Watkins v. United Parcel Service, Inc.Watkins v. United Parcel Service, Inc.
MEMORANDUM OPINION AND ORDER
Before the court is the motion of the defendant, United Parcel Service, Inc. [hereinafter UPS], for summary judgment pursuant to Rule 56(c) 1 of the Federal Rules of Civil Procedure. Having studied the motion, briefs of the parties, the complaint, affidavits, depositions, and other documents filed, and having heard oral arguments in the matter, this court is persuaded to grant summary judgment for the defendant UPS.
I. INTRODUCTION
This legal action arose out of the defendant’s firing of the plaintiff, Ronald Watkins, an employee of UPS, for violating the defendant’s “anti-fraternization” policy. The policy, contained in the defendant’s “Impartial Employment and Promotion Guide” states:
Fraternization is discouraged throughout our organization. Fraternization which includes a supervisory or management employee may be perceived as favoritism or sexual harassment. Fraternization between a supervisor or manager and an employee is not permissable [sic]. Fraternization is clearly not in the best interest of the company, the manager, or the employee.
“Impartial Employment and Promotion Guide,” page 11. The Guide further provides on the final page:
Fraternization is discouraged throughout our organization. Fraternization between a supervisor or manager and an employee who is directly or indirectly supervised is not permissable [sic].
On or about April 15, 1971, plaintiff Ronald Watkins began his employment with UPS as a package car driver.
{See
Plaintiff’s Amended Complaint). After working several years with UPS, plaintiff was promoted to a managerial position.
{See
Plaintiff’s Amended Complaint). On or about the year 1988, plaintiff, then a division manager with UPS, began a relationship with a female employee, Helen Gable, a UPS truck driver assigned to the company’s Meridian, Mississippi, facility.
{See
Plaintiff’s Amended Complaint and Plaintiff’s Deposition at page 27). When the relationship began between plaintiff Watkins and Gable, the plaintiff was the south division manager of UPS, a territory which encompasses Meridian, Mississippi.
{See
Plaintiff’s Deposition at pages 13 and 27). At the time of the inception of the relation
II. PLAINTIFF’S COMPLAINT
The plaintiff filed this present action against UPS for compensatory and punitive damages, asserting a wrongful termination of employment. Jurisdiction before this court is predicated upon
Seeking to sidestep Mississippi’s “termination-at-will” employment policy,
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plaintiff argues that UPS provided managerial employees such as himself with a “policy book” and that this manual created a binding and enforceable contract of employment which was breached. Watkins asserts that the defendant breached this written contract of employment by firing him under the company’s anti-fraternization policy, when this policy is not specifically proscribed by the policy book. The anti-fraternization policy is found in a separate corporate document known as the “Impartial Employment and Promotion Guide.” Alternatively, plaintiff argues that even if the policy handbook does not create an employment contract, and even if Mississippi’s “at-will” termination rule then be in effect, plaintiff should prevail here because UPS violated public policy which should forbid employers from terminating employees simply because they engage in private, consensual and personal inter-office relationships. Seeking juridical support for this proposition, plaintiff rests part of his public policy argument on the Fifth Amendment to the United States Constitution.
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The plaintiff further contends that UPS’s intentional decision to terminate him based on his private relationship with another employee constituted a tortious invasion of privacy and intentional infliction of mental and emotional distress.
As to the ERISA claim, plaintiff states that the defendant “unlawfully discharged the plaintiff for the purpose of interfering with the attainment of rights to further stock option purchases to which the plaintiff would become entitled under the terms and provisions ...” of an employee stock option plan. Plaintiff asserts that such action by UPS violated
Finally, the plaintiff asserts that since the policy book referred to managerial employees and the defendant company as “partners,” a fiduciary relationship existed and UPS owed plaintiff certain fiduciary duties. According to Watkins, this fiduciary relationship also existed as a consequence of plaintiff’s participation in and ownership of an employee stock option plan.
III. DEFENDANT’S MOTION FOR SUMMARY JUDGMENT
A. Defendant’s Arguments
Defendant UPS filed a motion for summary judgment contending that there are no genuine issues of material fact, and, therefore, that the company is entitled to judgment as a matter of law. Defendant first asserts that the company’s policy book does not create a binding and enforceable employment contract with Watkins, since, says defendant, company policy books or manuals, standing alone, do not create an employment contract, citing
Sloan v. Taylor Machinery Co.,
UPS further argues that the plaintiff may not recover on a public policy exception to the Mississippi “at-will” rule, since Mississippi recognizes no such exception.
