Ledgerwood v. National Amusements, Inc.
| Decision Date | 21 August 2007 |
| Docket Number | No. 06-13605.,06-13605. |
| Parties | Hobart LEDGERWOOD, Plaintiff, v. NATIONAL AMUSEMENTS, INC., Defendant. |
| Court | U.S. District Court — Eastern District of Michigan |
Kelly A. Kruse, Norbert B. Leonard, Leonard Kruse, Bloomfield Hills, MI, for Plaintiff.
Janice G. Hildenbrand, Collins, Einhorn, Southfield, MI, for Defendant.
CORRECTED OPINION AND ORDER
This matter is before the Court on Defendant's Motion for Summary Judgment. For the reasons stated below, the Court GRANTS Defendant's motion.
Plaintiff Hobart Ledgerwood brings this action against his former employer, Defendant National Amusements, Inc. National Amusements operates movie theaters, most often known as the Showcase Cinemas, in twelve states including Michigan. Plaintiff began working for Defendant in 1982. In January 2005, he was fired from his position as Managing Director of the Beacon East theater in Harper Woods, Michigan. Defendant says Plaintiff was fired because he allowed a third party to take company property. Plaintiff contends that his age (49) was a factor in Defendant's decision and that he was promised that he would only be terminated for cause.
Plaintiff was promoted to Managing Director approximately six months before he was fired. Shortly after his promotion, Plaintiff asked his District Manager, Rusty Belcher, for permission to remove aluminum acoustic panels ("ALPRO") from one of Defendant's closed theaters in Sterling Heights, Michigan. Without consulting Defendant's home office, Belcher gave his approval. Over the next month, Plaintiff and another employee at Beacon East, Dan Nasiatka, removed nearly all of the ALPRO from the theater. Nasiatka was the House Manager at Beacon East and he was responsible for monitoring the closed Sterling Heights facility. Plaintiff was Nasiatka's supervisor at Beacon East. Plaintiff and Nasiatka sold the ALPRO for scrap; they each received $2,000.
While removing the ALPRO, Plaintiff enlisted the help of Mike Monte, an independent electrical contractor who has done work for Defendant. Plaintiff asked to borrow Monte's scaffolding to remove the ALPRO from certain areas. Monte agreed and asked Plaintiff if he could remove "masking motors," which are used to operate the curtains in front of the movie screen. Monte says he intended to use them for spare parts for Defendant and his other theater customers. Without getting authorization from Belcher or any other superior, Plaintiff gave Monte permission after he confirmed with Nasiatka that the motors were still there. He advised Nasiatka that he intended to allow Monte to take them.
Per Defendant, Monte removed 15 motors valued at $17,000. Although Plaintiff says he believed the motors were going to be discarded, he acknowledged that Defendant often used masking motors from closed facilities at its other locations or for spare parts. Plaintiff also acknowledged that he needed permission from either Belcher or the home office to remove property from the theater, and that Belcher said that nothing was to leave the building without his approval. Def. Exh. D at pp. 106-107.
In January 2005, Defendant's Assistant Vice President of Operations, Steve Horton, learned about the ALPRO removal. Horton questioned Belcher, who admitted that he gave Plaintiff and Nasiatka permission. Horton says Belcher initially claimed that Dan and Nasiatka removed the ALPRO for use in projects in their homes. Shortly thereafter, however, Horton says Belcher told him that it was actually sold for scrap. Def. Exh. A at p. 26. Horton immediately hired an independent investigation firm to interview Belcher, Plaintiff, Nasiatka and others.
After he talked to Horton, Belcher met with Plaintiff and Nasiatka on a Friday to discuss the ALPRO and find out how much was removed. Belcher advised them about the investigation and that they would be questioned the following Monday. When Belcher asked Plaintiff and Nasiatka if they took anything else, they said no. Def. Exh. D at p. 111. Plaintiff says they simply forgot about the motors until later that evening. Plaintiff then called Monte and asked to him to return the motors. Plaintiff picked them up from Monte on Sunday and returned them to the theater. Plaintiff advised the investigator about the motors during his Monday interview. Afterwards, he also advised Belcher.
One week later, Horton interviewed Plaintiff and Nasiatka. Horton says Plaintiff admitted that he did not get permission for removal of the motors. At the end of the interview, Horton fired Plaintiff for removing the motors and failing to disclose his conduct when questioned by Belcher.
