MEMORANDUM-DECISION AND ORDER
This is а suit for defamation and wrongful termination arising out of plaintiffs former employment as the supervisor of a wastewater treatment laboratory located at Anheuser-Busch’s brewery in Baldwinsville, New York (“treatment plant” or “plant”). Plaintiffs claims for relief stem from the circumstances attendant to Anheuser-Buseh’s public announcements that three of its employees (one of whom, though remaining unnamed in the announcements, was plaintiff) had engaged in illegal conduct at the treatment plant, that the employees’ activity had been undertaken without the knowledge of other corporate officials, and that the employees had been terminated following an internal investigation. Presently before thе court is defendants’ motion for summary judgment on all counts. Defendants argue first that plaintiffs wrongful termination claims should be dismissed because plaintiff was terminable at-will, and second that plaintiffs defamation claims should be dismissed because plaintiff cannot establish that defendants’ actions in conducting and reporting the results of its internal investigation were grossly irresponsible. The court heard oral argument in Syracuse, New York on May 12, 1995.
BACKGROUND
On February 6, 1989, the Syracuse Post-Standard reported claims by a former Anheuser-Busch employee that other employees at the Baldwinsville treatment plant were falsifying reports to the New York State Department of Environmental Conservation (“DEC”), See Exhibit (“Exh.”) C, attached to Meagher Affidavit, Doсument (“Doe.”) 31. In response to this allegation AnheuserBusch, through its General Counsel Walter Suhre, initiated an internal investigation. The investigation revealed that plant supervisory employees had engaged in an ongoing program of taking and reporting misrepresentative samples of the plant’s effluent, resulting in false reports to the DEC that the treatment plant was in compliance with its State wastewater permit.
The investigation specifically found that personnel were guilty of: (i) pre-testing plant effluent for phosphorous to see if results of a sample taken at that time would meet State standards, while refraining from sampling when they knew the samples would show impermissibly high phosphorus levels; (iij treating the wastewater with alum, a phosphorus-reducing chemical, immediately before and in conjunction with taking samples for purposes of reporting phosphorus content to the State, thereby artificially reducing the phosphorus values reported; (iii) taking required samples immediately after “alum-dosing” on consecutive Saturdays and Sundays, using the Saturday result as the sample for the preceding week and the Sunday result as the sample for the following week, thereby giving a deliberately false view of the general phosphorus levels of the effluent; and (iv) using hoses to bypass part of the wastewater treatment system.
The Anheuser-Busch investigation concluded that four treatment - plant officials knew about, were responsible for, or participated in these activities: the Manager of' Environmental Operations, Richard Moore; his subordinate, the manager of the wastewater treatment plant, Robert Cordell; a laboratory supervisor, plaintiff Lyndi Mott; and her predecessor, Ann Marie Meehan. As a result, Moore and Cordell were terminated, plaintiff resigned, and Meehan was reprimanded.
The results of the investigation were summarized in a 56-page report submitted by Anheuser-Busch to the DEC in April, 1989. In connection with these events, the State brought civil charges against AnheuserBusch for violations of its State Pollutant
On September 14, 1989, Anheuser-Busсh officials held a press conference at which defendant Suhre issued a news release. Suhre read aloud, in pertinent part, as follows:
Anheuser-Busch, Inc. has agreed to pay $75,000 in fines and $925,000 in civil penalties to settle issues with the State of New York relating to the operations of the company’s Baldwinsville brewery wastewater treatment facility.
These issues center around actions by three employees at the treatment plant, undertaken without the knowledge of their supervisors and contrary to company policies. The company immediately began an internal investigation after learning of possible problems through a newspaper account, which was based on allegаtions made by a former employee at the waste-water treatment plant.
The company has taken steps to correct the problems and ensure that they will not occur again. Two of the employees were dismissed and the third resigned. Anheuser-Busch voluntarily supplied the New York Department of Environmental Conservation with a full report of the company’s investigation.
