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Volume 15, Edition 7, cases

Pedraza v. State

Court of Appeals of Texas,

Dallas.

Elvis PEDRAZA, Appellant

v.

The STATE of Texas, Appellee.

 

No. 05–11–00396–CR.

June 19, 2012.

 

On Appeal from the 296th Judicial District Court, Collin County, Texas, Trial Court Cause No. 429–80819–10.

Robert Udashen, for Elvis Pedraza.

 

Gregory Alan Willis, District Attorney, for The State of Texas.

 

Before Justices BRIDGES, FRANCIS, and LANG.

 

MEMORANDUM OPINION

Opinion by Justice LANG.

Appellant Elvis Pedraza pleaded not guilty to theft of property valued at $1,500 or more, but less than $20,000. Following a bench trial, the trial court convicted appellant and assessed punishment at 180 days’ confinement, probated for two years. In two issues on appeal, appellant contends (1) the evidence is insufficient to support his conviction and (2) the trial court committed reversible error when it failed to prevent appellant’s trial counsel from jointly representing appellant and appellant’s co-defendant. We affirm the trial court’s judgment. Because all dispositive issues are settled in law, we issue this memorandum opinion. See TEX.R.APP. P. 47.2(a), 47.4.

 

I. FACTUAL AND PROCEDURAL BACKGROUND

The record shows appellant was tried jointly with a co-defendant, Geovanni Delpino, and the two were represented by the same attorney. At the start of trial, the following exchange occurred:

 

[THE STATE]: Your Honor, the State would ask Your Honor to go ahead and warn the Defendants on record about any potential conflict going forward being represented by one attorney. We just want to make them aware that there could be potential conflicts and we want them to waive this on the record and that they have no objection to this.

 

THE COURT: All right. Mr. Delpino and Mr. Pedraza, would you please stand up so I can see you? Gentlemen, as the Court, I want to warn you, the Court notices that you have the same counsel providing you a defense in each of your cases. Do y’all understand that?

 

[APPELLANT]: Yes.

 

[DELPINO]:  Yes.

 

The record shows Delpino spoke through an interpreter at trial.

 

THE COURT: And you understand that that could create some sort of conflict for [defense counsel], meaning that in order to defend one of you, it may be at the cost of the other?

 

[APPELLANT]: Yes.

 

[DELPINO]: Yes.

 

THE COURT: And that—and [defense counsel] wouldn’t do that on purpose; but, in essence, that’s what could happen in your case and you are warned that that potential conflict of interest does exist. Do you understand?

 

[APPELLANT]: Yes.

 

[DELPINO]: Yes.

 

THE COURT: And do you waive that conflict of interest to the degree one exists?

 

[APPELLANT]: Yes.

 

[DELPINO]: Yes.

 

THE COURT: Are you satisfied, [counsel for State]?

 

[THE STATE]: Yes, Your Honor. Thank you very much.

 

THE COURT: Are you satisfied, [defense counsel]?

 

[DEFENSE COUNSEL]: Yes, sir.

 

Officer Cary M. Philley testified at trial that he is a police officer with the City of Plano. He stated he was on patrol between 6 a.m. and 2 p.m. on July 3, 2009, when he observed an “18–wheeler tractor” backed into a parking space in an isolated area near the back of a Kroger store. There was no trailer attached to the tractor. Philley testified a black Suburban vehicle was parked next to the tractor and three individuals were removing boxes from the tractor and placing them into the back of the Suburban. Philley described the boxes as similar to ones “containing something like a laptop computer.” Philley watched the individuals for a moment, then began to drive closer to them. Philley stated, “As soon as they recognized me, they immediately closed the back of the Suburban and the doors to the truck.” Philley stopped his vehicle directly in front of the tractor. At that point, one of the individuals, identified by Philley at trial as appellant, was on the ground standing at the back of the Suburban and the other two individuals, identified as Delpino and “a Mr. Garcia” were in the passenger compartment of the tractor. Philley stated “[t]he entire sleeper area of the truck was full of boxes” that appeared to be identical to the ones the individuals had been transferring to the Suburban.

 

Philley asked appellant what they were doing. According to Philley’s testimony, appellant told him that he was there to pick up his friend to come and stay with him. Appellant stated to Philley that he did not know where the boxes had come from and that Delpino had told him they needed to move the boxes out of the truck. Additionally, appellant stated to Philley that Delpino told him to stop what they were doing and close the doors to the vehicles when Philley started to approach them. Philley testified Delpino told him that he found the boxes on the ground near a baseball field in Dallas and that the boxes had been there for a couple of days before he picked them up.

 

The boxes were collected and photographed by police. Seventeen boxes were located in the Suburban and eighty more were found in the tractor. Each box contained a computer monitor valued at $136. Philley testified appellant originally told him that he did not have his wallet or identification with him, but a wallet found in the Suburban contained appellant’s valid identification. In addition, the wallet contained two credit cards in the name of someone other than appellant. Philley testified the Suburban was registered to “Enterprise Rent–A–Car” and had been rented by appellant’s wife. Neither appellant nor Delpino was the owner of the tractor.

 

Officer Rick Mills of the Plano Police Department testified he was dispatched to assist Officer Philley at the scene of the events described above. Mills stated Delpino told him he had found the computer monitors abandoned at a baseball field and was going to sell them. According to Mills, the boxes were very clean and did not appear to have been left outside for any period of time. On cross-examination, Mills testified Delpino told him he did not take all the boxes he found, but rather left some at the baseball field. Delpino offered to take police to the location where he claimed he found the boxes. Mills testified he did not investigate that location and was not sure if other officers did so.

 

Detective Steven Boyd of the Plano Police Department testified he was dispatched to assist Philley and interviewed appellant and Delpino at the scene described above. Boyd stated Delpino told him that he was the driver of the tractor and had found the monitors at or near a park in Dallas. According to Boyd, Delpino stated he and the two other men were transferring the monitors from one vehicle to the other because they were going to appellant’s house nearby and did not want to leave the monitors in the tractor, which could not be parked on a residential street. Boyd testified that the fact the tractor was parked in a secluded portion of the parking lot seemed contradictory to Delpino’s expressed concern about protecting the monitors. Boyd stated the boxes were not damaged in any way and did not appear to him to have been kept or placed outside. Boyd testified he was later able to determine that the monitors were part of the contents of a trailer owned by Celadon Trucking Company that had been stolen in Royce City on approximately June 27, 2009. That trailer contained 2,160 monitors.

