White v. General Motors Corp.

• Decision Date: 30 September 1988
• Docket Number: Civ. A. No. 88-2053-S.
• Citation: 699 F. Supp. 1485
• Parties: Frederick Lawrence WHITE, Jr. and Benjamin L. Staponski, Jr., Plaintiffs, v. GENERAL MOTORS CORPORATION, INC., Defendant.
• Court: U.S. District Court — District of Kansas

699 F. Supp. 1485

Frederick Lawrence WHITE, Jr. and Benjamin L. Staponski, Jr., Plaintiffs, v. GENERAL MOTORS CORPORATION, INC., Defendant.

Civ. A. No. 88-2053-S.

United States District Court, D. Kansas.

September 30, 1988.

Gwen G. Caranchini, Kansas City, Mo., Linda Scott Skinner, Overland Park, Kan., for plaintiffs.

Paul Scott Kelly, Jr., John J. Yates, R. Kent Sellers, Bernard J. Rhodes, Gage & Tucker, Kansas City, Mo., Stephen A. Murphy, Gage & Tucker, Overland Park, Kan., for defendant.

MEMORANDUM AND ORDER

SAFFELS, District Judge.

Several matters are pending before the court in the above-captioned case. Defendant has filed a motion to dismiss and for summary judgment, and plaintiffs have filed a motion for partial summary judgment. Defendant responded to plaintiffs' motion by moving for a separate trial on the issue of release and for a stay of plaintiffs' motion for summary judgment on issues other than release. Plaintiffs also seek to amend Count I of their complaint.

Frederick Lawrence White, Jr. ("White") and Benjamin L. Staponski, Jr. ("Staponski") claim that they were constructively discharged from their employment with defendant General Motors Corporation ("GM") for their "whistleblowing" activities, and that defendant breached an implied contract of employment. Plaintiff White also sues defendant for slander arising out of alleged statements made by defendant's representatives in giving an employment reference.

Defendant seeks dismissal and/or summary judgment on the grounds that by written agreement, plaintiffs released all possible claims they may have had against defendant. In the alternative, defendant requests that if summary judgment is not granted in their favor on the release issue, the remainder of the proceedings should be stayed pending a resolution of this issue. Defendant seeks summary judgment on the slander claim on the grounds that there is a total lack of evidence to support White's assertion that the allegedly slanderous statement was made. Plaintiffs seek summary judgment in their favor, not only on the release issue, but on other factual issues regarding their "whistleblowing" activity.

The uncontroverted facts for purposes of this motion are as follows. Prior to May 28, 1987, plaintiffs White and Staponski were salaried employees of defendant GM. On that date, they executed documents entitled "Statement of Acceptance of Special Incentive Separation."^* Those documents provided that in return for certain consideration, they released GM "from all claims, demands, and causes of action, known or unknown, which they may have had based on the cessation of their employment at General Motors. The release specifically included ... any ... federal, state, or local law, order, or regulation, or the common law relating to employment and any claims for breach of employment contract, either express or implied." Approximately two weeks before the releases were executed, GM management advised plaintiffs that they would be "offered" the opportunity to sign the separation agreements. Plaintiffs allege that GM provided them two alternative courses of action: they could sign the releases or they would be fired. After two weeks, both plaintiffs signed the releases. Defendant now pleads those releases as an affirmative defense to plaintiffs' charges of wrongful discharge and breach of implied contract.

In support of his slander claim, plaintiff White claims he was defamed by GM management when a prospective employer, Westlake Hardware, allegedly called for an employment reference. White offers his affidavit showing that a personnel official at Westlake Hardware told him that someone at GM had told her White was a "troublemaker."

A moving party is entitled to summary judgment only when the evidence indicates that no genuine issue of material fact exists. Fed.R.Civ.P. 56(c); Maughan v. SW Servicing, Inc., 758 F.2d 1381, 1387 (10th Cir.1985). An issue of fact is "material" only when the dispute is over facts that might affect the outcome of the suit under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The requirement of a "genuine" issue of fact means that the evidence is such that a reasonable jury could return a verdict for the non-moving party. Id. Thus, the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment. Id. The court must consider factual inferences tending to show triable issues in the light most favorable to the existence of those issues. United States v. O'Block, 788 F.2d 1433, 1435 (10th Cir.1986). The court must also consider the record in the light most favorable to the party opposing the motion. Bee v. Greaves, 744 F.2d 1387, 1396 (10th Cir. 1984), cert. denied, 469 U.S. 1214, 105 S.Ct. 1187, 84 L.Ed.2d 334 (1985). The language of Rule 56(a) mandates the entry of summary judgment against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case and on which that party will bear the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986).

The court will first address defendant's argument that plaintiffs' releases bar them from bringing this action for wrongful discharge and breach of implied contract. The existence of a release may be pled as an affirmative defense, and the defendant has the burden of proof in establishing its existence. Tabor v. Lederer, 205 Kan. 746, 748, 472 P.2d 209, 211 (1970). The law generally favors the compromise of disputes, and the courts will uphold a release's validity if it is not procured by fraud or bad faith. Fieser v. Stinnett, 212 Kan. 26, 31, 509 P.2d 1156, 1159-60 (1973). Once the party claiming the existence of a release meets its burden of proof, the burden shifts to the other party to show fraud, duress, or bad faith. Libel v. Libel, 5 Kan.App.2d 367, 368, 616 P.2d 306, 308 (1980).

Plaintiffs argue that they signed the releases under duress, in that GM threatened they would be fired if they refused to sign the releases. In order to establish duress, a party must show: 1) the other party intended to coerce him, 2) the other party had as an objective the securing of an undue advantage over him, 3) the action taken by the other party was of a character adapted to overcome his will and was reasonably adequate to accomplish that purpose, 4) the action taken must have in fact deprived him of his free will, and 5) the action must have caused him to act to his detriment. Libel v. Libel, id.; Motor Equipment Co. v. McLaughlin, 156 Kan. 258, 133 P.2d 149, 155 (1943). Whether a set of facts are sufficient to constitute duress if proven is a question of law. Hastain v. Greenbaum, 205 Kan. 475, 482, 470 P.2d 741, 746 (1970). This court must therefore examine whether GM's alleged threats of termination would be sufficient to constitute duress if proven to be true.

The court concludes that the facts presented would not be sufficient to constitute duress. While plaintiffs were presented with two undesirable choices, this fact alone is not sufficient to constitute duress. Instead, the threats made must be so great as to overcome a person's will. Plaintiffs here did not have to sign the releases; they could have chosen to allow GM to fire them without severance pay, and then pursued GM in court for wrongful discharge and/or breach of implied contract. They did not select this alternative. After two weeks' reflection and at least some attempt to contact attorneys, they chose to take GM's offer of severance pay in return for their releases. While a court may not agree that plaintiffs chose the wisest or fairest course, it was plaintiffs' choice to make. The court rejects plaintiffs' duress argument.

Plaintiffs also claim the releases should be invalidated because of fraud. However, as defendant points out, plaintiffs fail to state with any particularity what facts might support this claim. Instead, they engage in an extended discussion of the law concerning fraud, but they never tell the court what GM allegedly did that constituted fraud. Frankly, the court is at a loss as to what plaintiffs are claiming. Anderson and Celotex Corp. require that in...