FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEES:
JAMES N. CLEVENGER CHRISTOPHER E. BAKER
Kizer & Neu R. BROCK JORDAN
Plymouth, Indiana Rubin & Levin, P.C.
Indianapolis, Indiana
ECK & ASSOCIATES, INC. )
)
Appellant-Plaintiff, )
)
vs. ) No. 48A05-9803-CV-127
)
ALUSUISSE FLEXIBLE PACKAGING, INC. )
and REFLECTIX, INC., )
)
Appellees-Defendants )
OPINION - FOR PUBLICATION
Alusuisse. After a hearing, the trial judge initially denied the motion. Eck and Reflectix
settled their portion of Eck's claim. Alusuisse then renewed its motion for summary
judgment and a hearing on the matter was held.
In an order granting summary judgment, the trial court stated:
It is well-settled in Indiana that, if there is no ambiguity and the terms are plain
and clear on the face of the contract, the court will not then construe the terms
of the contract. The court also finds that since both parties participated in
drafting the broker agreement, there is no presumption in favor of or against
either party in construing the contract. The broker agreement which forms the
basis of the agreement between [Eck] and Alusuisse . . . is of indefinite nature
in duration. Indiana law is settled that a contract providing for continuing
performance and which has no termination date or which provides that it will
last indefinitely is terminable at-will by either party. See example, House of
Crane Incorporated v. H. Fendrich, Inc., 256 N.E.2d 578, 579 (Ind. App.,
1970). In this case, the broker agreement has no termination date and,
therefore, was terminable at-will by either party. . . . The designated
evidentiary matter shows that there is no genuine issue as to any material fact
and that Alusuisse . . . is entitled to judgment as a matter of law. . . .
Record at 679-80. In view of the trial court's decision that the contract was terminable at-
will, the question of whether Alusuisse had just cause to terminate the contract was not
reached.
Further facts shall be included where relevant.
discontinued sales of product from Alusuisse to Reflectix would terminate Alusuisse's
obligation.
Alusuisse argues that Eck did not comply with the designation rule. Specifically,
Alusuisse asserts that Eck's designation contains only a list of documents, portions of
depositions, and affidavits upon which Eck relied in responding to Alusuisse's motion for
summary judgment. Alusuisse states: "Wholly absent from Eck's Designation is a list of each
material issue of fact which it asserts precludes the entry of summary judgment in favor of
[Alusuisse] and the evidence relevant thereto, as required by T.R. 56(C)." Alusuisse's brief
at 4. Substantively, Alusuisse argues that the employment contract was for an indefinite term
and thus was terminable at-will. In the alternative, Alusuisse argues that Eck provided no
independent consideration, therefore making the job security provision unenforceable.
Summary judgment is appropriate only where there is no genuine issue of material
fact and the moving party is entitled to judgment as a matter of law. Ind.Trial Rule 56(C).
The burden is on the moving party to establish two elements. Squires v. Utility/Trailers of
Indianapolis, Inc., 686 N.E.2d 416, 420 (Ind. Ct. App. 1997). Once the movant has sustained
this burden, the opponent must respond by setting forth specifically designated facts showing
the existence of a genuine issue for trial; he may not simply rest on the allegations of his
pleadings. Stephenson v. Ledbetter, 596 N.E.2d 1369, 1371 (Ind. 1992).
The party losing in the trial court has the burden of persuading us that the trial court's
decision was erroneous. Beaman v. Smith, 685 N.E.2d 143, 145 (Ind. Ct. App. 1997). When
reviewing an entry of summary judgment, we stand in the shoes of the trial court. Squires,
686 N.E.2d at 420. We may not reverse a summary judgment on the basis of an issue of fact
or evidence relevant thereto which was not specifically designated to the trial court. T.R.
56(H). Yet, if the trial court is apprised of the specific material upon which the parties rely
in support of or in opposition to a motion for summary judgment, then the material may be
considered. National Bd. of Examiners v. Am. Osteopathic Ass'n, 645 N.E.2d 608, 615 (Ind.
Ct. App. 1994).
Special findings are not required in summary judgment proceedings and are not
binding on appeal. Trout v. Buie, 653 N.E.2d 1002, 1005 (Ind. Ct. App. 1995), trans. denied.
However, such findings offer this court valuable insight into the trial court's rationale for its
judgment and facilitate appellate review. Id.
Alusuisse correctly points out that Eck did not include a list of each material issue of
fact which it asserted precluded the entry of summary judgment in favor of Alusuisse.
However, Eck did not present such a list because Eck was not arguing that material issues
of fact precluded summary judgment. Eck was arguing that given the facts as it set out,
Alusuisse was not entitled to judgment as a matter of law.
