No. 93-1062.United States Court of Appeals, Tenth Circuit.
June 30, 1994.
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Keith D. Lapuyade (Brice A. Tondre with him, on the brief), of Strate and Tondre, Wheat Ridge, CO, for plaintiff-appellant.
Katherine J. Peck (Susan B. Prose with her, on the brief), of Holme, Roberts and Owen, Denver, CO, for defendant-appellee.
Appeal from the United States District Court for the District of Colorado.
Before LOGAN, McKAY, and BALDOCK, Circuit Judges.
BALDOCK, Circuit Judge.
[1] Plaintiff Patrick Vasey appeals from an adverse judgment entered in favor of Defendant Martin Marietta Corporation in his breach of contract and age discrimination action. We have jurisdiction pursuant to 28 U.S.C. § 1291. [2] Plaintiff was employed by Defendant from 1958 until he was laid off on April 12, 1991. From 1958 to 1985, Plaintiff worked in various positions within Defendant’s Electronic Manufacturing Facility (“EMF”). In 1985, Defendant promoted Plaintiff to a Labor Grade 49 and transferred Plaintiff to the Intercontinental Ballistic Missile (“ICBM”) Project placing Plaintiff in charge of tooling fabrication. Plaintiff worked at the ICBM project until the latter part of 1988 when he was transferred to Defendant’s Titan missile program where Plaintiff served until his termination in 1991. [3] During Plaintiff’s employment, Defendant issued a Code of Ethics and Standards of Conduct memorandum to all of its employees. Plaintiff received a copy, but testified that he paid little attention to its terms. Also during Plaintiff’s employment, Defendant issued an equal opportunity memorandum to all of its employees setting forth Defendant’s commitment to affirmative action and fighting discrimination in the workplace. [4] Beginning in 1988, Defendant engaged in massive cutbacks of personnel due to a sharp decrease in space exploration contracts with the federal government. In September of 1990, Gary Hinds, Director of EMF, informed Plaintiff that he had been selected for layoff. Hinds testified that Plaintiff was selected for layoff based on Plaintiff’s 1990 “ranking” which ranked Plaintiff twentieth out of twenty-one employees in Labor Grade 49. This 1990 ranking was the result of a system utilized by Defendant to rank employees within their respective work groups. The rankings reflected the department supervisor’s determination of the value of an employee’s contributions to the company, relative to the employee’s peers. In the event of a reduction in force, Defendant’s lay-off policy directed management to take into account an employee’s departmental ranking and to seek a transfer for the surplus employee if such a transfer would “serve to strengthen the organization.” Following an unsuccessful attempt to transfer Plaintiff to the test area of EMF, Plaintiff was terminated on April 12, 1991. At the time of his layoff, Plaintiff was fifty-seven years old. [5] On October 31, 1991, Plaintiff sued Defendant alleging (1) age discrimination in violation of the Age Discrimination in Employment Act, 29 U.S.C. § 621-34, (2) breach of implied contract and express covenant of good faith and fair dealing, and (3) a claim based on promissory estoppel. At trial, the district court granted Defendant’s motion for directed verdict on Plaintiff’s breach of contract claims and the promissory estoppel claim and the jury returned a verdict in favor of Defendant on Plaintiff’s age discrimination claim. This appeal followed. [6] On appeal, Plaintiff contends the district court erred by: (1) granting a directed verdict in favor of Defendant as to his implied contract, promissory estoppel, and express covenant claims; (2) failing to strike for cause a potential juror who had an economic relationship with Defendant; (3) refusing to admit into evidence a summary of voluminous trial exhibits pursuant to Fed.R.Evid. 1006; and (4) refusing to grant a mistrial based upon judicial misconduct. We address each of Plaintiff’s claims in turn.Page 1464
I.
[7] Plaintiff first contends the district court erred in granting a directed verdict as to his implied contract, promissory estoppel, and express covenant claims. We review the district court’s grant of a directed verdict de novo, applying the same standards used by the district court. Knight v. Snap-on Tools Corp., 3 F.3d 1398, 1401 (10th Cir. 1993). “A directed verdict is appropriate only if the evidence, viewed in the light most favorable to the nonmoving party, points but one way and is susceptible to no reasonable inferences supporting’ the nonmoving party.” Id.
