forms. See Response ¶¶ 34-35, at 6. Hartnett also contends that the reasonableness of his termination is a question for a jury to decide, as “there are multiple issues which raise an issue of whether or not a reasonable man would have terminated Mr. Hartnett.” Response at 15.
Argument was made at the hearing regarding the correct standard for the Court to use in determining whether Papa John’s breached an implied contract. Papa John’s asserted that it did not breach an implied contract, so long as Papa John’s “reasonably believe[d] that there was a falsification [of] the expense report,” and that the reasonableness of the procedures used in deciding to terminate Hartnett were not at issue. Tr. at 13:16-21 (Prynkiewicz). On the other hand, Hartnett argues that the correct standard to use is a two-prong test, requiring that the discharge was reasonable and that the employer had sufficient cause. See Tr. at
The Court must determine whether Papa John’s subjective belief that it had sufficient cause to terminate Hartnett was, as a matter of law, objectively reasonable. See Kestenbaum v. Pennzoil, Co.,
B. A GENUINE ISSUE OF MATERIAL FACT IS PRESENT WHETHER PAPA JOHN’S BREACHED AN IMPLIED CONTRACT TO FOLLOW CERTAIN PROCEDURES IN TERMINATING HARTNETT.
Papa John’s contends that, even if an implied contract existed, Papa John’s was justified under New Mexico law in terminating Hartnett. See MSJ at 8-9 (citing N.M.R.A., UJI 13-2306 (2012)). Papa John’s argues that Hartnett was terminated for having falsified company documents — specifically, the mileage on an expense report Hartnett submitted for September expenses. See MSJ at 9. Papa John’s asserts that Hartnett committed a policy violation by falsifying a mileage report, an offense that Hartnett knew could result in his termination. See MSJ at 6, 9. Papa John’s argues that Hartnett’s supervisor, Thompson, investigated Hartnett’s expense reports in conjunction with, Jackson of Papa John’s human resources department. See MSJ at 9. Papa John’s asserts that Jackson’s Incident Report on Hartnett concluded that Hartnett had falsified the mileage on his September expense report. See MSJ at 9-10.
A genuine issue of material fact is present whether Papa John’s entered into an implied contract to abide by company policies and procedures in terminating Hart-nett. Hartnett contends that he understood, from Managing Within the Law, that he would only be terminated after being given an opportunity to respond to allegations against him. See Response at 7. Hartnett contends that a thorough investigation should have been' completed before his termination. See Response at 14. Hartnett was not interviewed prior to his termination. See Thompson Dep. at 93:7-25. Although the Training Guide does not explicitly state that'an employee must be given an interview, the Due Process section states that part of the guideline to “Act Fairly” includes “Determine if the team member knew and understood the penalties for the rule violation.” Training Guide at 2. Additionally, in the section regarding “Actions to take before separating team members from the company for policy violations,” under “Gather the facts,” the participants were instructed to “Determine if the team member knew of the policy violation.” Training Guide at 25. Papa John’s does not dispute that Hartnett was terminated for violating a company policy. Yet, the Incident Report does not state that Thompson or Jackson made efforts to determine whether Hart-nett understood his violation prior to terminating Hartnett. Incident Report at 1-2. The Incident Report states that Thompson sent Hartnett an email about his mileage reports several months before the investigation commenced, but there is no other evidence that Papa John’s attempted to “investigate extenuating circumstances,” or otherwise to determine Hartnett’s situation and understanding regarding the violation. Training Guide at 25. Papa John’s contends that Jackson and Thompson conducted an investigation, which included obtaining statements from the employees at the stores Hartnett allegedly did not visit. See MSJ at 9-10. Hartnett challenges the adequacy of these statements. See Response at 14. Whether Papa John’s investigation was sufficient to meet the standards proscribed by Managing Within the Law cannot be determined by these facts, because Papa John’s does not allege that it attempted to confer with Hartnett before his termination, or otherwise investigate into extenuating circumstances or to confirm that Hartnett understood, the policy violation. Hartnett contends that he did not understand the violation, as different managers were trained in different methods of filling out the mileage reports. Thus, by not interviewing Hartnett before terminating him, a genuine issue of material fact is present whether Papa John’s breached its implied
Hartnett also alleges that Papa John’s violated company policy regarding privacy by conducting the separation meeting at a Wendy’s restaurant and communicating his impending termination to Trujillo. See Response ¶¶ 60, 74, at 8-10; id. at 14. The Training Guide provides that a separation meeting should be held “promptly and privately.” Training Guide at 27. The Training Guide does not provide further discussion regarding holding the meeting “privately.” Training Guide at 27-28. Although this term is not clear, that Hartnett was terminated at a public restaurant, and not at a place that some reasonable juries may be deem to be “private,” suggests, although not strongly, that a genuine issue of material fact exists because Papa John’s choose to terminate Hartnett at a Wendy’s restaurant. While this fact alone might not suggest denial of the motion, it shows that Papa John’s was not happy to follow any policies. Additionally, communicating Hartnett’s impending termination to Trujillo could be a breach of a confidentiality requirement taught at Managing Within the Law.
