Pitak v. Bell Atlantic Network Svcs., Inc.

• Decision Date: 08 May 1996
• Docket Number: Civil Action No. 95-3319 (AJL).
• Parties: Beverly PITAK, Philip Polchinski, Jerry Rodda, Nancy Scholz, Gloria Nobles, Terence Juliano, Romilda Vaccarella, Plaintiffs, v. BELL ATLANTIC NETWORK SVCS., INC., Bell Atlantic Corp., "John Doe, Inc.," Ralph Szygenda, individually and as an employee of the defendant, Bell Atlantic Network Svcs., Inc., and/or "John Doe, Inc.," Raymond Smith, individually and as chief executive officer and chairman of the defendant, Bell Atlantic Corp., John Gamba, individually and as an employee of defendant, Bell Atlantic Corp., Defendants.
• Court: U.S. District Court — District of New Jersey

928 F. Supp. 1354

Beverly PITAK, Philip Polchinski, Jerry Rodda, Nancy Scholz, Gloria Nobles, Terence Juliano, Romilda Vaccarella, Plaintiffs, v. BELL ATLANTIC NETWORK SVCS., INC., Bell Atlantic Corp., "John Doe, Inc.," Ralph Szygenda, individually and as an employee of the defendant, Bell Atlantic Network Svcs., Inc., and/or "John Doe, Inc.," Raymond Smith, individually and as chief executive officer and chairman of the defendant, Bell Atlantic Corp., John Gamba, individually and as an employee of defendant, Bell Atlantic Corp., Defendants.

Civil Action No. 95-3319 (AJL).

United States District Court, D. New Jersey.

May 8, 1996.

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Arthur G. Nevins, Jersey City, New Jersey, for Plaintiffs.

Francis X. Dee, David J. Reilly, David B. Beal, Carpenter, Bennett & Morrissey, Newark, New Jersey, for Defendants.

OPINION

LECHNER, District Judge.

This is an action by Beverly Pitak ("Pitak"), Philip Polchinski ("Polchinski"), Jerry Rodda ("Rodda"), Nancy Scholz ("Scholz"), Gloria Nobles ("Nobles"), Terence Juliano ("Juliano") and Romilda Vaccarella ("Vaccarella") (collectively, the "Plaintiffs"), against Bell Atlantic Network Services, Inc. ("BANS"), Bell Atlantic Corporation ("BAC"), Raymond Smith ("Smith"), individually and as chief executive officer and chairman of BAC, Ralph Szygenda ("Szygenda"), individually and as an employee of BANS and John Gamba ("Gamba"), individually and as an employee of BAC (collectively, the "Defendants"). Federal question jurisdiction and supplemental jurisdiction are asserted. Diversity jurisdiction is not alleged.

Currently before the court is a motion for partial summary judgment filed by the Defendants (the "Motion for Partial Summary Judgment"), pursuant to Rule 56(c) of the Federal Rules of Civil Procedure, with respect to the first, second, fourth, fifth and eighth counts of the complaint ("Complaint") as to all Defendants, and for summary judgment as to all counts of the Complaint with respect to Szygenda, Gamba and Smith.¹ For the reasons set forth below, the Motion for Partial Summary Judgment is granted.

Facts

A. Parties

The Complaint alleges each of the Plaintiffs, who are between the ages of forty and fifty-four, reside in New Jersey. Complaint, ¶¶ 1-7. BANS employed each of the Plaintiffs in its Madison, New Jersey facility, for periods ranging from twelve to twenty-nine years. Id.; Plaintiffs' Rule 12G Statement at 1. Plaintiffs were data programmers or analysts assigned to work on a standardized billing system, known as the Customer Records Information System ("CRIS") (the "CRIS Standardization"). Defendants' Rule 12G Statement at 2. Each Plaintiff was terminated, by letter, dated 29 March 1994, as part of a reduction in force ("RIF"). Plaintiffs' Rule 12G Statement at 1.

Plaintiffs do not allege the domicile of BAC or BANS; they allege each is licensed to do business in the State of New Jersey and also allege BAC is the corporate parent of BANS. Complaint, ¶¶ 8-9, 11. Szygenda was allegedly vice-president of information systems for BAC and BANS. Id., ¶ 12. Smith was allegedly the chief executive officer and chairman of BAC during the time relevant to the Complaint. Id., ¶ 13. During that time, Gamba was allegedly the vice-president of BAC for corporate and human resources. Id., ¶ 14.

The submissions refer to other individuals. James Cleary ("Cleary"), a member of management employed by BANS, worked in Madison, New Jersey through 31 January 1995. Cleary Dep. at 13. Cleary was then a member of the "third level of management ("Third Level Managers") ;" Plaintiffs were then members of the "first level of management ("First Level Managers") ." Third Level Managers supervise First Level Managers. Id. at 16-17. Cleary reported directly to Paul MacGuire, then to Bryan Parish and, from late 1993 through late 1994, to David Swan ("Swan"). Swan then held the title of "assistant vice-president, standardization." Id. at 18-19. In March 1993, Swan appointed Eugene O'Mullan ("O'Mullan") to be Resource Redeployment Director. Plaintiffs' Rule 12G Statement at 9.

