Boudar v. E G & G, Inc.

730 P.2d 454, 105 N.M. 151
CourtNew Mexico Supreme Court
DecidedDecember 12, 1986
Docket16167
StatusPublished
Cited by5 cases

This text of 730 P.2d 454 (Boudar v. E G & G, Inc.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boudar v. E G & G, Inc., 730 P.2d 454, 105 N.M. 151 (N.M. 1986).

Opinion

OPINION

FEDERICI, Justice.

Plaintiff filed this action on March 11, 1982, setting out four counts against E G & G, Inc. (E G & G), his former employer, and several of its supervisory level employees. Plaintiff alleged that he had been terminated by E G & G in retaliation for reporting certain conduct of his immediate supervisor. Plaintiff alleged that he discovered four mounted color slides in his immediate supervisor’s desk which plaintiff considered to be pornographic and which he alleged had been processed in the E G & G photo lab using federal government contract funds. Defendants filed a motion to dismiss, seeking dismissal of the first count of the complaint (wrongful discharge from employment), and the fourth count (conspiracy to cause emotional distress). The trial court granted the motion in part, dismissing the first count against the individual defendants and dismissing the fourth count (conspiracy to cause emotional distress).

Thereafter, plaintiff filed an amended complaint alleging three counts: retaliatory discharge from employment, intentional infliction of emotional distress, and tortious interference with contract. Defendants moved for partial summary judgment on various grounds and argued the motions on the day before the trial began. The court entered an order granting the motion in part and denying the motion in part.

Defendants moved for directed verdict on the three counts at the close of plaintiff’s case. The court granted the motion in part, dismissing plaintiff’s second count (intentional infliction of emotional distress), and dismissing certain of the defendants from the third count (tortious interference with contract). At the close of all the evidence, E G & G again moved for directed verdict on the claim of retaliatory discharge. Defendants William Anderson and John Guenette moved for directed verdict on the claim of tortious interference with contract. Those motions were denied.

Upon instructing the jury, the trial court submitted to the jury the first count of the amended complaint on a mixed theory of retaliatory discharge and breach of contract of employment. The third count of the amended complaint was submitted to the jury on a theory of interference with contractual relations. The jury found in favor of plaintiff on the first count, awarding compensatory and punitive damages against E G & G. The jury found in favor of defendants Guenette and Anderson on the third count. Judgment was entered on the jury verdicts.

E G & G moved the court for judgment notwithstanding the verdict, for new trial, and for remittitur. Plaintiff then moved to amend the pleadings to conform to the evidence because the contract theory of liability and recovery had been erroneously submitted to the jury. The court entered its order denying E G & G’s motions and also denying plaintiff’s motion to amend. E G & G appeals. We reverse.

Two relevant and dispositive issues are presented on appeal:

1. Did the trial court err in submitting to the jury plaintiff’s first count which alleged a tort claim for wrongful discharge?

2. Did the trial court err in submitting to the jury plaintiff’s claim based upon breach of contract of employment?

Issue 1. Claim for Wrongful Discharge.

Until 1983, the rule in New Mexico was that an employee who did not have a contract of employment for a definite term could be discharged by his employer at will, with or without cause, and such a discharge, even without cause, did not give rise to a claim for damages against the employer. Gonzales v. United Southwest National Bank of Santa Fe, 93 N.M. 522, 602 P.2d 619 (1979); Bottijliso v. Hutchison Fruit Co., 96 N.M. 789, 635 P.2d 992 (Ct.App.), cert. denied, 97 N.M. 483, 641 P.2d 514 (1981); Garza v. United Child Care, Inc., 88 N.M. 30, 536 P.2d 1086 (Ct.App.1975).

In 1983, the Court of Appeals of New Mexico decided the case of Vigil v. Arzola, 102 N.M. 682, 699 P.2d 613 (Ct.App.1983). Vigil recognized for the first time in New Mexico a cause of action in tort based upon discharge of an employee in contravention of a clear mandate of public policy. The Vigil case modified the long-standing rule that an employee who did not have a contract for a definite term could be discharged at will. See Bottijliso v. Hutchison Fruit Co.

Although Vigil gave birth to a cause of action for retaliatory discharge, Vigil’s holding was given prospective application only:

Because this new cause of action imposes significant new duties, and because of reliance on the long-standing terminable-at-will rule, we hold that the new law should be given modified prospective application. [Citation omitted.] Thus, we apply the law announced to the case before us, except as to punitive damages, and to prospective cases filed after the date this decision becomes final.

Id. at 690-91, 699 P.2d at 621-22.

The court’s description of the prospective application of Vigil is clear and unambiguous. The date on which Vigil became final was clearly some time after the July 5, 1983 opinion of the Court of Appeals. The present action was filed on March 11, 1982, approximately sixteen months before the date of the Vigil decision. Plaintiff’s amended complaint was filed on February 9, 1983, approximately five months before Vigil. Under the Court of Appeals’ holding concerning prospectivity, the rule of Vigil is not applicable to this case. The rule which is applicable to this case is the terminable-at-will rule which was reaffirmed by the Court of Appeals as little as six months before this case was filed, when the court in Bottijliso refused to recognize a cause action for retaliatory discharge.

E G & G timely and properly preserved its objections concerning plaintiff’s claim of retaliatory discharge by motion for judgment notwithstanding the verdict. The trial court erred in denying E G & G’s motion.

Issue 2. Breach of Employment Contract.

The first count of plaintiff’s amended complaint did not plead a claim of breach of contract of employment and E G & G never consented to trial of a claim for breach of contract. On the contrary, at trial, counsel for defendant brought the matter to the court’s attention thus:

I believe there is a difference of opinion between the plaintiff and the defendants as to whether there is a claim against E G & G in this case for breach of contract, and, as I read the complaint, there is not. There is a claim in the third cause of action against the individual defendants for tortious interference with contractual relations.

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Bluebook (online)
730 P.2d 454, 105 N.M. 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boudar-v-e-g-g-inc-nm-1986.