Zarwasch-Weiss v. SKF Economos USA, Inc.
| Decision Date | 01 January 2012 |
| Docket Number | CASE NO. 1:10-cv-01548,CASE NO. 1:10-cv-01327,Doc. No. 101 |
| Parties | HELMUT ZARWASCH-WEISS, Plaintiff, v. SKF ECONOMOS USA, INC. et al, Defendants, SKF USA INC., Plaintiff, v. HELMUT ZARWASCH-WEISS et al, Defendants. |
| Court | U.S. District Court — Northern District of Ohio |
This case is before the magistrate judge on consent. Before the court is the motion of defendants, SKF Economos USA, Inc. ("SKF Economos"), SKF USA, Inc. ("SKF USA"), Christopher Wierling, Angelo J. Galli, Timothy Gifford, Robert Corley, Jeff Nelson, and David Lewandowski (collectively, "the individual defendants"), for summary judgment as to all claims against them. Docket No. 101. Plaintiff, Helmut Zarwasch-Weiss ("Zarwasch"), opposes this motion. Doc. No. 110. For the reasons given below, the court GRANTS defendants' motion in its entirety.
The court views the facts, as it must, in the light most favorable to Zarwasch, the party opposing the motion for summary judgment. Nevertheless, "[t]he court's duty to viewthe facts in the light most favorable to the nonmovant does not require or permit the court to accept mere allegations that are not supported by factual evidence." Chappell v. City Of Cleveland, 585 F.3d 901, 906 (6th Cir. 2009). The court's charge is to view in the light most favorable to Zarwasch those facts for which he offers more than a scintilla of admissible evidence. "[T]o withstand a properly supported motion for summary judgment, plaintiff . . . is obliged to come forward with 'specific facts,' based on 'discovery and disclosure materials on file, and any affidavits,' showing that there is a genuine issue for trial." Id. at 912 (quoting Fed. R. Civ. P. 56(c); Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586-87 (1986)). Where a nonmovant relies "merely on allegations," the court may not accept those allegations as fact. Id. at 906. The following facts are uncontested upon the record before the court.
Zarwasch was General Manager of Economos Philippines Co., Ltd. from 1999-2003, Regional Sales Manager for Economos for South East Asia for Economos Austria from 1999 to 2003, and General Manager of Economos Seals (Thailand) Co. Ltd. from 2001-03. In 2003, he came to the United States and became managing director of what was then Eco Seal Tech, now known as SKF Economos.
In the course of his employment by the various Economos entities, Zarwasch entered into a series of employment contracts.1 Each of Zarwasch's employment contracts from 2000 through 2006 were for a specified term of years and provided that it could be terminated by either party on notice. His 2000 employment contract with Economos Philippines, Ltd. and his 2001 employment contract with Economos Seals (Thailand) Co. Ltd. were each for a three year term and could be terminated by either party after giving one month's notice. Zarwasch's 2003 employment contract with Economos USA, Inc.("Economos USA") was also for a three year term but could be terminated by either party after giving three months' notice. None of these employment agreements required either party to show cause for termination of the contract.
On January 1, 2006, Zarwasch and the immediate predecessor to SKF Economos, Economos USA, entered into a Managing Director Agreement ("the Agreement"). Defendants' motion, Exh. 9. The Agreement did not specify that it would run for a particular term of years.2 Rather, it provided merely that it would run until terminated in accordance with its terms. One of the Agreement's terms was that it could be terminated by either party upon three months' notice. The Agreement did not require either party to give cause for termination of the contract. Paragraph 11 of the Agreement provided in relevant part as follows: Agreement at 3.
During 2006, SKF Austria purchased Economos USA, and it became a wholly-owned subsidiary of AB SKF as SKF Economos. AB SKF also had another wholly-owned subsidiary in the United States, SKF USA, Inc. ("SKF USA"). AB SKF's policy required SKF USA to consult with all companies affiliated with AB SKF to ensure that those companies complied with United States laws and AB SKF's policies, even if the AB SKF affiliate was not part of SKF USA. Declaration of Robert Corley ("Corley"), Sept. 12, 2011 ("Corley Decl."), Exh. 4, pp. 1-2. Among other things, this policy required any company affiliated with AB SKF to involve SKF USA's human resources and legal departments whenever the affiliated company had an issue related to human resources or law. Id.
