Ehrhardt v. Electrical & Instrumentation

• Decision Date: 24 July 2002
• Docket Number: No. 1:00-CV-831.,1:00-CV-831.
• Citation: 220 F.Supp.2d 649
• Parties: James EHRHARDT, Plaintiff, v. ELECTRICAL & INSTRUMENTATION UNLIMITED OF LOUISIANA, Defendant.
• Court: U.S. District Court — Eastern District of Texas

220 F.Supp.2d 649

James EHRHARDT, Plaintiff, v. ELECTRICAL & INSTRUMENTATION UNLIMITED OF LOUISIANA, Defendant.

No. 1:00-CV-831.

United States District Court, E.D. Texas, Beaumont Division.

July 24, 2002.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Mary Ferguson Bradford, Reaud, Morgan & Quinn, Beaumont, TX, for plaintiff.

G. Mark Jodon, Tara B. Hittelman, Littler Mendelson, Houston, TX, for defendant.

MEMORANDUM OPINION

COBB, District Judge.

This is an employment dispute case, wherein defendant employer has brought a Motion for Summary Judgment. Upon review, this court is of the opinion that defendant's Motion for Summary Judgment should be GRANTED.

I. FACTUAL AND PROCEDURAL SYNOPSIS

Defendant Electrical & Instrumentation Unlimited of Louisiana ("EIU") employed James Ehrhardt ("Ehrhardt") in January of 2000 as a general foreman for the defendant's project at the Goodyear plant in Beaumont, Texas. During the hiring process, Ehrhardt completed and signed an employment application. The application stated "Electricians, techs, fitters, and Management must give at least 2 years experience (attach separate sheet if necessary)." There was space to list three previous employers on the primary form. Ehrhardt completed the form, listing his time spent with three previous employers, which totaled well over two years. However Ehrhardt did not list his most recent three employers, which would have totaled under two years experience.

Nine days after Ehrhardt's employment began, Misty Broussard ("Broussard"), an EIU employee returned to work after a leave of absence. Broussard informed David Reichard ("Reichard"), the project manager for EIU, that she had filed a sexual harassment claim against Ehrhardt while they were both employed at a previous job for Biskamp Electric within the last two years. Ehrhardt had not included Biskamp Electric on his employment application, and after confirming that Ehrhardt had worked for Biskamp, Reichard informed Ehrhardt they were terminating him for "[f]ailure to divulge working for Biskamp Electric within the last two years on his application." Reichard Deposition, p. 65. That same day at a general foreman's meeting, Reichard informed those at the meeting that Ehrhardt had been fired for being in violation of company policy.

Ehrhardt brought suit in state court, and EIU removed based on diversity jurisdiction. Ehrhardt has four surviving claims for which EIU seeks summary judgment. The claims are for breach of contract, defamation, fraud, and intentional infliction of emotional distress.

II. ANALYSIS

Summary Judgment Standard

A court should grant summary judgment when "there is no genuine issue as to any material fact and [] the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A fact is material if it might affect the outcome of a case under the governing substantive law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A genuine issue exists when, in the context of the entire record, a reasonable fact-finder could return a verdict for the non-movant. Lujan v. National Wildlife Federation, 497 U.S. 871, 885-86, 110 S.Ct. 3177, 111 L.Ed.2d 695 (1990). The court must view the evidence introduced and all factual inferences from the evidence in the light most favorable to the party opposing summary judgment. Eastman Kodak v. Image Technical Services, 504 U.S. 451, 478, 112 S.Ct. 2072, 119 L.Ed.2d 265 (1992); Lemelle v. Universal Mfg. Corp., 18 F.3d 1268, 1272 (5th Cir. 1994). However, this favorable presumption for the non-movant exists only when the non-movant presents an actual controversy of fact. Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994).

Contract Claim

The general rule in Texas is, absent a specific agreement to the contrary, employment may be terminated by the employer or the employee at will, for good cause, bad cause, or no cause at all. Montgomery County Hosp. Dist. v. Brown, 965 S.W.2d 501, 502 (Tex.1998); Federal Express Corp. v. Dutschmann, 846 S.W.2d 282, 283 (Tex.1993) (per curiam); Schroeder v. Texas Iron Works, 813 S.W.2d 483, 489 (Tex.1991); Winters v. Houston Chronicle Pub. Co., 795 S.W.2d 723, 723 (Tex.1990); Sabine Pilot Serv., Inc. v. Hauck, 687 S.W.2d 733, 734-35 (Tex.1985). "To rebut the presumption of employment at will, an employment contract must directly limit in a `meaningful and special way' the employer's right to terminate the employee without cause." Hamilton v. Segue Software Inc., 232 F.3d 473, 478 (5th Cir.2000) (quoting Rios v. Texas Commerce Bancshares, Inc., 930 S.W.2d 809, 815 (Tex.App. — Corpus Christi 1996, writ denied) (quoting Massey v. Houston Baptist Univ., 902 S.W.2d 81, 83 (Tex.App. — Houston [1st Dist.] 1995, writ denied))).