What Eck did submit was a designation of evidence along with a response to
Alusuisse's renewal motion for summary judgment. The designation of evidence listed the
complaint, the answer, particular pages of various depositions, affidavits, the contract,
various letters, e-mails, and "fax memos." Record at 610-11. Eck's response set out the facts
as it understood them with specific cites to pages and lines of the multiple-paged designated
materials. We are confident that the trial court was apprised of the specific material upon
which Eck relied in opposing the motion for summary judgment. We are equally confident
that the trial judge knew Eck was arguing that given the facts, the law did not support
Alusuisse. See Teitge v. Remy Constr. Co., Inc., 526 N.E.2d 1008, 1011 (Ind. Ct. App. 1988)
(noting that if an ambiguity in the parties' contract arises because of the language used in the
contract and not because of extrinsic facts, then the contract is purely a question of law).
Therefore, Alusuisse has shown no designation problem.
Turning to the substantive issue of this case, we note that the determination of whether
a party is employed at-will is a legal determination. Lavery v. Southlake Center for Mental
Health, 566 N.E.2d 1055, 1056 (Ind. Ct. App. 1991).
Historically, Indiana has recognized two basic forms of employment:
(1) employment for a definite or ascertainable term; and (2) employment at-
will. If there is an employment contract for a definite term, and the employer
has not reserved the right to terminate the employment before the conclusion
of the contract, the employer generally may not terminate the employment
relationship before the end of the specified term except for cause or by mutual
agreement. If there is no definite or ascertainable term of employment, then
the employment is at-will, and is presumptively terminable at any time, with
or without cause, by either party.
Orr v. Westminster Village North, Inc., 689 N.E.2d 712, 717 (Ind. 1997). The employment- at-will doctrine is a rule of contract construction, not a rule imposing substantive limitations on the parties' freedom to contract. Id.(citing Streckfus v. Gardenside Terrace Co-Op, Inc., 504 N.E.2d 273, 275 (Ind. 1987)). If the parties include a clear job security provision in an employment contract, the presumption that the employment is at-will may be negated. Orr, 689 N.E.2d at 717.
modify paragraphs eight and nine. The final contract, signed by both parties on August 4,
1989, included the following provisions:
1. Nature and Term of Service. [Alusuisse] agrees to engage the broker
[Eck] as an independent contractor and [Eck] agrees to act as Broker for
[Alusuisse] in the business of selling products produced by Alusuisse . . . This
agreement shall commence on the 4th day of August, 1989, and shall continue
indefinitely, unless and until terminated by either party as hereinafter provided.
2. Duties of Broker. During the continuance of this agreement, the
Broker shall devote such time as is necessary to the sale of the products of
[Alusuisse], and shall use his best endeavors to promote its business and
welfare. [Alusuisse] recognizes, in accordance with the Broker's regular
business practice, he shall represent other firms and companies, but it is
specifically understood that the Broker is in no event selling the products of,
or representing companies which are in competition with, the products sold
and manufactured by [Alusuisse]. . . .
Record at 23-29 (emphasis added).
In October, 1990, Joe Baksha, the newly appointed general manager of Alusuisse,
visited Reflectix. There, Baksha discussed the proposition that if the contract with Eck were
terminated and Reflectix were on a direct selling basis with Alusuisse, Alusuisse could offer
Reflectix a lower price. Reflectix agreed. Consequently, on November 1, 1990, Baksha sent
Eck a letter stating that since Reflectix wanted a direct purchasing arrangement, Alusuisse
would exercise its rights to assign the account to an Alusuisse company employee. A
November 15, 1990 letter from Eck asserted that the contract with Eck, unlike a standard
Alusuisse form contract, did not permit unilateral reassignment. Thus, such a reassignment
would be a breach of the contract.
Thereafter, Alusuisse did not attempt a unilateral reassignment. Instead, Eck
continued brokering what was a difficult account between Reflectix and Alusuisse.
Alusuisse did not try to end the contract with Eck until Alusuisse thought it had just cause.
Specifically, in a September 27, 1993 letter to Eck, Alusuisse stated that it was terminating
the contract and set out its reasons for doing so. Alusuisse explained that Reflectix's
president had informed Alusuisse that Reflectix was ceasing its business with Alusuisse in
part due to the "unsatisfactory and intolerable manner" in which the account was being
handled by the Eck broker. Record at 365. Reflectix's president had stated that "Mr. Ottow
[the broker] has poisoned the atmosphere" between Alusuisse and Reflectix by his routine
"abrasiveness" and his "bad mouthing" of Alusuisse to Reflectix employees, which has been
interminable and frequent. Id. Within that same termination letter, Alusuisse's stated, "[w]e
have, quite clearly, the antithesis of what one would expect from a representative who had
agreed to 'promote [Alusuisse's] business and welfare.'" Id.
