Breen v. Dakota Gear & Joint Co., Inc.

433 N.W.2d 221, 4 I.E.R. Cas. (BNA) 92, 1988 S.D. LEXIS 176, 1988 WL 130261
CourtSouth Dakota Supreme Court
DecidedDecember 7, 1988
Docket16107
StatusPublished
Cited by76 cases

This text of 433 N.W.2d 221 (Breen v. Dakota Gear & Joint Co., 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
Breen v. Dakota Gear & Joint Co., Inc., 433 N.W.2d 221, 4 I.E.R. Cas. (BNA) 92, 1988 S.D. LEXIS 176, 1988 WL 130261 (S.D. 1988).

Opinions

HENDERSON, Justice.

PROCEDURAL HISTORY/ISSUES

Plaintiff Cliff P. Breen (Breen) filed a complaint in the circuit court for Minne-haha County alleging that Defendant, Dakota Gear and Joint Company, Inc. (Dakota), (1) breached the terms of an implied contract by discharging him without good cause, and (2) breached an implied covenant of good faith and fair dealing by terminating him in bad faith. The trial court granted a motion for summary judgment in favor of Dakota, and Breen appealed. Breen argues that the trial court erred in two regards:

1) Summary judgment was inappropriate where Breen alleged that Dakota had contractually limited its power to terminate him without good cause; and
2) A covenant of good faith and fair dealing, implied in his employment relationship with Dakota, was breached, entitling Breen to recover under either contract or tort theories.

We affirm the trial court because no facts supporting Breen’s claim of wrongful dis[222]*222charge appear in the record below, and a covenant of good faith and fair dealing is not implied in employment relationships under South Dakota law.

PACTS

Dakota hired Breen in October 1976. He was fired on September 12, 1986, after returning to work from four days of sick leave. During Breen’s employment with Dakota, he signed no written contract, and no personnel handbooks, employment manuals or other writing concerning Dakota’s termination or disciplinary policies were distributed. Dakota provided no formal evaluations of Breen’s performance at any time, although he received pay increases. Breen and Dakota disagreed as to whether his allegedly deficient performance was ever discussed with him prior to his discharge.

After his termination, Breen filed a complaint setting forth two causes of action. The first, styled by Breen as a contract cause of action, alleged that he was fired “without just cause” and that Dakota had “violated Plaintiff’s implied guarantee of job security and implied promise not to terminate an at-will employee without good cause.” Breen’s second cause of action, captioned “Tort,” incorporated the first count’s allegation that he was fired without good cause, and added that Dakota had “violated Plaintiff’s implied covenant of good faith and fair dealing” and that his firing “was not in the best interest of the economic system or the public good.” His complaint ended with a plea for $360,000 in lost salary and $100,000 in punitive damages. Dakota’s answer to Breen’s complaint asserted that he was an employee-at-will and that his complaint failed to state a claim for which relief could be granted.

In his answers to Dakota Gear’s interrogatories, Breen stated that he was relying on the following facts to show an implied guarantee of job security or promise not to terminate him without good cause had arisen:

Plaintiff [Breen] worked for Defendant [Dakota Gear] for approximately nine and one-half years. Over the course of that time, Plaintiff received regular increases in pay and was the beneficiary of company benefits including a Profit Sharing Plan. At no time during Plaintiff’s employment with Defendant, was Plaintiff put on notice that he was performing his duties in an unsatisfactory manner. Therefore, by implication, Plaintiff felt secure in his employment with Defendant.

Breen’s answers gave the following as facts justifying an implied covenant of good faith and fair dealing:

[P]laintiff felt that after nine and one-half years of employment where his on-the-job performance was satisfactory, Plaintiff was entitled to some type of notice of fact from Defendant if Plaintiff's job performance was lacking. Good faith and fair dealing so dictate after such a long period of satisfactory employment.

Dakota Gear’s answers to Breen’s interrogatories stated that Breen had been fired “for reasons which included continued inattention to customers, inability to maintain a satisfactory working relationship with his co-employees, and a continual pattern of abuse of sick leave” and alleged that Breen was verbally informed of his inattention to customers “on numerous occasions.”