 

Xavier Badillo testified he is employed by the City of Plano police department and investigates thefts. He accompanied Boyd to the scene described above. Badillo testified all of the boxes collected there contained the same model of computer monitor. He stated that Delpino told him that he had seen the monitors at a baseball field two days in a row and picked them up the second day. According to Badillo, the boxes “seemed pretty pristine” and “there was nothing on the exterior of the boxes that indicated any type of exposure to elements or any type of damage.” Photographs of the boxes were admitted into evidence. On cross-examination, Badillo testified he did not know whether the remainder of the 2,160 monitors from the trailer stolen in Royce City were ever located. He stated he did not visit or investigate the area where Delpino claimed to have found the monitors.

 

Delpino testified through an interpreter that he found the monitors behind a field in Oak Cliff where he goes regularly for baseball practice. He stated he returned home to Frisco to get a truck and then went back to the field and picked up the monitors on the same day he first found them. Appellant was not with him at that time. According to Delpino, some of the boxes he found were in good condition, but others were damaged. He stated he picked up only boxes that were in good condition. He testified it is not unusual for people to dump trash in the location where he found the boxes and he thought the boxes had been thrown out.

 

Delpino testified that after picking up the boxes, he headed home. On his way home, he planned to stop and eat at appellant’s house, which was near the Kroger store. He testified appellant agreed to meet him at the Kroger store. Delpino stated he did not park in front of the Kroger store because that parking area is reserved for customers of the store and he thought his vehicle could be ticketed or towed if he parked there. Delpino could not recall the exact time he arrived at the Kroger store, but stated it was “the middle of the day.” Delpino testified that when appellant arrived, he gave appellant some of the computer monitors he had found so appellant could send them to Cuba.

 

On cross-examination, Delpino testified he did not notify police about the monitors he found because he thought the monitors were trash. He intended to give some to friends and send some to his family in Cuba. He stated he had no intention to hide or have a secret meeting with appellant at the Kroger store. Further, Delpino testified he and appellant did not shut the doors to their vehicles when they saw a police officer approaching.

 

Appellant testified he lives near the Kroger store where the events described above took place. According to appellant, Delpino called him that morning and told him that he was driving by. Appellant had not seen Delpino in awhile and invited Delpino to stop by for breakfast. Delpino told appellant they could meet at the Kroger store, and appellant went there to pick him up. Appellant testified Delpino did not mention the monitors during their phone conversation.

 

Appellant testified that as soon as he parked next to Delpino at the Kroger store, Delpino told him he was going to “put something in the car that he was giving me to send to Cuba.” Appellant testified he did not have time to ask Delpino about the boxes. According to appellant, after loading the boxes into his vehicle, which took approximately ten minutes, he shut the door of his vehicle. Appellant testified he and the two other men stopped loading boxes not because a police officer approached, but rather because Delpino “had gave me whatever he was going to give me already.” Appellant stated they were not situated so as to prevent anyone from seeing what they were doing. Appellant testified that when police asked him where the monitors came from, he told them he had no idea.

 

On cross examination, appellant testified Delpino had never before given him items to load into his vehicle. He stated the monitors appeared to be brand new.

 

Additional witnesses at trial included (1) Keith MacMillan, a truck driver formerly employed by Celadon Trucking Company, who testified in relevant part that on June 28, 2009, he discovered that a trailer he had been transporting had been stolen and (2) Jesse Guzman, a terminal manager for Celadon Trucking Company, who testified that the monitors recovered at the scene described above were part of the contents of a trailer stolen from Celadon Trucking Company on approximately June 27, 2009, and Celedon Trucking Company was considered the owner of the monitors at that time.

 

During closing argument, defense counsel argued that both defendants should be acquitted. Defense counsel contended Delpino’s account of finding the monitors abandoned near a baseball filed was credible. Additionally, defense counsel argued that both defendants testified appellant was not present when Delpino found the monitors and did not know where they came from, and thus there was even less evidence in appellant’s case than in Delpino’s.

 

The trial court found both appellant and Delpino guilty. Following the punishment phase of trial, the trial court sentenced appellant to 180 days’ confinement in state jail, probated for two years, and ordered appellant to attend an anti-theft class, pay court costs, and have no contact with Delpino. Delpino’s punishment was assessed by the trial court at two years’ confinement in state jail, probated for four years, a fine of $500, and 100 hours of community service. Additionally, Delpino was ordered to pay court costs and have no contact with appellant.

 

Appellant filed a timely motion for new trial, which was denied by the trial court. This appeal timely followed.

 

II. SUFFICIENCY OF THE EVIDENCE

A. Standard of Review

In determining whether the evidence is sufficient, a reviewing court views all the evidence in the light most favorable to the prosecution to determine whether any rational trier of fact could have found the essential elements of the offense beyond a reasonable doubt. See Jackson v. Virginia, 443 U.S. 307, 318–19, 99 S.Ct. 2781, 61 L.Ed.2d 560 (1979); Brooks v. State, 323 S.W.3d 893, 895 (Tex.Crim.App.2010). When the record supports conflicting inferences, a reviewing court must presume that the fact-finder resolved the conflicts in favor of the prosecution and defer to that determination.   Jackson, 443 U.S. at 326. The fact-finder exclusively determines the weight and credibility of evidence. Id. at 319; Wirth v. State, 361 S.W.3d 694, 698 (Tex.Crim.App.2012). The sufficiency standard of review is the same for both direct and circumstantial evidence. See Hooper v. State, 214 S.W.3d 9, 13 (Tex.Crim.App.2007).

 

B. Applicable Law

A person commits theft if he unlawfully appropriates property with intent to deprive the owner of property. See TEX. PENAL CODE ANN. § 31.03(a) (West Supp.2011); see also id. § 31.03(e)(4)(A) (theft is state jail felony when value of property stolen is $1,500 or more, but less than $20,000). “Appropriate” means to acquire or otherwise exercise control over property other than real property. See id. § 31.01(4)(B). Section 31.03(b) provides in relevant part that appropriation of property is unlawful if (1) it is without the owner’s effective consent or (2) the property is stolen and the actor appropriates the property knowing it was stolen by another. See id. § 31.03(b).

 

Proof of a culpable mental state almost invariably depends upon circumstantial evidence. Uyamadu v. State, 359 S.W.3d 753, 760 (Tex.App.-Houston [14th Dist.] 2011, pet. ref’d). A fact-finder can infer knowledge from all the circumstances, including the acts, conduct, and remarks of the accused and the surrounding circumstances. Id. Knowledge that property was stolen can be shown by circumstantial evidence. Id. (citing Chudleigh v. State, 540 S.W.2d 314, 317 (Tex.Crim.App.1976)).

 

Recent, unexplained possession of stolen property can give rise to an inference of guilt sufficient to support a conviction for theft of the property. Sutherlin v. State, 682 S.W.2d 546, 549 (Tex.Crim.App.1984); see Chavez v. State, 843 S.W.2d 586, 588–89 (Tex.Crim.App.1992); Jackson v. State, 12 S.W.3d 836, 839 (Tex.App.-Waco 2000, pet. ref’d). However, before such an inference may be drawn, the State must establish the defendant’s possession was personal, recent, unexplained, and involved a distinct and conscious assertion of right to the property by the defendant. See Sutherlin, 682 S.W.2d at 549.

