Remmers v. Remington Hotel Corp.

• Decision Date: 16 March 1999
• Docket Number: No. IP 97-1887-C M/S.,IP 97-1887-C M/S.
• Parties: George M. REMMERS, Theresa M. Remmers, Plaintiff, v. REMINGTON HOTEL CORPORATION, Defendants.
• Court: U.S. District Court — Southern District of Indiana

56 F.Supp.2d 1046

George M. REMMERS, Theresa M. Remmers, Plaintiff, v. REMINGTON HOTEL CORPORATION, Defendants.

No. IP 97-1887-C M/S.

United States District Court, S.D. Indiana, Indianapolis Division.

March 16, 1999.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Gregory C. Melucci, Maiello Andrews & Price L.L.P., Pittsburgh, PA, Samuel L. Bolinger, Attorney at Law, Ft. Wayne, IN, for plaintiffs.

Christopher L. Garrison, Garrison & Kiefer, Indianapolis, IN, H. Eric Hilton, Stokes & Murphy, P.C., Atlanta, GA, Arch Stokes, Stokes & Murphy, P.C., Atlanta, GA, for defendant.

ORDER

MCKINNEY, District Judge.

This matter comes before the Court on a motion filed by defendant, Remington Hotel Corporation (the "Hotel" or "Remington"), for summary judgment against both plaintiffs, George M. and Theresa M. Remmers (the "Remmers"). The Hotel seeks judgment as a matter of law on all counts of the complaint filed by the Remmers, arguing first that the Court lacks subject matter jurisdiction because the plaintiffs have failed to allege that the amount in controversy exceeds $75,000.00, which is the jurisdictional amount required for the Court to have diversity jurisdiction under 28 U.S.C. § 1332(a). Second, the Hotel argues that the plaintiffs cannot succeed on the merits of their claims of breach of contract (Count I), quasicontract (Count II), fraud and misrepresentation (Count III), loss of consortium (Count IV), and for punitive damages (Count V). For the reason further explained below, the Court hereby GRANTS the motion for summary judgment on all counts of the pending complaint.

I. FACTUAL BACKGROUND

Sometime in April of 1995, plaintiff, George M. Remmers ("Mr.Remmers"), responded to an advertisement of an employment opportunity with Remington. Pre-Summ. J. Statement, Joint Statement of Undisp. Mat. Facts, ¶ 1 ("Joint Statement"). He received a response in May of 1995, when he was contacted by Bernadette Hudson ("Hudson") from the Hotel's human relations department. Joint Statement ¶ 2. Mr. Remmers was working at the time as a general manager of a Ramada Inn located in Pittsburgh, Pennsylvania. Compl. ¶ 26. Hudson arranged for an interview with Mr. Remmers, which was held at Remington's home office in Dallas, Texas on June 30, 1995. Compl. ¶ 11; Ans. ¶ 11; Joint Statement ¶ 3. Mr. Remmers was interviewed by Mary Villareal, Sr. Vice President for Human Relations, Randy Santulli, Sr. Vice President for Operations, E.J. Schanfarber, Regional Vice President, and Lee Morton, Corporate Controller of Hotel Accounting. Joint Statement ¶ 3. Following this interview, Remington made an offer of employment to Mr. Remmers. Compl. ¶ 14; Ans. ¶ 14, 16; Joint Statement ¶ 4.

On July 17, 1995, Remington sent Mr. Remmers a letter that included the terms of an offer of employment. Joint Statement ¶¶ 4, 5. The letter stated that it was intended to confirm the offer of a General Manager Administration position to Mr. Remmers, beginning with training at the Indianapolis Ramada Circle Inn. Joint Statement, Ex. A, Letter Dated Jul. 17, 1995 at 1. Mr. Remmers was to report to a General Manager at that location on or about July 31, 1995. Id. at 1. In addition, the letter specified the salary Mr. Remmers would receive ($3,269.23 per bi-weekly pay period), his probationary period (120 days), the cost and availability of insurance coverage, the Hotel's vacation policy, and the expectation that Mr. Remmers would be re-assigned within a three month period. Id. at 2. A "special condition" allowed Mr. Remmers one airline ticket home per month at the Hotel's expense. Id. The letter, which was signed by E.J. Schanfarber as Regional Vice President of Remington, indicated that it covered all the points discussed in relation to Mr. Remmers' employment with the Hotel. Id. To accept Remington's offer of employment as delineated in the letter, Mr. Remmers was instructed to sign page three and return it to Mary Villareal. Id.

