Académique Documents
Professionnel Documents
Culture Documents
March 2, 1993
No. 92-1196
FRANK B. ABBADESSA,
Plaintiff, Appellant,
v.
MOORE BUSINESS FORMS, INC.,
Defendant, Appellee.
_____________________
No. 92-1197
ROBERT D. MARIOTTI,
Plaintiff, Appellant,
v.
MOORE BUSINESS FORMS, INC.,
Defendant, Appellee.
____________________
APPEALS FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW HAMPSHIRE
[Hon. Norman H. Stahl, U.S. District Judge]
___________________
____________________
Before
Selya, Circuit Judge,
_____________
Higginbotham,* Senior Circuit Judge,
____________________
and Cyr, Circuit Judge.
_____________
____________________
James H. Shulte with whom Burns, Bryant, Hinchey, Cox & Schul
_______________
_____________________________________
P.A. was on brief for appellants.
____
Edward M. Kaplan with whom William D. Pa.ndolph and Sullo
_________________
_____________________
_____
Hollis & Soden were on brief for appellee.
______________
____________________
March 2, 1993
____________________
_____________________
*Of the Third Circuit, sitting by designation.
This is an appeal
____________________
from
an order of summary
judgment in favor
of defendant, Moore
and
Robert D. Mariotti.
wrongful
termination of
judgment,
arguing that
writing
at the time of
employment.
Abbadessa
Moore
moved for
and Mariotti
their termination to
summary
each agreed
in
Plaintiffs opposed
Hampshire,
States district
applying
Hampshire
law,
District of
granted
Moore's
New
The
the agreements by
resignation
agreements,
will
affirm
the
This
is a
citizens
its
diversity action.
of New Hampshire.
Both
Abbadessa and
Mariotti are
1332.
We
1291.
I
Frank B. Abbadessa
__________________
Frank B.
Moore
an accountant for
By 1988, Abbadessa
Street plant
in a
Manager
of
in Dover,
On
January 19,
R.J. Barth,
the General
the
and
Locust
New Hampshire.
Street plant,
Brian
Groves,
the
and
agreement.
to
sign a
agreement,
benefits
in
the
Moore
resignation
would
provide Abbadessa
Under
with
the resignation
the
following
of $4,611.75
per
month;
(2)
payment for
any
Moore's Healthcare
with an option to
1988, if
by Moore for
-44
to assist Abbadessa
in finding
from Abbadessa'
employment
with,
or obligations
and termination
by,
Moore.
Moore
resign
informed Abbadessa
because
Further, Moore
his
made
performance
clear to
resign with
the benefits
resign
face
and
benefits.
weeks
and,
had not
Abbadessa
provided under
the possibility
Abbadessa did
in
not
meeting.
early
that he
of
sign
was being
been
satisfactory.
that he
the
being
could
not
fired without
any
the resignation
he
either
agreement or
He considered the
February,
asked to
returned
agreement
agreement for
it
signed,
19 meeting and
in early
agreement,
Moore.
Abbadessa
the time
Abbadessa sought
Moore
signed
apparently
the
Abbadessa, he finally
February when
payment
of his
refused to
pay
resignation
vacation pay
any
agreement.
he signed
the
from
benefits until
According
to
of
on April
30, 1988.
January 18 agreement
Abbadessa requested
the
-55
of money.
Moore agreed to
other employment
extend benefits to
Abbadessa for one more month and amended the January 18 agreement
to
reflect that
under the
Abbadessa would
original agreement
receive the
through May
benefits provided
31, 1988.
Abbadessa
signed
dated it June
6, 1988. Toward
the
him
a further
extension
provide Abbadessa
of his
benefits.
Moore
agreed to
Robert D. Mariotti
__________________
Robert Mariotti
in
December 1970.
managerial
position
Street plant.