 

“If a defendant offers an explanation as to his possession of recently stolen property, the record must demonstrate that the defendant’s explanation at the time his possession is called into question is either false or unreasonable before the evidence will support the conviction of theft.” Jackson, 12 S.W.3d at 839 (citing Adams v. State, 552 S.W.2d 812, 815 (Tex.Crim.App.1977)); see Hardesty v. State, 656 S.W.2d 73, 76–77 (Tex.Crim.App.1983). Whether the defendant’s explanation is reasonable is a question of fact, and the fact-finder is not bound to accept a defendant’s explanation. Garza v. State, 841 S.W.2d 19, 22 (Tex.App.-Dallas 1992, no pet.); see also Adams, 552 S.W.2d at 815.

 

C. Analysis

In his first issue, appellant contends the evidence is insufficient to support his conviction for theft. Appellant asserts he does not dispute that the property in question was stolen. However, appellant argues that while “[t]he State’s theory at trial was that [appellant] appropriated the computer monitors knowing they were stolen by another,” the State failed to prove appellant “exercised control over the property knowing it was stolen.” Appellant contends the inference of guilt described above is inapplicable because the State failed to establish (1) appellant had personal possession of or exercised a “conscious assertion of a right” to the property, (2) appellant’s possession of the property was “recent,” and (3) appellant had “unexplained possession” of the property or offered a false or unreasonable explanation for his possession of the property.

 

The State responds

 

The evidence was sufficient to support Appellant’s conviction. Appellant had possession of computer monitors that were stolen five days earlier and had no explanation at the time police questioned him. His recent, unexplained possession of stolen property was sufficient to support his theft conviction. Even if his statement that he knew nothing about the monitors was considered to be an explanation, it was not reasonable in light of the fact that he and two other men were caught in a secluded area loading monitors in the original shipping boxes into Appellant’s car and acted suspiciously when an officer approached. Moreover, the record contained sufficient evidence to prove all of the elements of theft beyond a reasonable doubt.

 

We begin with appellant’s argument that the evidence does not show he had personal possession of the monitors or exercised “control over or a right to” them. Appellant asserts he was at the Kroger store to pick up Delpino and was helping Delpino move the monitors so the monitors would not be left unattended. Additionally, in his appellate reply brief, appellant argues he did not exercise “sole control” over the property because (1) there is no indication that he limited Delpino’s access to the monitors or claimed to own the monitors and (2) both he and Delpino planned to enter the vehicle appellant was driving, thus permitting equal access to the monitors.

 

For the inference described above to be applicable, a defendant’s possession of the stolen property must be personal, but need not be exclusive. See Ross v. State, 463 S.W.2d 190, 191 (Tex.Crim.App.1971) (concluding evidence was sufficient to support conviction for theft where defendant and another exercised joint control over stolen property); Beard v. State, 458 S.W.2d 85, 87–88 (Tex.Crim.App.1970) (possession sufficiently established where defendant and another person were working together and exercising joint control and possession of stolen property and were in juxtaposition to property when it was discovered); Robinson v. State, 658 S.W.2d 779, 781 (Tex.App.-Beaumont 1983, no pet.) (“The requirement of possession may be satisfied even though joint.”). Further, the record shows appellant assisted Delpino in loading seventeen of the monitors from a tractor driven by Delpino into a vehicle that was rented by appellant’s wife and contained appellant’s wallet and identification. Each monitor was valued at $136. Appellant testified Delpino was giving him the seventeen monitors to send to Cuba. Appellant stated he shut the door to his vehicle because Delpino “had gave me whatever he was going to give me already.” On this record, we conclude a reasonable fact-finder could have found that appellant had personal possession of at least seventeen monitors and that he asserted a right to those monitors. See Sutherlin, 682 S.W.2d at 549; Todd v. State, 601 S.W.2d 718, 720 (Tex.Crim.App.1980) (defendant asserted right to stolen welder by towing it behind his pickup truck).

 

Next, we consider appellant’s assertion that his possession was not “recent.” Appellant contends that in light of the “five-day lapse of time between when the trailer was reported stolen and when [appellant] was discovered with the monitors,” these circumstances should not be considered as “recent” possession because “[c]omputer monitors are easily transferable and do not require a lengthy period of time to establish personal ownership.”

 

The State responds that Texas courts have found periods much longer than five days to be sufficiently recent. Further, the State argues, “[w]hile it might be easy to sell a single computer monitor in five days to one individual, such is not the case with a group of 97 identical monitors.”

 

Ordinarily, whether stolen property is “recently” possessed by the defendant is a question of fact. Sutherlin, 682 S.W.2d at 549; see also Naranjo v. State, 217 S.W.3d 560, 571 (Tex.App.-San Antonio 2006, no pet.) (whether possession was recent is determined case by case based on facts and ease of transferability). The parties cite no cases, and we have found none, involving computer equipment in a quantity similar to that in question. However, the court in Uyamadu concluded that a defendant’s possession of seven laptop computers more than a month after the computers were reported stolen gave rise to an inference of guilt. See Uyamadu, 359 S.W.3d at 760. On this record, we cannot conclude appellant’s possession of the stolen property in question was not “recent.” See id.

 

Finally, we address appellant’s assertion that the State did not show his possession of the property in question was “unexplained” or that he offered a false or unreasonable explanation for his possession of the property. According to appellant,

 

When asked where the monitors came from [appellant] explained that he did not know where Delpino acquired the monitors, but that Delpino asked for assistance with moving them out of his tractor when [appellant] arrived so they would not be left unattended. There is no indication that [appellant] hesitated to provide an explanation for how he became involved with moving the monitors into his Suburban. In essence, [appellant] showed up to pick up his friend who asked to move the monitors into [appellant’s] SUV for safekeeping. The State offered no evidence that Pedraza did anything more than temporarily hold the monitors at the request of his friend Delpino.

 

(citations to record omitted). Appellant argues (1) it was unreasonable for the trial court to conclude that appellant’s explanation for moving the computer monitors from the tractor to appellant’s vehicle was false and (2) the State failed to present any evidence contradicting appellant’s explanation. Additionally, in his appellate reply brief, appellant asserts (1) “[t]he explanation given at the scene was consistent with the testimony at trial and with Delpino’s explanation that confirmed that [appellant] had nothing to do with acquiring the computer monitors” and (2) the State “failed to exclude every other reasonable hypothesis except [appellant’s] guilt.”

