Reference no: EM131281698
Michael Paolella was employed as sales manager for Browning-Ferris (BFI) with responsibility for a district in Delaware. When the state's Solid Waste Authority announced plans to raise disposal rates 25 percent, the district manager, Ronald Hanley, devised a scheme to increase BFI's revenues by leading customers to believe that increased fees were the result of the 25 percent increase in disposal rates when, in fact, a significant portion of the increased charges to customers was based on an artificially inflated average weight per cubic yard. Paolella admitted that he did not object to the plan when it was proposed by Hanley.
He testified that later he raised concern with Hanley at least twice weekly but nevertheless complied with instructions to send a letter to customers advising them of the 25 percent increase in June 1992. He also negotiated contracts with customers based on these rates. In late 1993, Paolella sent BFI a letter warning BFI to "cease all illegal activities."
He was fired at 51 years of age, on January 17, 1994, for "poor performance." He sued BFI for wrongful discharge under the public policy exception to the employment-at-will doctrine based on the public policy set forth in the state law against theft by false pretenses.
The jury returned a verdict of $732,000, representing $135,000 of back pay and $597,000 in front pay.
The judge reduced the damages by $132,000 because of Paolella's participation.
BFI appealed, contending that Paolella's participation should preclude him from relying on the public policy exception, and it contended that the front pay was excessive. Is BFI correct? Decide.
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