Opinion ID: 2973704
Heading Depth: 3
Heading Rank: 1

Heading: Duha as an Agrium US Employee

Text: In 1993, Agrium US bought Duha’s employer, Crop Production Service, Inc. (Crop Production). Duha had worked for Crop Production since April of 1980. At that time, Duha lived in Bay City, Michigan. In 1996, Agrium US transferred Duha to its regular staff, where he served until 1998 as Marketing Services Manager. Duha alleges that as an Agrium US staff member he “was given credit for a number of years of service that would bear on benefits and ultimately my severance.” According to Duha, Agrium’s president sent Duha a letter promising that he would be awarded “3,000 stock options” for his contributions to Agrium. 1 Agrium, Inc. is a Canadian parent company that owns an American subsidiary, Agrium U.S., Inc., and an Argentine subsidiary, Agroservicios Pampeanos, S.A. 2 The complaint sets forth claims based on breach of contract, breach of express covenant of good faith and fair dealing, promissory estoppel, wrongful termination, intentional infliction of emotional distress, breach of employment agreement for benefits earned and expenses incurred, unjust enrichment, quantum meruit, misrepresentation, silent fraud, fraud, intentional interference with prospective business advantage, and violations of the Michigan Bullard-Plawecki Employee Right to Know Act. Nos. 04-2505/2548 Duha v. Agrium, Inc., et al. Page 3 B. The Assignment to Argentina and Agrium’s Offer Letter In 1998, while he was still in Michigan, Duha accepted a long-term assignment that would require him to relocate to Argentina for at least 25 months. An email from Ron Wilkinson, the General Manager of Agrium’s operations in South America, to Kathy Kopelchuk, a Human Resources Manager, on July 3, 1998, noted: “Wayne Duha has accepted [the offer to work in Argentina].” JA 792. Although Duha moved to Argentina to take this job, he maintained a residence in Bay County, Michigan. Duha took the position in reliance on inducements held out by Agrium. Agrium presented many of these inducements to Duha in a letter offering him the Argentina position, dated July 30, 1998. It described Duha’s job title as “Manager, ASP.” The letter also said that “[y]our base benefits will continue to be administered to the benefit levels available to you under the Agrium U.S. benefits program.” JA 198. The letter informed Duha that he would “be placed on an Expatriate Program.” JA 198. This program included a “foreign service premium,” living allowances, and adjustments to these payments for “additional Argentine or American tax liability.” JA 198. Duha would also be eligible, if repatriated, for the company’s “normal relocation policy.” JA 199. In consideration for these promises, Agrium expected Duha to “devote your time, energy, and skill to the” company and not to hold any other job during the performance period “without the express written permission of the Vice President, International.” JA 199. Wilkinson concluded the letter by noting that Agrium “will utilize common sense and fairness in resolving” any “needs and issues” that arise regarding his employment terms. JA 200. Duha claims that, at the time he was sought out for the long-term foreign assignment, he was entitled to severance pay amounting to one month of his base pay for each year of service for up to 18 years of service. C. The Use of Duha’s Michigan Home to Further Agrium’s Business Interests During his time in Argentina and before then, Duha alleges that Agrium used his home in Michigan “as a means for purchasing equipment and supplies for ASP.” JA 133, 2351. “It was my understanding,” Duha stated in an affidavit, that the purpose for having someone in the United States acquire equipment, supplies and provision of services was to save Agrium and ASP the problems and costs associated with letters of credit as well as a ‘turnover tax’ of six percent in Argentina. U.S. vendors were assured of payment by doing business with me from a U.S. point of purchase as a representative of Agrium. JA 2351 (citation omitted). Duha estimates that more than $20 million of goods were purchased in connection with this arrangement. D. Duha’s Experience in Argentina Duha alleges that, while he was in Argentina, he discovered that ASP was engaging in shady record-keeping and business practices, including bribery in violation of the Foreign Corrupt Practices Act, 15 U.S.C. § 78dd et seq. Duha reported relevant violations to U.S. authorities. He also reported such behavior to his superiors, including Robert Rennie, Greg McGlone, and Wilkinson. Agrium commissioned an investigation of these alleged practices by Zachary Greenhill of Greenhill Partners, P.C. This investigation showed that Duha’s concerns were well-founded, according to Duha. Duha has also produced an email