Barth
On
began working as a
By
1988,
Mariotti
of
Operations Manager
had
to
the
Moore's Locust
a meeting between
Mariotti,
those
August
paid to
Abbadessa
and covered
the period
of May
24 to
1988; (3)
continued
and
payment by
Moore
for outplacement
counseling services
employment.
released each
or obligations arising
to
other from
from Mariotti's
any
employment
asked
to
satisfactory.
resigning
resign because
Mariotti was
with
benefits
or
two days,
Mariotti
Mariotti
claimed that
pressure
and that,
had not
been
the choice
possibility
of
of
being
returned it
he signed
being aware
performance
signed
on May
26,
1988.
the agreement
under financial
of Abbadessa's
experience with
until he
Procedural Background
_____________________
On September 21, 1988,
counsel for Moore
without
cause
in
of the
terminated
policies
and
-77
procedures
of
Moore and
that they
resignation under
duress."
Mariotti
brought
separate
contract
against
Moore
Superior
Court.
alleged
that
employees
New
Plaintiffs,
Moore
April
actions
in
issued
signed the
11, 1989
for
in
their
written
Abbadessa
breach
Hampshire's
letters of
of
employment
Strafford
separate
policies,
and
County
complaints,
providing
that
On
had
given
the
According to
opportunity
to
plaintiffs, these
enforceable employment
correct
performance
those
deficiencies.
written policies
constituted an
contract under
New Hampshire
Moore breached
without giving
law, which
court
for
the District
of
New
Hampshire
on
Moore's
which
employees
would not
replaced by
argued that
Mariotti
be terminated
The new
the written
relied,
both
policy
which stated
that
cause, had
been
except for
of employment.
On September 9,
Moore
Abbadessa and
1441.
provide that
employees
-88
would
not
be
maintained,
terminated except
there
existed
no
from
any
and
all
cause.
enforceable
As such,
Moore
employment contract
for
liability
arising
from
plaintiffs'
They
change of policy.
argued that
They also
summary
notice of
the
consideration for the new policy, and that New Hampshire law does
not
permit
an employer
to
unilaterally
right to
modify conditions
of
sue, Abbadessa
and Mariotti
argued that
court
Abbadessa.
motions.
judgment
denied
Moore's motion
personnel policy
for
On November 7, 1989,
summary
judgment as
the court,
three issues:
to deny both
Moore's motions
(1)
to
for summary
whether Moore's
initial
(2) if it
-99
was
an
enforceable
contract, whether
it
was
amended by
the
motions, the
court concluded
that all
In denying
three questions
to be
decided at trial.1
On
summary
1991,
August
Moore renewed
This
Mariotti had
had
repudiate
under
1991,
Moore renewed
its
motion
for
Mariotti.
they
20,
its
motion
time, Moore
signed their
the
agreements.
by
summary
judgment
the
agreements
accepting all
Abbadessa and
as
if Abbadessa
resignation agreements
subsequently ratified
promptly and
for
to
and
under duress,
by failing
benefits that
Mariotti,
flowed
a
joint
memorandum, raised
three grounds
summary judgment.
the
case"
"law
of
the
considering Moore's
that
Moore
had
to defeat Moore's
in
to
precluded
renewed motions.
not
pleaded
the
the
district
Second,
motions for
court
from
plaintiffs argued
affirmative
defense
____________________
1The case
of
fact
as to
whether
Rules of
not pleaded is
they were
capable
of
January 9, 1992, in
The court
of
unpleaded
concluded that,
judgment as to Abbadessa
affirmative
under New
defense"
case" and
arguments,
and
and
had indeed
Moore
that
were before
the
district
court.
two of the
Specifically,
court
summary judgment,
fact
as
from ruling
on Moore's
renewed motion
for
to whether
plaintiffs
were capable
of
ratifying the
resignation agreements.
II
-1111
Our review
judgment
is
plenary.
1992).
A Rule
there is
judgment
as a
matter
of
law.
Celotex Corp. v.
_________________
Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
_______
In a diversity action the substantive law
state determines
which facts
of the forum
Lobby, Inc.,
____________
substantive
issues
law
of
will
material
respective
question
477 U.S.
242, 248
(1986).
determine if
fact
as to
of
precluded
whether
the
of
from
the
ruling
New Hampshire
raised
they
But first,
the doctrine
district court
plaintiffs
whether
resignation agreements.
