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Rotherham v. American Red Cross

Citation: 325 F. App'x 555Docket: No. 08-55006

Court: Court of Appeals for the Ninth Circuit; April 30, 2009; Federal Appellate Court

Narrative Opinion Summary

The case involves an employment dispute where the plaintiff, Rotherham, challenged her termination under the presumption of at-will employment as defined by California law. Rotherham claimed an implied-in-fact contract existed, but the court found insufficient evidence to support this claim. The defendants successfully argued that her at-will status was confirmed by existing policies, and even if an implied contract existed, her termination was justified by a loss of community trust impacting her leadership efficacy. Rotherham's claims for breach of good faith and fair dealing, fraud, and indemnification under California Labor Code Section 2802 were also dismissed. The court granted summary judgment on her declaratory relief claim and denied her motion to alter or amend the judgment, finding no abuse of discretion. The decision was affirmed and not suitable for publication, per 9th Cir. R. 36-3, thereby upholding the dismissal of all claims against the defendants.

Legal Issues Addressed

At-Will Employment Presumption under California Law

Application: The court upheld the presumption of at-will employment as Rotherham failed to provide sufficient evidence to challenge this presumption.

Reasoning: Under California law, employment is presumed to be at-will unless stated otherwise, as established in Guz v. Bechtel Nat’l, Inc.

Declaratory Relief and Summary Judgment

Application: Summary judgment on the claim for declaratory relief was appropriate given the lack of supporting evidence.

Reasoning: Consequently, the court also granted summary judgment on her claim for declaratory relief.

Fraud in Employment Representations

Application: The fraud claim was dismissed as there was no evidence of misrepresentation regarding employment status.

Reasoning: Her fraud claim was dismissed as she failed to demonstrate any misrepresentation regarding her employment status, with her supervisors’ statements not constituting fraud.

Good Faith and Fair Dealing in Employment Contracts

Application: The claim for breach of good faith and fair dealing was rejected due to lack of contractual terms limiting termination rights.

Reasoning: Rotherham's claim for good faith and fair dealing also failed due to the absence of terms limiting the defendants' termination rights.

Grounds for Termination in Implied Contracts

Application: Even assuming an implied contract existed, the court found valid grounds for termination based on loss of community trust.

Reasoning: Even if an implied contract were established, the defendants presented grounds for termination based on Rotherham losing the trust of the San Diego community, impacting her leadership effectiveness, as supported by Pugh v. See’s Candies, Inc.

Implied-in-Fact Contract Claims

Application: Rotherham's claim for an implied-in-fact contract was dismissed due to lack of evidence to establish a genuine issue of material fact.

Reasoning: Rotherham's claim for an implied-in-fact contract was insufficiently supported by evidence to create a genuine issue of material fact.

Indemnification under California Labor Code Section 2802

Application: Summary judgment was granted on the indemnification claim as investigations were against the Chapter, not Rotherham personally.

Reasoning: The district court correctly granted summary judgment on her indemnification claim under California Labor Code Section 2802, as the investigations were against the Chapter, not Rotherham personally.

Motion to Alter or Amend Judgments

Application: The denial of the motion to alter or amend judgment was not an abuse of discretion.

Reasoning: The denial of Rotherham’s motion to alter or amend was not considered an abuse of discretion.