Broomfield v. Lundell

767 P.2d 697, 159 Ariz. 349, 14 Ariz. Adv. Rep. 33, 1988 Ariz. App. LEXIS 267, 58 Fair Empl. Prac. Cas. (BNA) 735
CourtCourt of Appeals of Arizona
DecidedAugust 9, 1988
Docket1 CA-CIV 9470
StatusPublished
Cited by17 cases

This text of 767 P.2d 697 (Broomfield v. Lundell) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broomfield v. Lundell, 767 P.2d 697, 159 Ariz. 349, 14 Ariz. Adv. Rep. 33, 1988 Ariz. App. LEXIS 267, 58 Fair Empl. Prac. Cas. (BNA) 735 (Ark. Ct. App. 1988).

Opinion

OPINION

CONTRERAS, Judge.

Appellant Virginia Broomfield (Broom-field) brings this appeal from summary judgment entered in favor of appellees Desert Thoracic & Cardiovascular Surgeons, Ltd. (Desert) and Dwight and Dinah Lundell (Dr. Lundell) on Broomfield’s claims for relief under the Arizona Civil Rights Act, A.R.S. § 41-1401 et seq., and for damages for wrongful discharge. Contract Staffing of America, Inc. (CSA) was also a defendant in the trial court, but is not a party to this appeal. The following issues are presented for our consideration: (1) whether Dr. Lundell was an “employer” subject to the Arizona Civil Rights Act by virtue of his relationship with CSA; (2) whether an implied contract existed between Dr. Lundell and Broomfield that imposed on Dr. Lundell a duty of good faith and fair dealing; and (3) whether a tort claim for damages for wrongful discharge may be predicated on a discharge that allegedly violated the public policy behind the antidiscrimination provisions of A.R.S. § 41-1463(B). We have jurisdiction pursuant to A.R.S. § 12-2101(B) and Rule 54(b), Arizona Rules of Civil Procedure.

FACTS AND PROCEDURAL HISTORY

Broomfield is a registered nurse and at all times relevant was not married. On August 5, 1980 Dr. Lundell, who was practicing at that time with Phoenix Heart and Lung Surgeons, hired her to be his private scrub nurse.

Dr. Lundell incorporated Dwight C. Lun-dell, M.D., P.C. on June 5, 1980, and has at all times owned all the issued and outstanding shares in that corporation. On February 8, 1983, Dwight C. Lundell, M.D., P.C., entered into an agreement with CSA under which Dr. Lundell agreed to lease his staff from CSA. 1 When the lease was executed, Dr. Lundell leased two employees, Broom-field and Jamar Gill, from CSA. Dr. Lun-dell owned no stock or any other interest in CSA, and had never been an officer, director or employee of that corporation. No one with an ownership interest in or any relationship to CSA owned any interest in or ever acted as an officer, director or employee of any business in which Dr. Lun-dell had an interest. From Dr. Lundell’s perspective, the advantages of the employee leasing agreement between CSA and Dr. Lundell were: (1) CSA would perform the payroll deductions and other bookkeeping work involved with employees; (2) the leasing arrangement would permit Dr. Lundell, consistent with federal law, to exclude his workers from participation in his personal pension plan; and (3) the leasing arrangement resulted in providing better insurance and other employee benefits to Dr. Lun-dell’s workers as part of a larger group.

When Broomfield became “employed” with CSA, Dr. Lundell told her nothing would change with respect to her work. Broomfield thereafter received her time cards from CSA and when she had completed them, she mailed them directly to CSA. CSA paid her her salary less taxes. CSA *351 also provided all her employment-related benefits, including unemployment insurance, worker’s compensation, medical and dental insurance, vacation, sick leave and pension benefits. CSA also established grievance procedures, transfer procedures, holidays, a sick leave policy, a maternity leave policy and company rules.

No CSA employee performed any administrative personnel functions in Dr. Lun-dell’s office. No one with CSA supervised Broomfield’s daily activities in any respect, and CSA considered Dr. Lundell as the “supervisor” of his office. Dr. Lundell shared the decisions concerning who would serve as scrub nurse in Dr. Lundell’s office with Judy Vail of CSA. According to Vail, the determination of employee quality and duty assignments was a joint function of Dr. Lundell and CSA. Dr. Lundell participated in employee performance rating, but had no recollection of having conferred with anyone from CSA on that topic. Dr. Lundell understood that as long as an employee remained acceptable to him, she would remain an employee of CSA.