 

The State responds that “[appellant’s] claim that he was there to pick up his friend and did not know anything about the boxes is tantamount to no explanation at all.” Further, the State asserts that if appellant’s statement amounted to an explanation, it was not reasonable in light of the record.

 

As to appellant’s argument that the State failed to produce evidence to exclude every other reasonable hypothesis except that of appellant’s guilt, the former standard of review requiring reversal of circumstantial evidence cases unless the defendant’s guilt is the only reasonable hypothesis has been overruled. See Manivanh v. State, 334 S.W.3d 23, 28 (Tex.App.-Dallas 2008, pet. ref’d) (citing Geesa v. State, 820 S.W.2d 154, 160–61 (Tex.Crim.App.1991), overruled on other grounds by Paulson v. State, 28 S.W.3d 570, 573 (Tex.Crim.App.2000)). As to appellant’s other arguments, the record shows that the explanation appellant contends he provided when police first confronted him about the stolen monitors at the scene, i.e. that Delpino did not want to leave the monitors unattended in the tractor, was inconsistent with putting only seventeen of the ninety-seven monitors in appellant’s vehicle and leaving the remainder in the tractor in a secluded area. Further, at trial, appellant testified (1) Delpino gave him the seventeen monitors to send to Cuba and (2) he closed the door of his vehicle because he was done loading the monitors Delpino had given him. On this record, we conclude the trial judge, as fact-finder, had sufficient evidence to conclude appellant’s explanation for possession of the stolen property was false or unreasonable. See Garza, 841 S.W.2d at 22 (fact-finder was not bound to accept defendant’s explanation for possessing stolen property where record showed contradictory evidence); cf. Robinson, 658 S.W.2d at 781–82 (defendant’s hypothesis that he was moving property to innocently assist companion who had stolen the property was not reasonable in light of cumulative effect of evidence).

 

In light of our conclusions above, we decide against appellant on his first issue.

 

III. JOINT REPRESENTATION

In his second issue, appellant contends the trial court “committed reversible error when it failed to prevent trial counsel from jointly representing [appellant] and [appellant’s] co-defendant.” According to appellant, “a review of the record quickly reveals that these two defendants had competing interests and that [appellant] did not knowingly and intelligently waive his right to separate counsel.” Appellant asserts the trial court failed to address “these special circumstances” and improperly permitted the dual representation.

 

The State responds

 

The trial court did not err. Appellant has not shown that an actual conflict of interest arose that adversely affected his attorney’s performance. No actual conflict of interest existed when Appellant and his co-defendant consistently advanced a joint defense of innocence at trial and did not attempt to implicate each other. And Appellant has not shown that his attorney actively represented his co-defendant’s interest to his detriment. Because there was no actual conflict of interest, the trial court was not required to admonish Appellant or obtain a waiver.

 

A. Standard of Review and Applicable Law

An attorney’s representation of multiple defendants is not a per se violation of a defendant’s right to adequate legal assistance. Cuyler v. Sullivan, 446 U.S. 335, 347, 100 S.Ct. 1708, 64 L.Ed.2d 333 (1980). In order to establish a violation of such right, a defendant who raised no objection at trial must demonstrate (1) his counsel had an actual conflict of interest and (2) that conflict of interest adversely affected his counsel’s performance at trial. Id. at 348. Once a defendant has shown that a conflict of interest actually affected the adequacy of his representation, he need not demonstrate prejudice in order to obtain relief. Id. at 349.

 

An “actual conflict of interest” exists if counsel is required to make a choice between advancing his client’s interest in a fair trial or advancing other interests to the detriment of his client’s interest. Acosta v. State, 233 S.W.3d 349, 355 (Tex.Crim.App.2007). An appellant must identify specific instances in the record that reflect a choice that counsel made between possible alternative courses of action, such as eliciting or failing to elicit evidence helpful to one interest but harmful to the other. Perez v. State, 352 S.W.3d 751, 755 (Tex.App.-San Antonio 2011, no pet.). “ ‘[A] potential conflict may become an actual conflict, but [an appellate court need not] speculate about a strategy an attorney might have pursued … in the absence of some showing that the potential conflict became an actual conflict.’ ” Id. (quoting Routier v. State, 112 S.W.3d 554, 585 (Tex.Crim.App.2003)); see Ex parte McFarland, 163 S.W.3d 743, 759 n. 52 (Tex.Crim.App.2005) (“The showing of a potential conflict of interest does not constitute an actual conflict of interest.”); James v. State, 763 S.W.2d 776, 782 (Tex.Crim.App.1989) ( “potential” conflict based on speculative hindsight never became “actual” conflict). “ ‘[U]ntil a defendant shows that his counsel actively represented conflicting interests, he has not established the constitutional predicate for his claim of ineffective assistance.’ ” Acosta, 233 S.W.3d at 355 (quoting Cuyler, 446 U.S. at 349–50).

 

“To show that an actual conflict of interest adversely affected counsel’s performance, the appellant must show ‘that trial counsel actually acted on behalf of those other interests during the trial.’ ” Perez, 352 S.W.3d at 755 (quoting Acosta, 233 S.W.3d at 355). “The appellant must show that his trial counsel ‘had to forego a strategy in the appellant’s trial that he would have otherwise pursued if he had not represented [a conflicting interest].’ ” Id. (quoting Routier, 112 S.W.3d at 586).

 

“Defense counsel have an ethical obligation to avoid conflicting representations and to advise the court promptly when a conflict of interest arises during the course of a trial.” Cuyler, 446 U.S. at 346. “Absent special circumstances, therefore, trial courts may assume either that multiple representation entails no conflict or that the lawyer and his clients knowingly accept such risk of conflict as may exist.” Id. at 346–47.

 

When a court is alerted to or aware of an actual conflict, it must conduct a hearing to ensure that a defendant is knowingly, intelligently, and voluntarily waiving his right to conflict-free counsel. See Perez, 352 S.W.3d at 756; see also Cuyler, 446 U.S. at 347. The court is required to conduct such a hearing only if the court knows or should reasonably know of an actual conflict. Cuyler, 446 U.S. at 347; Perez, 352 S.W.3d at 756; Esparza v. State, 725 S.W.2d 422, 426 (Tex.App.-Houston [1st Dist.] 1987, no pet.).

 

B. Analysis

As to an “actual conflict of interest,” appellant argues defense counsel was (1) “likely limited in his exploration of possible plea negotiations and [appellant] was not afforded the ability to negotiate with the State in exchange for testimony against his co-defendant” and (2) “limited in the decision to challenge the evidence presented by the State.” Further, according to appellant,

 

[F]ollowing the presentation of evidence, the trial court had every reason to believe that a conflict existed. One defendant is clearly more culpable than the other. As previously argued, the evidence was insufficient to convict [appellant] of theft; information that could be used to shift the court’s focus to Delpino. Furthermore, defense counsel was restricted from arguing that [appellant] should be found not guilty in light of Delpino’s culpability. Therefore, there was no question that a conflict could and did arise.

