Basta v. Crago, Inc.

930 P.2d 78, 280 Mont. 408, 53 State Rptr. 1464, 12 I.E.R. Cas. (BNA) 735, 1996 Mont. LEXIS 290
CourtMontana Supreme Court
DecidedDecember 31, 1996
Docket96-030
StatusPublished
Cited by5 cases

This text of 930 P.2d 78 (Basta v. Crago, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Basta v. Crago, Inc., 930 P.2d 78, 280 Mont. 408, 53 State Rptr. 1464, 12 I.E.R. Cas. (BNA) 735, 1996 Mont. LEXIS 290 (Mo. 1996).

Opinions

JUSTICE NELSON

delivered the Opinion of the Court.

This is an appeal from the Eighth Judicial District Court, Cascade County. Following a hearing, the District Court granted Defendant Crago’s motion for summary judgment. From this judgment, Plaintiff Basta appeals. We affirm.

The sole issue raised on appeal is whether the District Court erred when it concluded that Basta and Crago did not enter into a written contract of employment for a specific term for the purposes of § 39-2-912(2), MCA (1991).

FACTUAL AND PROCEDURAL BACKGROUND

Defendant Crago, Inc. (Crago) operates a locally-owned general printing business known as the Printing Center located in Great Falls, Montana. Craig Barber (Barber) is the president, chief executive officer and the only shareholder of the business. Therefore, Barber is Crago’s agent. Plaintiff Martin ‘Doc” Basta (Basta) worked at a different local printing shop in Great Falls from 1971 until Barber hired him to work as shop foreman at the Printing Center in March 1992.

In December 1991, Barber contacted Basta about hiring him to work for the Printing Center. Over the next two months, Barber sent Basta two letters and a memorandum concerning their employment negotiations. The memorandum, dated January 23,1992, referred to “Terms of employment” and was signed by Barber. The memorandum [410]*410set forth several items including medical insurance coverage, vacation time, a salary and bonus figure for the first year of employment, a salary and undetermined bonus system for the second year of employment, and a description of the employment position and responsibilities. Barber sent the memorandum to Basta with a letter explaining that the memorandum was a “written copy of what we had talked about previously” and requesting that Basta contact Barber so that they could discuss Basta’s starting date. On March 1, 1992, Basta began working at the Printing Center.

Barber had hired Basta to perform the shop foreman duties that Barber had performed previously. Barber planned for Basta to take over Barber’s old duties so that Barber could attend to matters concerning expansion of the business. However, Barber’s plans were not realized and the economic conditions of the business declined. In response to this economic decline, Barber determined that the payroll must be reduced. Consequently, he discharged Basta on February 26, 1993, and one other employee.

On February 23, 1994, Basta filed his complaint, alleging that he had been wrongfully discharged without good cause pursuant to § 39-2-904(2), MCA (1991). Crago answered and denied the allegations of Basta’s complaint. Crago then moved for summary judgment, alleging that Basta’s discharge was for good cause. To support the motion, Crago submitted an affidavit indicating that Basta was terminated from employment due to financial stresses within the corporation, a legitimate business reason. The District Court initially denied Crago’s summary judgment motion. However, Crago filed a motion for reconsideration. Initially, Basta opposed Crago’s motion for reconsideration. However, Basta ultimately conceded that Crago’s motion should be granted and requested leave to file an amended complaint. On September 6, 1995, the District Court granted both Crago’s motion for reconsideration and Basta’s motion for leave to file an amended complaint.

Basta’s amended complaint set forth two claims: 1) breach of contract and 2) breach of the implied covenant of good faith and fair dealing. Crago answered and denied the allegations. Thereafter, Crago filed a Motion for Summary Judgment Concerning the Amended Complaint. Crago alleged that the parties never entered into a written contract for a specific term, and, therefore, Basta’s claims were barred by Montana’s Wrongful Discharge From Employment Act, § 39-2-901, et seq., MCA (1991). After reviewing the briefs and considering the testimony of Basta and the arguments of counsel [411]*411at the hearing on the motion, the District Court granted Crago’s motion for summary judgment on December 12,1995. It is from this judgment that Basta appeals.

STANDARD OF REVIEW

Our standard of review for an appeal from an order granting summary judgment is de novo. Motarte v. Northern Montana Joint Refuse Disposal Dist. (1995), 274 Mont. 239, 242, 907 P.2d 154, 156. We review the order granting summary judgment using the same evaluation as did the district court, based on Rule 56, M.R.Civ.P. Motarte, 907 P.2d at 156. Our inquiry is set out as follows:

The movant must demonstrate that no genuine issues of material fact exist. Once this has been accomplished, the burden then shifts to the non-moving party to prove, by more than mere denial and speculation, that a genuine issue does exist. Having determined that genuine issues of fact do not exist, the court must then determine whether the moving party is entitled to judgment as a matter of law. We review the legal determinations made by a district court as to whether the court erred.

Bruner v. Yellowstone County (1995), 272 Mont. 261,264-65,900 P.2d 901, 903 (citations omitted).

In the case before us, Basta has not raised an issue concerning any genuine issues of material fact. Instead, Basta only raises the legal issue whether Basta and Crago entered into a written contract of employment for a specific term. Accordingly, we review the District Court’s conclusion that Montana’s Wrongful Discharge From Employment Act (the Act) bars Basta’s breach of contract and breach of covenant claims under § 39-2-913, MCA (1991), because the parties did not enter into a written contract of employment for a specific term as required by § 39-2-912(2), MCA (1991), to determine if the court was legally correct.

DISCUSSION

Did the District Court err when it concluded that Basta and Crago did not enter into a written contract of employment for a specific term for the purposes of § 39-2-912(2), MCA (1991)?

Basta contends that he and Barber entered into a written contract of employment for a specific term, and, therefore, the Act does not bar his claims for breach of contract and breach of implied covenant of good faith and fair dealing. Crago responds that Barber and Basta did not enter into a written contract of employment for a [412]*412specific term, and, therefore, the Act does bar Basta’s claims. We conclude that the District Court correctly determined that the parties did not enter into a written contract of employment for a specific term, and that the court properly granted Crago’s motion for summary judgment.

The Act provides that “no claim for discharge may arise from tort or express or implied contract.” Section 39-2-913, MCA (1991). We have determined that the plain meaning of “claim for discharge” is simply “those claims for damages caused by an asserted wrongful discharge.” Beasley v. Semitool, Inc. (1993), 258 Mont. 258, 261, 853 P.2d 84, 86. Therefore, not all tort or contract claims are barred by § 39-2-913, MCA (1991), merely because they arise from employment. Beasley, 853 P.2d at 86. Rather, only those tort or contract claims which are “for discharge” will be barred by § 39-2-913, MCA (1991). Beasley,

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Basta v. Crago, Inc.
930 P.2d 78 (Montana Supreme Court, 1996)

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Bluebook (online)
930 P.2d 78, 280 Mont. 408, 53 State Rptr. 1464, 12 I.E.R. Cas. (BNA) 735, 1996 Mont. LEXIS 290, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basta-v-crago-inc-mont-1996.