DILLARD, Judge.
Dr. William Bithoney, M.D., relocated from New York to Atlanta after accepting employment in an executive capacity at Grady Memorial Hospital. But the night before his anticipated start date, Bithoney was informed that Grady's governing body, the Fulton-DeKalb Hospital Authority (the "Authority"), did not approve of his hiring and would not permit him to commence work. Bithoney subsequently filed suit against the
Viewing the evidence and construing all inferences in the light most favorable to Bithoney,
Around April 2007, Otis Story, the then-CEO of Grady—who had previously worked with Bithoney in New York—contacted Bithoney to gauge his interest in coming to work for Grady. Story indicated to Bithoney that he had been given the authority to create an executive team,
Bithoney made several trips to Atlanta during the summer of 2007 to visit Grady and explore the possibility of his employment there. During their discussions, Story indicated that it was his practice to have potential job applicants meet the members of the Board, and requested that Bithoney do so "as a courtesy." On June 5, 2007, Bithoney traveled to Atlanta to meet with various Board members, including the Board's vice president. After Bithoney's meeting, the vice president left a voicemail on Story's cell phone (which Story later played for Bithoney) expressing enthusiasm about Bithoney's qualifications and opining that he should be hired immediately.
Following his visit, Bithoney sent an e-mail to Story dated June 9, 2007, in which he communicated his "deeply" held belief in Grady's mission and expressed his excitement about the prospect of working for the hospital. Bithoney further acknowledged that, having just navigated St. Vincent's through bankruptcy, he was "nervous about Grady's finances." Bithoney nonetheless stated that he would be willing to consider a "solid" employment offer, which he expressly stated must include "appropriate not[-]for[-]cause severance payments."
During the months of June and July, Bithoney and Story had ongoing telephone discussions regarding Bithoney's salary needs and other desired employment terms, and Bithoney repeatedly stressed that, because working for Grady would require him to uproot his family (his wife was also a working professional), it was critical to him that he have an appropriate severance package in the event he was terminated from Grady without cause. Story indicated that Grady would be willing to provide him an appropriate severance.
Bithoney made at least two additional trips to Atlanta in July 2007 during his generalized employment discussions with Story. One such visit was for the specific purpose of meeting Stephenson, chair of the Board. During that visit, Stephenson told Bithoney, "[W]elcome to the Grady family, we are looking forward to your joining us."
As Bithoney awaited a written draft employment contract, he became "worried" that the "politics at Grady" were causing a delay in the contracting process. Nevertheless, after receiving Story's assurances that "[w]e will get this done," Bithoney accepted an offer on his home in New York and began looking at homes in Atlanta to purchase.
By mid-August, Bithoney received a draft employment contract from Grady. This draft included a provision that, in the event Bithoney was terminated without cause,
Bithoney informed Story that, based upon Story's "verbal guarantee that we shall move forward on signing the ... contract," he made an offer on a home in Atlanta. And because the employment contract was not yet executed, Bithoney and Story signed an offer letter to effectuate the home closing, in which Grady "confirm[ed]" Bithoney's acceptance of Grady's offer of employment (the "Offer Letter").
Despite not having an executed employment agreement, Bithoney moved to Atlanta in early October 2007 in anticipation of his October 15 start date. On October 14, the night before he was to begin work, Story informed Bithoney that his employment had been blocked by the Board, and Bithoney was never permitted to begin work with Grady in the position for which he was hired.
Thereafter, Bithoney filed suit against the Authority and Stephenson, alleging breach of contract, fraud and negligent misrepresentation, and asserting entitlement to punitive damages and attorney fees. Specifically, Bithoney alleged that he and Story entered into an oral contract pursuant to which he was entitled to "a severance payment equal to 15 months' salary" for not-for-cause termination, the existence of which he asserted was "re-confirmed" in the draft employment agreement which "contain[ed], among other things, the severance terms agreed upon." Bithoney further alleged that Stephenson's statement, "[W]elcome to the Grady family, we are looking forward to your joining us," amounted to fraud and/or negligent misrepresentation
The Authority served Bithoney with discovery, which included an interrogatory question asking him to explain the basis of his contention that he had entered into a contract with Story. As he had in his complaint, Bithoney maintained in a verified response that he and Story orally agreed that he would receive "a severance payment of 15 months' salary if [Grady] terminated [his] employment without cause," the "terms" of which were "contain[ed]" in the draft employment agreement.