As Dr. Lundell had told Broomfield, her working relationship with him did not change with the inception of the CSA employee leasing arrangement. Dr. Lundell continued to set her hours of employment, and made no changes in those hours. There was also no change in the nature of her work or in the manner in which it was to be done. Dr. Lundell had day-to-day control and Broomfield considered him as her employer “from the point of view of job responsibility.”

In November of 1983, Broomfield told Dr. Lundell she was pregnant. In March of 1984, as the result of an increased surgery case load and Broomfield’s approaching maternity leave, Dr. Lundell leased Lynn Mach, a registered nurse, from CSA. From March to May of 1984, Dr. Lundell’s surgery schedule diminished from approximately 47 to approximately 23 cases per month.

Broomfield took her maternity leave on or about May 18, 1984. Four days later she gave birth. On or about May 22, 1984, Dr. Lundell telephoned Judy Vail of CSA and told her that because of the reduction in his surgeries he would only be needing one registered nurse to assist him, and preferred that Lynn Mach be retained. He told Vail that Broomfield was abrasive, abusive and extremely difficult to work with both in the office and in the operating room, and that because Mach was much easier to work with, there was less tension in the operating room and therefore less chance for error.

Broomfield’s assignment as Dr. Lundell’s scrub nurse was terminated effective May 21, 1984. On or about May 29, 1984, CSA informed Broomfield that Dr. Lundell could not afford to lease two registered nurses and that she would no longer be needed in his office. Thereafter, CSA attempted to place Broomfield in one of its other subscribers’ offices. Broomfield eventually accepted employment outside CSA.

Broomfield later filed a charge of employment discrimination against CSA with the Civil Rights Division of the Arizona Department of Law pursuant to A.R.S. § 41-1461 et seq. On April 10, 1985 the division issued to Broomfield a “right-to-sue” letter pursuant to A.R.S. § 41-1481(D). 2 Broomfield filed her complaint in this action on July 9, 1985. CSA commenced bankruptcy proceedings in California on September 9,1986, and the action was automatically stayed as to it. Dr. Lun-dell subsequently moved for summary judgment. Broomfield responded and countered with a motion for partial summary judgment. On September 29, 1986, the trial court issued a minute entry which stated in part:

Even if Lundell is the employer or joint employer of Broomfield, he is not subject to the Arizona Discrimination in Employment Act in that capacity because he has less than 15 employees.
*352

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

Related

Taylor v. Graham County Chamber of Commerce
33 P.3d 518 (Court of Appeals of Arizona, 2001)
Cronin v. Sheldon
991 P.2d 231 (Arizona Supreme Court, 1999)
Vivian v. Madison
601 N.W.2d 872 (Supreme Court of Iowa, 1999)
Ransom v. State of Arizona Board of Regents
983 F. Supp. 895 (D. Arizona, 1997)
Mintz v. Bell Atlantic Systems Leasing International, Inc.
905 P.2d 559 (Court of Appeals of Arizona, 1995)
Kelley v. City of Mesa
873 F. Supp. 320 (D. Arizona, 1994)
Bogue v. Better-Bilt Aluminum Co.
875 P.2d 1327 (Court of Appeals of Arizona, 1994)
Burris v. City of Phoenix
875 P.2d 1340 (Court of Appeals of Arizona, 1993)
Tate v. Browning-Ferris, Inc.
833 P.2d 1218 (Supreme Court of Oklahoma, 1992)
Amos v. Oakdale Knitting Co.
416 S.E.2d 166 (Supreme Court of North Carolina, 1992)
O'DAY v. McDonnell Douglas Helicopter Co.
784 F. Supp. 1466 (D. Arizona, 1992)
Cota v. Tucson Police Department
783 F. Supp. 458 (D. Arizona, 1992)
Makovi v. Sherwin-Williams Co.
561 A.2d 179 (Court of Appeals of Maryland, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
767 P.2d 697, 159 Ariz. 349, 14 Ariz. Adv. Rep. 33, 1988 Ariz. App. LEXIS 267, 58 Fair Empl. Prac. Cas. (BNA) 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broomfield-v-lundell-arizctapp-1988.