The aforementioned facts indicate that Alusuisse traditionally cultivated broker
relationships which were terminable at-will. However, in this case, Eck did not agree to a
terminable at-will contract. Instead, Eck submitted the modified contract for Alusuisse's
approval. Alusuisse opted to agree to the changes and signed the contract which contained
a just cause termination provision, but lacked a unilateral-discretion-to-reassign-accounts
provision. Had Alusuisse intended the discretion which at-will termination affords,
Alusuisse could have refused to deal with Eck. No assertion of unequal bargaining power
was made. However, for reasons about which we may only speculate, Alusuisse chose to
forego the at-will flexibility. The facts further reveal that once reminded of its unique
contract with Eck, Alusuisse abided by its terms and did not try to terminate the contract until
it arguably could demonstrate just cause.
We conclude that the parties freely bargained for the just cause provision. We further
conclude that it represented their intentions at the time of the contract. Because the "power
to interpret contracts does not extend to changing their terms[,]" Colonial Penn Ins. Co. v.
Guzorek, 690 N.E.2d 664, 669 (Ind. 1997), we are not at liberty to redact the just cause
clause from the contract. To reach any other conclusion would be to render meaningless a
provision to which both parties agreed. See Haxton v. McClure Oil Corp., 697 N.E.2d 1277,
1280 (Ind. Ct. App. 1998) ("Courts should make all attempts to construe language in the
contract so as not to render any words, phrases, or terms ineffective, or meaningless.").
Accordingly, Eck and Alusuisse's agreement to the just cause provision rebutted whatever
presumption of at-will employment may have been raised by virtue of the term "indefinitely"
in paragraph one of the contract.
Streckfus, 504 N.E.2d at 275-76 (citations omitted) (emphases added). Since then, our
supreme court has not been faced with an opportunity to address whether separate and
independent consideration should continue to be a prerequisite to the enforceability of an
express job security provision. That issue is squarely before us today.
Recalling that our supreme court has recently reiterated: "If the parties choose to
include a clear job security provision in an employment contract, the presumption that the
employment is at-will may be rebutted[,]" Orr, 689 N.E.2d at 717, and that parties' freedom
to contract has continued to be highly valued, we see no reason to require independent
consideration for an explicit, freely bargained for, written, just cause provision. In making
this decision, we recognize the general principle that the at-will presumption applies to both
oral and written employment contracts. See Pepsi-Cola General Bottlers, Inc. v. Woods, 440
N.E.2d 696, 697 (Ind. Ct. App. 1982). However, despite that recognition, we distinguish the
cases dealing with adequate independent consideration.
The adequate independent consideration cases are inapplicable here, not due to their
lack of a written contract, but due to their lack of explicit, freely bargained-for just cause
provisions. They simply did not address the current situation. They involved employees
arguing that some other consideration transformed what normally would have been an at-will
employment situation into one that could only be terminated for just cause. See Wior v.
Anchor Industries, Inc., 669 N.E.2d 172, 173 (Ind. 1996) (concluding that because contract
was not reduced to writing, it was unenforceable, and that without a valid contract for
permanent employment, Wior was employed at-will); Romack v. Public Service Co., 511
N.E.2d 1024, 1026 (Ind. 1987) (concluding that despite the lack of a written just cause
provision, employer cannot arbitrarily fire employee when employer knows that employee
had former job with assured permanency or assured nonarbitrary firing policies and was only
accepting new job upon receiving assurances that new employer could guaranty similar
permanency); and Ohio Table Pad Co. v. Hogan, 424 N.E.2d 144, 145 (Ind. Ct. App. 1981)
(statement that the "contract was an indefinite one and, as such, was not rendered
unenforceable by the statute of frauds" indicates no written contract, let alone a freely
bargained for, explicit, just cause provision, involved). In the present case, the freely
bargained-for just cause provision had already transformed an otherwise at-will situation to
one requiring termination only for just cause. Therefore, no additional consideration was
necessary.See footnote 2
2
It was error to determine that as a matter of law the contract was terminable at will,
with or without cause.
Regarding whether Alusuisse had just cause to terminate the contract, Eck designated
several pieces of evidence. However, the question of whether Alusuisse had just cause to
terminate Eck is one of fact. See Gibson v. Review Bd. of the Indiana Dep't of Workforce
Dev., 671 N.E.2d 273, 276 (Ind. Ct. App. 1987). Being a question of fact, the just cause
determination must be made by the fact finder.
Reversed and remanded.
RILEY, J. and RUCKER, J. concur.
Converted by Andrew Scriven