If an implied contract were created, Papa John’s has not shown that no evidence supports Hartnett’s contention that Papa John’s breached that contract. Although the Court is not defining the terms of any implied contract between Papa John’s and Hartnett, the Court notes that some of Papa John’s actions could be construed as inconsistent with procedures published through the Managing Within the Law workshops. The Court cannot, thus, rule as a matter of law that Papa John’s is entitled to summary judgment in its favor.
The Court finds that genuine issues of material fact are present regarding the reasonableness of Papa John’s belief that it had sufficient cause to terminate Hart-nett. While Papa John’s may have subjectively believed that-it had sufficient cause to terminate Hartnett, a jury may find that Papa John’s belief was not objectively reasonable. Papa John’s relied on an investigation that included second-hand statements, where not every relevant store was visited, and Hartnett was terminated for a policy violation that may have been unclear because employees were trained in multiple methods of filling out mileage reports. Additionally, if an implied contract to follow procedures existed, Papa John’s may have breached that contract by not interviewing Hartnett before his termination, not conducting the proper type of investigation, and terminating Hartnett at a public restaurant. The Court thus, does not find that Papa John’s is entitled to a judgment as a matter of law that it did not breach an implied contract with Hartnett.
Furthermore, a genuine issue of material fact exists as to whether Papa John’s entered into an implied contract to terminate Hartnett only for cause, and to only terminate him after following certain procedures. The totality of Hartnett’s employment relationship with Papa John’s could reasonably lead Hartnett to believe that the policies and procedures presented in Managing Within the Law, in conjunction with the mandatory terms of the Woods Memo., limited Papa John’s ability to terminate Hartnett without following certain procedures. Additionally, Braafhart’s statements to Hartnett regarding Hartnett’s future with Papa John’s, in conjunction with the Training Guide and the Woods Memo, that required investigation before termination, could be found by a reasonable jury as communication by Papa John’s that Hartnett would be terminated only for cause. The Court thus, does not find that Papa John’s is entitled to judgement as a matter of law.
Notes
. The parties do not dispute each other’s facts in their respective motions. Both Papa John's MSJ and Hartnett’s Plaintiff's Response to Defendant’s Motions for Summary Judgment, filed September 12, 2012 (Doc. 101)("Response”), contain sections of "Uncontested,” or "Undisputed” material facts. MSJ ¶¶ 1-18, at 2-5; Response ¶¶ 1-83, at 1-II. Neither Hartnett’s Response, nor Papa John’s MSJ or Defendant Papa John’s Reply in Support of its Motion for Summary Judgement Re: Plaintiff’s Breach of Contract Claim, filed October 1, 2012 (Doc. 113)("Papa John’s Reply”), contest the facts in the other’s motion. Compare MSJ ¶¶ 1-18, at 2-5, with Response ¶¶ 1-83, at 1-11 and Papa John’s Reply at 1-10. At the hearing on this motion, Papa John’s informed the Court that it does not dispute Hartnett's facts, and assumes that Hartnett's facts will be uncontested at trial. See Transcript of Hearing taken October 15, 2012 at 4:2-9 (Prynkiewicz)("Tr.”)(“[W]e didn’t’ contest the facts ... they will be uncontested at trial at least from the facts that the plaintiffs put forward. But always on summary judgment ... I try to ... assume that ... that’s the case and the facts you’ve said are the facts that you've said.”).
