2005 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 9-30-2005 

# S hei l s v . P fize r Inc P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 04-3724

F o llow thi s and a dd it ion al work s at : http://d i git alc ommon s .l a w . vi ll anova . e du/thir dc ir c uit_2005

Thi s de c i sion i s br ou ght t o you for f r e e and ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. It h as be e n a c c ept e d for inclusion in 2005 D e c i sion s b y an author i z e d a dmini s tr at or of V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. F or mor e inform at ion, p le as e c ont a ct Be n j amin . C arl s on@l a

w . vi ll anova . e du . Re c omme nde d C it at ion " S hei l s v . P fi z e r Inc " (2005). 2005 D e cisio n s . P ape r 500. http://d i git alc ommon s .l a

w . vi ll anova . e du/thir dc ir c uit_2005/500NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

__________ N o. 04- 3724

__________ J AM ES J . SHEI LS A ppel l ant v. P F I ZE R, I NC.

__________ O n A p p ea l from the U n it ed S tat es D istri ct C o u rt F o r th e W e ste rn D istric t o f P e n n sy lv a n ia ( C as e N o. 02- C V - 01913) D i stri ctJudg e: H on orabl e D on et t a W . A m brose

__________ Subm i t t ed U nderT hi r d C i r cui tL . A . R . 34. 1( a)

Sept ember27, 2005

___________ B efor e: R E N D E L L , FU E N T E S, and G A R T H , C i r cui tJ udges

( O pi ni on Fi l ed: Sept ember30, 2005)

__________ OP I NI ON

__________She ils be g an w or kingin 1 99 7 f

or Ag ouro n Ph arm a c euti c a ls, wh ic h merg e d w ith 1 Warner- L amber

t in 1999. Pfiz er later purchased Warner-L amber t. Neither of

the par ties alleg es that these c hang es in the identity of Sheils’s employer a ffe ct the issues raised in this lawsuit. For e a seof re ferenc e , th e n, wewi ll re fer to th ec omp any tha t e mpl oye d Sh e ils at all time s re le va nt to the lawsuit as “Pfizer.” 1 G ar th, C i r cui tJ udge: J ames J . Shei l s ( “Shei l s ”) appea l s the or derof the U ni t ed St at es D i s t r i ctC our tfor the W es t ern D i s t r i ctof Penns y l vani a gr ant i ng a mot i on fors um m aryj udgm entfi l ed by P f i z e r , I n c . ( “ P f

i z e r ” ) . F o rt h e r e a s o n s th a tf o l l o w, we wi l l a f

f i r m. I. T he fa ct s , vi ew ed as t heym us tbe i n t he l i ghtm os tfavor abl e t o Shei l s , ar e as foll ow s: Shei l s w or ked as a fi el d s al es r epr es ent at i ve atPfi zer . A s partof the 1 compensa t i on packa ge Shei l s w as gi ven w hen he be came a Pfi zerempl oy ee i n 1997, he r ece i ved an opt i on t o pur chas e s har es of the company ’ s comm on s t ock. Pfi zergr ant ed S h e ils a n o p tio n to p u rc h a s e a d d itio n a l s h a re s th e n e x t yea r. T he agr eement s t hatgoverned both of thes e opt i ons ( t he “s t ock opt i on agr eement s ”) cont ai ned expl i ci tm annerand t i m e r equi r ement s forthe exe r ci s e of the opt i ons . Speci fi cal l y , theyr equi r ed thatal l empl oy ees exer ci s e thei ropt i ons “bythe givi ng of w ri t t en n oti ce of exerci se t o” P fi zer, and that a t erm i nated em ploy ee exe rci se h is o p tio n s “ w ith in th re e (3 ) m o n th s a f te r t h e d a te o n w h ic h [ h is ] e m p lo ym e n t . . . t erm i nat es . ” The st ock opt i on agr eement s al s o m ade c l earthatopt i ons coul d notbe2