The signature page included a paragraph in which Mr. Remmers acknowledged that he had read the letter and he understood its terms. Id. at 3. It also stated:

I agree that neither this document nor any other communication shall bind Remington to employ me now or hereafter and that my employment may be terminated by me or Remington at any time without notice. I further agree that if my employment is terminated by Remington, it shall be without liability to me for any wages or salary, except for amounts which I have actually earned at the time of termination.

Joint Statement, Ex. A at 3. Mr. Remmers signed this page on July 18, 1995 and returned it to Remington. Id. Similar language included in the body of the letter stated that "All employees of Remington are employees at will, and as such, are free to resign at any time without reason." Id. at 2. Mr. Remmers was also informed that Remington retained the right to terminate an employee with or without a reason at any time, and that the letter was not to be considered as a "contract of employment or a guarantee that employment ... will be continued for any period of time." Id.

Mr. Remmers' employment with the Hotel began on August 14, 1995, at which time he received a copy of the Hotel's Employee Handbook. Joint Statement, ¶¶ 6, 7. He signed a statement acknowledging his understanding of the policies in the Handbook. Id. ¶ 8, Ex. B. The Handbook contained a separate section in the introduction entitled, "Employment At Will," in which was explained that all employment at the Hotel was on an "at will" basis. Def's Ex. D, Remington Employee Handbook, Introduction. It also specifically stated that unless a written document, signed by the company president and the employee, stated the opposite, the terms and benefits described in the Handbook may be changed by the Hotel at any time without notice. Id. In addition, the Handbook stated that it was being presented only for information purposes, and that it was "not intended to create, nor ... be construed to constitute a contract, expressed or implied, between Remington or its Hotel and any of its employees." Id. The last paragraph of the "Employment At-Will" section provided that the Handbook was the "entire written agreement between the Employer and the employee with respect to all employment being on an at-will basis. There are no oral or collateral agreements of any kind." Id.

Subsequently, in October of 1995, Mr. Remmers was offered a General Manager position at Remington's Beverly Hills hotel property, which he refused to accept. Compl. ¶ 34; Ans. ¶ 34. According to Mr. Remmers, he declined the position because there would be no increase in salary. Compl. ¶ 34. Mr. Remmers' employment with Remington was terminated sometime in December 1995, with his last day as an employee being December 31, 1995. Joint Statement ¶ 10. He filed this action on November 26, 1997, claiming that the written letter offering employment to him was an employment agreement for a period of at least one year. By terminating his employment in less than one year, Mr. Remmers contends, the Hotel breached the employment contract. He also claims that he provided the Hotel with "substantial benefits in addition to the services for which [he] was hired to perform, and the Defendant accepted said benefits and services." Compl. ¶ 29. Mr. Remmers asserts that in reliance on the alleged benefits and employment promised to him, he resigned his former position "as General Manager of the Ramada Hotel in Pittsburgh," relocated to Indianapolis, Indiana, sacrificed benefits from his former position and conferred services and benefits on the Hotel other than those he was required to perform. Compl. ¶ 36.

In addition, Mr. Remmers alleges that the statements made to him by Hudson and others during his negotiations with Remington for a position constituted fraud and misrepresentation, because Remington "knew or should have known that the Plaintiff would be induced to act." Compl. ¶ 38. Theresa M. Remmers ("Mrs.Remmers") claims that "as a direct and proximate result of the aforesaid negligence of the Defendants [sic], the wife-Plaintiff has suffered" injuries and damages, including emotional and mental pain, and loss of companionship, aid, affection and consortium of her husband. Id. ¶ 44. Both of the Remmers, claiming that Remington's conduct constituted "outrageous, wilful and wanton conduct ... with reckless indifference to the Plaintiffs," demand punitive damages in the amount of $50,000.00.

Remington filed the current motion on July 22, 1998, to which the Remmers responded on August 14, 1998, and Remington replied on August 27, 1998. Subsequently, the Remmers filed a motion to compel discovery, which the Court finds is now moot as a result of its decision on the summary judgment motion. The matter is now ready for resolution, to which the Court now turns.

II. DISCUSSION

A. Summary Judgment Standards

Summary judgment is 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 a judgment as a matter of law." Fed. R.Civ.P. 56(c). An issue is genuine only if the evidence is such that a reasonable jury could return a verdict for the opposing party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A disputed fact is material only if it might affect the outcome of the suit in light of the substantive law. Id.

The moving party has the initial burden to show the absence of genuine issues of material fact. See Schroeder v. Barth, 969 F.2d 421, 423 (7th Cir.1992). This burden does not entail producing evidence to negate claims on which the opposing party has the burden of proof. See Green v. Whiteco Indus., Inc., 17 F.3d 199, 201 & n. 3 (7th Cir.1994). The party opposing a summary judgment motion bears an affirmative burden of presenting evidence that a...