See Russell v. Schering-Plough Corp.,
The defendant also attacks the plaintiff’s breach of fiduciary duty claim. UPS contends that Mississippi does not recognize a fiduciary relationship flowing from a mere employment contract, citing
Guthrie v. J. C. Penney Co., Inc.,
UPS assaults the plaintiff’s ERISA claim on two grounds. Firstly, the defendant asserts that the plaintiff’s employment stock option plan is a non-qualified plan and not covered by ERISA,
Plaintiff’s invasion of privacy claim fails, says UPS, because of a one year statute of limitations bar,
Young v. Jackson,
Regarding the emotional distress count, the defendant similarly contends that the plaintiff has failed to put forth factual proof on all of the essential elements of this cause of action, which are: (a) a wanton or shamefully gross wrong, or (b) outrageous conduct, and (c) an act done maliciously, intentionally, or with such gross negligence or recklessness as to show indifference to the consequences.
Horton v. Hartford Life Insurance Co.,
B. Plaintiffs Response
Plaintiff contends that the defendant’s policy book creates an employment contract which proscribes certain employee conduct and governs the relationship between the company and managerial employees. According to plaintiff, the policy book explicitly sets forth conduct which might cause an employee’s termination, such as gambling or stealing. Plaintiff then reasons that the policy book thus created a legitimate expectation that a managerial employee would continue to be employed with the company as long as he or she did not violate any proscribed conduct enumerated in the policy book. Plaintiff concludes that Mississippi’s jurisprudence establishes that a policy or handbook may provide express terms of an employment contract, citing
Holland v. Kennedy,
Attempting to bolster his claim that the policy book was a contract of employment, Watkins next asserts that “new and independent consideration passed between the
Plaintiff further argues that he may recover on the theory of tortious invasion of privacy. Firstly, he contends that the United States Supreme Court has long recognized “sexual” concerns as being fundamental rights entitled to privacy protection.
See Eisenstadt v. Baird,
Regarding the public policy claim, plaintiff maintains that recent decisions of the Mississippi Supreme Court indicate an erosion of Mississippi’s past refusal to recognize a public policy exception to the “at-will” rule.
See Perry v. Sears, Roebuck & Co.,
The plaintiff supports his ERISA claim by arguing that his employee stock option plan is a qualified plan as defined pursuant to ERISA,
Finally, the plaintiff contends that the policy book creates a “partnership agreement” between managerial employees and UPS and that his termination of employment by UPS constituted a breach of a fiduciary duty. Plaintiff further asserts that the payment of dividends by the company to him is prima facie evidence of his “partnership” status. Plaintiff’s lead authority on this argument is
IV. COURT’S RULING
A. The Standard
Defendant UPS moves for summary judgment pursuant to Rules 56(b)
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and 56(c) of the Federal Rules of Civil Procedure. A party seeking summary judgment always bears “the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of the ‘pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any/ which it believes demonstrate the absence of a genuine issue of material fact.”
Celotex Corp. v. Catrett,
B. Policy Book as Contract?
Plaintiff first alleges that UPS’s policy book created a written contract of
Mississippi adheres to the common law rule that an employee hired for an indefinite term may be discharged at the will of his employer.
Harrison County School Board v. Morreale,
Still, plaintiff insists that a reading of the policy book by this court will reveal the obligatory nature of the manual. Further, the plaintiff stated in his deposition that he felt the policy book was a contract of employment because the managerial employees of UPS referred to the book at employment meetings. {See Plaintiff’s Deposition at page 25).
This court is persuaded that the policy book in the present case does not create an express or implied written contract of employment. The policy book is grouped into five categories: “Our Company and Organization;” “Our People;” “Our Service;” “Our Character and Reputation;” and “Our Economic Stability.” The policies listed within the manual are couched in terms of ideals and goals. Examples of these ideals are the following: “we set long term company-wide objectives;” “we maintain a spirit of team work;” “we expect our managers to accept responsibility for decisions;” “we limit strictly the hiring of relatives;” “we pay our people fairly;” “we must do what we promise;” "we try to maintain the good will of former employees;” and “we seek to expand our business.” The policy manual does not contain specific directives for employees regarding promotion, termination, sick leave, benefits, and raises. Rather, the manual is thematic and aspirational in nature. Upon a close reading of this manual, no one should conclude that its encouraging and inspirational themes constitute the bases for a contract.
See Maietta v. United Parcel Service, Inc.,
Plaintiff then attempts to show that new consideration formed an integral part of his managerial promotion and employment contract; however, he has failed to show requisite factual proof of any bargained-for consideration beyond services incident to his employment.
Conley v. Board of Trustees of Grenada County Hospital,
Further, plaintiffs participation in the stock option plan does not indicate adequate consideration for an employment contract. Participation of UPS employees in the plan was discretionary, and the plan was based, at least in part, on performance. The court likewise finds without merit plaintiffs argument that adequate consideration for an employment contract is shown by his refusal to take other “lucrative” job offers.
See Windfield,
C. Public Policy Exception To “At-Will” Exception
Since plaintiff had no written contract founded on the policy handbook, the court is of the opinion that plaintiffs employment was an “at-will” one. Anticipating this possible finding, plaintiff then attacks this conclusion on grounds of public policy, contending that defendant’s anti-fraternization rule is an affront to principles of equity and decency. Most of plaintiff’s argument springs from his contention that principles inherent in the Fifth Amendment to the United States Constitution apply here. However, this reliance is misplaced. Plaintiff has not shown that he was deprived of a constitutional right due to federal or state action.
