Two-year contract that specified first year was probationary allowed golf club to fire him after rocky first year: Court
When is a two-year contract only a one-year contract? When the first year is specified as a probationary period and the contractor doesn’t do a good job, a golf professional found out when he tried his hand as the general manager of a New Brunswick golf club.
Duncan Mayberry was a professional golfer who joined the Hampton Country Club in Hampton, N.B., in 1992 as its golf pro. Mayberry continued working at Hampton for several years by signing several contracts that paid him a small salary and a percentage of green fees, equipment sales and club rentals.
General manager position at new golf club
In 2005, the Hampton Country Club was dissolved and its operations were taken over by the Hampton Golf Club (HGC), which owned the course and had been leasing it to the country club. As part of the transition, HGC advertised for a general manager to be in charge of the course’s operation. Mayberry was encouraged to apply for the job.
Mayberry made a presentation to the HGC board after which he was offered the job. HGC offered him a one-year contract, but Mayberry wanted a three-year deal. HGC didn’t want to commit to a longer contract since it didn’t know how he would perform in the job as it wasn’t a position he had held before. Mayberry said he wouldn’t accept anything less than two years and HGC replied it would only agree to a two-year deal if the first year was a probationary period. The two sides finally agreed on a two-year contract, from Nov. 1, 2005, to Oct. 31, 2007, with the first year stipulated as a probationary period.
Rocky tenure as general manager
Mayberry went to work as the HGC general manager but had some problems over the course of the first several months. There were some communication lapses with staff. Mayberry also sent the club’s membership invoices out months late and didn’t keep proper records of membership payments at the course’s open house. He had communication problems with course sponsors that resulted in advertisements going up late and failed to oversee revisions to the club by-laws.
Mayberry also neglected the budget and licensing for the club’s bar and grill, and as a result the bar manager had to obtain them herself, causing difficulties for her in doing her job. She complained to th HGC board that he was also hard to communicate with. The club’s bookkeeper also experienced problems with Mayberry’s communication and neglect of budgets and she also complained.
On Oct. 4, 2006, 11 months into the contract, Mayberry had a performance review in which he received low scores on his evaluation, though he scored himself much higher. On Oct. 13, HGC gave Mayberry a letter saying it had decided “not to extend the term of your contract beyond the Oct. 31, 2006, termination date.” When he received the letter, Mayberry was told to turn over his keys and go home and he would be paid until the end of October.
Mayberry filed an action for breach of contract, claiming his contract was for two years.
Probationary period clear, says court
The New Brunswick Court of Queens’ Bench found HGC did not breach the contract and the contract allowed for it to terminate after one year. Though the contract didn’t elaborate on a description of the probationary period, it clearly outlined the first 12 months would be one. In the contract negotiations, HGC made it clear and Mayberry understood that the golf club wanted an opportunity to evaluate Mayberry’s performance for committing to a longer term. The court found Mayberry understood he had to prove he was suitable for the job for HGC to continue with the second year.
“I find, based on the wording of the contract and the seasonal nature of the job, it was the intention of the parties that a reasonable opportunity for Mr. Mayberry to prove his suitability consisted of the full probationary period of one year,” the court said. “I therefore find the term of the contract was one year with a provision for the golf club to extend it for a second year on the terms set out therein.”
The court also found HGC gave Mayberry the full probationary period to prove himself, but his neglect of staff communication, budgeting issues, licensing, advertising and recordkeeping showed a “lack of understanding of the importance” of these things in the role of a general manager. His performance review was a “fair, honest and reasonable assessment of his abilities and suitability” which provided him an opportunity to save his job, but his self-assessment was significantly out of whack with HGC’s assessment and demonstrated a lack of understanding of the quality of work he was doing, the court said.
Mayberry also claimed he was a 14-year employee that required more notice, but the court found he had been an independent contract or a series of contracts with the Hampton Country Club.
