Hillstrom v. Best Western Tlc Hotel
| Decision Date | 28 May 2003 |
| Docket Number | No. CIV.A. 01-10644-RGS.,CIV.A. 01-10644-RGS. |
| Citation | 265 F.Supp.2d 117 |
| Parties | Roy HILLSTROM v. BEST WESTERN TLC HOTEL |
| Court | U.S. District Court — District of Massachusetts |
Dax Bowers Grantham, Cutler McLeod, P.C., Boston, for Roy Hillstrom, (Plaintiff).
Laurie J. Hurtt, Jackson, Lewis, Schnitzler & Krupman, Boston, for Best Western TLC Hotel, (Defendant).
William J. McLeod, Cutler McLeod, P.C., Boston, for Roy Hillstrom, (Plaintiff).
Robert S. Messinger, Cutler McLeod, P.C., Boston, for Roy Hillstrom, (Plaintiff).
Guy P. Tully, Jackson, Lewis, Schnitzler & Krupman, Boston.
MEMORANDUM AND ORDER ON DEFENDANT'S MOTION FOR SUMMARY JUDGMENT
Roy Hillstrom alleges that he was unlawfully terminated by the Best Western TLC Hotel (Best Western TLC) in Waltham, Massachusetts, because of his age and gender. He also asserts a contractual breach of the disciplinary provisions of Best Western TLC's employee handbook. Finally, he maintains that Best Western TLC violated the job protection guarantees of the Family and Medical Leave Act (FMLA), 29 U.S.C. § 2601 et seq. Best Western TLC counters that Hillstrom was terminated for poor job performance, and denies the existence of a contractual relationship. Best Western TLC moves for summary judgment.1
The following facts are taken, in the light most favorable to Hillstrom, from the First Amended Complaint, Hillstrom's deposition, the depositions of Best Western TLC employees, and Best Western TLC's Statement of Undisputed Facts.
The defendant Best Western TLC is a 100 room hotel in Waltham, Massachusetts owned by The LaCava Company (LaCava). In addition to the Best Western TLC, LaCava owns and operates the Best Western Hotel and Trade Center in Marlborough, Massachusetts, and the Fitchburg Royal Plaza in Fitchburg, Massachusetts. LaCava also once owned the East Hotel in Waltham.
Hillstrom, who was forty-two years old when he was terminated, was hired by Best Western TLC in November of 1981 as a night manager. Best Western TLC then had two management components—a Rooms Division and a Food and Beverage Division. The Rooms Division was responsible for housekeeping, maintenance, reservations, and front desk operations. The Food and Beverage Division oversaw the hotel restaurant, lounge, and meeting spaces. Prior to January 1, 1999, the Food and Beverage Division was managed by Norben, Inc., an outside caterer.
In 1988, Hillstrom was promoted to the position of day manager of the Best Western TLC and the affiliated East Hotel. As the day manager, Hillstrom reported directly to the president of LaCava, Anthony LaCava Sr. LaCava Sr. was based at the Royal Plaza Hotel in Marlborough, but visited the Waltham properties once every two or three months. In 1990, LaCava Sr. named Hillstrom as General Manager of the Rooms Division at the two hotels. As General Manager, Hillstrom's duties encompassed "everything" involved with the Rooms Division; he oversaw reservations, front desk operations, housekeeping, and maintenance; he hired, supervised, and prepared the performance evaluations of all Rooms Division employees. In 1994, LaCava sold the East Hotel. Hillstrom continued to oversee the Rooms Division at the Best Western TLC.2 In 1994, upon the death of LaCava Sr., his son, Anthony, became president of LaCava. Hillstrom now reported directly to LaCava Jr.
After being hired by Best Western TLC, Hillstrom received a copy of the LaCava employee handbook. The handbook provided for a "Disciplinary Procedure," the essential provisions of which were as follows:
The Company endorses a policy of progressive discipline in which it attempts to provide employees with notice of deficiency and opportunity to improve. It does however, retain the right to administer discipline, up to and including discharge, as we deem fit in our judgement [sic].
The Company may not3 use discipline consisting of a verbal or written warning, considering ail the circumstances of each case.
