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Truchan v. Condumex

6/21/2002

ld be allowed to remain at Condumex through March 1, 1998, so that they could collect their vacation benefits, Condumex reiterated that it was unwilling to alter the employees' at-will status. Asked whether Condumex would lay off employees working in Livonia if it found a replacement in Texas before the company relocated, Condumex stressed, "If you decide not to relocate to Arlington, this will be considered a voluntary resignation.


There is no current intention to lay off any employees prior to the moving of the various departments." Further, in answer to a question concerning retirement benefits suggesting that "this relocation is really a layoff situation," Condumex indicated that the benefits would be entirely vested because this move was "considered a partial plan termination due to relocation, but not a layoff."


Condumex provided each employee with a form on which to indicate whether the employee intended "to remain employed with Condumex, Inc. and move with the Company to Arlington, Texas" or would "not move with the Company," but would "separate" from the employee's position at a date Condumex would designate. The preface to the election form stated:


As an employee of Condumex, Inc., I have been advised and I understand that all operations of the Company currently located in the Livonia, Michigan office are being transferred to and consolidated in Arlington, Texas. I further understand that Condumex, Inc. has expressed a desire that I remain with the Company and has offered to provide some moving expenses, transportation to the Dallas/Fort Worth, Texas area for myself and my family, as well as temporary living quarters for myself and my family in the event I agree to continue my employment with the Company.


I make this election freely and voluntarily of my own volition. I understand that an election to separate employment will be considered final and irrevocable.


After providing check-off boxes for each of the two options and a place for the employee to sign the form, the bottom of this election form stated, "This form is to be returned to your supervisor or any other supervisor no later than February 3, 1998. Failure to timely return this form will be considered an election not to remain employed with the company after the move."


On February 3, 1998, the deadline for returning the election form, Condumex circulated another memorandum offering additional relocation assistance. Again, this memorandum noted that Condumex "wished to reiterate the company's objective of maximizing the total number of current employees that choose to relocate to Arlington . . . ."


Each of the five plaintiffs returned the election form to supervisors, apparently by the deadline. Anthony Truchan, Richard Carnill, Pamela Manley, and Ron Mijal indicated that they would be moving to Texas. Only Norene Fritz noted on her election form that she would not be moving to Texas. None of the plaintiffs actually moved to Texas. Each found other work by early May 1998. The Livonia facility closed July 31, 1998, and, according to an affidavit from Alejandro Sanchez, Condumex's vice-president of purchasing and logistics, "There was no reduction in the workforce or any downward adjustment to staffing levels at Condumex as a result of the transfer of operations to Arlington."


Whether plaintiffs sought severance pay while they were still employed at Condumex is not clear from the record. However, on October 12, 1998, they filed a complaint and jury demand alleging that Condumex had breached its contractual obligation to pay them for their severance. They claimed that the Condumex Employee's Handbook (the handbook), entitled them to this pay by

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