ex erc ised af

ter th eyh ad ex p ir ed . (A 1 3 9 , A 1 4 0 , A 1 6 9 , A 1 7 0 ). Shei l s r ead a nd under s t ood t he s t ock opt i on agr eement s . ( A 218- 221) . H e had exer ci s ed opt i ons on a fe w occa s i ons befor e thi s l i t i gat i on comm ence d bys ubm i t t i ng w ri tte n n o tic e to P f

iz e r, a s th o s e a g re e m e n ts re q u ir e d . (A 2 0 8 , A 4 3 9 , A 4 4 7 ). T h o u g h th e sto c k o p tio n a g re e m e n ts p ro v id e d th a t em p lo y e e s m u st e x e rc ise th e ir opt i ons i n w r i t i ng, t heydi d notpr ovi de more s peci fi cal l yhow empl oy ees w er e s uppos ed t o do that( i . e. , w hati nform at i on empl oy ees s houl d i ncl ude i n t he w r i t i ng, t o w hom empl oy ees s houl d gi ve the w r i t i ng, et c. ) . T hats peci fi c i nform at i on w as convey ed e lse w h e re (a lth o u g h th e re c o rd d o e s n o t re v e a l w h e re ). W h a t is c lea r f ro m th e re c o rd is that , up unt i l J ul y1, 2002, empl oy ees exer ci s ed thei ropt i ons bygi vi ng a N ot i ce of E x erc ise t o the s tock p lan a d m inistrator, C h ery l B u rr ( “B u rr”). (A 7 1 , A 4 3 9 ). T hi s pr oces s forexer ci s i ng opt i ons change d, how ever , on J ul y1, 2002. A s of that dat e, empl oy ees had t o open an a ccountw i t h M err i l l L ynch and e xer ci s e thei ropt i ons th ro u g h th a t in s titu tio n in s te a d o f th ro u g h B u rr . (A 1 0 6 ). Shei l s t es t i fi ed thathe r ece i ved a mai l i ng fr om Pfi zeri n l at e A pr i l orear l yM ayof 20 02 (A 24 9-250 ) advi si ng him as fol l ow s:

N e x t w e e k y o u w ill re c e iv e a P f ize r S to c k O p tio n P a c k a g e in t he mai l . T hi s ki tw i l l pr epar e y ou forthe J ul y1, 2002 t r ans i t i on t o t he M err i l l L ynch s y s t em. T hi s ki tw i l l i ncl ude i m por t anti nform at i on aboutthe new s ervi ce, w haty ou need t o know t o open an a ccountand exe r ci s e y ouropt i ons and an i nvi t at i on t o t he upcomi ng i nform at i on s es s i ons on M ay13, 14 and 15 ( arr angement s ar e bei ng m ade f orthos e of y ou th o u tsi d e o f th e L a Jo ll a a rea ).3

( A 105) . T he ki tr efe r r ed t o i n thi s m ai l i ng ( “the K i t ”) w as s entt o al l pas tand curr ent empl oy ees i n M ayof 2002, butShei l s cl ai m s thathe neve rr ece i ved i t , and thus nevers aw instruction s fo r ex erc isi n g h is op ti o n s u n d er the n ew sy stem . (A 2 6 1 ). Pfi zert erm i nat ed Shei l s on M ay10, 2002. H i s s t ock opt i ons w er e ful l yves t ed on thatday , and Shei l s coul d have s ol d t hem for a netpr ofi tof $207, 752. A t th e tim e o f

h is te rm in a tio n , P f

ize r p ro v id e d S h e ils w ith se p a ra tio n d o c u m e n ts thatcl ear l yr ei t er at ed thathi s s t ock opt i ons w er e s ubj ectt o t he t erm s and condi t i ons of the s t ock opt i on agr eement s . T he s epar at i on document s al s o i ncl uded a M err i l l L ynch phone num berthatt erm i nat ed empl oy ees coul d cal l i f theyhad ques t i ons r egar di ng thei rs t ock o p tio n s. (A 3 6 1 ). T h a t p h o n e n u m b e r w a s th e sa m e o n e p ro v id e d to P f ize r e m p lo y e e s in the K i t . Shei l s under s t ood t he s epar at i on document s ( A 203- 204) , and w entback a nd re v ie w e d th e te rm s o f