Although the company did not have pri- or knowledge of the actions of these three individuals, it is legally responsible for the on-the-job activities of its employees. Therefore, Anheuser-Busch agreed to the present settlement.
News Release, Exh. J attached to Meagher Affidavit, Doc. 31. The news release was initially draftеd by Anheuser Busch’s public relations firm. It was revised and redrafted several times by various employees of Anheuser-Busch, including Suhre.
In response to questions at the press conference, Suhre is alleged to have stated that:
Nobody in St. Louis knew that that plant was not being operated the way it was supposed to;
Our investigation left no stone unturned and nobody above Moore could have known what was going on;
We are convinced without question that knowledge of what went on, and participation of what went on was limited to senior management at the wastewater treatment plant.
These statements were allegedly published in various media. See Amended Complaint, Doc. 7, at 10-11.
On September 17,1989, the Syracuse Herald-American published an editorial entitled “Pollution Problems; Brewery Tries to Shift Blame,” which accused Anheuser-Busch of engaging in a deliberate cover-up at the treatment plant by “shift[ing] the blame onto its former workers to distance its good name from the whole affair.”
See
Defendants’ (“Def.”) Memorandum (“Mem.”) of Law in Support of Their Motion for Summary Judgment, Doc. 30, at 21. In response to this editorial, defendant Suhre, on behalf of Anheuser-Busch, submitted to the Herald-American a letter to the editor that had been initially drafted by Anheuser-Busch’s public relations firm. The letter, published on September 24, 1989, contained statements that Senior Anheuser-Busch management had no prior knowledge of wrongdoing at the Baldwinsville plant and that the violations had been committed by three plant employees who were terminated following thе internal investigation. Letter to the Editor, Exhs.
On October 15, 1989, the Herald-Ameriean published an article relating to the settlement between Anheuser-Busch and the DEC. The newspaper stated that senior executives of Anheuser-Busch knew of the illegal dumping into the Seneca River. The article quoted defendant Suhre as stating that “[n]obody in St. Louis knew that that plant was not being operated the way it was supposed to.” The article contrasted Suhre’s comment with the prosecutor’s contention that “the knowledge of the hose connection was at the highest levels both at the brewery and in St. Louis.” Article, Exh. K, attached to Meagher Affidаvit, Doc. 31.
On October 16, 1989, the St. Louis Post-Dispatch reported the claims contained in the Herald-Ameriean article of the previous day. The Post-Dispatch article quoted defendant Suhre as stating in response to the accusations that “we’re denying senior officials knew that that system in New York was being operated other than in accordance with a permit or law.” Suhre was further quoted as stating that “[w]e were duped by a scheme that was fraudulent and clandestine.” See Amended Complaint, Doc. 7, at 16-17. The article reported that although Suhre admitted that one or more environmental engineers in St. Louis “may have known” about the hoses, he claimed that “they clearly did not know the effect of the use of thе hoses.” Def.’s Mem. of Law, Doc. 30, at 23. Moreover, he stated that “senior management did not know.” According to Suhre, “no one in St. Louis knew” about two other related violations at the plant. See Amended Complaint, Doc. 7, at 16-17.
DISCUSSION
A Summary Judgment Standards
The principles this court must apply in .analyzing the current motion for summary judgment are well established. Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment shall enter if, when viewing the evidence in the light most favorable to the nonmovant, the court determines that there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c);
Eastman Kodak Co. v. Image Technical Sens., Inc.,
With these rules in mind, the court turns to the specific arguments raised on defendants’ motion for summary judgment.
B. Plaintiff’s Causes of Action
1. Wrongful Termination
a. Choice of Law
This court has jurisdiction pursuant to the diversity statute, 28 U.S.C. § 1332. Although the parties do not raise the issue, as a threshold matter the court must determine which law to apply. A federal court sitting in diversity must look to the forum’s choice of law rules to determine which state’s substantive law to apply.