Here,
"law
genuine
ratified
their
we turn
to the
of the
on Moore's
case"
renewed
A.
an issue of
becomes a binding
law made
by the
court at one
precedent to be followed
of the same
litigation except in
WOKO, Inc.,
__________
329 U.S.
223 (1946);
-1212
stage of
a case
in successive stages
F.2d 148,
1B J. Moore, Federal
909 F.2d
Practice
0.404[1]
(1980).
Here, the
motions
district court,
for summary
in denying
judgment, decided
Moore's initial
that there
were genuine
such
economic
duress
at
the
time
they
signed
the
voidable.
In
its renewed motions for summary judgment, Moore argued that, even
if
economic
duress
which
would render
the
the sort of
agreements
voidable,
subsequent conduct.
The issue
of whether
Abbadessa and
of
the
case" "merely
generally to refuse to
F.2d at
38.
summary
judgment
Accordingly,
The issue
the
was
expresses
the
practice
district
Moore's renewed
decided
court
-1313
by
was
of courts
Piazza, 909
______
motions for
the
district
not
precluded
court.
from
considering
whether
Abbadessa
and
Mariotti
ratified
their
B.
In
New
Hampshire,
contracts
signed
under
economic
N.H. 1011,
453
A.2d
1276
(1982);
Springfield Realty Corp., 118 N.H. 232, 385 A.2d 835 (1978).
_________________________
In
money
contract
or
the
making
of
might
be
under
such
the
the
money
paid or
excuse
him from
performing
the contract."
party relying on a
theory of business
compulsion or economic
First,
on economic
another.
the
Id. at
___
519,
actually induced by
9 A.2d
Cheshire Oil
____________
-1414
Co.,
___
385 A.2d
wrongful."
Id.
___
"although the
violation
must
of
Id.
of a
at
839.
An
act or
Third, "the
act or
pressure
threat of
threat is not
contractual duty."
an
must have
act may
be wrongful
criminal or tortious
Id.
___
been
or in
Fourth, "circumstances
of economic duress
___
"had a legal
remedy adequate
to redress or
compensate for
above definition
the district
as
to
elements
whether
of duress.
Abbadessa and
Specifically,
light most
favorable to plaintiffs,
"coercive
circumstances"
resignation
Abbadessa
agreements
and
until
whether
issues of
satisfied
looking at the
Moore
the
acts
of
of"
created
It is
Moore to Abbadessa
the
Moore.
"coercive
the agreement.
four
whether the
signing
result of
that
material
facts in the
it is disputed
the
Id.
___
duress, there
they signed
without benefits
"the
claim
circumstances" by refusing to
to
Moore
surrounding
were
Mariotti
agreements and by
of economic
the
of the
entitled
further disputed
and Mariotti of
was "wrongful."
-1515
Abbadessa and
Mariotti claim
bad faith.
Mariotti
It
is finally
Abbadessa and
disputed whether
the time
to resign.
for
assuming for
purposes of
summary judgment
as
a matter
of
law
because Abbadessa
and
Mariotti
New Hampshire,
voidable
contracts are
subject to
ratification. Sawtelle v. Tatone, 105 N.H. 398, 201 A.2d 111, 115
__________________
(1964).
Since a
voidable it is also
never
executed under
executed under
subject to ratification.
specifically identified
contract
avoid
contract
economic
New
the circumstances
economic duress
will be
Hampshire has
under which
considered to
duress is
will be
is entitled to
after full
knowledge of
all the
-16-
facts and
circumstances." Id.