th e s to c k o p tio n a g re e m e n ts to w h ic h th e yp o in te d h im . (A 2 2 1 ). B urrus ual l ys entt erm i nat ed empl oy ees a ce r t i fi ed l ett eri nform i ng them of how m anyopt i ons t heyhad, and r emi ndi ng them how t o go aboutexer ci s i ng – and byw hen theyneede d t o exer ci s e – thos e opt i ons . ( A 72- 73, A 78- 80) . Shei l s cl ai m s he neve r re c e iv e d s u c h a c e rt if

ie d le tte r f

ro m B u rr . Shei l s cal l ed B ur ron M ay10, 2002 – t he dayhe w as t erm i nat ed – s eeki ng inf o rm ati o n ab o u t his st o ck o p ti o n s an d h o w h e c o u ld ex erc ise th em . (A 2 0 4 -20 5 ). B u rr d id n o t a n s w e r, s o S h e ils le f t a m e s s a g e ; B u rr n e v e r r e tu rn e d S h e ils ’s c a ll.4

S h e ils d id n o t ta k e f

u rt h e r a c tio n re g a rd in g h is s to c k o p tio n s u n til J u n e 1 3 , 2 0 0 2 . O n th a t d a y , S h e ils c a lled M e rrill L yn c h (u sin g th e n u m b e r th a t w a s liste d in h is s e p a ra tio n d o c u m e n ts ), a n d a s k e d f o r i n f o rm a tio n c o n c e rn in g h is o u ts ta n d in g o p tio n s . ( A 35, A 206) . T he per s on t o w hom he s poke t ol d hi m thatShei l s di d nothave a n acc ount a t M e rrill L yn c h , an d so M e rrill L yn c h c o u ld n o t h e lp h im . (A 2 6 9 ). In late Ju n e , S h e ils cal l ed B ur ragai n and l eftanotherm es s age, w hi ch al s o w entunr eturned. Shei l s expl ai ns t hathe w as notm or e pr oact i ve abouts eeki ng outs om eone a tPfi zer o r M e rrill L yn c h w ith w h o m to d isc u ss h is o p tio n s b e c a u se “ e v e ryth in g h a v in g to d o w ith [hi s ] s epar at i on [fr om Pfi zer ] w as extr emel ydr aw n out , ” and c ons equent l yhe as s um ed th e d e a d lin e f

o r e x e rc isin g th e o p tio n s w o u ld b e e x ten d e d u n til B u rr g o t b a c k to h im w ith the i nform at i on he r eques t ed. ( A 57- 60) . H e al s o r el i ed on l anguage i n t he s t ock opt i on agr eement s ( s ect i on 5. 07 of thos e document s ) s t at i ng thatthe Pfi zerB oar d of D i r ect or s or i t s del egat es coul d ext end thatdeadl i ne, though ther e w as no i ndi cat i on thatPfi zer cont empl at ed gr ant i ng an ext ens i on forShei l s , orthatShei l s r eques t ed one. B urrl eftPfi zers hor t l ybefor e the tr ans i t i on t o t he new s y s t em. H erl as tdayatt he companyw as J une 30, 2002. O n t hatdayB urrs entan e- m ai l t o al l empl oy ees r emi ndi ng th e m th a t sh e w a s le a v in g th e c o m p a n y , an d th a t f ro m th e n o n th e ysh o u ld c o n tac t M e rrill L ynch t o exer ci s e thei rs t ock opt i ons . ( A 75) . Shei l s cl ai m s he di d notr ece i ve thi s em a il. O n A ugus t12, 2002, Shei l s r ece i ved a s t atus r epor tfr om M err i l l L ynch that5

