Opinion ID: 696995
Heading Depth: 2
Heading Rank: 1

Heading: Claims Arising from McNatt's Termination

Text: 20 Count one (breach of condition to discharge only for cause), count three (breach of covenant of good faith and fair dealing), and count six (breach of contract for permanent employment) concern the circumstances surrounding McNatt's termination. McNatt contends that Allied breached its obligation to terminate him only for cause. Allied counters that McNatt was an at-will employee and, consequently, that he could be terminated for any reason. Allied further argues that, even if McNatt could be terminated only for cause, McNatt's failure to sell any F20 retrofit kits constituted adequate reason to terminate him. While there is evidence that McNatt was terminable only for cause, we affirm the grant of summary judgment on these counts, since there is no question that his termination was for cause. 21 Garrett's employee manual, which McNatt received upon accepting employment, specifically noted that careless or ineffective job performance was good cause for termination. Although McNatt asserts that he sold more aircraft than any other salesman between 1976 and 1986, the record leaves no question that his performance during the final two years of his employment was unacceptable. During this period, McNatt was one of three salesmen assigned responsibility for selling F20 retrofit kits. McNatt's sales area included the southern part of the United States and Mexico. Another salesman was assigned to the northern United States and Canada, while the third was assigned to Europe. In 1987, the two other salesmen assigned to the F20 retrofit program sold at least 19 retrofit kits while McNatt sold none. 22 Despite several documented warnings from Allied's management, McNatt persistently failed to meet sales objectives for the F20 program--sales objectives that were based, at least in part, on McNatt's own estimation of his prospects. According to McNatt, his supervisors set him up to fail by assigning him to a territory with poor sales prospects. McNatt's own memoranda to his supervisors belie this contention. For example, in a memorandum to Graser dated January 4, 1988, McNatt stated that three owners in his sales territory were Positive to sign to retrofit, while eight others were very interested and 30 more were interested. Although the record contains reports of McNatt's contacts with potential customers, stating that several were interested in the F20 program, no sales were completed before the date of his termination. 23 The evidence of record demonstrates that McNatt was fired for his failure to sell F20 retrofit kits. He has failed to produce evidence showing that the sales objectives set by his supervisors were unrealistic. See Van Komen v. Montgomery Ward & Co., 638 F. Supp. 739, 741 (C.D. Cal. 1986) (granting summary judgment in light of undisputed evidence of poor job performance). Summary judgment on the counts relating to his termination was therefore proper.