Bowen v. Income Producing Management of Oklahoma, Inc.

202 F.3d 1282, 2000 Colo. J. C.A.R. 516, 10 Am. Disabilities Cas. (BNA) 296, 2000 U.S. App. LEXIS 1212, 2000 WL 121296
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 1, 2000
Docket98-5037, 98-5051
StatusPublished
Cited by12 cases

This text of 202 F.3d 1282 (Bowen v. Income Producing Management of Oklahoma, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowen v. Income Producing Management of Oklahoma, Inc., 202 F.3d 1282, 2000 Colo. J. C.A.R. 516, 10 Am. Disabilities Cas. (BNA) 296, 2000 U.S. App. LEXIS 1212, 2000 WL 121296 (10th Cir. 2000).

Opinions

PAUL KELLY, JR., Circuit Judge.

Defendant-Appellant and Cross-Appel-lee Income Producing Management of Oklahoma, Inc. (IPMO) appeals from a judgment entered on a jury verdict awarding Plaintiff-Appellee and Cross-Appellant Douglas Bowen money damages of $372,-230 on an implied contract claim. IPMO claims that the district court erred in denying its motion for judgment as a matter of law as to the existence of an implied contract. Mr. Bowen, in turn, cross appeals from the jury verdict which held that IPMO did not violate the Americans with Disabilities Act (ADA). The implied contract claim is governed by Oklahoma law, and we exercise jurisdiction under 28 U.S.C. § 1291. We reverse the judgment on the implied contract claim and affirm the ADA claim.

Background

From 1985 to 1993, Mr. Bowen was employed by Income Producing Management, Inc. (IPM), a corporation which owns and operates several Wendy’s restaurants in Kansas. During this time, he was promoted to store manager and area supervisor. In June 1993, a new corporation, IPMO, was formed to buy and manage Wendy’s restaurants in Oklahoma. Mr. Bowen, upon his request, was transferred to IPMO and began serving as the area director of the Tulsa restaurants.

On February 15,1994, an IPMO employee walked into one of the Wendy’s restaurants and shot several people. Mr. Bowen sustained a gunshot wound to the head and was forced to undergo emergency brain surgery. The surgery was successful, although Mr. Bowen complained of short term memory loss, an inability to concentrate, and difficulty in doing simple math as a result of the injury. He returned to work as an area director for IPMO on April 5, 1994. After his return to work, Mr. Bowen expressed concerns about needing to spend more time with his family. He met with IPMO management in November 1994 and, as a result of this meeting, was voluntarily demoted to the position of store manager with fewer hours.

Both before and after this reassignment, IPMO continued to have difficulties with Mr. Bowen’s work performance, particularly with his ability to work in cooperation with other employees. On February 21, 1995, IPMO transferred Mr. Bowen to a different Wendy’s restaurant due to employee conflicts at the previous store. When this new arrangement did not prove satisfactory, Mr. Bowen was asked to resign. Whether he finally resigned or was terminated is contested, but Mr. Bowen no longer worked for IPMO as of March 15, 1995.

[1284]*1284Mr. Bowen brought five claims against IPMO in district court relating to his alleged termination. The district court granted partial summary judgment against him on three of them leaving only an ADA claim and an implied contract claim for trial. A jury found for IPMO on the ADA claim, but also found that the company had breached an implied contract created by its employee manual when it terminated Mr. Bowen without following certain disciplinary procedures.

A. Implied Contract

IPMO argues that the district court erred in denying its motion for judgment as a matter of law regarding the existence of an implied contract. Review of a district court’s denial of judgment as a matter of law is de novo. Wolfgang v. Mid-America Motorsports, Inc., 111 F.3d 1515, 1522 (10th Cir.1997). Judgment as a matter of law should only be granted if “there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue.” Fed.R.Civ.P. 50(a)(1). In making this determination, we construe the evidence in the light most favorable to the non-moving party and do not substitute our judgment of the facts for that of the jury.

Oklahoma follows the doctrine of “employment-at-will”; i.e. an employer can discharge an employee for any reason, in the absence of a contractual provision to the contrary. See Hayes v. Eateries, Inc., 905 P.2d 778, 781 (Okla.1995). The issue is whether the record contains sufficient evidence to show that IPMO’s Policy and Procedure Manual altered Mr. Bowen’s at-will employment by creating an implied contract.

The existence of an implied contract is typically a factual question but “[i]f the alleged promises are nothing more than vague assurances, ..., the issue can be decided as a matter of law.” Vice v. Conoco, Inc., 150 F.3d 1286, 1289 (10th Cir.1998) (applying Oklahoma law). Employer guarantees are merely “vague assurances” unless they place substantive restrictions on the reasons an employer may terminate an employee. See Hayes, 905 P.2d at 783. See also Black v. Baker Tools, Inc., 107 F.3d 1457, 1461 (10th Cir.1997); Russell v. Board of County Comm’rs, 952 P.2d 492, 502 (Okla.1997) (“[I]n order to create an implied contract the promises must be definite.”).

To determine whether the parties intended to form a contract, five factors are balanced: (a) evidence of “separate consideration” beyond the employee’s services; (b) length of employment; (c) employer handbooks and policy manuals; (d) detrimental reliance by the employee; and (e) promotions and commendations. Hinson v. Cameron, 742 P.2d 549, 554-55 (Okla.1987). As Mr. Bowen’s implied contract claim is based primarily upon IPMO’s policy manual, we will begin with that factor.

Mr. Bowen points to three sections of the employee manual as “substantive restrictions” sufficient to form an implied contract. First, there is the Personnel Practices: Discipline section:

The Company uses a system of progressive discipline. Employees are first verbally warned then receive a written warning prior to discharge. However, some actions are so serious that the Company reserves the right to discharge for cause without warning. The following are considered grounds for immediate discharge without progressive warning: [listing 14 specific grounds]1

Aplt.App. at 406. The second section (“Termination of Employment”) lists five reasons IPMO uses to discharge employees. It then states that “[u]nder all conditions, proper documentation should be completed prior to the date of termination .... Terminations for poor work performance should be consistent with Disciplinary Action/Documentation Policy.” Aplt.App. at 338. Finally, the Disciplinary Action/ Documentation Policy specifies a [1285]*1285three step process of discipline which IPMO “generally adheres to” and which “can be followed” before terminating an employee: oral warning, written warning, and suspension. Aplt.App. at 321.

Even viewed in the light most favorable to Mr. Bowen, we question whether this language rises to the level of “substantive restrictions” on IPMO’s right to terminate. The sections that Mr. Bowen relies upon are replete with permissive language (“generally adheres to”; “are usually handled”; “should be used”; “can be followed”), in contrast to other sections of the manual which speak in a mandatory fashion (i.e. the Sexual Harassment section uses phrases like “will be”, “shall not”, and “must be”).

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202 F.3d 1282, 2000 Colo. J. C.A.R. 516, 10 Am. Disabilities Cas. (BNA) 296, 2000 U.S. App. LEXIS 1212, 2000 WL 121296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowen-v-income-producing-management-of-oklahoma-inc-ca10-2000.