Procedural Posture

Appellant employee challenged the decision from the Superior Court, Los Angeles County (California) that granted summary judgment to appellee employer in appellant’s wrongful termination action against appellee.

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Overview

Appellant employee filed a wrongful termination suit against appellee employer after appellee discharged appellant during the company’s reorganization of its manufacturing and marketing structure, thereby eliminating the need for appellant’s services. Appellant cited the independent sales representative agreement, arguing that the agreement only allowed for dismissal with good cause. Appellee received summary judgment because appellant failed to controvert appellee’s showing that the discharge was due to the reorganization. On review, the court held that, even if appellant’s arguments were valid, appellee still showed good cause for the discharge due to the depressed conditions in the industry that necessitated the reorganization of corporate operations. The court therefore affirmed the granting of summary judgment to appellee employer.

Outcome

The granting of summary judgment to appellee employer in appellant employee’s wrongful termination suit was affirmed because appellee showed good cause for the discharge and appellant failed to controvert or contradict the showing of good cause by showing that it was a pretext or sham reason for the discharge.