i n f o r me d h i m th a th i s s t o c k o p t i o n s h a d e x p i r e d o n Au g u s t1 1 , 2 0 0 2 . ( A1 7 4 ) . He i m m edi at el ycal l ed the numberon t he r epor tand l efta mess age ( as oppos ed t o s peaki ng to s o m e o n e liv e ) b e c a u s e it w a s a lr e a d ya f te r b u s in e s s h o u rs . T he nextday , he ca l l ed Ei l een Laca m er a ( “Lacamer a”) i n t he St ock O pt i on and Inc en ti v e P lan o ff

ice a t Pf izer. L ac am era co n su lt ed w ith Jo h n G ates (“G ates” ) i n P fize r’s C o m p en sati o n an d B en ef it s p rog ram . G ates a n d L ac am era co n firm ed that S h eil s’s o p ti o n s h ad ex p ir ed an d jointl ym ad e the d ec isi o n n o t t o reinstate the o p ti o n s. (A 8 3 ). II. Shei l s fi l ed a c om pl ai ntagai ns tPfi zeras s ert i ng a cl ai m forbr eac h of the s t ock opt i on agr eement s and a c l ai m underthe Penns y l vani a W age Paym entand C ol l ect i on L aw , 43 P A . C ON S . S TAT . A NN . §260. 1 et s eq . P f i z e rmo v e d f

o rs u mma r yj u d g me n t . By R epor tand R ecomm endat i on dat ed J ul y27, 2004, M agi s t r at e J udge A m yR eynol ds H ay grant ed P fi zer’ s m oti on . O n A ug ust27 , 20 04 , D i stri ctJudg e D on et t a W . A m brose adopt ed the M agi s t r at e J udge’ s R eportand R ecomm endat i on. T hi s t i m el yappea l fr om the D i s tr i ctC our t ’ s fi nal j udgm entfol l ow ed. III . W e exe r ci s e j ur i s di ct i on pur s uantt o 28 U . S. C . §1291. O urr evi ew of a gr antof a s um m aryj udgm entm ot i on i s pl enary , and w e appl ythe s ame st andar d as the D i s t r i ct C our t . Sum m aryj udgm enti s appr opr i at e onl yw her e, dr aw i ng al l r eas onabl e i nfer ence s in f a v o r o f th e n o n m o v in g p a rt y , “ th e re is n o g e n u in e is s u e a s to a n ym a te ri a l f a c t a n d . . .6

the movi ng part yi s ent i t l ed t o j udgm entas a mat t erof l aw . ” F ED . R. C IV . P. 5 6 (c); A nders on v. Li ber t

y Lobby, I

nc. , 477 U . S. 242, 248 ( 1986) . T he movi ng par t yhas the i ni t i al bur den of “ i nform i ng t he di s t r i ctcour tof the bas i s fori t s m ot i on. ” C el ot ex Corp. v. C a tre tt , 4 7 7 U . S . 3 1 7 , 3 2 3 (19 8 6 ). O n ce the m o v ing p artyh as m et th is bu rde n , h o w ev er, the nonmovi ng part ym us ti dent i fy , byaff i davi t s orot herw i s e, s peci fi c fa ct s s how i ng t hat th e re is a g e n u in e is s u e f o r t ri a l. I

d. A. T he Supr eme C our tof C al i forni a has expl ai ned thatan opt i on has a dual natur e: “fr om the vi ew poi ntof the opt i onor , an opt i on i s a bi ndi ng contr acts ubj ectt o t he per form ance of a c ondi t i on pr ece dentbythe opt i onee. Fr om the vi ew poi ntof the opt i onee, an opt i on i s an i r r evoca bl e off erw hi ch the opt i onee c an conve r ti nt o a bi ndi ng bi l at er al contr actbyacc ept ance of the off er . ” P al o A l t o Tow n & Count r y Vi l l age v. B B TCC om

pany , 521 P. 2d 1097, 1102 ( C al . 1974) . B eca us e the i s s ue her e foc us es on the opt i onee’ s act i on ( or , r ather , fai l ur e t o act ) , the C our tm us tr egar d t he opt i on i n ques t i on a s a n ir re v o c a b le o f