. Neither party asserts as an undisputed fact that Hartnett received the Team Member Handbook, portions of which were submitted to the Court. Papa John's cites to portions of Hartnett's Deposition where he indicates that is familiar with the Team Member Handbook. See MSJ ¶ 17, at 4. On the other hand, Hart-nett testified that the Team Member Handbook submitted as evidence is not the handbook that he received when he was working at Papa John's. He stated that the handbook he received differed, in that his copy- did not have "the first two pages of notes.” Hartnett Dep. at 56:6-12. Hartnett stated that he did not receive a handbook in 2006, the effective date of the handbook in the record. See Hart-nett Dep. at 56:18-19. Hartnett concedes, however, that he received a handbook, and has not contested any portions of the Team Member Handbook except for the first two pages of notes, which are not presented to the Court with the parties' respective motions. See Tr. at 56:6-12, id. at 57:20-22.
The local rules establish that "[a]ll material facts set forth in the Memorandum will be deemed undisputed unless specifically converted.” D.N.M.LR-Civ. 56.1(b). Because Hartnett does not dispute that he received a team member handbook, and does not specifically contest the provisions in the Team Member Handbook submitted to the Court in his Response, the Court will not disregard the provisions of the Team Member Handbook submitted by the parties.
. Papa John’s contends that Braafhart’s statements are hearsay and will be inadmissible at trial. See MSJ n. 3, at 3. However, Papa John’s does not contest Hartnett’s Deposition, upon which Hartnett relies in bringing forward Braafhart's statements. See Response ¶¶ 4-5, at 2 (setting forth fact of Braafhart's statements); Papa John’s Reply at 1-11 (not contesting fact of Braafhart’s statements). Because the local rules establish that ”[a]ll material facts set forth in the Memorandum will be deemed undisputed unless specifically converted,” D.N.M.LR-Civ. 56.1(b), the Court will deem Braafhart's statements as undisputed. Moreover, in light of Papa John’s admission at the hearing that Papa John’s does not contest Hartnett’s facts, and that the Court may assume Hartnett’s facts as true for the purposes of this motion, the Court will accept Hartnett’s facts regarding Braafhart’s statements as undisputed.- See Tr. at 4:2-9 (Prynkiewicz)("[W]e didn’t’ contest the facts ... they will be uncontested at trial at least from the facts that the plaintiffs put forward. But always on summary judgment ... I try to ... assume that ... that’s the case and the facts you've said are the facts that you’ve said.”).
Papa John's has filed a motion to exclude Braafhart’s statements as hearsay. See Papa John’s Motion in Limine re: Exclusion of Hearsay Testimony of Dan Braafhart, filed August 29, 2012 (Doc. 90)("Braafhart MIL”). At the hearing Papa John's stated that it did not believe Braafhart's statements needed to be excluded for Papa John's to succeed on its MSJ. See Tr. at143:9-14 (Court, Prynkiewicz)(The Court inquired whether Papa John’s “[does not] think you need to keep this statement out to win your motion,” and Papa John’s replied, ”[r]ight.”). Papa John’s also requested the Court to rule on its MSJ before ruling on the Braafhart MIL. See Tr. at 71:17-72:8 (Court, Fogel, Prynkiewicz)(The Court inquired in what order the parties would like the Court to rule on the motions filed, and Hartnett and Papa John’s agreed that the Court should rule on the MSJ first, and then the Braafhart MIL).
