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Irvine v. Capstone Turbine Corporation2/27/2002
Cross-complainant Michael Irvine appeals from a summary judgment in favor of cross-defendant Capstone Turbine Corporation (Capstone) in a suit alleging causes of action for wrongful termination, among others. Irvine argues the court erred in granting the motion because genuine issues of material fact exist whether his employment with Capstone was at will and whether his termination was contrary to public policy. He does not challenge the court's ruling on his cross-complaint for violation of Labor Code sections 1050 through 1054, defamation, and for declaratory relief. He also argues the court incorrectly granted a protective order barring him from taking 24 depositions. We disagree and affirm.
FACTS
Capstone, a manufacturer of microturbines, hired Irvine as vice president of marketing in October 1995. The following month, Irvine signed a stock option agreement granting him the right to purchase Capstone common stock for 15 cents per share. This option agreement, and a "1993 Incentive Stock Plan" that was incorporated by reference, emphasized that Irvine's ability to earn stock options "d not constitute an express or implied promise of continued engagement as an employee . . ., for any period, or at all, and shall not interfere with optionee's right or the company's right to terminate optionee's employment . . . relationship at any time, with or without cause." Pursuant to the stock option agreement Irvine was awarded the right to purchase an initial 260,000 shares, and later an additional 40,000 shares for 20 cents per share.
Irvine also acknowledged receipt of Capstone's employee handbook that stated, "I understand that neither this manual nor any other written or verbal communications by a management representative is intended to, in any way, create a contract of employment, and that this handbook is for informational purposes only. I also understand that the company abides by employment-at-will . . . ."
Capstone terminated Irvine's employment in February 1998. During an exit interview, Capstone employees asked Irvine if he had any Capstone property in his possession. Irvine indicated "he might have two [computer] disks at home." Capstone employees subsequently packed up Irvine's office and discovered empty three ring binders, indicating that confidential documents had been removed. Capstone sued Irvine alleging conversion, misappropriation of trade secrets, breach of contract, intentional interference with a prospective economic interest, unfair competition, breach of fiduciary duty, and unlawful access and use of computer systems and data.
Pursuant to a writ of possession, the Orange County Marshall searched Irvine's house and seized various Capstone documents and computer files. Capstone also obtained a temporary restraining order, and later a preliminary injunction enjoining Irvine from altering, destroying, or using Capstone documents or computer data and ordering him to return any Capstone property in his possession.
Irvine cross-complained seeking damages for alleged termination without cause, breach of the covenant of good faith and fair dealing, termination in contravention of public policy, violation of Labor Code sections 1050 through 1054, and defamation. Irvine also sought a declaratory judgment determining his eligibility to purchase Capstone stock and the fair market value of stock in his possession should Capstone exercise its right of repurchase. He argued his rights pursuant to the stock option agreement created an implied promise by Capstone to only terminate for cause, his termination breached the implied promise and was therefore a violation of the covenant of good faith and fair dealing, Capstone violated
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