f e r. Id . T h e q u esti o n , then , is w h ethe r S h eil s ac ce p ted th at of fe r, th e re b yf o rm in g a c o n tr a c t. N o r eas onabl e j ur ycoul d fi nd t hatShei l s acc ept ed the off er . “I ti s w el l s ett l ed that w h en the p rov isi o n s o f a n o p ti o n co n tr ac t presc ri b e the p arti cu lar m anneri n w hi ch the opt i on i s t o be exe r ci s ed, t heym us tbe s t r i ct l yfol l ow ed. ” I d. a t 1 0 9 8 -9 9 (e m p h a sis a d d e d ). T h e lim ited p e rio d o f tim e a n o p tio n c o n tra c t g iv e s a n o p tio n e e to e x e rc ise h is7

o p tio n , to o , m u s t b e s tr ic tly e n f o rc e d . See 15 W i l l i s t on on C ont r act s §46: 12 ( 4th ed. ) ( “an o p tio n b yits v e ry te rm s m u s t b e e x e rc is e d w ith in a s p e c if ie d tim e ” ). See al

s o Si m ons v. Y oung , 93 C al . A pp. 3d 170, 182 ( 1979) ( “Si nce the opt i onori s bound w hi l e the opt i onee i s fr ee t o acc eptornotas he choos es , cour t s ar e s t r i cti n hol di ng an opt i onee t o exac t c o m p lia n c e w ith th e te rm s o f th e o p tio n .” ). H er e, t he s t ock opt i on agr eement s expl i ci t l yr equi r ed Shei l s t o exer ci s e hi s opt i on in w riting , “w ith in th re e m o n th s” o f th e d a yh e w a s te rm in a ted . H e f a iled to d o th is; h is opt i on thus l aps ed. “[O ] n t he l aps e of the opt i on per i od, the mat t eri s compl et el yended and the off

eri s w i t hdr aw n. ” A l l en v . Sm ith , 9 4 C a l. A p p . 4 th 1 2 7 0 , 1 2 8 1 (2 0 0 2 ). B. Shei l s ar gues t hathe di d n o t fai l t o exer ci s e hi s opt i ons w i t hi n t he pr es cr i bed per i od. T he s t atus r epor tShei l s r ece i ved on A ugus t12, 2002 i nform ed hi m hi s opt i ons h a d e x p ir e d (o r “ te rm in a te d ,” in th e la n g u a g e o f th e s ta tu s re p o rt ) o n A u g u s t 1 1 , 2 0 0 2 . B ecause A ug ust11 w as a Su nd ay , S heil s’ s ar gu es, he actual l yhad un t i l M on day , A ug ust 1 2 , 2 0 0 2 to e x e rc is e h is o p tio n s , u n d e r t h e C a lif o rn ia C iv il C o d e (“ th e C o d e ” ). S e c tio n 1 1 o f

th e C o d e p ro v id e s th a t “[ w ]h e n e v e r a n ya c t o f a se c u lar n a tu re . . . is appoi nt ed byl aw orcontr actt o be per form ed upon a pa r t i cul arday , w hi ch dayfal l s upon a h o lid a y , itm a yb e p e rf o rm e d u p o n th e n e x t b u sin e ss d a y , w ith th e sa m e e f f e c t as if it h a d b e e n p e rf

o rm e d u p o n th e d a ya p p o in ted .” S e c tio n 7 o f th e C o d e d e f

in e s “ h o lid a y ” to i ncl ude, among cer t ai n ot herday s , “eve r ySunday . ”8

