Pytlik v. Professional Resources, Ltd.

• Decision Date: 10 October 1989
• Docket Number: No. 87-2869,87-2869
• Citation: 887 F.2d 1371
• Parties: Paul P. PYTLIK, Plaintiff-Appellant, v. PROFESSIONAL RESOURCES, LTD.; Halliburton Services; Halliburton Italiana s.p.a.; Halliburton Company; Insurance Company of North America, doing business as CIGNA, Defendants-Appellees.
• Court: U.S. Court of Appeals — Tenth Circuit

Page 1371

887 F.2d 1371

4 Indiv.Empl.Rts.Cas. 1523

Paul P. PYTLIK, Plaintiff-Appellant, v. PROFESSIONAL RESOURCES, LTD.; Halliburton Services;

Halliburton Italiana s.p.a.; Halliburton Company;

Insurance Company of North America,

doing business as CIGNA,

Defendants-Appellees.

No. 87-2869.

United States Court of Appeals,

Tenth Circuit.

Oct. 10, 1989.

Ben A. Goff (Michael E. Warma with him on the brief), of Ben A. Goff, P.C., Oklahoma City, Okl., for plaintiff-appellant.

James T. Priest (Edward D. Hasbrook with him on the brief), of McKinney, Stringer & Webster, P.C., Oklahoma City, Okl., for defendants-appellees Professional Resources, Ltd., Halliburton Services, Halliburton Italiana, s.p.a., and Halliburton Co.

Jack F. Gilbert (William G. Smith with him on the brief), of Fenton, Fenton, Smith, Reneau & Moon, Oklahoma City, Okl., for defendant-appellee Ins. Co. of North America.

Before SEYMOUR, ANDERSON, and BRORBY, Circuit Judges.

BRORBY, Circuit Judge.

Paul Pete Pytlik (Pytlik) unsuccessfully brought suit based upon diversity for five claims related to his alleged wrongful discharge for initiating a workers' compensation claim. Pytlik's complaint alleges five separate causes of action without designating to which of the five defendants each claim applies. The defendants are: Professional Resources, Ltd. (PRL), a Bahamian corporation whose principal function is hiring third country nationals for Halliburton-related companies and which entered into a contract of employment with Pytlik; Halliburton Company, which operates the Welex division, an international well service company for which Pytlik contracted with PRL to work as an engineer while he was in Italy; Halliburton Italiana s.p.a. (Italiana), a Halliburton Company subsidiary organized under the laws of Italy and to which Pytlik was "seconded" for employment in Italy; Halliburton Services, a division of Halliburton Company that handles employee benefits; and Insurance Company of North America (INA), which provided liability insurance and voluntary workers' compensation benefit coverage to PRL and Halliburton Services companies.

The first claim alleges Pytlik was wrongfully discharged for contacting an attorney about a potential workers' compensation claim in violation of Okla.Stat. title 85, Secs. 5, 6 and 7 (Supp.1989). The second claim alleges Pytlik's employment contract was breached because his termination was pretextual and did not come within the early termination clause of the contract or an oral modification of the contract that extended its term to five years. The third claim alleges breach of the implied "covenant of good faith and fair dealing" by the defendants' misrepresentations regarding the proper venue of Pytlik's workers' compensation claim and by the Halliburton defendants' false reasons for his termination. The fourth claim alleges the defendants fraudulently induced Pytlik to enter into the 1983 employment contract with PRL by misrepresenting Pytlik's future employment and the resolution of Pytlik's past complaints. The fifth claim alleges fraud and intentional infliction of emotional distress by virtue of unspecified defendants' misrepresentations concerning the jurisdiction of Pytlik's workers' compensation claim.

Pytlik appeals the orders of the United States District Court for the Western District of Oklahoma dismissing his claims against Italiana for lack of personal jurisdiction; entering summary judgment for INA on all claims; entering summary judgment for PRL, Halliburton Services, and Halliburton Company on his claims of breach of contract, breach of implied covenant of good faith and fair dealing, fraudulent inducement, and intentional infliction of emotional distress; and directing a verdict at the conclusion of Pytlik's case for these defendants on his claim of wrongful discharge. We affirm in part and reverse in part and remand for new trial on the wrongful discharge claim.

On July 1, 1983, Pytlik, an English citizen, signed an employment contract with PRL to work in Italy as a Welex District Engineer for a period of two years. Pytlik was loaned or "seconded" immediately to work for Italiana. On December 7, 1983, Pytlik was injured in an automobile accident in Italy while he was allegedly acting in the course and scope of his employment for Italiana. During his convalescence, Pytlik received his regular wages, and his medical bills were paid in lieu of workers' compensation benefits. Complaint p 4. Pytlik returned to work for Italiana in July 1984.