. Hartnett does not set forth the specific details of the Training Guide in his Uncontested Facts section, however, he does cite to the Training Guide generally. See Response ¶ 13,
. Neither party cites to the specific provisions of Smith’s Deposition that the Court has included in this paragraph. Hartnett does cite to other portions of Smith’s Deposition in his Response. See, e.g., Response ¶¶ 28-29, 32, 34-35, 40, 43 at 5-7. Although the Court will construe all reasonable inferences in favor of Hartnett, as the non-moving party, the Court has also considers the portions of Hartnett’s evidence, that Papa John’s does not contest, in ruling on Papa John’s MSJ. See D.N.M.LRCiv. 56.1(b) ("All material facts set forth in the Memorandum will be deemed undisputed unless specifically converted.”); Hunt v. Cromarte,
. Hartnett alleges that human resources will "in general” seek an opinion from Papa John’s legal department before terminating an employee, Response ¶ 27, at 5, but Jackson’s Deposition, to which Hartnett cites, makes no mention of seeking a legal opinion before termination being a regular, or general practice, see Jackson Dep. at 176:11-13, 218:1-4. However, Papa John’s has not contested Hartnett's facts. See D.N.M.LR-Civ.
.Smith, the current human resources director, upon whose testimony Hartnett relies in this statement, testified at his deposition that human resources "would not allow a separation to go through if the facts didn't warrant it,” but also stated that human resources "would typically review the facts regarding the decision to separate, but its not every separation,” and their review depends "on the position of the person being separated.” Smith Dep. at 74:6-8, 80:16-17, 78:13-16. Hartnett also cites to the Woods Memo., which does not make any mention of the necessity of a human resources officer ensuring that a discipline contained proper documentation and was supported by the facts. See Woods Memo. ¶ 3(c) at 1. However, Papa John’s has not contested Hartnett’s facts. See D.N.M.LR-Civ. 56.1(b) ("All material facts set forth in the Memorandum will be deemed undisputed unless specifically converted.”). Because the Court must deem all undisputed facts admitted, the Court accepts Hartnett’s facts regarding his experience working with Papa John's human resources department, and will construe all reasonable inferences that support his arguments in his favor. See Hunt v. Cromartie,
. Hartnett sets forth the fact that, "[i]n general, the proper way to get a team member statement is for the investigator to interview the team member and then have the team member write a statement consistent with the interview,” and relies upon his own experience, as well as Jackson's Deposition, in support of this fact. Response ¶ 31, at 6. Jackson testified that statements were taken when applicable, but that employees had been terminated in the past without being given a chance to present their side of the story. See Jackson Dep. at 42:11-13, 43:16-18. However, Papa John’s has not contested Hartnett’s facts. See D.N.M.LR-Civ. 56.1(b) ("All material facts set forth in the Memorandum will be deemed undisputed unless specifically converted.”). Because the Court must deem all undisputed facts admitted, the Court accepts Hartnett's facts regarding his experience working With Papa John's human resources department, and will construe all reasonable inferences that support his arguments in his favor. See Hunt v. Cromartie,
. Jackson states that employees are not normally just "fired for nothing,” but will rather try to determine "what they did,” Jackson Dep. at 42:7-10, Hartnett relies on this in stating that Papa John’s "does not terminate
. Neither party cites to the specific provisions of Jackson’s Deposition that the Court has included in this paragraph. Hartnett does cite to other portions of Jackson’s Deposition in his Response. See, e.g., Response ¶¶ 24 — 25, 27, 31, at 5-6. Although the Court will construe all reasonable inferences in favor of Hartnett, as the non-moving party, the Court also considers the portions of Hart-nett’s evidence, that Papa John’s does not contest, in ruling on Papa John's MSJ. See D.N.M.LR-Civ. 56.1(b) ("All material facts set forth in the Memorandum will be deemed undisputed unless specifically converted.”); See Hunt v. Cromartie,
. Hartnett does not use the Woods Memo, heavily in his Response. The Woods Memo, is used in his Uncontested Facts section to support several propositions regarding the general practice of human resource officers when an employee is investigated for an offense that may lead to termination. See Response ¶¶ 26, 28, at 5. Hartnett does not allege that he received the Woods Memo, while employed as a Director of Operations, but he was a Director of Operations as of the date of the Memo. Hartnett Dep. at 62:20-22 (Hart-nett testifies that he was promoted to a director of operations in 2003). He did testify that he believed Papa John’s practices conflicted with the proposition that his employment was at will. See Hartnett Dep. at 84:8-12.Hartnett also testified that he "understood that [he] could expect to be employed as long as [he] did not underperform or violate any policies or procedure.” Hartnett Dep. at 85:10-13.