Nasiatka, who was 35 years old at the time, was not terminated, but he was demoted to Manager and his pay was reduced by $25 per week for one year. Horton said that he did not learn that Nasiatka knew that Plaintiff was going to allow the motors to be removed until after this litigation was underway, because Plaintiff did not indicate as much during their interview. Also, in the investigative firm's summary of the interview with Plaintiff, the interviewer reported that Plaintiff said he gave the motors to Monte without consulting with any other employee, and Plaintiff made no mention of Nasiatka's involvement in his written statement. Nasiatka also did not volunteer information about his involvement during any of his interviews. Horton said he did not ask Nasiatka about the motors because Plaintiff never mentioned that anyone else was aware.
Belcher was disciplined, but not fired. His authority has been restricted and he must comply with additional reporting requirements. Belcher is three years younger than Plaintiff. All of the disciplinary actions were approved by Senior Vice President Bill Towey, who is twenty years older than Plaintiff.
Plaintiff asserts two state law claims: age discrimination and wrongful discharge breach of contract. Defendants requests summary judgment on both claims.
Under Fed. R. Civ. P 56(c), summary judgment may be granted "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 judgment as a matter of law." Copeland v. Machulis, 57 F.3d 476, 478 (6th Cir.1995). A fact is "material" and precludes a grant of summary judgment if "proof of that fact would have [the] effect of establishing or refuting one of the essential elements of the cause of action or defense asserted by the parties, and would necessarily affect application of appropriate principle[s] of law to the rights and obligations of the parties." Kendall v. Hoover Co., 751 F.2d 171, 174 (6th Cir.1984). The court must view the evidence in the light most favorable to the nonmoving party and it must also draw all reasonable inferences in the nonmoving party's favor. Cox v. Kentucky Dept. of Transp., 53 F.3d 146, 150 (6th Cir.1995).
The moving party bears the initial burden of showing that there is no genuine issue of material fact. Snyder v. Ag Trucking. Inc., 57 F.3d 484, 488 (6th Cir. 1995). To meet this burden, the movant may rely on any of the evidentiary sources listed in Rule 56(c). Cox, 53 F.3d at 149. Alternatively, the movant may meet this burden by pointing out to the court that the nonmoving party, having had sufficient opportunity for discovery, has no evidence to support an essential element of his or her case, and on which that party will bear the burden of proof at trial. Tolton v. American Biodyne, Inc., 48 F.3d 937 (6th Cir.1995); Street v. J.C. Bradford & Co., 886 F.2d 1472 (6th Cir.1989). The moving party does not, however, have to support its motion for summary judgment with evidence negating its opponent's claims. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
Once the moving party has met its burden, the burden shifts to the nonmoving party to produce evidence of a genuine issue of material fact. Rule 56(e); Cox, 53 F.3d at 150. The nonmoving party cannot rest on its pleadings, but must present significant probative evidence in support of its complaint. Copeland, 57 F.3d at 479. The mere existence of a scintilla of evidence to support the nonmoving party position will be insufficient; there must be evidence on which a jury could reasonably find for the nonmoving party. Snyder, 57 F.3d at 488; Tolton, 48 F.3d at 941.
Plaintiff did not have a written employment contract or other written agreement setting forth the length or conditions of his employment. But, he argues that his termination constituted breach of contract because he either was promised or had a reasonable expectation that he could only be fired for cause. Defendant denies that any such promise was explicitly or implicitly conveyed to Plaintiff. Per Defendant, Plaintiff was an at-will employee.
Under Michigan law, employment contracts for an indefinite term are presumed to be terminable at the will of either party. Lytle v. Malady, 458 Mich. 153, 163, 579 N.W.2d 906 (1998). However, "[t]he presumption of employment at will is overcome with proof of either a contract provision for a definite term of employment, or one that forbids discharge absent just cause." Id. at 164, 579 N.W.2d 906. "Courts have recognized the following three ways by which a plaintiff can prove such contractual terms: (1) proof of `a contractual provision for a definite term of employment or a provision forbidding discharge absent just cause;' (2) an express agreement, either written or oral, regarding job security that is clear and unequivocal; or (3) a contractual provision, implied at law, where an employer's policies and procedures instill a `legitimate expectation' of job security in the employee." Id. (footnotes omitted). Plaintiff attempts to...
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