___
16
of the contract
promptly.
stated:
Id. 2
___
"A
rescinded at
and failure to
As the
Supreme Court
of the
the contract
Hampshire has
as binding and
as
and
confirmed
it, he
cannot
thus
rescind
and
repudiate it." Bechard v. Amey, 82 N.H. 462, 471, 136 A. 370, 375
_______________
(1926).
agreements as
"binding
and rescinded
at the
same
conferred on
____________________
2See also Hillside Assoc. of Hollis, Inc. v. Maine Bonding &
________ __________________________________________________
Casualty Co., 135 N.H. 325, 605 A.2d 1026 (1992) (voidable
_____________
insurance contract between insurance agent and construction
company based on mutual mistake was not ratified when
insurance company promptly notified construction company of
mistake); Derouin v. Granite State Realty, Inc., 123 N.H.
_______________________________________
145, 148, 459 A.2d 231, 233 (1983) (voidable land sale
contract based on mutual mistake was ratified because
purchaser had performed significant improvements to property
and
property could
not
be returned
to seller
in
substantially the same condition in which purchaser received
it); Michael v. Rochester, 119 N.H. 734, 736, 407 A.2d 819,
____________________
821 (1979) (city ratified initially invalid construction
contract for building a water main when it failed to notify
the contractor before construction was complete that it
intended to repudiate contract); Lucier v. Manchester, 80
_____________________
N.H. 361, 363, 117 A. 286, 287 (1922) (acceptance of
services of attorney by city amounted to ratification of
invalid employment contract).
-1717
Abbadessa considered
it.
After
his
expired, Abbadessa
benefits under
requested that
to extend
the January
19 agreement
had
benefits on
added benefits
on Abbadessa's
third and
final
request.
Abbadessa
benefits
treated
the agreement
as
1988
until
binding
Moreover,
April
1988,
by accepting
from April
the
1988 until
original agreement by
refused
notified
February
making three
had
from
June 1988,
were not
So,
additional extensions
Moore's
counsel by
of
benefits
letter in
July
that Abbadessa
1988 that
he had
did he attempt to
before
signing
Mariotti continued
Even after
1988
Mariotti considered
it.
From
had
1988
Mariotti supposedly
that he
May
signed the
his agreement
wrote to
agreement
until August
for two
1988,
in July
duress,
he
1988.
As with Abbadessa,
Moore, at no
benefits of the
attempt to return to
agreement which
he now claims
Moore the
he signed
under
duress.
The Supreme Court of New
as rescinded
and binding at
at 115.
By
the agreements,
agreements as
treat the
to notify
binding.
agreements as
Abbadessa
After having
rescinded.
and
they intended
Mariotti treated
to
the
now wish to
New Hampshire
the agreements
until
after
possibly
ratified
the duress
removed.
removed when
straits.
they were
But, as we stated
asking them to
argument to
no longer
in such
was
we
would have
dire financial
fact
as
to
whether they
-19-
ratified
their
respective
19
agreements.
issues
of material
removed
they
another
way: whether
they raised
genuine
fact that
the claimed
duress had
not been
between the time they signed the agreements and the time
facts
that
Stated
to that effect.
appellants
agreements,
(disputed
lasted;
ceased.3
the
and
benefits
Mariotti
or
undisputed) about
or put
another way,
Having
to raise any
accepted
Abbadessa
how
if and
failed to satisfy
of
have
long
their
offered
respective
no
the economic
when their
facts
duress
claimed duress
their burden of
production,
____________________
3We should also point out that we have found no authority
that New Hampshire has adopted or would adopt the theory
that a contract signed under economic duress is capable of
being ratified only after the duress is removed.
The only
case from this circuit addressing the issue is Ismert and
__________
Associates, Inc. v. New England Mutual Life Insurance Co.,
___________________________________________________________
801 F.2d 536 (1st Cir. 1986).
In that case, this circuit
considered an action brought by a tax consulting service
firm against an insurance company. The firm argued that the
See,
___
of proof, he
For the
judgment
Forms,
and
against
Frank
B.
Abbadessa and
Robert
Mariotti.
Affirmed.
________
____________________
statement of Judge Maletz that "there can be no affirmance
unless duress has ended", cannot even be used as persuasive
authority in this case given that it was not adopted by a
majority of the panel.
-2121
D.