Popp v. Integrated Electrical, Unpublished Decision (10-10-2005)
Popp v. Integrated Electrical, Unpublished Decision (10-10-2005)
Opinion of the Court
{¶ 2} Appellant, an electrical contractor, formed Thomas Popp Co. in 1983. Appellant was the president of Popp Co. and William Beischel was its vice-president. In 1997, appellant and Beischel formed a limited liability company known as Kentucky Ventures, L.L.C. for the purpose of leasing equipment and a building to Popp Co. Appellant and Beischel were equal owners of Kentucky Ventures. Popp Co. entered into a 20-year lease with Kentucky Ventures for the building housing Popp Co.
{¶ 3} In June 1997, Popp Co. joined 15 other electrical companies in the United States to become IES, a publicly held corporation whose purpose was to provide electrical services across the country. Popp Co. became a wholly-owned subsidiary of IES in 1998 but continued to be operated by appellant. Thus, appellant became an employee of IES and continued to serve as president of Popp Co. The 20-year lease between Popp Co. and Kentucky Ventures was entered before the formation of IES.
{¶ 4} Although he initially had an employment contract with IES, appellant became an employee-at-will in 2002. That same year, IES created a lease committee to review the leases for all IES subsidiaries. The committee discovered that Popp Co. had entered into a 20-year lease with Kentucky Ventures. Richard Humphrey, a Regional Operating Officer for IES who oversaw Popp Co., communicated to appellant and Beischel that the terms of the lease were unacceptable. According to Humphrey, the lease was not consistent with leases executed by other IES subsidiaries and should have been only five years in length. IES offered to terminate the original lease and replace it with a new three-year lease. Appellant rejected the offer. Further negotiations over the lease dispute were unsuccessful.
{¶ 5} Appellant subsequently retained counsel to advise him and Kentucky Ventures with regard to the lease dispute. On July 3, 2003, appellant's attorney sent IES a letter indicating that: "This is to advise that I represent Thomas Popp and William Beischel, principals of Kentucky Ventures, relative to a lease between Kentucky Ventures and Thomas Popp Company. They have consulted me with regard to their rights pursuant to that lease and any claim they may have for early termination of that lease." IES again offered to enter into a three-year lease with Kentucky Ventures.
{¶ 6} On July 14, 2003, appellant was terminated. Four days later, appellant filed a complaint against appellees alleging, inter alia, wrongful termination. The complaint stated that appellant was terminated in violation of Ohio public policy in retaliation for consulting an attorney. Appellees moved for summary judgment. On March 2, 2005, the trial court granted summary judgment in favor of appellees, stating: "There is no clear public policy in Ohio to protect an employee from termination when that employee consults an attorney to protect his own business interests against those of his employer, especially when that consultation leads to an adversarial position and the threat of litigation against his employer." This appeal follows.
{¶ 7} In a single assignment of error, appellant argues that the trial court erred by granting summary judgment in favor of appellees. Appellant contends he was wrongfully terminated and that, therefore, summary judgment in favor of appellees was inappropriate because IES violated Ohio public policy by terminating him for consulting an attorney with regard to issues that affected Popp Co.'s and IES' business interests.
{¶ 8} It is well-established that employees-at-will, like appellant, may be terminated at any time for any reason or no reason at all as long as the termination is not contrary to law. Mers v. Dispatch Printing Co.
(1985),
{¶ 9} To prevail on a claim for wrongful discharge, a plaintiff must prove that (1) a clear public policy existed and was manifested in a state or federal constitution, statute or administrative regulation, or in the common law (the clarity element); (2) dismissing employees under circumstances like those involved in the plaintiff's dismissal would jeopardize the public policy (the jeopardy element); (3) the plaintiff's dismissal was motivated by conduct related to the public policy (thecausation element); and (4) the employer lacked overriding legitimate business justification for the dismissal (the overriding justification element). Kulch v. Structural Fibers, Inc.,
{¶ 10} A public policy exception to the employment-at-will doctrine when an employee is discharged for consulting an attorney was first recognized by the Tenth Appellate District in Simonelli v. AndersonConcrete Co. (1994),
{¶ 11} In Chapman v. Adia Services, Inc. (1997),
{¶ 12} In holding there was a clear public policy in favor of an employee consulting an attorney, the appellate court relied on Article
{¶ 13} Subsequently, in Taylor v. Volunteers of America,
{¶ 14} Other courts have split on whether the public policy exception recognized in Chapman extends to employees discharged for filing a lawsuit against their employer or third parties affecting the business interests of the employer. See Takach v. Am. Med. Technology, Inc.
(1998),
{¶ 15} As the trial court aptly noted, neither the Ohio Supreme Court nor this court have addressed whether the act of terminating an employee for consulting an attorney meets the public policy exception to the employment-at-will doctrine. Appellant urges this court to hold that Ohio public policy is violated whenever an employee is terminated for consulting an attorney, whether the consultation is work-related or instead relates to the employee's own business interest, and/or whether the consultation leads to an adversarial position or the threat of litigation against the employer. Appellees, in turn, argue that "if this Court adopts the public policy exception for consultation with an attorney, the public policy exception should be limited solely to matters that relate to the employee's employment."
{¶ 16} We hold that there is no public policy violation when an employer terminates an employee for consulting and/or retaining an attorney with regard to the employee's own business interests. While the employee's consultation with the attorney in those situations will affect the employer's business interests, in that the employee's business interest will on many occasions be adverse to the employer, the employee is not consulting an attorney regarding any rights he has as an employee. Rather, the employee is consulting an attorney solely about his own business interests. We refuse to extend the public policy exception to the employment-at-will doctrine in those situations. Further, because the issue is not before us at this time, we decline to determine whether public policy is violated when an employee is terminated for filing a lawsuit against his employer.
{¶ 17} In the case at bar, the trial court held that "There is no clear public policy in Ohio to protect an employee from termination when that employee consults an attorney to protect his own business interests against those of his employer, especially when that consultation leads to an adversarial position and the threat of litigation against his employer." We agree with the trial court that because appellant did not consult an attorney on behalf of a matter that was affecting him as an employee, but instead as a principal partner in Kentucky Ventures with regard to his own business interests, no public policy exception existed.
{¶ 18} We therefore find that appellant has failed to prove the clarity element of a wrongful termination. The trial court therefore did not err by granting summary judgment in favor of appellees. Appellant's assignment of error is overruled.
Judgment affirmed.
Powell, P.J., and Walsh, J., concur.
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