Balmer v. Hawkeye Steel

604 N.W.2d 639, 15 I.E.R. Cas. (BNA) 1677, 2000 Iowa Sup. LEXIS 8, 2000 WL 42847
CourtSupreme Court of Iowa
DecidedJanuary 20, 2000
Docket98-1078
StatusPublished
Cited by41 cases

This text of 604 N.W.2d 639 (Balmer v. Hawkeye Steel) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balmer v. Hawkeye Steel, 604 N.W.2d 639, 15 I.E.R. Cas. (BNA) 1677, 2000 Iowa Sup. LEXIS 8, 2000 WL 42847 (iowa 2000).

Opinion

LAVORATO, Justice.

In this employment termination case, we must decide whether constructive discharge, standing alone, is an actionable tort in Iowa. The district court concluded it was not and sustained a motion for directed verdict as to an at-will employee’s claim of wrongful termination. We agree and affirm.

Priscilla Balmer worked at Hawkeye Steel in Haughton, Iowa, from February 1994 to April 1996. She was an employee at will.

In July 1996 Balmer sued Hawkeye. She alleged that while employed she was subjected to verbal and mental harassment and abuse and that Hawkeye did nothing to stop the conduct. She further alleged that her employment conditions became so intolerable that she had to quit, resulting in what she claimed was a constructive discharge. However, she did not allege that Hawkeye breached an employment contract, or violated any state or federal civil rights laws or public policies of this state. Hawkeye denied it had constructively discharged Balmer.

The parties tried the case to a jury. At the close of Balmer’s case in chief, Hawk-eye moved for a directed verdict. Hawk-eye contended, among other things, that Balmer had failed to show that Hawkeye’s actions violated public policy. Balmer responded that she did not need to prove violation of public policy because constructive discharge could stand alone as a tort with no reference to underlying illegal activities by the employer.

The district court granted Hawkeye’s motion for directed verdict. The court rejected Balmer’s contention that, notwithstanding her status as an employee at will, she could nevertheless maintain her suit on the theory of constructive discharge alone.

Balmer appealed, challenging the district court’s ruling that constructive discharge standing alone is not an actionable tort in Iowa.

I. We review rulings granting motions for directed verdict for correction of errors at law. Iowa R.App. P. 4; Lawrence v. Grinde, 534 N.W.2d 414, 418 (Iowa 1995). When reviewing the ruling, we view the evidence in the same light as the district court to determine whether the *641 evidence generated a jury question. Toney v. Casey’s Gen. Stores, Inc., 460 N.W.2d 849, 852 (Iowa 1990). In ruling on such motions, the district court must first decide whether the nonmoving party has presented substantial evidence on each element of the claim. Kurth v. Van Horn, 380 N.W.2d 693, 695 (Iowa 1986). Evidence is substantial if a jury could reasonably infer a fact from the evidence. Johnson v. Interstate Power Co., 481 N.W.2d 310, 317-18 (Iowa 1992). If the evidence is not substantial, a directed verdict is appropriate. Id. at 318.

II. Balmer argues the district court erred when it concluded constructive discharge alone is not an actionable tort. Before addressing her argument, we think it would be helpful to briefly review our law regarding employment at will, a status Balmer had until April 1996, at which time she claims she was forced to quit.

In Iowa an employer may discharge an at-will employee at any time, “for any lawful reason, that is, a reason that is not contrary to public policy.” Lockhart v. Cedar Rapids Community Sch. Dist., 577 N.W.2d 845, 846 (Iowa 1998). The parties can modify the employment-at-will relationship by contract created through an employer's handbook or policy manual. Huegerich v. IBP, Inc., 547 N.W.2d 216, 219 (Iowa 1996). There is no record evidence of a contract created through an employer’s handbook or policy manual. Nor is there any record evidence establishing a violation of public policy. Balmer, however, insists such lack of proof is irrelevant because a constructive discharge is actionable in itself.

III. In general, employment relationships are terminated by resignation or discharge. Turner v. Anheuser-Busch, Inc., 7 Cal.4th 1238, 32 Cal.Rptr.2d 223, 876 P.2d 1022, 1025 (1994). An employee voluntarily severs the relationship by resigning; the employer does so by discharging the employee. Id.

As one court aptly explained, [ajctual discharge carries significant legal consequences for employers, including possible liability for wrongful discharge. In an attempt to avoid liability, an employer may refrain from actually firing an employee, preferring instead to engage in conduct causing him or her to quit. The doctrine of constructive discharge addresses such employer-attempted “end runs” around wrongful discharge and other claims requiring employer-initiated terminations of employment.

Id. Simply put, courts over the years have attempted to prevent employers’ “end runs” around the law by casting an employee’s quitting as involuntary:

Although the employee may say, “I quit,” the employment relationship is actually severed involuntarily by the employer’s acts, against the employee’s will. As a result, a constructive discharge is legally regarded as a firing rather than a resignation.

Turner, 32 Cal.Rptr.2d 223, 876 P.2d at 1025. Constructive discharge therefore provides a mechanism to avoid the technical requirement that wrongful discharge be based on an employer-initiated discharge.

Constructive discharge was first recognized by the federal courts. See, e.g., Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 890, 894, 104 S.Ct. 2803, 2808, 2810, 81 L.Ed.2d 732, 742, 744 (1984) (applying constructive discharge in federal cases brought under section 8(a)(3) of the National Labor Relations Act (29 U.S.C. § 158(a)(3))); Stetson v. NYNEX Sen., 995 F.2d 355, 361 (2d Cir.1993) (applying constructive discharge in employment discrimination cases brought under Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e)). State courts have since generally followed the federal courts in recognizing constructive discharge in the context of discrimination and wrongful discharge cases. See, e.g., Slack v. Kanawha County Hous., 188 W.Va. 144, 423 S.E.2d 547, 556- *642 58 (1992) (collecting and analyzing federal and state cases).

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604 N.W.2d 639, 15 I.E.R. Cas. (BNA) 1677, 2000 Iowa Sup. LEXIS 8, 2000 WL 42847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balmer-v-hawkeye-steel-iowa-2000.