Subsequently, Dakota submitted a motion for summary judgment to the trial court. This motion was supported by affidavits from Pete Bonenberger, Dakota’s president, and Gary L. Yttreness, Dakota’s secretary/treasurer, which indicated that (1) Breen had no written contract, (2) no statements were made to Breen which would create an implied contract, and (3) Dakota had no procedures regarding employee discipline or termination. In opposition to Dakota’s motion, Breen submitted an affidavit which stated that (1) he had been fired without cause after taking sick leave, (2) Dakota’s “acts and words” and “statements” established an implied contract, and (3) Dakota had a “procedure respecting discipline and termination of employees.”

The trial court granted Dakota’s motion for summary judgment on the grounds that [223]*223Breen had not alleged any underlying facts indicating a bad faith discharge even if it were assumed that Breen was fired without cause.

DECISION

I. Implied Contract

SDCL 15-6-56(c) provides that summary judgment is proper where the pleadings, depositions, answers to interrogatories and admissions, together with any affidavits, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. See Larson v. Kreiser’s, Inc., 427 N.W.2d 833, 833-34 (S.D.1988); Blote v. First Fed. Sav. & Loan Ass’n, 422 N.W.2d 834, 837 (S.D.1988). See also Hopes v. Black Hills Power & Light Co., 386 N.W.2d 490 (S.D.1986); Wilson v. Great N. Ry. Co., 83 S.D. 207, 157 N.W.2d 19 (1968). When considering a motion for summary judgment, the formal issues presented by the pleadings are not controlling and a party may not rest upon the mere allegations contained therein. Aetna Life Ins. Co. v. McElvain, 363 N.W.2d 186, 188 (S.D.1985). The party opposing a motion for summary judgment must be diligent in resisting the motion, and mere general allegations and denials which do not set forth specific facts will not prevent issuance of a judgment. Hughes-Johnson Co. v. Dakota Midland Hosp., 86 S.D. 361, 364, 195 N.W.2d 519, 521 (1972). On appeal, this Court reviews summary judgments under the premise that affirmance of such a judgment is proper if there exists any basis which would support the trial court’s ruling. Blote, 422 N.W.2d at 836; Uken v. Sloat, 296 N.W.2d 540, 542 (S.D.1980).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gul v. Center for Family Medicine
2009 SD 12 (South Dakota Supreme Court, 2009)
McDowell v. Citicorp U.S.A.
2007 SD 53 (South Dakota Supreme Court, 2007)
Wulf v. Senst
2003 SD 105 (South Dakota Supreme Court, 2003)
City of Midland v. O'BRYANT
18 S.W.3d 209 (Texas Supreme Court, 2000)
Atwood-Kellogg, Inc. v. Nickeson Farms
1999 SD 148 (South Dakota Supreme Court, 1999)
Paint Brush Corp. v. Neu
1999 SD 120 (South Dakota Supreme Court, 1999)
Tuika v. American Samoa Development Corp.
3 Am. Samoa 3d 155 (High Court of American Samoa, 1999)
Taylor Properties, Inc. v. Union County
1998 SD 90 (South Dakota Supreme Court, 1998)
Singpiel v. Morris
1998 SD 86 (South Dakota Supreme Court, 1998)
Taylor Equipment, Inc. v. John Deere Company
98 F.3d 1028 (Eighth Circuit, 1996)
Taylor Equipment, Inc. v. John Deere Co.
98 F.3d 1028 (Eighth Circuit, 1996)
Ward v. Lange
1996 SD 113 (South Dakota Supreme Court, 1996)
Richardson v. East River Electric Power Cooperative, Inc.
531 N.W.2d 23 (South Dakota Supreme Court, 1995)
Lee v. Rapid City Area School District, No. 51-4
526 N.W.2d 738 (South Dakota Supreme Court, 1995)
Hafner v. Delano
520 N.W.2d 587 (South Dakota Supreme Court, 1994)
City of Lennox v. Mitek Industries, Inc.
519 N.W.2d 330 (South Dakota Supreme Court, 1994)
Moe v. John Deere Co.
516 N.W.2d 332 (South Dakota Supreme Court, 1994)
Tucek v. Mueller
511 N.W.2d 832 (South Dakota Supreme Court, 1994)
Nelson v. WEB Water Development Ass'n, Inc.
507 N.W.2d 691 (South Dakota Supreme Court, 1993)
Bass v. Happy Rest, Inc.
507 N.W.2d 317 (South Dakota Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
433 N.W.2d 221, 4 I.E.R. Cas. (BNA) 92, 1988 S.D. LEXIS 176, 1988 WL 130261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breen-v-dakota-gear-joint-co-inc-sd-1988.