Weeks v. Harbor Nat. Bank

• Decision Date: 08 February 1983
• Citation: 445 N.E.2d 605,388 Mass. 141
• Parties: , 115 L.R.R.M. (BNA) 4948 Anthony C. WEEKS v. HARBOR NATIONAL BANK.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

Page 605

445 N.E.2d 605

388 Mass. 141, 115 L.R.R.M. (BNA) 4948

Anthony C. WEEKS v. HARBOR NATIONAL BANK.

Supreme Judicial Court of Massachusetts,

Suffolk.

Argued Sept. 16, 1982.

Decided Feb. 8, 1983.

Paul M. Stein, Boston (Will J. Bangs, Boston, with him), for plaintiff.

Stephen S. Young, Boston (Mark Schonfeld, Boston, with him), for defendant.

Before WILKINS, ABRAMS, NOLAN, LYNCH and O'CONNOR, JJ.

LYNCH, Justice.

This case involves a dispute between an employee, Anthony C. Weeks, and his employer, Harbor National Bank (Harbor), as to the circumstances surrounding Harbor's hiring and discharging of Weeks. After his discharge, Weeks brought suit against Harbor alleging breach of contract in the hiring process, fraud in the hiring process, violation of G.L. c. 93A, § 11, breach of contract of annual employment, and bad faith termination of an employment contract. The judge submitted six special questions to the jury who returned special verdicts in the form of special written findings on each issue submitted. Mass.R.Civ.P. 49(a), 365 Mass. 812 (1974). ¹ The judge ruled that the jury's finding that the defendant's misrepresentations in the hiring process caused no damage to Weeks precluded recovery on the counts for breach of contract and for fraud in the hiring process.

In regard to the c. 93A claim the jury found that the discharge of Weeks was not wrongful, but that it was unfair or deceptive. The judge ruled, however, as a matter of law that c. 93A, § 11, did not apply to the employment relationship presented in this case. In doing so, the judge relied on this court's decision in Second Boston Corp. v. Smith, 377 Mass. 918 (1979). Additionally, the judge found that Harbor acted in good faith and "with commercial and moral propriety" in discharging Weeks and, thus, he concluded that if he was not bound by the jury's finding, he would find that the discharge was not wrongful, unfair, or deceptive.

The judge also found that no contract of annual employment existed between Harbor and Weeks. While the annual nature of Weeks' salary permitted the inference that he had a yearly contract, the judge concluded from the evidence that Weeks "was an employee at sufferance" whose employment Harbor could terminate whenever it determined, in good faith, that the best interests of the bank necessitated it.

Based on the jury's answers and his findings and rulings of law, the judge ordered judgment for Harbor on all counts. Weeks filed an application for direct appellate review which this court granted. G.L. c. 211A, § 10(a ). We now affirm.

The jury's responses to the special questions and the judge's findings reveal the following facts. In early 1973, Weeks entered into negotiations with Harbor for future employment. An important element of these negotiations to Weeks was Harbor's promise that it would have a pension or retirement plan in effect by the end of 1973. In April, 1973, Weeks wrote a letter to an executive vice-president of Harbor, outlining the proposed conditions for his employment at Harbor. These conditions included a reference to "a pension and retirement plan."

Weeks began working for Harbor in May, 1973. Following his arrival at Harbor, Weeks made repeated inquiries concerning implementation of the pension plan. Harbor, however, never formulated or put into effect a pension plan. In their answers to the special questions, the jury indicated that they believed Weeks' allegations that during the hiring process Harbor knowingly made misrepresentations to Weeks that it was setting up a pension plan to take effect on or about January 1, 1974. The jury further found, however, that Weeks had suffered no damages as a result of these misrepresentations.

On June 25, 1975, Harbor's major shareholders sold their controlling interests in the bank. The new president and chief executive officer of Harbor began assessing the performance of Harbor's employees soon after taking office. Following a review of Weeks' work he concluded that Weeks had not been properly handling the bank's commercial loan portfolio and that he lacked the professional competence desired in a person filling Weeks' position. After some equivocation, Weeks was asked for his resignation.

1. Applicability of G.L. c. 93A, § 11. We have recently concluded that the remedies of G.L. c. 93A, § 11, are not available to employees in disputes against their employers, which arise from the employment relationship. Manning v. Zuckerman, 388 Mass. 8, 11-13, 444 N.E.2d 1262 (1983). There are no circumstances in this case that lead us to a different conclusion.

Weeks served as an employee of Harbor from May, 1973, to June, 1975. Consequently, if Harbor committed any unfair or deceptive acts in discharging Weeks, these acts necessarily occurred in the context of the parties' employment relationship and not in a commercial transaction between distinct business entities. ² Since Weeks was Harbor's employee, he fails to meet the § 11 statutory requirement that he be a business person engaged in trade or commerce with another business person. Manning v. Zuckerman, supra.

2. Contract for annual employment. In count 4 of his amended complaint Weeks alleged that he had entered into a contract of annual employment with Harbor on February 19, 1975, and that his right to damages under that contract arose as a result of his discharge on June 25, 1975, before the contract was completed.

The judge ruled that the issue whether Weeks had a contract of annual employment was not submitted to the jury in the special questions. If that ruling is correct, those issues were for the judge to decide under Mass.R.Civ.P. 49(a), 365 Mass. 812 (1974). This rule specifically provides that if, in submitting special questions to the jury, the judge "omits any issue of fact raised by the pleadings or by the evidence, each party waives his right to a trial by jury of the issue so omitted unless before the jury retires he demands its submission to the jury. As to an issue omitted without such demand the court may make a finding." Id. There is no question that the annual contract claim was not within the scope of the questions submitted to the jury. Since Weeks did not demand that this issue be submitted in the special questions, the judge properly decided any issue of fact in regard to it. Despite that fact, Weeks argues that the judge somehow committed reversible error because he failed to explain adequately to the jury Weeks' claim for breach of contract for annual employment. Clearly no error can arise from an instruction on an issue that the jury did not decide.

The judge decided that no contract of annual employment existed and that the plaintiff was an "employee at sufferance." The judge's findings of fact may not be set aside unless clearly erroneous. Mass.R.Civ.P. 52(a), 365 Mass. 816 (1974). Freyermuth v. Lutfy, 376 Mass. 612, 615, 382 N.E.2d 1059 (1978). The judge stated that the evidence permitted this inference, which he drew, and Harbor could thus terminate Weeks' employment whenever it concluded, in good faith, that the best interests of the bank mandated his release. The judge believed the testimony of Harbor's witnesses on this point and he rejected Weeks' evidence and testimony. At the trial, Weeks himself admitted he was aware that as an officer of the bank he served at the pleasure of Harbor's board of directors in accordance with the bank's by-laws. The plaintiff failed to sustain his burden of proof and, therefore, we find no reason to disturb the judge's findings.

3. Bad faith termination. In count 5 the plaintiff alleged that his termination was made in bad faith to deprive him of benefits. The judge ruled that this issue was also not submitted to the jury in the special questions. His ruling on this point is subject to some question, however, because he did ask the jury to determine if Harbor had wrongfully discharged...