Pfi zerdi s agr ees , ar gui ng t hati f Shei l s ’ s opt i ons expi r ed on A ugus t11, he w as o b lig a ted to e x e rc ise th e m b yA u g u st 1 0 , w h ich is th re e m o n th s f ro m th e d a te o f

h is t erm i nat i on, M ay10. I n ot herw or ds , the daythe opt i ons expi r ed – A ugus t11 – w as not “w i thi n thr ee mont hs ” of hi s t erm i nat i on; r ather , i tw as al r eadyone dayt oo l at e. E v e n if S h e ils is c o rr e c t th a t A u g u s t 1 1 w a s th e la s t d a y“ w ith in th re e m o n th s ,” a n d th u s th a t, un d e r th e C o d e , h e h a d th ro u g h A u g u st 1 2 to e x e rc ise h is o p tio n s, h e still cannotpr evai l beca us e the fa ctr emai ns thathe di d notexer ci s e hi s opt i ons i n t he p re sc rib e d m a n n e r o n M o n d a y , A u g u st 1 2 , 2 0 0 2 . H e w a s o b lig a ted to e x e rc ise h is o p tio n s in w riting , an d a ll th a t h e d id o n A u g u st 1 2 w a s le a v e a p h o n e m e ss a g e f o r M e rrill L ynch. C. Shei l s al s o ar gues t hatPfi zerpr event ed hi m fr om exer ci s i ng hi s opt i ons byfai l i ng t o i nform hi m abouthow t o exer ci s e thos e opt i ons aft erM err i l l L ynch r epl ace d B urras th e sto c k o p tio n s a d m in istra to r. S p e c if ica lly , S h e ils c o m p lain s, B u rr f a iled to se n d h im ( 1) t he ce r t i fi ed l ett ers he cus t om ar i l ys entt erm i nat ed empl oy ees and ( 2) the e- m ai l s he se n t em p lo y e e s o n h e r la st d a ya t P f ize r, an d P f

ize r f a iled to p ro v id e h im w ith (3 ) th e K it and ( 4) the s t atus r epor ti ndi cat i ng w hen hi s s t ock opt i ons expi r ed ( col l ect i vel y , “the M at er i al s ”) unt i l aft eri tw as t oo l at e. Shei l s ar gues t hatPfi zer ’ s fai l ur e t o pr ovi de hi m w i t h t he M at er i al s br eac hed se c tio n s 8 .0 1 a n d 8 .0 2 o f th e sto c k o p tio n a g re e m e n ts. T h e se se c tio n s re q u ire th a t all9

not i ces , demands, r eques t s , decl ar at i ons , s ervi ce of pr oces s orot hercomm uni cat i ons “perm i t t ed orr equi r ed under ” the agr eement s ( 1) be i n w r i t i ng and ( 2) be s erved p erso n all yo r sen t byreg ist ere d o r ce rt ifi ed m ail . (A 1 4 2 , A 1 7 1 ). T hi s ar gum entfai l s fort w o r eas ons . Fi r s t , as expl ai ned above , the s t ock opt i on a g re e m e n ts a re n o t co n tra c ts b u t ra th e r irre v o c a b le o f f e rs w h ich th e o p tio n e e is f re e to acc eptorr ej ect . T heyt hus do noti m pos e dut i es on t he opt i onorot herthan the obl i gat i on nott o r evoke the off

erdur i ng t he per i od befor e i texpi r es , and the condi t i onal obl i gat i on t o fol l ow thr ough on t he off ers houl d t he opt i onee a cce pti t . Pfi zercoul d notvi ol at e the st ock op t i on agreem ents un l ess i tfai l ed to fulfi l l on e of those ob l i gati on s. M o reo v er, ev en if P fize r w as bound bys ect i ons 8. 01 and 8. 02, fai l i ng t o pr ovi de S heil s w i th the M at eri al s cl earl ydid not run afou l of those sect i on s. T his i s becau se these sect i on s onlyapp l yt o co m m un i cat i on s r equi r ed orper m i t t ed underthe s t ock opt i on a g re e m e n ts. T h e sto c k o p tio n a g re e m e n ts c e rta in lyd id n o t requir e Pfi zert o pr ovi de S h e i l s w i th t h e M a t e r i a l s . T h e y per m i t t ed P f ize r to p ro v id e S h e ils w ith th e M a ter ials o n ly i n the s ens e thatt heydi d notexpl i ci t l yforbi d i tfr om doi ng s o. B utthe w or d “perm i t t ed” in th e a g re e m e n ts c o m m o n -se n sic a llyc a n n o t re f e r to e v e ryc o m m u n ica tio n n o t ex p licitly f o rb id d e n b yth e m , b u t ra th e r m u st re f e r o n lyto c o m m u n ica tio n s th e ysp e c if ica lly m e n tio n a s o p tio n a l ( i.e ., c o m m u n ic a tio n th e ya f f ir m a tiv e ly p e rm it) . Shei l s al t ernat el yar gues t hathe i s ent i t l ed t o equi t abl e r el i ef f r om the t erm s of the s t ock opt i on agr eement s . T hi s ar gum entl acks m er i t . U nderC al i forni a l aw , an opt i onee10