(internal citations omitted). Although federal law dictates whether a directed verdict is appropriate, in a diversity action we examine the evidence in terms of the underlying burden of proof as dictated by state law. Mason v. Texaco, Inc., 948 F.2d 1546, 1554 (10th Cir. 1991), cert. denied, ___ U.S. ___, 112 S.Ct. 1941, 118 L.Ed.2d 547 (1992).
(Colo. 1987). An employer can be liable for the discharge of an at-will employee, however, where an implied contract arises out of company policy and employment manuals or where an employee relies on the policies and manuals to his detriment. See id. at 711-12. [9] Under an implied contract theory, a discharged employee must first show that in promulgating an employment manual or policy, the employer was making an offer to the employee — “that is, the employer manifested his willingness to enter into a bargain in such a way as to justify the employee in understanding that his assent to the bargain was invited by the employer and that the employee’s assent would conclude the bargain.” Id.
Additionally, the employee must show that his initial or continued employment constituted acceptance of and consideration for those procedures. Id. at 711 (citation omitted). [10] An offer in the form of an employment manual must be communicated to the employee to be effective, and an employer’s limited distribution of its employment manual or policy indicates the employer did not intend the manual to operate as a contractual offer to the employee. See Kuta v. Joint Dist. No. 50(J), 799 P.2d 379, 382 (Colo. 1990) (employer’s limited distribution of RIF policy “undercuts the assertion that it manifested a willingness to enter into a bargain”). An offer must also contain terms “sufficiently definite to enable the court to determine whether the contract has been performed.” Stice v. Peterson, 144 Colo. 219, 223, 355 P.2d 948, 952 (1960). Finally, while the existence of an implied contract is normally a factual inquiry for the jury, see Tuttle v. ANR Freight Sys., Inc., 797 P.2d 825, 828 (Colo.App. 1990), the issue may be decided as a matter of law if the alleged promises are nothing more than “vague assurances.” See Dupree v. United Parcel Service, 956 F.2d 219, 222 (10th Cir. 1992).
A.
[11] In the instant case, Plaintiff and Defendant did not have a written contract for a definite term of years. Plaintiff, however, contends he had an implied employment contract with Defendant based on Defendant’s employment policies. Plaintiff’s evidence of an implied contract includes Defendant’s: (1) Credo and Code of Ethics; (2) ranking and compensation memorandum; (3) equal opportunity memorandum issued to Defendant’s employees; and (4) reduction in force (“RIF”) policy.[1] Plaintiff contends these documents taken both individually and collectively are sufficient to form an implied contract.
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each document. “Individual factors that do not, as a matter of law, establish [a contract] cannot, by some peculiar alchemy, create a legally binding relationship when combined with each other.” Brooks v. Hilton Casinos, Inc., 959 F.2d 757, 761
n. 3 (9th Cir.), cert. denied, ___ U.S. ___, 113 S.Ct. 300, 121 L.Ed.2d 224 (1992). We therefore address each of Plaintiff’s documents in turn.
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Defendant’s Credo and equal opportunity memorandum does not support Plaintiff’s implied contract claim.
[18] Finally, Plaintiff points to Defendant’s RIF policy as supporting his implied contract claim. The record indicates that unlike its company-wide distribution of its Code of Ethics, Defendant merely distributed its RIF policy to management for its use in determining which employees to layoff in the event of a reduction in force. Viewing this evidence in the light most favorable to Plaintiff, Defendant’s limited distribution of its RIF policy indicates that Defendant did not manifest a willingness to enter into a contractual relationship with its employees. See Kuta, 799 P.2d at 382 (employer’s limited distribution of its RIF policy showed that it did not “manifest a willingness to enter into a bargain” with its employees). We therefore conclude Defendant’s RIF policy does not support Plaintiff’s implied contract claim. [19] In sum, Plaintiff has failed to produce any evidence from which a reasonable inference may be drawn to support his implied contract claim. See Knight, 3 F.3d at 1401. We therefore conclude the district court did not err in directing a verdict in favor of Defendant on this claim.[2] B.