 

Additionally, in his appellate reply brief, appellant asserts that “[w]hile [appellant] had no reason to know that the monitors were stolen, Delpino did.” Therefore, appellant contends, “there existed an undeniable conflict that could have been avoided had [appellant] had separate counsel to advance his defense instead of simply making him the lesser of two evils.”

 

We cannot agree with appellant that an actual conflict of interest has been shown in this case. First, nothing in the record demonstrates prosecutors or appellant had any desire to negotiate a plea. Further, the record shows appellant testified he knew nothing about how Delpino obtained the monitors and thus had no information to offer the prosecution in that regard. Second, while appellant contends his defense counsel was “limited in the decision to challenge the evidence presented by the State,” he does not explain what evidence he is referring to or cite to the record to support his argument. Therefore, no actual conflict has been shown as to such evidence. See McFarland, 163 S.W.3d at 759 n. 52; James, 763 S.W.2d at 782; Perez, 352 S.W.3d at 755. Third, the Texas Court of Criminal Appeals has rejected the argument that an actual conflict of interest automatically arises when a jointly represented defendant is hampered in his ability to shift blame. See Taylor v. State, 674 S.W.2d 323, 330 (Tex.Crim.App.1983). Appellant does not explain, and the record does not show, how this case constitutes an exception. Finally, the explanations of appellant and Delpino were not inconsistent with each other and the record does not show appellant sought to advance an inconsistent defensive theory. See, e.g., Castillo v. State, 186 S.W.3d 21, 29 (Tex.App.-Corpus Christi 2005, pet. ref’d) (concluding no actual conflict existed where record showed no divergence in defensive theories). On this record, we conclude appellant has not shown an actual conflict of interest to satisfy the first prong of Cuyler. See 446 U.S. at 348–49.

 

Next, we address appellant’s contention that “[t]he trial court failed to provide a proper admonishment to [appellant] regarding dual representation.” According to appellant, “[a]lthough the trial court was not required to conduct an inquiry in order to assure that [appellant] knowingly and intelligently waived the conflict, the court was prompted by the State to conduct an inquiry” and therefore “the court was placed on notice that special circumstances existed which required the court to inquire as to [appellant’s] waiver of the conflict of interest.”

 

The record shows the State did not indicate to the trial court that any particular conflict existed, but rather merely asked the trial court to warn the defendants that “there could be potential conflicts” as a consequence of joint representation and obtain a waiver on the record. There was no objection to the joint representation and neither appellant nor his defense counsel expressed any reservations about continuing with that representation. Appellant cites no authority, and we have found none, to support his position that such facts placed the trial court on notice as to “special circumstances.” Moreover, we concluded above that no actual conflict existed in this case. We conclude the record does not show the trial court knew or reasonably should have known of an actual conflict of interest in this case and therefore the trial court was not required to conduct a hearing or make any further inquiry respecting appellant’s waiver of his right to conflict-free counsel. See Cuyler, 446 U.S. at 347; Perez, 352 S.W.3d at 756; Esparza, 725 S.W.2d at 426.

 

In light of our conclusions above, we decide against appellant on his second issue.

 

IV. CONCLUSION

We decide appellant’s two issues against him. The trial court’s judgment is affirmed.

Crawford v. George & Lynch, Inc.

United States District Court,

D. Delaware.

Tammyl. CRAWFORD, Plaintiff,

v.

GEORGE & LYNCH, INC., et al., Defendants.

 

Civil Action No. 10–949–GMS–SRF.

July 5, 2012.

 

Stephen Price Norman, The Norman Law Firm, Dagsboro, DE, for Plaintiff. Margaret M. Dibianca, Monte Terrell Squire, Wilmington, DE, for Defendants.

 

REPORT AND RECOMMENDATION

SHERRY R. FALLOM, United States Magistrate Judge.

I. INTRODUCTION

Presently before the Court in this sexual harassment, gender discrimination, and retaliation action brought under the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000 et seq. (“Title VII”), is a motion for partial dismissal of the amended complaint, filed by defendants George & Lynch, Inc. (“G & L”) and Leonard J. Brooks (“Brooks”) (together, “Defendants”) on March 21, 2012. (D.I.71) Defendants assert three claims for relief: (1) dismissal of plaintiff Crawford Trucking Company, LLC (“CTC”); (2) dismissal of defendant Brooks; and (3) dismissal of the claims for breach of the covenant of good faith and fair dealing. For the following reasons, I recommend that Defendants’ motion be granted in part and denied in part. Specifically, I recommend that the Court grant Defendants’ motion as to the dismissal of CTC as a plaintiff in all counts, and dismissal of Brooks as a defendant in all counts. I recommend that the Court deny the motion as to dismissal of Crawford’s claim at Count V for breach of the covenant of good faith and fair dealing.

 

II. BACKGROUND

Plaintiffs Tammy L. Crawford (“Crawford”) and CTC (together, “Plaintiffs”) initiated this harassment, discrimination, and retaliation action against Defendants by filing a complaint in this Court on November 5, 2010. (D.I.1) Plaintiffs amended the complaint on March 7, 2012, alleging causes of action for: (1) hostile work environment under Title VII (Crawford against G & L); (2) gender discrimination (Crawford against G & L); (3) retaliation (Crawford and CTC against G & L); (4) promissory estoppel / detrimental reliance (Crawford and CTC against all Defendants);  and (5) breach of covenant of good faith and fair dealing (Crawford and CTC against all Defendants). (D.I. 57 at ¶ ¶ 110–150) These claims are based on events that occurred during Crawford’s employment with G & L.

 

In the amended complaint, the misnumbered retaliation and promissory estoppel / detrimental reliance claims are both listed as “Count III.” For purposes of this memorandum, the claim for promissory estoppel / detrimental reliance will be identified as “Count IV,” and the claim for breach of covenant of good faith and fair dealing will be identified as “Count V.”