See, e.g., United States v. Price,
This court, however, declines to adopt a public policy exception to the Mississippi “at-will” rule. The Mississippi Supreme Court has not deviated from its position of refusing to recognize a public policy exception to the “at-will” termination rule.
See Russell v. Schering-Plough Corp.,
In the case of
Laws v. Aetna Finance Co.,
Finally, even if the court found a public policy exception here, plaintiff’s claim that defendant breached an express or implied oral contract of employment has problems under the applicable statute of limitations. The claim is barred by Mississippi’s one year statute of limitations,
D. ERISA Claim
The parties strenuously dispute whether the plaintiffs employee stock option plan is a qualified plan pursuant to ERISA.
E. Invasion of Privacy Claim
In the case of
Deaton v. Delta Democrat Publishing Co.,
The Mississippi Supreme Court has stated that to recover for an invasion of privacy, a plaintiff must show a substantial interference with his seclusion of a kind that “would be highly offensive to the ordinary, reasonable man, as a result of conduct to which the reasonable man would strongly object.”
Candebat v. Flanagan,
Arguing that UPS’ conduct was highly offensive, an element necessary to establish the intentional tort,
Candebat v. Flanagan,
The court disagrees. Nowhere in his papers has plaintiff shown bad faith or utterly reckless prying on the part of UPS.
Wilson v. Retail Credit Co.,
Further, although plaintiff raises an issue of selective enforcement of the policy by UPS, plaintiff has not pleaded such a claim nor shown its viability to this court.
See, e.g., Williams v. Taylor,
Finally, the applicable statute of limitations concerning a privacy cause of action also poses a bar to recovery by the plaintiff. An action based on an invasion of privacy has a one year statute of limitations.
Young v. Jackson,
F. Mental and Emotional Distress Claim
Next, the court considers plaintiff’s mental and emotional distress claim. In support of this claim, plaintiff but offers
[wjhere there is something about the defendant’s conduct which evokes outrage or revulsion, done intentionally—or even unintentionally yet the results being reasonably foreseeable—Courts can in certain circumstances comfortably assess damages for mental and emotional stress, even though there has been no physical injury. In such instances, it is the nature of the act itself—as opposed to the seriousness of the consequences— which give impetus to legal redress.
Sears,
Liability [for the intentional tort] has been found only where the conduct has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.
White,
G. Fiduciary Relationship
Finally, this court is unpersuaded by plaintiff’s argument that he had a fiduciary relationship with UPS due to language in the policy book which referred to employees and the company as “partners.”
See Maietta v. United Parcel Service, Inc.,
V. CONCLUSION
Having considered defendant’s motion for summary judgment and plaintiff’s responses under Rule 56, Federal Rules of Civil Procedure, and under the rubric of
Gelotex Corp. v. Catrett,
SO ORDERED.
Notes
. Rule 56(c) provides in pertinent part:
The motion shall be served at least 10 days before the time fixed for the hearing. The adverse party prior to the day of hearing may serve opposing affidavits. The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
. Title
The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.
. Title
(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $50,000.00 exclusive of interest and costs, and is between—
(1) citizens of different states; ...
. This policy provides that an employee hired for an indefinite term may be discharged at the will of his employer whether for good reason, bad reason, or no reason at all.
Samples v. Hall of Mississippi, Inc.,
. The Fifth Amendment to the United States Constitution provides as follows:
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any Criminal Case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
. Title
It shall be unlawful for any person to discharge ... a participant or beneficiary ... for the purpose of interfering with the attainment of any right to which such participant may become entitled under the plan
.
In determining whether a partnership exists, these rules apply:
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(4) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but no such inference shall be drawn if such profits were received in payment____
.
A party against whom a claim, counterclaim, or cross-claim is asserted or a declaratory judgment is sought may, at any time, move with or without supporting affidavits for a summary judgment in the party's favor as to all or any part thereof.
. The United States Supreme Court case of
Erie Railroad Co. v. Tompkins,
.
... [Ejxcept that an action based on an unwritten contract of employment shall be commenced within one (1) year next after the cause of such action accrued, and not after.
. In the plaintiffs response to defendant’s motion for summary judgment, Watkins merely argues to this court that since the defendant only raised the issue of ERISA applicability, plaintiff is not required to put forth any evidentiary proof regarding whether UPS acted with an intent to interfere with a right to ERISA benefits.
. This court has found no reported cases applying Mississippi law where plaintiff has recovered for the right of privacy sub-tort of intentional intrusion upon the solitude or seclusion of another.
. The Fifth Circuit Court of Appeals, applying Mississippi law, noted that no Mississippi state case or law specifically addresses the statute of limitations period applicable to a claim of intentional infliction of mental and emotional distress.
Guthrie v. J.C. Penney Co., Inc.,