[20] Plaintiff also asserts a promissory estoppel claim based on Defendant’s employment policies. Under Colorado law, if a discharged employee fails to show the existence of an implied contract, the employee may nevertheless enforce the employment manual and procedures under a theory of promissory estoppel if he can demonstrate that (1) the employer should reasonably have expected the employee to consider the employee manual as a commitment from the employer to follow policies contained in the manual, (2) the employee reasonably relied on the termination procedures to his detriment, and (3) that injustice can be avoided only by enforcement of the termination procedures Keenan, 731 P.2d at 712. In proving detrimental reliance, the employee must show action or forbearance taken as a result of the employer’s alleged promises. See Kiely v. St. Germain, 670 P.2d 764, 767 (Colo. 1983).
II.
[22] Plaintiff next contends the district court erred in failing to strike a prospective juror for cause. Plaintiff contends the district court should have presumed actual bias on the part of juror Wahtola because, as an employee of a company which does consulting work for the Defendant, he had a significant economic relationship with Defendant.
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contract with Defendant and employed several of Defendant’s former employees. The following colloquy occurred:
THE COURT: All right. Taking the last first, do you know anything about the employment history of those persons with Martin Marietta?
MR. WAHTOLA: I interviewed them for their jobs, and so yes, I do.
THE COURT: And do you know whether any or several of them were laid off under a reduction in force?
MR. WAHTOLA: Two of them were.
THE COURT: And do you know when that was?
MR. WAHTOLA: Within the last year.
THE COURT: And did any of them give you any information or views about the layoff?
MR. WAHTOLA: Well, they weren’t real pleased with it. So, the answer is yes, but not in any great detail.
THE COURT: And did you form any views or opinions about the action of Martin Marietta in that connection?
MR. WAHTOLA: As you were talking with them, it would be very difficult not to. But like I said, they are also a very good client of ours.
THE COURT: Which cuts the other way. Well —
MR. WAHTOLA: Yes, it does.
THE COURT: What do you think with respect to your ability fairly to judge in this case?
MR. WAHTOLA: I hope I could do it fairly.
THE COURT: And you intend to do so?
MR. WAHTOLA: Yes, sir.
[24] At some later point during voir dire, the court asked Wahtola whether he recalled reading any newspaper accounts of layoffs or reductions in force at Defendant’s company. The following colloquy occurred:MR. WAHTOLA: It’s in the papers quite frequently with the defense cutbacks.
. . . . .
THE COURT: Items like this, do you normally read them through?
MR. WAHTOLA: Just in general.
THE COURT: and that’s in part because —
MR. WAHTOLA: Their [sic] clients.
THE COURT: — of your company’s work and whether it’s going to be a future effect on your company, right?
MR. WAHTOLA: That’s correct.
. . . . .
THE COURT: And do you believe that you could and would fairly and impartially decide in this case?
MR. WAHTOLA: Yes.
[25] Following the completion of voir dire, Plaintiff challenged Wahtola for cause and the district court denied the challenge. Plaintiff then exercised a peremptory challenge to excuse Wahtola from the jury. [26] We review the district court’s refusal to strike a juror for cause for an abuse of discretion, United States v. Bedonie, 913 F.2d 782, 795 (10th Cir. 1990), cert. denied, 501 U.S. 1253, 111 S.Ct. 2895, 115 L.Ed.2d 1059 (1991), keeping in mind that “the district court is in the best position to observe the juror and to make a first-hand evaluation of his ability to be fair.”Wilson v. Johns-Manville Sales Corp., 810 F.2d 1358, 1361 (5th Cir.), cert. denied, 484 U.S. 828, 108 S.Ct. 97, 98 L.Ed.2d 58(1987). Generally, a court must grant a challenge for cause if the prospective juror’s actual prejudice or bias is shown Bedonie, 913 F.2d at 795 (citing United States v. Nell, 526 F.2d 1223, 1229 (5th Cir. 1976)), and “an improper denial of a challenge for cause is error as it forces a party to use a peremptory challenge.” Hopkins v. County of Laramie, Wyoming, 730 F.2d 603, 605 (10th Cir. 1984). Actual bias may be shown either by a juror’s express admission, or by proof of specific facts which show the juror has such a close connection to the facts at trial that bias is presumed. Burton v. Johnson, 948 F.2d 1150, 1158 n. 10 (10th Cir. 1991). [27] “By definition, presumed bias depends heavily on the surrounding circumstances,” Nell, 526 F.2d at 1229, and the district court “must properly test the qualifications and competency of the prospective jurors to sit
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on trial of the case.” Bedonie, 913 F.2d at 795 (quotin United States v. Hill,) 526 F.2d 1019, 1025 (10th Cir. 1975), cert. denied, 425 U.S. 940, 96 S.Ct. 1676, 48 L.Ed.2d 182 (1976)). In some instances, courts have rejected a presumption of bias on the part of a juror despite the existence of a relationship between the prospective juror and a party to the lawsuit. In Poynter v. Ratcliff, 874 F.2d 219, 222 (4th Cir. 1989), the Fourth Circuit rejected a presumption of bias on the part of a juror who was a patient of a defendant/doctor in a medical malpractice case. The court noted that “[a]lthough a particular patient . . . might warrant excuse for cause, . . . we do not think [the circumstance] necessarily impairs a juror’s partiality or prevents him from rendering a decision based solely on the evidence and the law.” Id.; see also United States v. Bradshaw, 787 F.2d 1385, 1390 (10th Cir. 1986) (juror’s prior business dealings with a government witness insufficient to presume bias).