 

In her capacity as an owner of CTC, Crawford entered into a hauling contract with G & L on behalf of CTC and maintained an ongoing business relationship with G & L for several years beginning in 2003. (Id. at ¶ 14–18) Crawford was then recruited for a position as a dispatcher with G & L. (Id. at ¶¶ 13, 19) Crawford expressed concern that accepting the position at G & L might adversely affect G & L’s business relationship with CTC, but she accepted the position after receiving assurances from Brooks, the Vice President of Administrative Services for G & L, that this would not be an issue. (Id. at ¶¶ 10, 20–23) Crawford began working for G & L on June 19, 2008. (Id. at ¶ 23)

 

Immediately after Crawford started working at G & L, G & L employee Mike Bursieh began sexually harassing her. (Id. at ¶ 30) Crawford reported the sexual harassment on July 30, 2008, and the next day, G & L transferred Crawford to another work location and demoted her. (Id. at ¶¶ 64–70) At the same time, the business relationship between G & L and CTC was effectively terminated. (Id. at ¶¶ 96–103) On September 18, 2008, Crawford was discharged from her position at G & L because she had allegedly resolved all of the issues she was required to handle and “worked herself out of a job.” (Id. at ¶¶ 79, 85)

 

Crawford filed a Charge of Discrimination with the Delaware Department of Labor (“DDOL”) and the Equal Employment Opportunity Commission (“EEOC”) on September 22, 2008, alleging claims for sexual harassment and retaliation based on G & L’s termination of her employment. (Id. at ¶ 104) On July 19, 2010, the DDOL issued a Final Determination and Notice of Right to Sue Letter, which became effective on July 27, 2010. (Id. at ¶ 106) On September 1, 2010, the EEOC issued a Federal Right to Sue Letter. (Id. at ¶ 108)

 

III. DISCUSSION

 

A. Dismissal of CTC from the retaliation claim

 

1. CTC’s standing to sue under Title VII

 

Defendants contend that CTC should be dismissed from the retaliation count because CTC is not an “employee” and therefore lacks standing to sue under Title VII. (D.I. 71 at 3) Specifically, Defendants contend that no authority supports an extension of Title VII to non-person, non-employee entities. (D.I. 93 at 2)

 

In response, Plaintiffs contend that CTC is a proper party in light of the Supreme Court’s recent decision in Thompson v. North American Stainless, LP, ––– U.S. ––––, 131 S.Ct. 863, 178 L.Ed.2d 694 (2011), which supports the proposition that third party retaliation is actionable under Title VII. (D.L 84 at 3) Applying Thompson, Plaintiffs contend that CTC was within the “zone of interests” sought to be protected by the statutes because Crawford raised the issue of potential retaliation against CTC prior to her acceptance of the job with G & L, (Id. at 5–6) Plaintiffs concede that the third party retaliated against in Thompson was also an employee of the company, but they contend that other courts have extended standing to non-employee spouses and friends of the complaining party. (Id, at 4)

 

The language of Title VII does not support an extension of these principles to an entity that is adversely impacted as a result of an employer’s retaliation against its employee. pecifically, Title VII defines “employee” as “an individual employed by an employer,” a definition that does not include a corporate entity. 42 U.S.C. § 20Q0e(f), The statute provides that “[i]t shall be an unlawful employment practice for an employer—(2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual’s race, color, religion, sex, or national origin.” 42 U.S.C. § 2000e–2(a)(2). The statute further provides that

 

[i]t shall be an unlawful employment practice for an employer to discriminate against any of his employees or applicants for employment … because he has opposed any practice made an unlawful employment practice by this subchapter, or because he has made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this subchapter.

 

42 U.S.C. § 2000e–3(a). These provisions do not apply to CTC as a non-employee corporate entity that cannot participate in protected activity.

 

Plaintiffs misconstrue Thompson and its progeny. The Supreme Court in Thompson held that the plaintiff fell within the zone of interests protected by Title VII because he was an employee of the defendant, noting that Title VII’s purpose is to protect employees from their employers’ unlawful actions. See Thompson, 131 S.Ct. at 870. The Supreme Court concluded that the defendant fired the plaintiff in order to retaliate against the plaintiff’s fiancee, who had previously filed a complaint for discrimination with the EEOC. Id. The facts of Thompson are not analogous to the situation presented in the instant matter because CTC is an entity that was not employed by G & L. Title VII expressly states that it is to protect employees from their employers’ unlawful actions, and as a non-employee entity, CTC does not fall within the zone of interests.

 

The Supreme Court’s extension of Title VII to third party reprisal claims is not without limitation. For example, the Supreme Court noted in Thompson that a shareholder could not sue a company for firing a valuable employee for discriminatory reasons even if it could be shown that the value of the stock decreased as a result. Thompson, 131 S.Ct. at 869. Plaintiffs’ argument falls into the foregoing category, i.e., a non-employee suing a company for alleged economic losses as a result of unlawful actions taken by the company towards an employee. See id.

 

Plaintiffs also cite two decisions from district courts outside of the Third Circuit in support of their argument. In McGhee v. Healthcare Services Group, Inc., 2011 WL 818662, at *2–3 (N.D.Fla. Mar.2, 2011), the plaintiff was employed by a subcontractor of the company that employed his wife. The plaintiff’s wife filed a charge of discrimination against her employer, after which the subcontractor terminated the plaintiff at the request of his wife’s employer. Id. The court denied the defendant’s motion to dismiss, concluding that allowing an employer to induce its subcontractor to fire the subcontractor’s employee in retaliation for the protected activity of the terminated employee’s spouse, would contravene the purpose of Title VII. Id. The court found that the two employers and their employees were “intertwined.” Id. at *3.

 

In Ali v. District of Columbia Government, 810 F.Supp.2d 78, 89 (D.D.C.2011), the plaintiff claimed retaliation based on his employer’s threats to terminate his best friend, who was employed by the same entity. The court denied summary judgment on the retaliation claim, concluding that a factual dispute existed as to whether threatening the plaintiff’s best friend with termination was unlawful under Thompson. Id.

 

Neither of these cases supports the theory that Title VII extends to non-person entities, or that a company such as CTC would fall within the “zone of interests” intended to be protected by the statute. Each case cited by Plaintiffs involves an individual employee alleging a claim of retaliation for engaging in protected activity, based on actions taken by the same employer or a subcontractor of the employer, against another individual employee. Thus, a reprisal against another employee, who is a relative or close friend of the subject employee alleging the employment violation, may support a charge of retaliation under Title VII. However, accepting Plaintiffs’ argument that an employer’s termination of a contract with a business entity owned by an employee constitutes retaliation for the employee’s protected conduct, would result in a new and substantial expansion of the law on third party reprisal claims under Title VII.

 

2. CTC’s exhaustion of administrative remedies

Next, Defendants contend that Crawford’s Charge of Discrimination did not include CTC as a Charging Party, and CTC would be required to exhaust its administrative remedies to assert a valid claim for retaliation under Title VII. (D.I. 71 at 3) In response, Plaintiffs contend that CTC exhausted its administrative remedies through Crawford because Crawford timely filed a complaint with the DDOL and the EEOC. (D.I. 84 at 6) According to Plaintiffs, CTC qualifies as a person aggrieved under the Administrative Procedures Act because the term “person” includes corporate entities, and courts have recognized the rights of companies to sue based on hostile workplace theories under 42 U.S.C. § 1981. (Id.)