i s n o te n t i t l e d t o s u c h r e l i e f wh e r e t h e f

a i l u r e t o e x e r c i s e th e o p t i o n r e s u l t s f r o m h i s o wn n e g le c t o r i n a d v e rt e n c e a n d w a s n o t c o n tr ib u te d to b yth e o p tio n o r. See Beki ns Movi ng & St or age C om

pany v. P r udent i alI

ns ur ance Com

pany of A m er i ca , 176 C al . A pp. 3d 245, 2 5 1 -25 5 (19 8 5 ); Si m ons , 93 C al . A pp. 3d at185- 190. In th e c o n tex t o f a rticu latin g th is ru le, c o u rts h a v e stre ss e d th a t C a lifo rn ia la w is c o n se rv a tiv e – e sp e c iallyin c o m p a riso n to th e law o f

o th e r sta tes – w h e n it co m e s to re liev in g a n o p tio n e e o f th e o b lig a tio n to exer ci s e hi s opt i on i n t he pr eci s e mannerand w i t hi n t he pr eci s e t i m efr ame des cr i bed i n an o p tio n c o n tr a c t. I

d. B eca us e Shei l s pos s es s ed Pfi zer ’ s phone number , Pfi zer ’ s al l eged fai l ure t o p rovi de h i m w i t h the M at eri al s canno taccurat el ybe ch aract eri zed as a “con tri bu t i on ” t o h i s fai l ure t o ex erci se hi s opti on s. D. I n addi t i on t o hi s br eac h of contr actcl ai m , Shei l s as s ert ed thatPfi zervi ol at ed the Penns y l vani a W age Paym entand C ol l ect i on L aw ( “W PC L ”) , 43 P A . C ON S . S TAT . A NN . §260. 1 e t s e q . T h e W P C L p ro v id e s in p a rt:

W heneve ran empl oy ers epar at es an empl oy ee f r om the p a yro ll, o r w h e n e v e r a n e m p lo y e e q u its o r re sig n s h is e mp l o yme n t , t h e wa g e s o rc o mp e n s a t i o n e a r n e d s h a l l b e c o me d u e a n d p a y a b le n o t late r th a n th e n e x t re g u lar p a y d a yo f h is empl oy eron w hi ch s uch w ages w oul d otherw i s e be due and pay abl e. § 2 6 0 . 5 (a). T he st atute “pr ov i des a st atutoryrem edyw hen the em ploy er br eache s a contr actual obl i gat i on t o payearned w ages . ” W eldon v . Kra

ft , 8 9 6 F . 2 d 7 9 3 , 8 0 1 (3d C ir .11

1990) . T he s t atut e i s i nappl i cabl e her e bec aus e, even i f the s t ock opt i ons qual i fyas

“ w a g e s” u n d e r it, S h e ils h a s n o t sh o w n th a t P f ize r b re a c h e d a c o n tra c tu a l o b lig a tio n to p a yh im e a rn e d w a g e s . F o r th e f o reg o ing rea so n s, w e w il l aff irm the D istri ct C o u rt ’s gra n t of su m m ary jud g m en t fo r P fize r.