McDill v. Environamics Corp.
| Decision Date | 03 February 2000 |
| Docket Number | No. 97–894.,97–894. |
| Citation | 144 N.H. 635,757 A.2d 162 |
| Court | New Hampshire Supreme Court |
| Parties | William D. McDILL v. ENVIRONAMICS CORPORATION. |
Boynton, Waldron, Doleac, Woodman & Scott, P.A., of Portsmouth (Christopher E. Grant on the brief and orally), for the plaintiff.
McLane, Graf, Raulerson & Middleton, P.A., of Portsmouth (David Wolowitz & a. on the brief, and Mr. Wolowitz orally), for the defendant.
Bossie, Kelly, Hodes & Buckley, P.A., of Manchester (Heather M. Burns on the brief), and Moquin & Daley, P.A., of Manchester (Joni N. Esperian on the brief), for the New Hampshire Chapter of the National Employment Lawyers Association, as amicus curiae.
New England Legal Foundation, of Boston, Massachusetts (Loretta M. Smith on the brief), and Rath, Young & Pignatelli, P.A., of Concord (Andrew W. Serell on the brief), for the Business and Industry Association of New Hampshire, as amicus curiae.
The defendant, Environamics Corporation, appeals a jury verdict from the Superior Court (McHugh, J.) awarding the plaintiff, William D. McDill, $65,000 in damages on his breach of contract claim. We reverse and remand.
Based on evidence introduced at trial, the jury could have found the following facts. The plaintiff was hired by the defendant as its controller on July 12, 1993. His contract provided that he could be dismissed only "for cause." The defendant's president, Robert Rockwood, hired the plaintiff's daughter, Kelly McDill, for the summer of 1994 before she began college. Rockwood had sole authority to hire or fire employees.
At a company marketing event, an official from the defendant's parent company met Kelly. The official informed Rockwood that he advised against hiring children of management. Although the official wanted Kelly terminated, Rockwood did not do so because he had made a commitment to her for the summer, which was nearly over. Rockwood believed that Kelly's employment was only for the summer. Shortly thereafter, Rockwood advised the plaintiff about the company official's concern.
A marketing department employee communicated with Kelly that fall about her availability during her winter academic break. Once in December 1994, and from January 3 to January 12, 1995, Kelly worked in the marketing department for this employee under the supervision of one of the defendant's other managers.
While working late on the evening of January 10, 1995, the plaintiff saw a facsimile transmission from an applicant for his job (the facsimile) as it printed out on the machine in a common area. Believing that the defendant was planning on finding an excuse to terminate him, the plaintiff made a copy of the facsimile. He planned on discussing the facsimile with Rockwood, but Rockwood's secretary told the plaintiff that Rockwood had asked whether she had seen the facsimile and advised her not to discuss it with anyone. The plaintiff decided not to approach Rockwood on the matter. Until trial, the defendant did not know that the plaintiff had copied the facsimile.
Rockwood first became aware that Kelly had returned to work on January 12, 1995. He decided to "have Kelly let go from the company." Upon receiving notice that day, the plaintiff immediately terminated his daughter. Kelly McDill testified that her father "had to let me go ... because I was his daughter." Rockwood testified that he advised all managers, including the plaintiff, against hiring relatives, and there was evidence that other managers in the company knew of this prohibition. This policy was never reduced to writing, however, and Rockwood's testimony was the only evidence that the plaintiff had ever been advised of this rule. The plaintiff testified that he was never advised of this prohibition. Further, he testified that his daughter was not "rehired" because she had not been terminated after the summer of 1994, and because she was brought back at the request of and under the direction of a different supervisor. He further testified that he did not place her on the payroll because she was already on the payroll from working the previous summer.
On February 13, 1995, Rockwood terminated the plaintiff's employment. In a letter given to the plaintiff, Rockwood stated the sole reason for termination: "As a result of your direct and willful act of insubordination by disregarding my express order prohibiting employment by the Company of your daughter, Kelly McDill, and the ensuing conflict of interest, your employment at Environamics Corporation is being terminated effective February 13, 1995." The plaintiff then filed suit claiming, inter alia, breach of contract.
During discovery, the plaintiff propounded an interrogatory asking the defendant to "state in full and complete detail all reasons for which the Plaintiff was terminated by you from his employment with you, giving the dates on which each such reason was stated to the Plaintiff." The defendant responded:
In early January 1995, Mr. Rockwood discovered that Mr. McDill had placed his daughter, Kelly McDill, on Environamics' payroll. Mr. McDill's action was in direct violation of an express order that his daughter, Kelly McDill, not be placed on ... Environamics' payroll. In addition, Mr. McDill did not have authority to hire employees. Mr. Rockwood always exercised that responsibility with the consultation of others, but that authority was never delegated to others. These actions constituted a serious breach of trust, conflict of interest and violation of contractual and fiduciary duties.
The plaintiff also asked the defendant to "identify all persons from whom applications and inquiries were received by you for the Plaintiff's position with you during the years 1994 and 1995" and then requested any documents or applications submitted. The defendant did not provide a copy of the facsimile to the plaintiff, or identify this particular applicant. The plaintiff also asked the defendant for "All documents relating to and including any and all forms of application and employment submissions and inquiries for the position of Controller with you, received by you during the years 1994 and 1995." In response, the defendant identified only the resume and facsimile cover sheet of the applicant who ultimately replaced the plaintiff, and stated that "there are no other documents relative to Environamics' attempts to engage a replacement for the Plaintiff."
The defendant asked the plaintiff to produce "Any and all ‘Confidential Information’ ... which is [in] the possession of the Plaintiff." "Confidential [i]nformation" included, inter alia , "any information pertaining to the Company's affairs or interests which the Company does not make available to the public." The plaintiff responded that he did not possess any such documentation.
On direct examination, Rockwood testified that the only reason he fired the plaintiff was because on January 12, 1995, he learned that Kelly was working at the company again. Rockwood also testified that until this incident, he had never thought about terminating the plaintiff. The plaintiff questioned Rockwood about applicants for his position and the materials provided in discovery, including a copy of Rockwood's schedule book, which contained information about the applicant who submitted the facsimile, and at least one other applicant. The plaintiff then introduced the facsimile, and asked Rockwood why an applicant would be seeking his position on January 10th.
The court admitted the facsimile and permitted the defendant to inquire into how it came into the plaintiff's possession. After extensive cross-examination, the plaintiff ultimately testified that if Rockwood knew he had copied the facsimile, he could have been fired.
The defendant then sought to examine Rockwood as to whether he would have fired the plaintiff for this act. Rockwood testified that copying the facsimile was "just a further breach of my faith and trust in him; that to take my personal mail, I just can't believe it." The trial court stopped the examination and held a conference in chambers.
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