 

Title VII requires the exhaustion of administrative remedies before a civil suit may be filed. 42 U.S.C. § 2000e–5(e). Plaintiffs do not contend that CTC separately filed a Charge of Discrimination and cite no authority indicating that an individual plaintiff such as Crawford may exhaust administrative remedies on behalf of a corporate entity such as CTC. CTC’s failure to fulfill this requirement highlights the fact that Title VII was intended to protect individual employees, and was not intended to extend to non-employee business entities.

 

3, Damages for actions taken against CTC

Plaintiffs alternatively argue that Crawford should be allowed to pursue a claim for damages from termination of CTC’s hauling contract, upon CTC’s dismissal from the case. (D.I. 84 at 7) In support of this argument, Plaintiffs cite Allen v. Radio One of Texas II, LLC for the proposition that a plaintiff employee has standing to sue for damages arising from an employer’s failure to do business with the plaintiff’s company. See Allen v. Radio One of Texas II, LLC, 2011 WL 5156688 (S.D.Tex. Oct.28, 2011).

 

In Allen, the district court held that the jury had sufficient evidence to find that the defendant employer retaliated against the plaintiff employee by refusing to do business with the plaintiff’s company. Id. at *2. As a result, the plaintiff could recover damages for the harm caused by the defendant. Id. Defendants do not refute Plaintiffs’ arguments on this issue or cite authority contrary to Allen. (D.I.93)

 

CTC is not a proper plaintiff in this Title VII action for the reasons previously stated. However, the Allen court cites the Supreme Court’s decision in Thompson for the proposition that the plaintiff may recover damages from the defendant relating to the loss of business incurred by the plaintiff’s company because the retaliation was directed at the plaintiff, not her company. Allen, 2011 WL 5156688, at *2. Therefore, Crawford is not barred from pleading a claim for damages stemming from termination of her company’s hauling contract. Whether or not Crawford is entitled to recover such damages is not an issue which is the subject of the pending motion.

 

B. Dismissal of Brooks as a Defendant

Defendants contend that Brooks is not a proper defendant with respect to Plaintiffs’ causes of action for promissory estoppel / detrimental reliance and breach of the covenant of good faith and fair dealing. (D.I. 71 at 4) Specifically, Defendants contend that the amended complaint sets forth only actions taken by Brooks on behalf of G & L in the course and scope of his employment, and as a result, Brooks cannot be personally liable for acts performed on behalf of his employer. (Id.) Defendants cite this Court’s decision in Owens v. Connections Community Support Programs, Inc. for the proposition that “a suit naming an individual in his official capacity is considered a suit against the employer.” Owens v. Connections Cmty. Support Programs, Inc., 2012 WL 37153, at(D.Del. Jan.6, 2012). “Thus, if the employer is named as a defendant, the same discrimination claim against an employee in his official capacity is redundant.” Id.

 

In response, Plaintiffs contend that Brooks should not be dismissed because he is subject to personal liability for promising Crawford that her acceptance of employment with G & L would not adversely affect CTC’s relationship with G & L. (D.I. 84 at 8) According to Plaintiffs, the issue of whether Brooks was acting independently or in the scope of his employment is an issue of fact to be decided by the jury. (Id.)

 

The amended complaint does not set forth facts or allegations indicating that Brooks did not act in his official capacity. In fact, Plaintiffs appear to refute their own argument in their brief by stating that “Plaintiffs specifically plead that G & L through Brooks promised Crawford that CTC would not be retaliated against.” (D.I. 84 at 8) It is well-established in the Third Circuit that Title VII bars discrimination claims against individual employees and supervisors. See Sheridan v. E.I. duPont de Nemours & Co., 100 F.3d 1061, 1077–78 (3d Cir.1996) (en bane). In light of the allegations in the amended complaint and well-established Third Circuit case law, I recommend that the Court dismiss Brooks as a defendant in the present action.

 

C. Promissory Estoppel/Detrimental Reliance

Defendants contend that Plaintiffs’ claim for promissory estoppel / detrimental reliance fails as it pertains to CTC because the allegations in the amended complaint are based on an alleged promise made by G & L to Crawford in the scope and course of Crawford’s employment with G & L. (D.I. 71 at 3–4)

 

Defendants cite no authority in support of this conclusion, and Plaintiffs do not respond to Defendants’ argument on this point. Furthermore, as the argument in the pending motion only relates to CTC, the claims of the individual plaintiff, Crawford, in this count are not dismissed.

 

The amended complaint asserts claims by both Plaintiffs that G & L promised Crawford that accepting employment with G & L would not adversely affect G & L’s contract with CTC. Crawford relied upon this promise to the detriment of both Plaintiffs when the contract was terminated. To prevail on a claim for promissory estoppel under Delaware law, a plaintiff must show, by clear and convincing evidence, that: “(1) a promise was made; (2) it was the reasonable expectation of the promisor … to induce action or forbearance on the part of the promisee; (3) the promisee … reasonably relied on the promise and acted to his detriment; and (4) that such a promise is binding because injustice will be avoided only by enforcement of the promise.” Ramone v. Lang, 2006 WL 905347, at * 14 (Del.Ch. Apr.3, 2006).

 

As alleged in the amended complaint, G & L was the promisor, Crawford was the promisee, and CTC was the subject of the promise. (D.I. 57 at ¶¶ 139–45) CTC’s claim for promissory estoppel fails because Plaintiffs base the claim on G & L’s promise to Crawford not to retaliate against CTC, and not on a promise made to CTC. Moreover, no claims have been asserted by CTC against G & L for termination of the hauling contract.

 

D. Breach of Covenant of Good Faith and Fair Dealing

Defendants contend that Plaintiffs’ claim for breach of the covenant of good faith and fair dealing is insufficient as a matter of law because Plaintiffs fail to allege facts indicating that Crawford was terminated as a result of Defendants’ falsification of her employment records. (D.I. 71 at 4–5) Defendants contend that, even if the allegations could be construed to allege the necessary facts, the claim fails as it pertains to CTC because CTC is not alleged to have been employed by G & L as required under Delaware law. (Id. at 5) Defendants further contend that Plaintiffs’ claim for breach of the covenant of good faith and fair dealing is preempted by the Delaware Discrimination Employment Statute. (D.I. 93 at 6)

 

Plaintiffs respond that the claim for breach of the covenant of good faith and fair dealing is properly stated because Crawford was enticed to accept employment with G & L as a result of representations that her employment would not affect the business relationship between G & L and CTC. (D.I. 84 at 8) According to Plaintiffs, an employee may bring a claim based on the covenant of good faith and fair dealing in Delaware if the termination violates public policy, or if the employer misrepresented an important fact and the employee relies on the misrepresentation either to accept a new position or remain in the current one. (Id. at 9)

 

Under Delaware law, the covenant of good faith and fair dealing is recognized as a limited exception to the presumption of at-will employment, which allows dismissal of an employee at any time without cause. E.I. DuPont de Nemours & Co. v. Pressman, 679 A.2d 436, 442–44 (Del.1996). To bring a claim for breach of the covenant of good faith and fair dealing, a plaintiff must demonstrate that the claim falls into one of four narrow categories:

 

(1) where the termination violated public policy;

 

(2) where the employer misrepresented an important fact and the employee relied thereon either to accept a new position or remain in a present one;

 

(3) where the employer used its superior bargaining power to deprive an employee of clearly identifiable compensation related to the employee’s past service; and

 

(4) where the employer falsified or manipulated employment records to create fictitious grounds for termination.

