Jordan v. The Earthgrains Companies, Inc.

The Earthgrains Company (Earthgrains), a national baking company that operated several plants, was owned by Campbell Taggart Baking Company (Campbell), a wholly owned subsidiary of Anheuser-Busch Companies (Anheuser) (collectively, the Earthgrains companies) (defendants). Mary Jordan and others (the Charlotte plant employees) (plaintiffs) worked at a plant in Charlotte, North Carolina, operated by Earthgrains. In 1993, Campbell hired Barry Beracha to serve as Campbell’s chief executive officer and a corporate director. In 1995, Anheuser decided to spin off Campbell’s common stock. Thereafter, in August 1995, Beracha went to the Charlotte plant and conducted a meeting with the Charlotte plant employees. During the eventual litigation, the parties disputed the specifics of the discussion at the meeting. Per the Charlotte plant employees, Beracha stated that the Charlotte plant was profitable and their jobs were safe. Per the Earthgrains companies, Beracha merely stated that the Charlotte plant would not close and none of the Charlotte plant employees’ jobs would be lost due to the spin-off. Nevertheless, in December 1995, the Charlotte plant employees were informed that the plant was closing and their jobs would be lost. The Charlotte plant employees sued the Earthgrains companies for negligent misrepresentation based on the discussion at the August 1995 meeting. During the proceedings, the Earthgrains companies introduced evidence to show that the decision to close the Charlotte plant was made after a commissioned study into the plant’s profitability concluded four months after the August 1995 meeting. The trial court granted summary judgment in the Earthgrains companies’ favor. The Charlotte plant employees appealed.