Klaxon v. Stentor Elec. Mfg. Co.,
New York has a strong interest in this litigation. Plaintiff, a resident of New York, was employed by defendant AnheuserBusch, Inc. in New York. Indeed, most of the activities in the case at bar occurred in this forum. The court concludes that New York has the most significant relationship to the events giving rise to this litigation. Therefore, New York substantive tort law governs the disposition of plaintiffs wrongful termination claim.
b. Plaintiff Was Not Wrongfully Terminated
Plaintiff alleges in her cause of action for wrongful termination that there was an implied agreement between plaintiff and Anheuser-Busch that as long as plaintiff continued to perform her duties competently, she would not be terminated in her employment except for cause. The amended complaint alleges, inconsistently, both that plaintiff was fired and that plaintiff resigned. Amended Complaint, Doc. 7, at 21-22. However, plaintiffs counsel conceded at oral argument that plaintiff resigned, rather than being fired. Accordingly, the court concludes that plaintiffs wrongful discharge claim rests on the assertion that she resigned from AnheuserBusch under threat of imminent dismissal.
Turning to the merits of plaintiffs claim, the court notes that New York has never wavered from the traditional rule that, “absent an express agreement establishing a fixed duration, an employment relationship is presumed to be a hiring at will, terminable at any time by either party.”
Sabetay v. Sterling Drug,
In the case at bar, plaintiff argues that her cause of action for wrongful discharge is controlled by Weiner. In that case, no fixed term of employment existed, but the employer-defendant had assured the plaintiff during his job interview that the firm’s policy was to discharge only for cause. In addition, the plaintiff signed an employment application which specifically referred to this policy. Finally, the employer-defendant’s personnel policy and procedure manual stated that employees would be dismissed “for just and sufficient cause only.”
The
Weiner
court found that the employer’s promise to terminate only for just cause was supported by adequate consideration, and therefore was enforceable.
Weiner,
In the case at bar, plaintiff alleges that Anheuser-Busch entered into an express limitation on its right to terminate plaintiff when it informed her by letter that “in the event the investigation exonerates the actions of [plaintiff],” Anheuser-Busch would “try” to find a position for plaintiff in the company. Letter, Exh. A, attached to Plaintiff’s Statement of Facts in Dispute, Doc. 37. For several reasons, plaintiff has failed to demonstrate that Anheuser-Busch’s statement falls within Weiner s narrow holding.
First, as counsel conceded at oral argument, plaintiff was not terminated. She resigned. Plaintiff points to no authority that allows her to recover for wrongful termination in such circumstances.
Second, the court concludes that the statement does not create an express limitation on Anheuser-Busch’s right to terminate plaintiff. Instead, the statement is at best a promise to rehire or reinstate plaintiff on the condition that Anheuser-Busch’s internal investigation exonerated her. Far from limiting Anheuser-Busch’s right to dismiss plaintiff at will, the statement makes clear that plaintiff had already been suspended, thereby reinforcing rather than diminishing Anheuser-Buseh’s rights. Plaintiff has not shown that any assurance that she would not be discharged without cause wаs incorporated into her employment contract.
Third, plaintiff has failed to plead and demonstrate that she relied to her detriment on Anheuser-Busch’s statement, and thus does not satisfy the third prong of the Weiner analysis.
Finally, plaintiff has not demonstrated that Anheuser-Busch failed to honor any limitation placed upon its right to terminate plaintiff. Anheuser-Busch’s promise to rehire plaintiff was conditioned upon her being exonerated by Anheuser-Buseh’s investigation. Clearly, plaintiff was not exonerated by the investigation. Because the condition was not met, the conditional promise can not be enforced. Thus, plaintiff has no standing to sue for wrongful termination under Weiner.
2. Defamation
a. Standard of Liability; private figure and matter of public concern
Plaintiffs defamation claims are subject to analysis under both the federal and state constitutions. Seeking to strike a balance between the competing constitutional concerns, the Supreme Court held that, as long as they do not impose strict liability, the States may define for themselves the standard of liability for a publisher or broadcaster being sued in defamation by a private plaintiff.