[28] On the other hand, courts have presumed bias in extraordinary situations where a prospective juror has had a direct financial interest in the trial’s outcome, see, e.g., Gladhill v. General Motors, Corp., 743 F.2d 1049, 1050-51 (4th Cir. 1984) (stockholder in corporation which is party to lawsuit is incompetent to serve on a jury), or where the prospective juror was an employee of a party to a lawsuit, see, e.g., Francone v. Southern Pacific, 145 F.2d 732, 733 (5th Cir. 1944) (employee of a party to a lawsuit presumptively incompetent to serve on a jury). In these situations, the relationship between the prospective juror and a party to the lawsuit “point[s] so sharply to bias in [the] particular juror” that even the juror’s own assertions of impartiality must be discounted in ruling on a challenge for cause. Nell, 526 F.2d at 1229 n. 8. [29] In the instant case, we conclude Wahtola’s employment with a company which had a consulting contract with Defendant does not constitute an exceptional circumstance warranting a presumption of bias. Unlike instances where a stockholder has been excused for cause, the record contains no evidence to indicate that by virtue of his employment, Wahtola had a direct financial interest in the outcome of the lawsuit. Moreover, Wahtola’s status as an employee of a company that performed consulting work for Defendant is more remote than that of an actual employee of a party to a lawsuit. Finally, the record reflects the district court questioned Wahtola at length concerning his relationship with the Defendant and was satisfied that Wahtola could serve impartially. Indeed, Wahtola himself assured the court he could be impartial. Under these circumstances, we conclude the district court did not abuse its discretion in failing to excuse Wahtola for cause.III.
[30] Plaintiff next contends the district court erred in excluding a summary of documents which purported to show that “older employees were placed at the bottom of ranking lists while younger, less experienced employees were placed at the top.”See Fed.R.Evid. 1006. We review the district court’s exclusion of a summary under Rule 1006 for an abuse of discretion. Harris Market Research v. Marshall Marketing, 948 F.2d 1518, 1525 (10th Cir. 1991).
(1st Cir. 1984). In light of Plaintiff’s counsel’s inability to explain
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relevant portions of the summary to the district court, the district court was unable to assure itself of the accuracy of the information contained therein, and therefore did not abuse its discretion in excluding Plaintiff’s summary.
IV.
[33] Finally, Plaintiff contends the district court erred in failing to grant a mistrial based upon alleged judicial misconduct. Plaintiff’s allegations of judicial misconduct consist of several incidents during the course of the trial. Plaintiff’s counsel contends the district court made certain comments in front of the jury that portrayed them as incompetent and also treated witnesses in a harsh and abrasive manner. We review the denial of a motion for a mistrial for an abuse of discretion. United States v. Martinez, 979 F.2d 1424, 1431 (10th Cir. 1992), cert. denied, ___ U.S. ___, 113 S.Ct. 1824, 123 L.Ed.2d 454 (1993).
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motion for a mistrial based on judicial misconduct.
[38] AFFIRMED.