The Authority also conducted a videotaped deposition of Bithoney. Again in his deposition, Bithoney contended that he and Story orally agreed to "a severance payment of 15 months' salary" for termination without cause. The Authority then directed Bithoney to the assertion in both his complaint and interrogatory response in which he alleged that the draft employment agreement "contain[ed]" the "severance terms" agreed upon. The Authority handed Bithoney four draft employment contracts that had been exchanged between he and Black, and asked him to identify which document contained language describing the severance to which he and Story had agreed:
Following the deposition, the Authority filed a motion for summary judgment, contending that the oral agreement as Bithoney alleged it existed fell within the statute of frauds because it could not be performed within one year of its making and was therefore unenforceable in the absence of a signed writing by the Authority.
Applying the rule set forth by our Supreme Court in Prophecy Corp. v. Charles Rossignol, Inc.,
1. Bithoney argues that the trial court misapplied the Prophecy rule in construing his testimony against him and granting appellees summary judgment on his breach-of-contract claim. We disagree.
Under Georgia law, the Statute of Frauds requires, inter alia, that "[a]ny agreement that is not to be performed within one year of the making thereof" be in writing and signed by the party to be charged.
In the case sub judice, the trial court based its finding that the 15-month payment schedule was a term of the severance agreement on Bithoney's deposition testimony. And as a result of the trial court's determination that Bithoney's deposition responses constituted a "clear and unambiguous" admission of the 15-month payment term, the trial court rejected Bithoney's averments that he and Story did not discuss how the severance was to be paid.
Under the rule set forth in Prophecy, a trial court faced with a party's self contradictory sworn testimony must construe the testimony against that party on a motion for summary judgment, unless he or she offers a reasonable explanation for the contradiction.
And here, we cannot say that the trial court's ruling as to the reasonableness of Bithoney's explanation was clearly erroneous. Although Bithoney is not a lawyer and may have been less sensitive to the significance attached to certain words, the Authority's counsel clearly and unambiguously asked if the draft employment agreement—which provided that the severance "shall be payable for 15 months from the effective date of said termination"—"contain[ed] a written description of the severance terms" that he and Story had agreed upon, and Bithoney answered in the affirmative. This representation mirrored the allegation made by Bithoney in his complaint and repeated in his interrogatory response that the draft employment agreement "contain[ed]," among other things, "the severance terms" agreed upon. Moreover, at no time during or after the deposition did Bithoney seek clarification of the questions or attempt to correct or explain his responses. Thus, because we cannot say that there is no evidence to support the trial court's ruling, we are constrained to conclude that it did not clearly err in applying the rule of Prophecy to hold that enforcement of the oral severance agreement was barred by the Statute of Frauds.
2. Bithoney further contends that the trial court erred in granting summary judgment to appellees on his claims for fraud and negligent misrepresentation. Again, we disagree.
In order to establish a claim of fraud under Georgia law, a plaintiff must prove "(1) false representation by a defendant; (2) scienter; (3) intention to induce the plaintiff to act or refrain from acting; (4) justifiable reliance by the plaintiff; and (5) damage to the plaintiff."
And here, it is undisputed that Bithoney's claims of fraud and negligent misrepresentation are based solely upon Stephenson's statement, "[W]elcome to the Grady family, we are looking forward to your joining us." But Bithoney admitted in his deposition that at the time of Stephenson's statement, he had not yet accepted employment at Grady, nor had he and Story agreed to the material terms of his employment contract—including his position, salary, and benefits.
It follows, then, that Bithoney could not have reasonably believed Stephenson's statement to be anything more than an expression of optimism and courtesy at the time it was made. We simply cannot agree with Bithoney's assertion that Stephenson's remark can be properly characterized as a confirmation of his employment and/or an indication of Board approval when, by his own admission, the essential terms of his employment had not yet even been discussed.
Moreover, critical to any claim of fraud or negligent misrepresentation is proof that a plaintiff "actually and justifiably relied" on the representation forming the basis of his or her claim.
Thus, while we are deeply sympathetic to Bithoney's position, we cannot escape the conclusion that his claims for fraud and negligent misrepresentation fail as a matter of law.
Judgment affirmed.
MIKELL, C.J., and SMITH, P.J., concur.