from Richard Gearheard, Agrium’s Senior Vice President for North American Retail, indirectly substantiating Duha’s claims: Nos. 04-2505/2548 Duha v. Agrium, Inc., et al. Page 4 I think most of the improvement in the ASP are [sic] due to Duha’s efforts. He developed a marketing plan and ensured that it was followed. He is making the trips to the retail sites and confirming that the plans are being implemented. As you know, these trips are not fun. He is the person that complained about the accounting and data processing. He was right. JA 136. Gearheard was based in Denver. E. Duha’s Termination and Attempted Conciliation With Agrium in Argentina Around February 1, 2000, Rennie, a Vice President for South American operations, sent an email to McGlone, General Manager of ASP, alleging that Duha “had made a commitment on behalf of the company” to “pay for the best hooker in Buenos Aires” as an incentive to Manuel Ron, a Farm Center Manager. JA 138, 2419. On the morning of February 3, 2000, Ronald Delaney, an ASP Human Resources Manager, informed Rennie and McGlone via email that Ron had said that Duha’s comment about a hooker was “made within a context of fun,” and that it should not be taken seriously. JA 138, 2419. Later that day, according to Duha, McGlone gave Duha written notice of termination for cause, based on the hooker comment. Duha insists that he received no warning or any other discipline. After his termination, Duha discovered that he previously had been named “Director suplente” of ASP without his knowledge, and that ASP continued to hold him out as a “Director suplente” after his termination until February of 2001. Moreover, Duha alleges that his “stock options” were cancelled on April 3, 2000. Duha moved back to Michigan in late June 2000. He received no severance pay (not even the severance pay he claims he was entitled to as a result of his U.S.-based employment), nor did he receive pay for unused vacation that had accrued prior to his time in Argentina. Duha argues that Agrium3 owes him money for business expenses incurred before his termination that had not yet been paid. While still in Argentina Duha sought legal conciliation with Agrium, which in Argentina “is a mandatory preliminary procedure leading to litigation.” Duha v. Agrium, Inc., 340 F. Supp. 2d 787, 794 (E.D. Mich. 2004). Duha reached a tentative settlement with ASP that unraveled when Agrium required a release of claims against Agrium and Agrium US in addition to ASP. See id. F. Duha’s Move to Indiana Duha moved back to Michigan in June of 2000, where he remained until September of 2000. He then moved to Fort Wayne, Indiana, to take a new job (with less compensation) with Yargus Manufacturing, Inc. Duha alleges that, due to the intervention of Agrium US Board of Directors member Thomas Warner, a business opportunity that was intended to have been awarded to Yargus was awarded to a competitor, potentially depriving Duha of the commission for the project. According to Duha, Warner had earlier said at a meeting that Agrium should “not engage in business with” Duha “as a result of” this lawsuit. JA 141. G. Commencement of the Action and Location of the Evidence Duha subsequently brought this suit in the United States District Court for the Eastern District of Michigan in January of 2003. Duha filed a 30-count complaint, which he ultimately expanded by amendment to 45 counts. The complaint sets forth many claims under various contract and tort theories, including: claims centering on theories of breach of contract, breach of the covenant of fair dealing, wrongful termination, fraud or misrepresentation, unjust enrichment, 3 Duha acknowledges that Agrium US sent him a check labeled “Termination Benefit” for $2,451.36. Nos. 04-2505/2548 Duha v. Agrium, Inc., et al. Page 5 tortious interference with business relations, and statutory claims related to Agrium’s handing of Duha’s employment records. The district court authorized limited discovery on the issues of forum non conveniens (termed “venue” in the pretrial scheduling order) and personal jurisdiction, with a cutoff date of July 31, 2003. The parties engaged in various methods of discovery that produced some 4,000 documents. The district court also permitted the taking of some additional depositions beyond the initial discovery cutoff date. The parties engaged in discovery, motions practice, and briefing which culminated in the district court’s 2003 published opinion conditionally dismissing the complaint on grounds of forum non conveniens. See Duha, 340 F. Supp. 2d at 801. As the district court’s opinion indicates, the evidence in this case so far generally consists of documents and potential witness testimony. “[M]ost of the relevant documents are in the possession of” Agrium. Id. at 797. Relevant witnesses reside in