Ehrhardt has produced no evidence of an actual written contract which would limit EIU's right to terminate the employee without cause. However, Ehrhardt does argue that there was an oral contract for at least six months employment based upon his understanding of how long the project was to last. A promise which would form a contract if accepted, "is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made." Restatement (Second) of Contracts § 2(1) (1981). For an oral contract to exist, "the employer must unequivocally indicate a definite intent to be bound not to terminate the employee except under clearly specified circumstances. General comments that an employee will not be discharged as long as his work is satisfactory do not in themselves manifest such an intent. Neither do statements that an employee will be discharged only for `good reason' or `good cause' when there is no agreement on what those terms encompass. Without such agreement the employee cannot reasonably expect to limit the employer's right to terminate him. An employee who has no formal agreement with his employer cannot construct one out of indefinite comments, encouragements, or assurances." Montgomery 965 S.W.2d at 502. There has been no evidence produced that any representations were made by EIU which would indicate a definite intent to be bound not to terminate Ehrhardt.

The final contract-related argument Ehrhardt makes, is that EIU modified its right to discharge him at will by using certain language in its employment manual. Ehrhardt claims that because a stated purpose of the manual is to make the employees feel "comfortable", it demonstrates an effort to create job security. Further, Ehrhardt claims that because the manual only addresses employees being "discharged with cause", his firing would have to be for cause. Ehrhardt maintains that he did not lie on his application and there was therefore no cause to fire him. Whether Ehrhardt did or did not lie, and regardless of whether there was cause or no cause, it does not affect the present analysis. Not only do the provisions contained within the manual fall short of expressing the necessary definite intent to be bound, the fact it is a manual instead of a contract is also influential. Id.

"Although courts usually find that general statements about working conditions, disciplinary procedures, or termination rights are not sufficient to change the at-will employment relationship, a handbook may modify the at-will relationship if it specifically and expressly curtails the employer's right to terminate the employee." Figueroa v. West, 902 S.W.2d 701, 704 (Tex.App. — El Paso 1995, no writ); McAlister v. Medina Elec. Coop., Inc., 830 S.W.2d 659, 664 (Tex.App. — San Antonio 1992, writ denied). For a manual to limit the employer's right to terminate an employee, it must restrict the at will relationship in a meaningful and special way and contain a specific contractual term altering the at will status. Figueroa v. West, 902 S.W.2d at 704. In this case, the employee manual fails to alter, or even address the at will relationship in any meaningful way. Hence, this court finds there was no employment contract between the parties, and EIU therefore did not breach a contract when it discharged Ehrhardt. Accordingly, summary judgment should be granted to EIU on Ehrhardt's breach of contract.

Defamation Claim

Ehrhardt was working in Nevada when he contacted Reichard, the project manager, about a potential job. Ehrhardt claims that Reichard hired him over the telephone and told Ehrhardt to report to the employment office in Beaumont to fill out the necessary paper work. On January 26, 2000, Ehrhardt filled out his employment application in the presence of two other applicants and Kenneth Villejoin ("Villejoin"), an EIU employee who administered the applications. Ehrhardt claims that when he got to the portion of the application that asked for two years experience, he asked Villejoin how he should proceed. Ehrhardt says he told Villejoin that he had worked more than three jobs in the last two years, but that with one of those jobs, Brown & Root, he had more than ten years experience. Ehrhardt testified at deposition that he asked Villejoin if he needed to include a second sheet for his employment history:

Q: And what conversation was that?

A: I asked him did I need to go ahead and put out another sheet, do the application. I told him I had wrote on the second line there that I had worked with Brown & Root for ten years, showing that I have had years of experience in the trade, was that sufficient; and he said yes.

Q: Did you advise him that you were not providing two years of experience?

A: I've got — I mean it's ten years written on line two, showing more than ten years' experience. It's not showing the last jobs for the last two years. I mean, it's showing ten years just with one company right there.

. . . .

Q: Prior to filling out this application, did you have any...