Buck V. Chevroly Case Summary

A. BWO will likely be able to prove that Chigurh was terminated for a legitimate business reason either because he held a management position or for the financial factors associated with fulfilling the agreement with Wells.

An employer may terminate an employee for good cause under the WDEA. § 39-2-904(b). Good cause is defined as “reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer’s operation, or other legitimate business reason.” § 39-2-903(5). The Court has interpreted a legitimate business reason as, “a reason that is neither false, whimsical, arbitrary or capricious", that must have some logical relationship to the needs of the business. Buck v. Billings Mont. Chevrolet, Inc., 248 Mont. 276, 281-82, 811 P.2d 537, 541 (1991).

An employer has more choice in terminating managerial employees because they have broad discretion over relations. Id. at 283, 811 P.2d at 541. In Buck, the general manager of Frontier Chevrolet was replaced by a long term employee selected by the new owner after neither failing to perform

As in Buck, when the plaintiff was terminated from his management position and offered a lower role in the company, here Chigurh was given the ultimatum to take an inferior position or quit. In Buck, the Court cautioned becoming involved in day-to-day business decisions and that employers hold more discretion in terminating high level employees. The McConkey Court held, “where the complaining employee is in an executive position, makes top level policy and strategic decisions, and great trust is placed in his judgment, courts must be cautious in second guessing employment decisions.” McConkey, ¶ 33. This decision gives a spot on interpretation of Chigurh’s former duties, and it is likely that the court will determine Chigurh was let go for a legitimate business