Because the Court is moving on Papa John's motion for summary judgment, the Court is bound to construe all reasonable inferences in favor of Hartnett, the non-moving party. See Hunt v. Cromartie,
. The Woods Memo, and Hartnett's briefing do not define the acronyms "OVP” and "PSD.” The Incident Report, however, lists Rick Thompson as the "OVP,” and Laura Jackson as the "People Services Dir.” Incident Report at 1. The Court concludes that OVP refers to an "Operations Vice President,” and PSD refers to a People Services Director.
. Because the Woods Memo, is directed to all director of operations, the Court infers that Hartnett received the Woods Memo, while working as a Senior Director of Operations, although Hartnett has not specifically alleged this fact. Compare Woods Memo, at 1 (indicating a sent date of February 15, 2005), with Hartnett Dep. at 62:20-22 (Hartnett testifies that he was promoted to a director of operations in 2003), and Team Member Meeting Confirmation, filed Sept. 12, 2012 (Doc. 101-19)(stating that Hartnett was a Senior Director of Operations when terminated). See also Hunt v. Cromartie,
. Hartnett does not define the meaning of a "human resources expert,” but Papa John’s does not contest this fact. Because the local rules establish that “[a]ll material facts set forth in the Memorandum will be deemed undisputed unless specifically converted,” D.N.M.LR-Civ. 56.1(b), the Court will deem all facts in the parties’ motions as undisputed. Jackson testified that she would hold herself "out as an expert in regard to investigating employee misconduct____ [a]nd in regard to collecting and gathering information.” Jackson Dep. at 91:19-22.
. Papa John’s re-stated that it is accepting as true all of Hartnett’s facts for its MSJ. See Tr. at 43:17-21 (Prynkiewicz)("[B]ecause I was accepting all of it ... as true for his motion for summary judgment.”). Because the local rules establish that "[a]ll material facts set forth in the Memorandum will be deemed undisputed unless specifically converted,” D.N.M.LR-Civ. 56.1(b), the Court will deem all facts in the parties' motions as undisputed.
. The United States Court of Appeals for the Tenth Circuit has explained:
In cases arising under diversity jurisdiction, the federal court's task is not to reach its own judgment regarding the substance of the common law, but simply to ascertain and apply the state law.... The federal court must follow the most recent decisions of the state’s highest court.... Where no controlling state decision exists, the federal court must attempt to predict what the state’s highest court would do.... In doing so, it may seek guidance from decisions rendered by lower courts in the relevant state, ... appellate decisions in other states with similar legal principles, ... district court decisions interpreting the law of the state in question, ... and the general weight and trend of authority in the relevant area of law.... Ultimately, however, the Court’s task is to predict what the state supreme court would do.
Wade v. EMCASCO Ins. Co.,
. Because Sullivan v. Am. Online, Inc., is an unpublished opinion, the Court does not rely on it for binding precedent, but only to the extent its reasoned analysis is persuasive in the present case. See 10th Cir. R.App. P. 32.1(A); U.S. v. Lyons,
. None of the parties have requested a Mark V hearing or have identified any extrinsic evidence that would call for a Mark V hearing. According to the Supreme Court of New Mexico in Mark V, Inc. v. Mellekas,
. The Court reasonably must infer that Hart-nett received and read the Woods Memo, while employed with Papa John’s. Because the Woods Memo, provides mandatory language and specific procedures that correlates with Hartnett’s training from Managing Within the Law, and Braafhart’s statements regarding company policy, the Woods Memo, is
As the Tenth Circuit has noted, "New Mexico courts have treated reliance as an important factor in determining whether an implied contract exists.” Bayliss v. Contel Federal Sys., Inc.,