Gertz v. Robert Welch, Inc.,
In the ease at bar, the parties do not dispute that plaintiff is a private figure. Therefore, the court turns to the question of whether the subject of the statements involved a matter of public concern.
What constitutes a matter of рublic concern is a question of law for the court.
See Gaeta v. New York News, Inc.,
The statements in the case at bar related to illegal activities by a nationally recognized corporation. Anheuser-Busch’s admitted violations of environmental regulations implicate issues of environmental safety and public health. Further, the matter received media attention in at least two states.
See Gaeta v. New York News, Inc.,
When, as in the case at bar, the plaintiff is a private figure and the speech relates to a matter of public concern, there are five elements, apart from damages, of a defamation
b. Fault; Grossly Irresponsible
The Supreme Court has held that in a defamation action in which the plaintiff is a private figure, the speech relates to a mаtter of public -concern, and the defendant is a media publisher, the plaintiff must prove some degree of fault.
Gertz v. Robert Welch, Inc.,
Although the New York Court of Appeals has never expressly extended
Chapadeau^
which involved a media defendant, to non-media defendants, this court is among several which have done so. In
J & J Sheet Metal Works, Inc. v. Picarazzi,
Viewing the evidence in the light most favorable to plaintiff,
Chapadeau
requires the court to decide if plaintiff has raised a genuine issue of material fact as to whether defendants conducted and reported on the results of their investigation in a “grossly irresponsible manner without due consideration for the standards of information gathering and dissemination ordinarily followed by responsible parties.”
Chapadeau,
Attempting to define “gross irresponsibility,” the Court of Appeals has said that it means something more than simple negligence,
Weiner v. Doubleday & Co., Inc.,
Defendants have come forward with admissible evidence that, when viewed in the light most favorable to plaintiff, demonstrates that their investigation and subsequent reporting were carried out in a thorough and responsible manner. The investigation was initiated immediately following reports of wrongdoing at the Baldwinsville plant, and was conducted over a two month period. The investigative team was comprised of both Anheuser-Busch employees
Plaintiffs allegations do not lead this court to take a view of the mattеr different from that of the DEC, the New York Attorney General, and State Prosecutors. As discussed below, plaintiffs supporting documents are replete with vague and inaccurate allegations of omissions and inaccuracies in Anheuser-Busch’s investigation, which plaintiff argues demonstrate “gross irresponsibility” on the part of defendants. After a careful examination of the record, the court concludes that plaintiff has failed to show that there exists an issue of material fact as to defendants’ alleged gross irresponsibility sufficient to withstand defendants’ summary judgment motion.
Plaintiffs lengthy response papers can be reduced to a handful of allegations. For example, plaintiff alleges that AnheuserBusch sought to “control the investigation” in order to avoid a full-scale investigation by the State. Plaintiffs Mem. of Law, Doc. 36, at 5-7. Even if true, however, this claim does not raise a question as to gross irresponsibility on the part of defendants. The mere fact that an investigation was conducted internally indicates nothing about the quality of that investigation; in fact, the State’s subsequent statement that AnheuserBusch’s conduct was from the outset “responsible and cooperative” indicates precisely that the investigation was not grossly irresponsible.
In another representative example, plaintiff alleges that her “guilt or innocence was irrelevant” to Anheuser-Busch, whose “purpose was to sacrifice her to the regulatory agencies in еxchange for leniency and protection of its liquor licenses.” Plaintiffs Mem. of Law, Doe. 36, at 9. Plaintiff cites in support of this claim the fact that Meehan, plaintiffs predecessor in the laboratory, was not subjected to the same treatment by Anheuser-Busch. Id., at 9. However, plaintiff brings forth no evidence that Meehan was spared termination for any reason other than her repeated vocal opposition to the practices at the treatment plant and her cooperation with the investigation. Unlike Meehan, plaintiff declined an invitation to cooperate with the investigation by being interviewed on the record. Deposition of Lyndi W. Mott, Exh. JJ, attached to Meagher Supplemental Affidavit, Doc. 44, at 525-26. Further, the State’s subsequent criminal prosecutions, which included plaintiff but did not include Meehan, lend support to Anheuser-Busch’s conclusion that Meehan was less culpable than plaintiff. Plaintiffs allegation in this regard is unsubstantiated by the record and fails to raise a genuine issue of material fact.