 

Lord v. Souder, 748 A.2d 393, 400 (Del.2000).

 

The Delaware Supreme Court previously recognized a common law cause of action for breach of the covenant of good faith and fair dealing on public policy grounds when an employee alleged that she was terminated following sexual harassment in the workplace. Schuster v. Derocili, 775 A.2d 1029, 1039–40 (Del.2001). However, the Delaware legislature subsequently amended the statute regarding employment discrimination in 2004, expressly superceding the court’s holding in Schuster to provide that the statute is the “sole remedy for claims alleging a violation of the subchapter to the exclusion of all other remedies.” 19 Del. C. § 712(b). Since the statutory amendment, both the Third Circuit and this Court have recognized that a claim for breach of the covenant of good faith and fair dealing based on at-will employment cannot survive under the public policy theory set forth in Lord. See E.E.O.C. v. Avecia, Inc., 151 Fed, App’x 162, 165 (3d Cir.2005); Shomide v. ILC Dover, Inc., 521 F.Supp.2d 324, 333 (D.Del.2007) (holding that recovery under breach of covenant claim based on violation of public policy for breach of at-will employment contract was precluded under Delaware Discrimination Employment Statute); Yatzus v. Appoquinimink Sch. Dist., 458 F.Supp.2d 235, 248 (D.Del.2006) (same).

 

To the extent that Plaintiffs’ claim for breach of the covenant is based on alleged violations of public policy, it cannot survive because it is statutorily preempted by the Delaware Discrimination Employment Statute. See 19 Del. C. § 710 et seq.; Avecia, 151 Fed, App’x at 165.

 

Defendants object to the Court’s consideration of this argument, contending that Plaintiffs raised this argument for the first time in their brief in opposition to the motion to dismiss. (D.L 93 at 6) A plaintiff’s failure to specify in his pleading which of the four categories forms the basis for his claim of breach of the covenant of good faith and fair dealing has not prevented this Court from performing its own analysis of whether any of the four categories apply, based upon consideration of the facts stated generally in the pleading. See Shomide v. ILC Dover, Inc., 521 F.Supp.2d 324, 333 (D.Del.2007) (“Plaintiff does not indicate under which theory he proceeds in count four. Nonetheless, it is clear that categories two and three, as discussed above, are inapplicable to this case. It may be that plaintiff proceeds under a violation of public policy theory as set forth in category one …”).

 

Defendants also contend that the claim fails under the fourth category regarding the falsification or manipulation of employment records to create fictitious grounds for termination. (D.I. 71 at 5) Plaintiffs do not refute Defendants’ contentions on this point, and, instead, base their arguments on the first and second Pressman categories regarding public policy and misrepresentation of fact, respectively. (D.L 84 at 9–10) Therefore, the Court will not consider the fourth category as a basis for maintaining the breach of covenant claim.

 

However, the Court declines to dismiss this count in its entirety at this stage of the proceedings. Crawford’s amended complaint, which incorporates all factual averments within each count, is sufficient at the pleadings stage to support a breach of covenant claim under the second Pressman category, which applies to misrepresentations “targeted to ensnare a specific employee and alter in some way his status as an at-will employee.” Brodsky v. Hercules, Inc., 966 F.Supp. 1337, 1351 (D.Del.1997). In this case, Plaintiffs argue that Crawford was “induced” to accept employment with G & L based on G & L’s misrepresentation that it would not have adverse consequences on the ongoing business relationship with CTC. (D.I. 84 at 9) Accordingly, it would be premature to dismiss Crawford’s cause of action at this stage. See Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555–56, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007); see also Ashcroft v. Iqbal, 556 U.S. 662, 663, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

 

The request for dismissal of CTC’s claim for breach of the covenant of good faith and fair dealing presents a separate issue. Plaintiffs base CTC’s claim for breach of the covenant of good faith and fair dealing solely on the fact that CTC was “retaliate[d] against,” tying it to the employment discrimination charges. (D.I. 84 at 9) CTC is not an employee of G & L, for the reasons stated in the Title VII analysis. Therefore, CTC lacks standing to assert a state law claim for breach of the covenant of good faith.

 

Moreover, CTC does not plead any independent cause of action based upon its contractual relationship with G & L. CTC maintained a contract with G & L for hauling services that would not implicate the special considerations given to at-will employment under Delaware law. However, Plaintiffs do not assert a claim for breach of the hauling contract. The amended complaint alleges that CTC and G & L entered into the hauling services contract long before Crawford was hired, and it contains no allegations that termination of the contract was improper, other than in retaliation for Crawford’s employment related claims against G & L. Therefore, I recommend that the claim for breach of the covenant of good faith and fair dealing be dismissed as to CTC.

 

IV. CONCLUSION

For the foregoing reasons, I recommend that the Court; (1) grant Defendants’ motion to dismiss CTC from Counts III, IV and V of the amended complaint for retaliation under Title VII, promissory estoppel / detrimental reliance, and breach of the covenant of good faith and fair dealing, respectively; (2) grant Defendants’ motion to dismiss Brooks from Counts IV and V of the amended complaint for promissory estoppel / detrimental reliance and breach of the covenant of good faith and fair dealing, respectively; and (3) deny Defendants’ motion to dismiss Crawford from Count V of the complaint for breach of the covenant of good faith and fair dealing.

 

This Report and Recommendation is filed pursuant to 28 U.S.C. § 636(b)(1)(B), Fed.R.Civ.P. 72(b)(1), and D. Del. LR 72.1. The parties may serve and file specific written objections within fourteen (14) days after being served with a copy of this Report and Recommendation. Fed.R.Civ.P. 72(b). The objections and responses to the objections are limited to ten (10) pages each.

 

The parties are directed to the Court’s standing Order in Non Pro Se matters for Objections filed under Fed.R.Civ.P. 72, dated November 16, 2009, a copy of which is available on the Court’s website, www.ded.uscourts.gov.

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