Canada, the United States, and Argentina. The parties have submitted long lists of potential witnesses, totaling over one hundred. Some of the people named appear to have little or no information relevant to this action. Approximately 27 party and eight nonparty witnesses with potentially relevant information reside in Argentina. Approximately 22 party and 67 nonparty witnesses with potentially relevant information reside in the United States. Approximately 39 party and three nonparty witnesses with potentially relevant information reside in Canada. No potential nonparty witness has been alleged or shown to be unwilling to testify. A roughly equal number of the most crucial witnesses—a handful—reside in each of the three countries (i.e., the United States, Canada, and Argentina). H. The District Court’s Opinion and Order Dismissing the Complaint The district court dismissed the complaint, holding that Argentina is a reasonable and available alternative forum and that the balance of private and public interests favors dismissal. See id. at 793-801. The district court observed that Argentina was an available and adequate forum because Duha could bring his claims there, Agrium was amenable to service of process there, and Duha had already resorted to Argentina as a forum to attempt to resolve his claims with ASP. See id. at 793-94. After holding that Argentina is an acceptable alternative forum, the district court balanced the private and public interests and found that they weighed in favor of dismissal. See id. at 794-801. Applying the private interest factors prescribed by Gulf Oil Corp. v. Gilbert, 330 U.S. 501 (1947), the district court held that Argentina offered easier access to witnesses. See Duha, 340 F. Supp. 2d at 795-96. The district court also held that the Argentina was a better forum than Michigan because Agrium intended to call nonparty witnesses in Argentina that were “central” to its defense. See id. at 796. These nonparties could not be compelled to testify in Michigan. See id. An Argentine court, however, could compel these nonparties to testify. See id. The district court further held that Argentina was a more convenient forum because compulsory document discovery from Argentine sources would not be available to Agrium in Michigan, although this factor did not weigh “heavily” in favor of dismissal because Agrium possesses “most of the relevant documents.” Id. at 797. Most of the documents are in English, but the district court held that this did not adequately weigh in favor of retaining the case because Agrium had agreed to translate documents into Spanish. See id. The district court also held that the Gulf Oil public interest factors favored dismissal of this action. See id. at 799-801. Applying the public interest factors, the district court held that Michigan has little or no interest in this case, but Argentina has a strong interest in alleged wrongdoing by ASP, a company domiciled there. See id. at 799-800. The Foreign Corrupt Practices Act, the district court observed, creates no private cause of action and thus does not supply a federal interest in retaining the suit. See id. Argentine citizens stand to be more affected by a trial than Nos. 04-2505/2548 Duha v. Agrium, Inc., et al. Page 6 Michiganders. See id. at 800. Finally, it is “likely” that Argentine law would apply. See id. at 800-01. These factors weigh in favor or dismissal, the district court held. See id. at 799-801. In its Conclusion section, the district court permitted Duha to sever his claim for tortious interference with business relations. The district court stated: The Court is mindful that a minor portion of the plaintiff’s second amended complaint contains allegations that defendants other than Agroservicios interfered with the plaintiff's business opportunities after he returned from Argentina, and Argentina may not be an appropriate forum for those claims. However, the plaintiff may sever those claims and file them in an appropriate American forum, although likely not in Michigan, if he chooses. Id. at 801. I. Agrium’s Motion to Supplement the Record with Linda Dalgetty’s Updated Declaration Agrium moved to supplement the record with an updated declaration from Linda Dalgetty on May 19, 2004. This updated declaration stated that the employment of several Argentine employees of ASP who were potential witnesses had been terminated. Noting that the time to file supplementary record evidence had expired on February 13, 2004, the district court denied the motion. Agrium had not established “good cause” to file additional record evidence. The district court denied the motion on June 17, 2004, before Agrium filed its reply brief on June 21, 2004, and it is undisputed that Agrium’s reply brief, as opposed to Linda Dalgetty’s updated declaration, was not late.