In June 2007, Schneeweis told Zarwasch that SKF Economos wanted Zarwasch to stay in the United States for at least five years, to ensure that SKF Economos built and expanded its business properly. Declaration of Schneeweis ("Schneeweis Decl."), Defendants' motion, Exh. 10, p. 1. Zarwasch agreed to stay for an additional five years, but he asked that SKF Economos pay for and otherwise support changing his family's immigration status to permanent residency. Id. at 1-2; see also Zarwasch depo. at 166-81. The SKF Economos board agreed to Zarwasch's request as an incentive for Zarwasch to stay for five years. Schneeweis Decl. at 2. During these discussions, the provision that either party could terminate the Agreement upon three months' notice was not discussed or modified. Id.; see also Zarwasch depo. at 214-17.
On Zarwasch's Annual Compensation & Expense Report for 2007 signed by Zarwasch and a member of the board of directors of SKF Economos,3 there is a notation next to Zarwasch's increased base salary for the second half of 2007, "5 years commitment in EcoUSA." Annual Compensation & Expense Report for 2007, Defendants' Motion, Exh. 11, p. 1. Zarwasch states that this meant that he committed himself to stay in the United States for five years and did not mean that SKF Economos committed itself to employ Zarwasch for five years. Zarwasch depo. at 226, 227-28. There is no indication on that document that SKF Economos made a similar commitment to retain Zarwasch for five years.
In or before July 2008, a Houston employee of SKF Economos, Jason Martz ("Martz"), submitted a complaint to SKF USA about working conditions at SKF Economos's Houston plant. Zarwasch fired Martz immediately after Martz made his complaint. As a result of this incident, Robert Corley, the overall head of human resources for SKF USA, became concerned about Zarwasch's handling of human resources issues. Schneeweiscriticized Zarwasch's handling of the situation. Schneeweis Decl. at 2. Schneewiess's immediate superior, Dan Reed ("Reed"), told Schneeweis to direct Zarwasch to work with David Lewandowski ("Lewandowski") at SKF USA human resources in all human resources matters "to ensure compliance with United States Law and AB SKF policies." Id. Schneeweis forwarded this directive to Zarwasch and told him on a number of later occasions that he must work with Lewandowski. Id. at 2-3. Schneewiss also directed Zarwasch that "before he fired anyone or took a personnel action, [he] had to talk with Lewandowski and obtain [Schneewiess's] approval." Id. at 3. Schneeweis also told Zarwasch that his behavior was creating problems for the company and needed to change. Id.
On February 24, 2009, Zarwasch fired Julius Tate ("Tate"), an African-American inside sales employee. Zarwasch did not discuss Tate with Lewandowski or Schneeweis, as he had been directed. Declaration of Lewandowski ("Lewandowski Decl."), Defendants' motion, Exh. 12, p. 2; Schneeweis Decl. at 3. Tate later filed a complaint with the Equal Employment Opportunity Commission ("EEOC"), alleging that SKF Economos had discriminated against him on account of race.
On May 27, 2009, employees at the Cleveland facility of SKF Economos sent an anonymous email ("the May email") to Laura Pastore ("Pastore") at SKF USA's human resources department. Pastore forwarded the May email to Corley and Christoph Wierling ("Wierling"), then Director of Human Resources for SKF USA. Declaration of Wierling ("Wierling Decl."), Defandants' motion, Exh. 13, p. 2. The May email alleged that Zarwasch referred to operators as "assholes," referred to Romanians as "gypsies," and referred to blacks as "niggers." Skfeconomocusa@yahoo.com to Laura D. Pastore@SKF.com, May 27, 2009, Wierling Decl., Exh. A, p. 1. The May email also alleged that Zarwasch refused to let the employees have a copy of the employee handbook and, that when such a copy was obtained, the employees discovered that Zarwasch had "cheated" them. Id. Inaddition, the May email claimed that Zarwasch had someone working at the Cleveland facility who was not on the payroll and was collecting unemployment. Id. at 2.
Wierling showed the May email to Schneeweis, Zarwasch, and Thomas Schwartz at an integration meeting at the end of May. Wierling Decl. at 2. Schneeweis directed Wierling to investigate the allegations. Id. Wierling told Zarwasch not to discuss the complaint with the employees at SKF Economos. Id.
On June 1, 2009, Pastore received a second anonymous email alleging that Zarwasch had told the Cleveland employees of Wierling's instruction not to talk to them about the matter and that he had threatened the writers of the email with termination. Id. When Wierling questioned Zarwasch about the accuracy of these new allegations, Zarwasch confirmed them. Id. Wierling asked Schneeweis to direct Zarwasch to stay out of the office until Wierling had completed his investigation, and Schneeweis did so. Id. at 2-3. Schneeweis also told Zarwasch that his threats were unacceptable and counterproductive and that they were making a bad situation worse. Schneeweis Decl. at 3.
Wierling conducted interviews with the Cleveland employees on June 10-11, 2009. Afterward, he told Zarwasch that his behavior had violated SFK's code of conduct and was not ethical. Wierling...
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