Bad Wound v. Lakota Community Homes, Inc.

1998 SD 25, 576 N.W.2d 229, 1998 S.D. LEXIS 24
CourtSouth Dakota Supreme Court
DecidedMarch 11, 1998
DocketNone
StatusPublished
Cited by5 cases

This text of 1998 SD 25 (Bad Wound v. Lakota Community Homes, Inc.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bad Wound v. Lakota Community Homes, Inc., 1998 SD 25, 576 N.W.2d 229, 1998 S.D. LEXIS 24 (S.D. 1998).

Opinion

AMUNDSON, Justice.

[¶ 1.] James D. Bad Wound’s employment with Lakota Community Homes, Inc. (LCH) was terminated on the basis of insubordination and neglect of duty as a result of his failure to appear for work on two successive days. Bad Wound brought suit against LCH alleging breach of contract and wrongful termination. The trial court granted summary judgment for LCH and denied Bad Wound’s motion for summary judgment. Bad Wound appeals. We reverse in part and remand for trial.

FACTS

[¶ 2.] LCH is a federally subsidized housing development composed of 198 homes in Rapid City, South Dakota, which are rented to persons with low income. LCH is administered under the authority of the five-member LCH board of directors. The board of directors hired CKJ Realty & Management, Inc. (CKJ) to provide property management services for the LCH development.

[¶ 3.] James Bad Wound was employed as a maintenance worker for LCH for seventeen years. In August of 1995, Bad Wound was promoted to maintenance supervisor. At the time of this promotion, LCH and Bad Wound entered into a three-year employment agreement, which only allowed LCH to terminate Bad Wound’s employment for just cause. Just cause was defined to include insubordination, among other things.

[¶ 4.] Subsequent to the execution of Bad Wound’s employment agreement, the composition of the LCH board of directors was substantially altered when several new board members were elected or appointed on October 26, 1995. The new members of the board were dissatisfied with CKJ’s management performance.

[¶5.] After the new board was in place, changes were made quickly and the operation of LCH was thrown into turmoil. On November 1, 1995, the new board acted “to immediately terminate and eradicate” its five-year management agreement with CKJ, even though the agreement required notice and an opportunity to cure any breaches *230 before termination of the contract. Then, on November 7, the new board hired a new management agent, Medicine Eagle Enterprises, L.L.C., whose on-site manager was Patricia Cromwell.

[¶ 6.] Also on November 7, 1995, Bad Wound had a meeting with the LCH board of directors in which he expressed confusión regarding who had the proper authority over his employment. The LCH board told Bad Wound that he was working for them. However, previous to this, CKJ had sent a memo to the LCH board claiming that all office and maintenance personnel were employees of CKJ and under its supervision. Bad Wound had been working under the authority and supervision of CKJ since he was promoted. Moreover, his supervisor was Jeff Heried, who was employed by CKJ. Bad Wound had also been advised by CKJ that he was under its authority, not the authority of the newly elected board. Jeff Heried told Bad Wound that CKJ’s management contract with LCH gave CKJ the power to hire and fire personnel. Furthermore, CKJ management expressed to Bad Wound words to the effect that, if he went to work on November 8, he would be taking his fate into his own hands. Bad Wound stated that he assumed this would mean he would be fired.

[¶ 7.] Subsequently, Bad Wound missed work on November 8 and 9, 1995. November 10 was a holiday and Bad Wound was not scheduled to work on November 11 and 12.

[¶ 8.] On Monday, November 13, Bad Wound showed up for work at LCH. However, shortly after appearing at work, he was provided with a termination letter by Patricia Cromwell. The termination letter advised Bad Wound that he was being terminated for insubordination and neglect of his duties as a result of his failure to appear for work on' November 8 and 9, 1995. Bad Wound was removed from his position as maintenance supervisor that day.

[¶ 9.] Bad Wound filed suit against LCH for breach of contract and wrongful termination. Thereafter, the trial court denied Bad Wound’s motion for summary judgment and granted LCH’s motion for summary judgment, finding that Bad Wound’s confusion about who had proper authority over him was unfounded. The trial court declared Bad Wound should have been able to determine from his employment agreement that he was under the authority of LCH. Finally, the trial court concluded that Bad Wound’s failure to appear for work on two successive days was insubordination as a matter of law.

[¶ 10.] Bad Wound appeals the grant of LCH’s motion for summary judgment and the denial of his motion for summary judgment, raising the following issues:

I. Whether the trial court erred when it found as a matter of law that there was “just cause” for Bad Wound’s termination on the basis of insubordination.
II. Whether the trial court erred in not finding a genuine issue of material fact as to whether Bad Wound was granted a “formal hearing prior to any final action” as mandated in his employment contract.
III. Whether the trial court erred in not finding a genuine issue of material fact as to whether Bad Wound was entitled to the progressive disciplinary procedures contained in the LCH personnel policy manual.
IV. Whether the trial court erred in denying Bad Wound’s motion for summary judgment.

STANDARD OF REVIEW

[¶ 11.] Our standard of review for summary judgment has been clearly established as follows:

In reviewing a grant or a denial of summary judgment under SDCL 15-6-56(c), we must determine whether the moving party demonstrated the absence of any genuine issue of material fact and showed entitlement to judgment on the merits as a matter of law. The evidence must be viewed most favorably to the nonmoving party and reasonable doubts should be resolved against the moving party. The non-moving party, however, must present specific facts showing that a genuine, material issue for trial exists. Our task on appeal is to determine only whether a genuine issue *231 of material fact exists and whether the law was correctly applied....

Walz v. Fireman’s Fund Ins. Co., 1996 SD 135, ¶ 6, 556 N.W.2d 68, 70 (quoting Lamp v. First Nat’l Bank of Garretson, 496 N.W.2d 581, 583 (S.D.1993)). When reviewing a grant of summary judgment, we must undertake an independent review of the record. Id. (citation omitted). “The burden of proof is upon the movant to show clearly that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law.” Kern v. City of Sioux Falls, 1997 SD 19, ¶ 4, 560 N.W.2d 236, 237 (citing State Dep’t of Revenue v. Thiewes, 448 N.W.2d 1, 2 (S.D.1989)).

[¶ 12.] The construction of a written contract is a question of law for the court to consider. Dirks v. Sioux Valley Empire Elec. Assn. 450 N.W.2d 426, 427-28 (S.D.1990) (citation omitted).

DECISION

[¶ 13.] I. “Just Cause” and “Insubordination”

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Cite This Page — Counsel Stack

Bluebook (online)
1998 SD 25, 576 N.W.2d 229, 1998 S.D. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bad-wound-v-lakota-community-homes-inc-sd-1998.