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Smart Summary

Factual and Procedural Background

This case arises from a dispute in which plaintiff Kathleen O'Brien claimed that she had been offered a lifetime employment contract with defendant Analog Devices, Inc. O'Brien based her claim primarily on statements in employment policy handbooks and alleged oral assurances. The defendant moved for summary judgment in the Superior Court, arguing that the materials submitted did not establish a legal basis for O'Brien's claim. The Superior Court granted the motion, and this appeal followed.

Legal Issues Presented

  1. Whether the materials provided, including employment handbooks and correspondence, constituted a binding promise of lifetime employment.
  2. Whether the plaintiff's claim of a lifetime employment contract was supported by sufficient evidence to survive a motion for summary judgment.

Arguments of the Parties

Appellant's Arguments

  • The employment handbooks contained statements evidencing the employer's intention of long-term employment, effectively promising lifetime employment so long as the employee abided by company rules.
  • The plaintiff asserted that she was instructed multiple times that performing her duties would guarantee ongoing employment with Analog.
  • O'Brien relied on the precedent set in Kirkley v. F.H. Roberts Co., where a written agreement explicitly promised retention so long as duties were faithfully performed.

Appellee's Arguments

  • The employment handbooks contained only aspirational language encouraging career development and rewarding above-average work, which do not constitute binding contractual promises.
  • The offer letter and plaintiff’s response did not mention employment duration, implying an at-will employment relationship.
  • The plaintiff’s affidavit statements contradicting her deposition testimony were vague, non-specific, and could not create a genuine issue of material fact to defeat summary judgment.
  • Strong proof is required to establish a lifetime employment contract, and none was present here.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hall v. First Natl. Bank, 173 Mass. 16, 19 (1899) Employment policy statements that are hopeful encouragements do not create binding contracts. Used to characterize the handbook statements as non-binding, aspirational language.
Jackson v. Action for Boston Community Dev., 403 Mass. 8, 13-15 (1988) Consideration of whether employment manuals form part of the contract. Court declined to consider the manuals as contract terms since plaintiff had not read them before employment.
Fenton v. Federal St. Bldg. Trust, 310 Mass. 609, 612 (1942) Absence of duration in employment offer implies at-will employment. Supported inference that employment was at-will due to lack of duration in offer letter.
Perma Research Dev. Corp. v. Singer Co., 410 F.2d 572, 578 (2d Cir. 1969) Affidavit contradicting prior sworn deposition cannot create a genuine issue of fact. Affidavit by plaintiff was disregarded as it contradicted prior testimony.
Radobenko v. Automated Equip. Corp., 520 F.2d 540, 544 (9th Cir. 1975) Similar principle limiting affidavit contradictions to create factual disputes. Reinforced the court's refusal to credit affidavit contradicting deposition.
Kirkley v. F.H. Roberts Co., 268 Mass. 246, 251 (1929) Written agreement promising employment so long as duties are faithfully performed can establish lifetime employment. Distinguished from present case where no such written agreement existed.
Braden v. Trustees of Phillips Academy, 321 Mass. 53, 55 (1947) Strong proof required to establish lifetime employment contracts. Supported the principle that extraordinary contracts require explicit evidence.
Simonelli v. Boston Hous. Authy., 334 Mass. 438, 440 (1956) Same as above regarding lifetime contracts. Reinforced the need for explicit intent for lifetime contracts.
Thalin v. Friden Calculating Mach. Co., 338 Mass. 67, 70 (1958) Same principle regarding lifetime employment contract proof. Used to emphasize the extraordinary nature of lifetime contracts.
Porshin v. Snider, 349 Mass. 653, 654-655 (1965) Same principle regarding lifetime employment contracts. Supported the court’s view on the necessity for explicit contractual terms.
Rydman v. Dennison Mfg. Co., 373 Mass. 855 (1977) Requirement of particularly explicit expressions of intent for lifetime contracts. Applied to underscore the insufficiency of Analog’s statements.
Gregory v. Raytheon Serv. Co., 27 Mass. App. Ct. 1170, 1171 (1989) Commonplace statements cannot be inflated into lifetime contracts. Used to reject plaintiff’s expansive reading of company policies.
Deming v. Darling, 148 Mass. 504, 506 (1889) Caution against converting hopeful statements into binding promises. Quoted to illustrate how hopeful expectations are often mistaken for contractual commitments.

Court's Reasoning and Analysis

The court analyzed the materials submitted by the parties, including the employment handbooks, offer letters, deposition testimony, and affidavits. It found that the handbooks contained only aspirational language promoting career development and rewarding good performance, which did not amount to a binding promise of lifetime employment. The plaintiff admitted she had not read the handbook before starting work, thus negating its role in the employment contract. The offer letter and response made no mention of employment duration, supporting an inference of at-will employment. The court disregarded the plaintiff’s affidavit contradicting her deposition, as it was vague and created no genuine issue of fact. The court also distinguished the case from precedents where explicit written agreements existed promising lifetime employment. The court emphasized the well-established principle that lifetime employment contracts require particularly explicit and strong proof, which was absent here. Applying these principles, the court affirmed the grant of summary judgment for the defendant.

Holding and Implications

Judgment affirmed.

The court held that the plaintiff failed to present sufficient evidence to support a claim of lifetime employment. The direct effect is that the defendant’s motion for summary judgment was properly granted, disposing of the plaintiff’s claim. This decision does not establish new precedent but reaffirms the requirement for clear and explicit contractual language to create lifetime employment obligations.