Under Pytlik's contract the Company ¹ retained the right to designate which country's laws applied to govern workers' compensation. Appellant's Addendum, Exhibit 7 at 4. Pytlik sent letters to Halliburton Services in Duncan, Oklahoma, inquiring about the payment of certain medical bills and his workers' compensation rights. In January 1985 Pytlik received a copy of a letter from INA to its claims service in Milan, Italy. The letter stated:

It is our understanding that the claimant is from England (U.K.) and was injured on-the-job in Italy. This would make him a TCN [third country national] and covered under Oklahoma voluntary compensation. All of this information needs to be confirmed.

Please contact the claimant as soon as possible and obtain all the medical information that you can....

* * *

* * *

[G]et some idea from the claimant as to what he is looking for in the way of settlement.

Appellant's Addendum, Exhibit 46. In January 1985 Pytlik contacted a Texas attorney regarding his workers' compensation rights. Appellant's Addendum, Exhibit 52. In February 1985 Halliburton Services advised Pytlik that it could no longer contact him directly because he had retained an attorney to pursue a workers' compensation claim against Halliburton. On February 15, 1985, Pytlik's supervisor recommended Pytlik receive a merit pay increase and confirmed that Pytlik would receive his normal salary while undergoing additional surgery. Appellant's Addendum, Exhibits 55 and 57. Pytlik received a letter dated March 1, 1985, from the Welex division manager terminating his employment "[d]ue to a reduction in our workforce" and stating the reduction was in accordance with the terms of Pytlik's contract. ² Appellant's Addendum, Exhibit 60. Pytlik received a second letter dated March 11, 1985, terminating his employment and indicating he should disregard the letter of termination dated March 1, 1985. ³ Appellant's Addendum, Exhibit 62.

Pytlik filed suit in federal district court in 1987. Upon motion, the district court dismissed defendant Italiana for lack of personal jurisdiction. The district court granted the motion of INA for summary judgment on all of Pytlik's claims. The district court granted summary judgment to the remaining defendants on claims two, three, four, and five. The first claim of wrongful discharge was presented to a jury. At the close of the plaintiff's case the defendants jointly moved for directed verdict on the first claim, which the district court granted. We now address each of the district court orders that Pytlik has appealed.

I. Jurisdiction over Italiana

The district court dismissed Italiana for lack of personal jurisdiction. The district court found Pytlik's complaint failed to show Italiana had meaningful minimum contacts with Oklahoma necessary to impose jurisdiction. On appeal Pytlik contends that minimum contacts for the purpose of jurisdiction are established by the acts of Italiana's agent, Halliburton Services, in entering into a contract with Pytlik in Oklahoma. We disagree.

We review de novo a district court's ruling on personal jurisdiction. Rambo v. American Southern Ins. Co., 839 F.2d 1415, 1417 (10th Cir.1988) (citing Ten Mile Indus. Park v. Western Plains Serv. Corp., 810 F.2d 1518, 1524 (10th Cir.1987)). The general test for personal jurisdiction is discussed in Rambo. In a diversity suit a federal court may exercise jurisdiction over a nonresident defendant if minimum contacts exist with the forum state. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 300, 100 S.Ct. 559, 581, 62 L.Ed.2d 490 (1980) (quoting International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945)). The sufficiency of the defendant's contacts are determined by considering whether the defendant has purposely availed itself of the privileges of conducting activities in the forum state. Rambo, 839 F.2d at 1417. In ascertaining the facts necessary to establish jurisdiction, the court must accept as true the allegations set forth in the complaint to the extent they are uncontroverted by the defendant's affidavits. Ten Mile, 810 F.2d at 1524. All factual disputes are resolved in the plaintiff's favor.

In the complaint ⁴ Pytlik alleged: (1) Italiana "is a foreign corporation conducting business in the State of Oklahoma, as an affiliate of Halliburton, whose principal place of business is in Milano, Italy," Complaint p 1; and (2) "[o]n July 21, 1983, the plaintiff entered into an employment contract in Duncan, Oklahoma, with the Defendants including Professional Resources, LTD and Halliburton Italiana s.p.a. as evidenced by Plaintiff's Exhibit A attached," Complaint p 4. Italiana challenged these allegations in its motion to dismiss pursuant to Fed.R.Civ.P. 12(b). The plaintiff has the duty to support jurisdictional allegations in a complaint by competent proof of the supporting facts if the jurisdictional allegations are challenged by an appropriate pleading. Becker v. Angle, 165 F.2d 140, 141 (10th Cir.1947).

Pytlik's complaint fails to allege any facts in support of its conclusory statement that Italiana is conducting business in Oklahoma. Nor does Exhibit A, the contract between Pytlik and PRL (attached to the complaint), support Pytlik's allegation that Italiana is a party to the contract. Italiana is not mentioned in the contract. Pytlik's response to the motion to dismiss does not contain additional facts that support...