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The solution addresses each of the questions below, along with the two at the case closing. There are two references to support the legal conclusion and recommendations of what Mr. Jones should do.
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Using the case study provided write a 1 page memo that analyzes the case by:
1) stating the key elements of the applicable ( in this case the relevant law is employment at will and its exceptions ,
2) summarize key facts
3) apply the facts to the elements of the and its exceptions
4) draw a legal conclusion and explain why you support that conclusion.
Garp
Courier Service (GARP) is a successful new in the Washington DC area.
The courier is a very competitive industry. The key to GARP’s success is
their unprecedented “money back guarantee” that all deliveries are
completed within 30 minutes of receiving the call. GARP is growing fast
and plans to establish service in other cities, starting with Baltimore.
Each of GARP 20 employees was hired with a handshake. On their first
day employees are given a distinctive blue and red spandex body suit and
a detailed employee handbook covering every aspect of the business from
dress code and demeanor, to hours of service, pay, sharing and
discipline. “This manual is the GARP bible. Lose it, or tell anyone our
company policies and methods and you will be both fired and sued,”
warned Tony Armstrong, the owner and manager. Regarding terminations the
manual said all employees are conditional employees for one year. After
successfully completing one year they would be considered “permanent”
employees. Permanent employees are paid $40,000 per year with health
benefits and are eligible for profit sharing. It also means they could
be fired only for “cause” – a phrase never fully explained. The manual
also says in tiny, 8-point type, on the next to last page, and after the
signature page, that the manual is for “employee information purposes
only and is not an employment contract.”
Homer Jones was GARP’s most
successful courier. He was the first employee hired 3 years ago. He
knew he was a fortunate recipient of Tony’s business system. He had the
best list of clients and he worked very hard. He had to. Homer had a
family to support including a little boy with heart problems. Homer
realized, unlike other courier services, GARP couriers could ride and
park their bikes anywhere – streets, sidewalks, even inside buildings.
All doormen cooperated with GARP couriers; in contrast to the hostility
they showed other couriers. Homer showed his appreciation; each
Christmas he liberally handed out turkeys to friendly doormen, police
officers and other “associates” who helped him.
GARP couriers have
no trouble with the police. They did not obey traffic or street signs if
they slow them down. If they get a ticket, unlike other couriers who
pay the fine themselves, they just give the ticket to Tony. Homer tore
through the city making twice as many deliveries as other couriers. Last
year he earned a six-figure salary through salary, tips, bonus and
profit sharing.
Due to his savvy, drive and
experience Tony wanted Homer as his manager when decided to expand the
business to Baltimore. Naturally, Homer was reluctant to give up his
current job to start in a new city. But Tony Armstrong was uniquely
persuasive. He said, “I got things set up. Go to Baltimore for a year
and see how it goes. You can always get your job back here.” It was “an
offer he could not refuse”. Homer relented and said goodbye to his
comfortable job and life. His wife quit her job and the kids were
removed from school and relocated in Baltimore where Homer bought a new
house. As manager, Homer was guaranteed an annual salary, plus
commissions on all deliveries and a higher percentage of company annual
profits. The company also promised to hire 12 couriers within 3 months
and have 20 hired within one year. The budget called for huge increases
in monthly increments through the first year.
On his first day of
work Tony sat down with Homer and said; “this is “Management 101” at
GARP, Homer. This is a list of police officers, government officials and
doormen in the Baltimore area. Every name on the list gets $100 on the
first day of each month.” When Homer asked why, Tony said “How you think
we keep the cops from busting the couriers for the reckless riding they
do? What gets those doormen to cooperate? This is just “appreciation
money”. It ensures the cops, bureaucrats and other problems are taken
care of. It’s why we can 30-minute deliveries, you idiot! You make
these payments or we are just another courier service. Understand!?
Afraid to argue, yet not comfortable paying what he perceived as bribes,
Homer tried to make the business work without them. He took the money
but put it in the bank. Homer worked day and night, trying all kinds of
marketing and operations strategies. He bought motorized scooters and
found strategic partners. The business made money but failed to match
the DC office. So Homer developed a that aimed for comparable profits
within a year. Proudly he took it to Tony; who said very little, but
signed off on Homer’s plan.
After 3 months Tony and Homer were at
odds. Tony never hired more than 3 couriers in Baltimore. When Homer
asked Tony to follow through on his promises or give him his DC job
back, Tony assured Homer the new hires were coming. Soon Tony withdrew
marketing money and short-term credit with the Baltimore bank. Homer
could not meet payroll and advertise. After 9 months it was clear the
business would fail. Homer was passed over for quarterly bonuses; nor
did he receive the commissions from the work being done. Soon Tony
stopped marketing in Baltimore and business suffered badly. One day
Homer noticed a former GARP courier working in Baltimore. A brief
investigation revealed Tony had opened another courier service in
Baltimore under a different name. Homer went to Tony and said he wanted
his old job back in DC. Tony laughed and said, “We are one week from
firing you, Homer. Why don’t you quit and save everyone the
embarrassment? Homer, you just don’t have the right stuff to manage a
business. You flinched on the first day. Nothing has been right since.”
Upset and desperate about family expenses Homer quit. He also went to
the newspaper to expose the monthly payments. Finally, Homer came to you
to sue GARP. You listen to his story and draft a memo on how you would
sue GARP using employment at will is the critical issue (in other words
this is NOT a discrimination case.)
What legal theories will you pursue?
What facts/evidence support each theory?