KATHLEEN O'BRIEN vs. ANALOG DEVICES, INC.

Contract, Employment.

Upon a motion for summary judgment made by the defendant Analog Devices, Inc. (Analog), a judge of the Superior Court decided that none of the materials furnished by the parties (affidavits, depositions, documents) demonstrated legal justification for the claim made by the plaintiff Kathleen O'Brien that she had been offered a job with Analog for life. We affirm.

O'Brien's initial position, as articulated in her complaint, was that employment policy handbooks made available to O'Brien contained "statements evidencing Analog's intention of long term employment for O'Brien so long as she abided with Analog rules and regulations." We have examined those manuals and they say no more than that it is company policy to reward above-average work and to encourage career development with the company. Nothing in the materials could be fairly read as a binding promise of permanent employment. Rather the policies are "a hopeful encouragement sounding only in prophecy." Hall v. First Natl. Bank, 173 Mass. 16, 19 (1899). Not only is that handbook barren of language which could reasonably be interpreted to support a claim of lifetime employment, but also O'Brien said in her deposition that she had not read the handbook until a month or so after she had begun her job at Analog. Irrespective of the handbook's disclaimer of contractual effect, therefore, it played no role in the employment agreement between O'Brien and Analog. It is not necessary, therefore, to consider whether the employment manuals were part of O'Brien's employment contract. Compare Jackson v. Action for Boston Community Dev., 403 Mass. 8, 13-15 (1988).

For example, a welcoming note from the president of the company in its Human Resources Policies Handbook says: "It is our policy to reward our employees' above-average work with above-average wages and benefits, job security, a stimulating work environment, and opportunities for career development." A section in the handbook on career development says: "Analog Devices is committed to offering to all its employees the opportunity for personal growth and career development. . . . Whenever appropriate, promotions will be made from within the Company to advance employees to a higher and more responsible position."

Similarly, there is no support for O'Brien's claim of lifetime employment in the letter from Analog which extends to her an offer of a job as General Accounting Supervisor. Neither that document nor O'Brien's letter in response mentions the duration of employment, a circumstance from which the correct inference is an arrangement for employment at will. Fenton v. Federal St. Bldg. Trust, 310 Mass. 609, 612 (1942). Jackson v. Action for Boston Community Dev., 403 Mass. at 9.

O'Brien's deposition makes it altogether plain that she based on Analog's employee handbook her assumption that she would be employed by Analog permanently so long as she did her work properly. Nevertheless, in an affidavit (apparently filed later than the day before the hearing on the motion for summary judgment but considered by the motion judge) made by O'Brien, she states that she was instructed several times that if she performed her duties, she would always have employment with Analog. In the context of the testimony given by O'Brien previously, in which she said more than once that there had been no conversation about duration of employment and that she had relied on the employee handbook, her statement in the affidavit could be disregarded both because, as the motion judge said, it was "vague, non-specific and general" and because a party cannot create a disputed issue of fact by the expedient of contradicting by affidavit statements previously made under oath at a deposition. Perma Research Dev. Corp. v. Singer Co., 410 F.2d 572, 578 (2d Cir. 1969). Radobenko v. Automated Equip. Corp., 520 F.2d 540, 544 (9th Cir. 1975). It is not, after all, as if O'Brien had become possessed of newly acquired evidence when she made her affidavit.

See Mass.R.Civ.P. 6(c), 365 Mass. 748 (1974).

It is less than clear from her testimony whether O'Brien relied on two handbooks or one handbook, but nothing turns on that.

The case stands unlike Kirkley v. F.H. Roberts Co., 268 Mass. 246, 251 (1929), on which O'Brien heavily relies. In Kirkley, there existed a written agreement in which the employer undertook to "retain him [Kirkley] in its employ as long as he shall faithfully and diligently perform the duties of his employment." Nothing resembling such a writing appears in this case. Since the time of the Kirkley opinion, with its distinctive facts, there has been a line of decisions emphasizing that a lifetime contract is so extraordinary that it takes strong proof to establish one. See Braden v. Trustees of Phillips Academy, 321 Mass. 53, 55 (1947); Simonelli v. Boston Hous. Authy., 334 Mass. 438, 440 (1956); Thalin v. Friden Calculating Mach. Co., 338 Mass. 67, 70 (1958); Porshin v. Snider, 349 Mass. 653, 654-655 (1965). To be sure, these cases turned largely on whether authority existed to make a lifetime contract on behalf of a corporation, but the court repeatedly sounds the theme that particularly explicit expressions of intent are required to bind an employer to an employment contract of extraordinary duration. Rydman v. Dennison Mfg. Co., 373 Mass. 855 (1977). As in Gregory v. Raytheon Serv. Co., 27 Mass. App. Ct. 1170, 1171 (1989), it requires a "strenuous exercise in the self-hypnotizing rhetoric of advocacy" to inflate the commonplace statements of Analog into a lifetime contract. Ibid. The case illustrates in a contemporary context the observation of Justice Holmes in Deming v. Darling, 148 Mass. 504, 506 (1889), about "[h]ow easily and insensibly words of hope or expectation are converted by an interested memory into statements of quality and value when the expectation has been disappointed."

On the undisputed material facts, the motion judge correctly allowed the defendant's motion for summary judgment.

Judgment affirmed.

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O'BRIEN v. ANALOG DEVICES
(Jan 28, 1993)