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Chorman v. Foamex International, Inc. (In re Foamex International, Inc.)

Citations: 491 B.R. 100; 35 I.E.R. Cas. (BNA) 720; 2013 WL 1386161; 2013 Bankr. LEXIS 1366Docket: Bankruptcy No. 05-12685 (KG); Adversary No. 06-50824 (KG)

Court: United States Bankruptcy Court, D. Delaware; April 4, 2013; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

The case involves an adversary proceeding initiated by the Plaintiff against Defendants Mabus and Christian, alleging tortious interference with his at-will employment contract. The Court has jurisdiction under federal statutes and considers a Motion for Summary Judgment filed by the Defendants. The Plaintiff was the CEO of Foamex, and following strategic disagreements and performance issues, the Board, led by Mabus, decided to file for Chapter 11 bankruptcy, ultimately leading to the Plaintiff's resignation. The Plaintiff claims his termination was orchestrated without good cause and for personal gain by the Defendants. The Defendants argue that Pennsylvania law does not recognize tortious interference claims for at-will employment, and even if it did, the Plaintiff failed to present a triable issue. The Court applies the summary judgment standard under Rule 56(a), determining no genuine dispute exists on the material facts and that the Defendants acted within their roles without malice. The Court predicts that Pennsylvania law might allow such interference claims but concludes the Plaintiff provided insufficient evidence. Consequently, the Court grants the Defendants' Motion for Summary Judgment, dismissing all claims against them.

Legal Issues Addressed

Corporate Officers' Liability in Tortious Interference

Application: The Court finds no evidence that corporate officers acted with malice or outside their official duties, thus barring a tortious interference claim.

Reasoning: The Plaintiff contends that the Defendants acted outside their employment scope in terminating him. However, for a tortious interference claim, corporate officers are not personally liable unless they acted with actual malice towards the plaintiff or against the corporation's interests.

Elements of Intentional Interference with Contractual Relations

Application: Plaintiff's claim fails due to lack of evidence of third-party interference, as Defendants were not considered third parties under Pennsylvania law.

Reasoning: A plaintiff's claim for this tort fails if there is no evidence of third-party interference with an employment contract.

Jurisdiction and Venue under Federal Statutes

Application: The Court confirms jurisdiction under 28 U.S.C. sections 157 and 1334, with venue proper under sections 1408 and 1409, for the adversary proceeding initiated by the Plaintiff.

Reasoning: Jurisdiction is confirmed under 28 U.S.C. sections 157 and 1334, with venue being proper under sections 1408 and 1409.

Standard for Summary Judgment under Federal Rule of Civil Procedure 56(a)

Application: The Court grants summary judgment to Defendants, finding no genuine dispute of material fact and that Defendants are entitled to judgment as a matter of law.

Reasoning: Summary judgment may be granted under Federal Rule of Civil Procedure 56(a) when there is no genuine dispute regarding any material fact and the moving party is entitled to judgment as a matter of law.

Tortious Interference with At-Will Employment Contracts

Application: The Court discusses that Pennsylvania law is unsettled on this issue, but predicts that a cause of action could exist, yet finds Plaintiff's evidence insufficient to proceed.

Reasoning: The Supreme Court of Pennsylvania has not definitively ruled on the viability of tortious interference claims regarding at-will employment contracts.