B. Background

1. CRIS Standardization²

"At the time of the AT & T divestiture in 1984, New Jersey Bell, Bell of Pennsylvania and the C & P Companies each had different systems for billing customers." Defendants' Rule 12G Statement at 3. "The purpose of CRIS Standardization was to convert New Jersey and C & P to the Pennsylvania System, a multi-phase system which started in approximately 1988." Id. At the time CRIS Standardization began, Bell of Pennsylvania, which had the most modern of the systems in use at the time of the AT & T divestiture, was "selected as the base line system." Swan Dep. at 49. CRIS Standardization was scheduled for completion in January 1994, and between 16 January and 29 March 1994, sixty percent of the New Jersey billing system became standardized." Plaintiff's Rule 12G Statement at 6 (citing Cleary Dep. at 45-46; Swan Dep. at 51). "The New Jersey phase of the project was known as CRIS-New Jersey." Defendants' Rule 12G Statement at 3 (citing Swan Dep. at 48-50). Upon completion of CRIS Standardization, a new billing system, first named "BACUS" and later renamed "Express Track," would be implemented. Swan Dep. at 50.

2. Promises and Assurances of Continued Employment

"Plaintiffs all claim that they were made promises and assurances of continued employment." Plaintiffs' Rule 12G Statement at 2. Plaintiffs allege Defendants "intentionally and knowingly made false representations, assurances, promises and commitments to the Plaintiffs ... with the encouragement and instigation" of Smith, Gamba and Szygenda, "in spite of the knowledge that these assurances were untrue and calculated to induce Plaintiffs to remain in their positions until CRIS Standardization was completed and they could be terminated." Complaint, ¶ 33. "While it was understood that CRIS Standardization ... would, once successfully implemented, lead to the reduction of some CRIS job positions in Madison, New Jersey, the Plaintiffs were promised that they would be given new assignments within BANS or BAC." Id., ¶ 22; see Plaintiffs' Rule 12G Statement at 3 ("It is undisputed that the five Plaintiffs working on CRIS in Madison, New Jersey knew that upon standardization, their positions would likely be eliminated."). A summary of facts that form the basis for the Plaintiffs' claims follows.

a. Alleged Statements of Cleary

"At one point or another everyone in Madison reported to Cleary." Cleary Dep. at 14. Cleary states that, beginning in late 1992 or early 1993, while at Madison, First Level Managers, which included Plaintiffs, expressed concerns regarding job security. Id. at 20-22. "They were concerned because most of the work seemed to be going to Philadelphia, and they were concerned what would happen to them." Id. at 20. Cleary suggests these concerns, "a constant topic of conversation," approached the level of a morale problem. Id. at 22-23. Cleary conveyed his observations to Swan, id. at 23, and also responded to these concerns. Id. at 26-27 ("My favorite term at the time was this is not a pink slip company."); id. at 27 ("This was not the kind of company who would let people go for helping accomplish a major mission of the company."); id. at 31-32 ("I basically told them that they really needed to work very closely with their managers to make sure that they had their skills inventory, data base updated, to let people know what their desires were. I always reminded them that they were responsible for their own career."); id. at 133-34 ("This company is not at a loss for work.").

Cleary indicated he did not believe layoffs would follow from CRIS Standardization, and so indicated to First Level Managers. Cleary Dep. at 31-34. Cleary drew such conclusions based upon his opinion of "our culture.... In the 24 years I worked for the Bell System, except for the last year, we did not let people go for lack of work. We would retrain people. We would find suitable work. We would try to match skill sets. We did not have layoffs." Id. at 35; id. at 38 ("It was my assumption that all of us would stay with the company forever."); id. (Q: "And when you say `forever,' you mean up until retirement?" A: "Yes."). Cleary states that, at a staff meeting, he

told folks through his experiences with the company ... we all had or could have had, had the option to have stock in Bell Atlantic, that if they would avail themselves of the option and would follow some simple financial principles, they could leave the company with a million dollars.

Id. at 37-38. Cleary "assumed" surplus staff members following CRIS Standardization would be redeployed. Id. at 48. He had lists of people whose jobs were expected to be eliminated, along with information about their skills, and he reviewed this information with other members of management. Id. at 49-51. Managers who expected to have surplus employees following CRIS Standardization exchanged names with other members of management, a process Cleary characterized as "a round table...." Id. at 49. Some displaced employees were relocated. Plaintiffs were among the listed individuals who were not relocated. Id. at 51-52.

Some of the Plaintiffs state Cleary provided them with assurances. See, e.g., Vaccarella Dep. at 34-35 ("Cleary ... assured us that there would be jobs for us, not to worry. Trust him. Trust Bell Atlantic. We would always have jobs."); Polchinski Dep. at 49-50 ("Cleary expressed satisfaction in the job that I was doing and said that there would always be a place for people who were willing to work for Bell Atlantic").

b. June 1992 Letter to Pitak and Scholz

Pitak and Scholz each received a letter from their manager at BANS, dated 24 June 1992, providing in pertinent part:

As you know with the advent of CRIS Standardization the requirement for Bell Atlantic to maintain a CRIS work force here in Madison will be eliminated. At the end of

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