STEP 1—If an employee is not meeting the company standards of behavior and performance, the employees (sic) supervisor will take the following action:
1. Meet with the employee to discuss the matter;
2. Inform the employee of the nature of the problem and the action necessary to correct it;
3. Issue an oral warning using the Employee Warning Notice/Termination Form. The oral warning should be documented and signed by the department manager as well as issuing supervisor. The supervisor should document the incident by completing the Employee Warning Notice/Termination Form. The supervisor should retain a copy. The original should be sent in confidence to the Human Resources Department and will be maintained in the respective personnel file.
STEP 2—If there is a second violation of a similar nature or an employee who is experiencing a series of unrelated problems involving job performance and/or behavior, the supervisor will hold another meeting with the employee and take the following action:
1. Issue a written warning to the employee documenting the incident on an Employee Warning Notice/Termination form;
2. The supervisor should retain a copy. The original should be sent in confidence to the Human Resources Department and will be maintained in the respective personnel file.
3. Warn the employee that a 3rd violation will result in termination.
STEP 3—If there is a third violation of the Company's Employee Warning Policy, the supervisor will take the following action:
1. Issue a written warning to the employee documenting the incident on an Employee Warning Notice/Termination form;
2. Terminate the employee. Notice of the termination should be handled carefully and discretely, preferably in a private meeting; include the employee to be terminated, the immediate supervisor, and the Human Resource Manager or Department Manager.
The handbook contained several provisions disavowing any intention to create a contract. In the "Purpose of this Handbook" section on page 3, it specifically stated that, "[t]his handbook is intended for management and employee guidance only and is not to set forth any binding rights or be a contract." Another disclaimer was found in the "Employee Handbook Acknowledgment" form that was signed by Hillstrom on June 4, 1999. The form stated that, The "Disciplinary Procedure" section of the handbook, upon which Hillstrom bases his claim, also contained a disclaimer that The LaCava Company "does[,] however, retain the right to administer discipline, up to and including discharge, as we deem fit in our judgement [sic]," and that, "[t]he company may not use discipline consisting of a verbal or written warning, considering all the circumstances of each case." Finally, LaCava reserved "the right to modify the handbook's terms" in its discretion at any time.
As General Manager, Hillstrom believed that he had the "absolute right" to terminate employees without consulting LaCava's Human Resources Department or observing each step of the formal disciplinary procedure. Hillstrom estimated that he had terminated fifteen employees during his tenure as General Manager, including some who had incurred no prior disciplinary infractions.
Hillstrom suffered an aneurysm in January of 1999. As a result, he missed work for approximately six weeks. During his absence, Hillstrom received full pay and benefits. He then returned to work part-time, and after two weeks, resumed work full-time.4
Some months prior to Hillstrom's illness, Matthew Phipps approached LaCava Jr. about becoming the General Manager of the Best Western TLC. Phipps, who had been hired by LaCava in 1995 as the rooms director at the Royal Plaza Hotel, had since been promoted to oversee the hotel's Food and Beverage Division. Phipps presented LaCava Jr. with a series of ideas for growing business at the Best Western TLC and improving its performance. LaCava Jr. declined, as the Best Western TLC was undergoing renovations, and was in the process of reacquiring management of the Food and Beverage Division from Norben, Inc.
In February of 1999, while Hillstrom was on sick leave, LaCava Jr. changed his mind and offered Phipps the General Manager's position.5 According to LaCava Jr., Phipps was hired as part of a plan to consolidate the hotel's management and reduce the number of persons reporting directly to him. LaCava Jr. stated that, while he was satisfied with Hillstrom's performance as manager of the Rooms Division, he chose Phipps as General Manager because of his food and beverage experience.
Hillstrom returned to work in March of 1999. Upon his return, Hillstrom found that he no longer reported to LaCava Jr., but to Phipps. Phipps had taken over what had been Hillstrom's office and had removed all of Hillstrom's belongings. Hillstrom was relocated to an office that he now shared with the hotel's front desk employees. Hillstrom's title was changed to Rooms Division Manager, and he was instructed "to continue on doing the exact same job as [he] had always done." Hillstrom's pay and benefits remained the same. Hillstrom was told that Phipps, as the General Manager, would concentrate on improving the hotel's food and beverage service. Despite the assurances, the responsibilities of...
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