Opinion ID: 4580326
Heading Depth: 3
Heading Rank: 2

Heading: The Equity Incentive Plans

Text: Mr. Romo also argues that the district court erred by granting summary judgment in favor of Waste Connections as to the equity incentive plans: the 2014 President’s Award, 2015 LTIP, and 2016 LTIP. We conclude that summary judgment in favor of Waste Connections was appropriate as to these claims.
“Under Texas law, the essential elements of a breach of contract claim are the existence of a valid contract, performance or tendered performance by the plaintiff, breach of the contract by the defendant, and damages sustained as a result of the breach.” Innova Hosp. San Antonio, Ltd. P’ship v. Blue Cross & Blue Shield of Ga., Inc., 892 F.3d 719, 731 (5th Cir. 2018) (internal quotation marks and citation omitted). “A contract is not ambiguous merely because the parties have a disagreement on the correct interpretation.” REO Indus., Inc. v. Nat. Gas Pipeline Co. of Am., 932 F.2d 447, 453 (5th Cir. 1991). Courts are to construe contracts “‘from a utilitarian standpoint bearing in mind the particular business activity sought to be served’ and ‘will avoid when possible and proper a construction which is unreasonable, inequitable, and oppressive.’” Frost Nat’l Bank v. L & F Distribs., Ltd., 165 S.W.3d 310, 312 (Tex. 2005) (quoting Reilly v. Rangers Mgmt., Inc., 727 S.W.2d 527, 530 (Tex. 1987)). 8 Case: 19-11008 Document: 00515613810 Page: 9 Date Filed: 10/23/2020 No. 19-11008
With respect to the President’s Award, we conclude that Mr. Romo was not entitled to receive any shares because he was not employed on April 1, 2018, the vesting date provided in the award letter. The September 2015 letter conferring the President’s Award upon Mr. Romo stated (1) that the shares granted therein would be held in a trust until they vested on April 1, 2018; and (2) that Mr. Romo had to be employed on that date in order to receive the value of the shares. Mr. Romo was terminated in April 2017, a year before the April 2018 vesting date. He concedes that fact, but argues that the 2016 merger between Progressive and Waste Connections triggered a change-of-control provision that caused the shares to become fully vested at that time. We disagree. The change-of-control provision appears in the text of the 2015 LTIP, which the President’s Award letter incorporates. But “[i]t is a fundamental axiom of contract interpretation that specific provisions control general provisions.” Baton Rouge Oil & Chem. Workers Union v. ExxonMobil Corp., 289 F.3d 373, 377 (5th Cir. 2002) (citation omitted). Here, the President’s Award incorporates the LTIP, but itself identifies “the specifics of the plan.” Second on the list of specific provisions is that “[i]f a participant leaves prior to the completion of the three year period, all shares are forfeited except for a qualified retirement.” We therefore affirm the district court’s grant of summary judgment in favor of Waste Connections as to the President’s Award.
Mr. Romo likewise contends that Waste Connections breached the 2015 and 2016 LTIPs by refusing to pay. We agree with Waste Connections, 9 Case: 19-11008 Document: 00515613810 Page: 10 Date Filed: 10/23/2020 No. 19-11008 however, that it is not required to pay because Mr. Romo was terminated for just cause. The 2015 and 2016 LTIPs have identical “just cause” clauses, which read: “Just Cause” has the meaning set out in the employment agreement of the Participant, if applicable, and otherwise means the Participant (i) willfully fails to perform his duties with the Corporation; (ii) commits theft, fraud, dishonesty or misconduct involving the property, business or affairs of the Corporation or any of its affiliates or in the performance of his/her duties: (iii) willfully breaches or fails to follow any material term of his or her employment agreement; (iv) is convicted of a crime which constitutes an indictable offence; or (v) engages in conduct which would be treated as cause by a court of competent jurisdiction in the jurisdiction in which the Participant is employed. Mr. Romo “concedes [that] accounting mistakes were made” but alleges that a genuine dispute as to a material fact exists because “the principal problem was brought on by Defendants’ intentional understaffing of Plaintiff’s [d]ivision by dumping the jobs of multiple people onto Plaintiff, their refusal to retain key personnel who could have avoided the errors, and mistakes by its own staff which were never punished.” However, he cites no evidence in support of these statements, which are therefore inadequate. See Nat’l Ass’n of Gov’t Emps. v. City Pub. Serv. Bd. of San Antonio, Tex., 40 F.3d 698, 713 (5th Cir. 1994) (“Conclusory allegations unsupported by specific facts . . . will not prevent an award of summary judgment; the plaintiff [can]not rest on his allegations . . . to get to a jury without any significant 10 Case: 19-11008 Document: 00515613810 Page: 11 Date Filed: 10/23/2020 No. 19-11008 probative evidence tending to support the complaint.” (quotation marks and citation omitted)). Mr. Romo further argues that “there is reason to doubt the [d]efendants’ stated reasons” for firing him, as “age related comments and a practice of firing older workers to be replaced by cheaper and younger employees casts doubt on the credibility of Defendants’ denial of benefits.” Mr. Romo cites no case law supporting his attempt to graft the pretext analysis from the Age Discrimination in Employment Act into a breach of contract claim. Moreover, the deposition testimony and affidavit he cites do not provide any support for his own conclusory statements. His argument therefore fails. See E.E.O.C. v. Exxon Shipping Co., 745 F.2d 967, 976 (5th Cir. 1984) (“[P]retext cannot be established by mere ‘conclusory statements’ of a plaintiff who feels he has been discriminated against.” (citation omitted)); Nat’l Ass’n of Gov’t Emps. 40 F.3d at 713 (“Conclusory allegations unsupported by specific facts . . . will not prevent an award of summary judgment[.]”). Waste Connections has satisfied its burden and is entitled to summary judgment as to the LTIPs.