Plaintiff also alleges that the investigation was “limited in scope” in its “failure to pur
Plaintiff further alleges that the conduct of Anheuser-Busch in negotiating the Consent Order and Plea Agreement following the investigation demonstrates an intent to exonerate itself and all personnel other than plaintiff, Moore, and Cordell from responsibility in connection with the treatment plant violations. Plaintiffs Mem. of Law, Doc. 36, at 36-37. However, given Anheuser-Buseh’s conclusion that culpability warranting termination was limited to those three individuals, such a stance is hardly surprising. And plaintiff has presented no evidence that she, Moore, and Cordell were identified for termination before the investigation pointed toward their responsibility.
In summary, plaintiff has brought forth no evidence demonstrating that a genuine issue exists as to grossly irresponsible conduct on the part of defendants either in conducting or reporting the results of their investigation.
In arguing that defendants acted in a grossly irresponsible manner, plaintiff places substantial emphasis upon the decision in
Greenberg v. CBS, Inc.,
69 AD.2d 693,
The
Greenberg
court found virtually no evidence on the record establishing defendant’s attempts to verify the statements in question, and concluded that in the course of the investigation “many of the elementary questions were not asked.”
Greenberg,
Plaintiff in the case at bar argues that defendants similarly failed to ask such “elementary questions” through the course of their internal investigation, arguing that the alleged deficiencies in the investigation amount to gross irresponsibility on the part of defendants. However, the
Greenberg
case is clearly distinguishable based upon the manner in which the investigation in that case was conducted and reported. In
Green-berg,
CBS’s only attempts to verify the statements in question were informal interviews with six of Dr. Greenberg’s other patients, which were unsworn and remained off the record. CBS did not seek to obtain any documentary evidence, such as copies of Dr. Greenberg’s prescription forms, and did not speak with other physicians or pharmacists in the area in order to verify the reported statements. CBS did not even give Dr. Greenberg the opportunity to respond to the statements before they were reported.
Greenberg,
The internal investigation in the instant case bears a much stronger resemblance to that in
Post v. Regan,
At the annual shareholders meeting of the brokerage, the chairman read from written remarks concerning the losses. He noted that, “unknown to senior management, certain individuals” in the company “had engaged in unauthorized trading and financing activities and concealed it by entering incorrect investment data into the record-keeping system.”
Post,
The employee sued for wrongful termination and defamation, claiming that the statements by the chairman falsely accused him of having taken part in the admitted wrongdoing, of having sought to cover it up, and implied that he had therefore been fired.
Post,
The
Post
court applied the
Chapadeau
test and, as here, the issue in
Post
became whether defendants had conductеd and reported the results of their investigation in a grossly irresponsible manner, with plaintiff bearing the burden of proof on that issue.
Post,
Unlike the manifestly inadequate investigation at issue in Greenberg, defendants’ investigation in the present case was conducted with the kind of thoroughness and rigor that was evidenced in Post. Based on the foregoing analysis, the court concludes that plaintiff has failed to raise a genuine issue of material fact as to grossly irresponsible conduct on the part of defendants in carrying out and reporting on their internal investigation. Plaintiff fails to carry the burden of proof required under Chapadeau. Accordingly, defendants’ motion for summary judgment is GRANTED in so far as it addresses plaintiff’s claim for defamation.
CONCLUSION
Defendants’ motions for summary judgment as to plaintiffs wrongful termination and defamation claims are GRANTED. Based on the foregoing, the Clerk of the Court is hereby directed to dismiss with prejudice plaintiffs complaint in its entirety.
It is so ORDERED.
