Chappell v. Southern Maryland Hospital, Inc.

578 A.2d 766, 320 Md. 483, 1990 Md. LEXIS 133, 55 Empl. Prac. Dec. (CCH) 40,502, 60 Fair Empl. Prac. Cas. (BNA) 1300
CourtCourt of Appeals of Maryland
DecidedSeptember 5, 1990
Docket148 September Term, 1989
StatusPublished
Cited by75 cases

This text of 578 A.2d 766 (Chappell v. Southern Maryland Hospital, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chappell v. Southern Maryland Hospital, Inc., 578 A.2d 766, 320 Md. 483, 1990 Md. LEXIS 133, 55 Empl. Prac. Dec. (CCH) 40,502, 60 Fair Empl. Prac. Cas. (BNA) 1300 (Md. 1990).

Opinion

MURPHY, Chief Judge.

In Adler v. American Standard Corp., 291 Md. 31, 47, 432 A.2d 464 (1981), we recognized that a tort action for abusive or wrongful discharge of an at-will employee could in a proper case arise in Maryland “when the motivation for the discharge contravenes some clear mandate of public policy.” The case now before us involves an action filed by Robert L. Chappell against the Southern Maryland Hospital (SMH) to recover compensatory and punitive damages for his alleged “unjust discharge” from employment as Director of Personnel at SMH.

The complaint was filed on November 23, 1988 in the Circuit Court for Prince George’s County. It recited that Chappell was employed by SMH on an at-will basis from July 24,1984 to December 17,1985; that he was responsible for implementing all employment-related policies of SMH; that Francis Chiaramonte was Chief Executive Officer and Sebastian Suriani was Chief Operating Officer at SMH; and that during his employment, he discovered personnel prac *486 tices, which he believed to be unlawful under state and federal employment laws. Specifically, Chappell alleged in his complaint that a black male housekeeping supervisor was sexually harassing several of his black female employees, that SMH was violating state and federal wage and hour laws, and that racially discriminatory practices existed in the employment of blacks at SMH. The complaint further stated that Chappell “on numerous occasions, utilizing the chain of command within the Hospital, attempted to advise the top management of the hospital, including Francis Chiaramonte and Sebastian Suriani, as to these illegal practices and policies”; that “after diligent efforts on his part to apprise top management of the problems, to suggest solutions, and to correct the illegal discriminatory practices and violations of public policies which existed, no action was taken”; that, thereafter, he proceeded to document in memorandum form the serious violations within the hospital and sent these memoranda directly to Suriani and Chiaramonte; that following his “exposure” of these practices to both Suriani and Chiaramonte it became clear to him “that he was being set up for dismissal from the Hospital”; that he was advised by his immediate supervisor “that it appeared that he would be set up for termination as a result of the action on his part”; that hé (Chappell) “discussed these problems with counsel for the Hospital on several occasions and was advised that his assessment of the situation was correct, but that it was doubtful that any action would be taken”; that he was “wrongly accused” by Suriani and Chiaramonte “of activities on his part”; and “was also being criticized for things which either were untrue or which had never been a basis for criticism in the past.” The complaint further alleged that on December 17, 1985, Chappell’s employment with SMH was terminated; that prior to his termination, he was not advised that his job was in jeopardy, nor was he advised “that he was conducting himself in a fashion which was unacceptable to the Hospital”; that “in August 1985, just four months prior to his termination, he received an excellent evaluation with mini *487 mal criticisms of his performance”; and that “at the time of his termination, he was not advised as to any reason why he was being terminated.”

Chappell alleged that his discharge was wrongful in that it was caused by “his insistence that the Hospital abide by the clear letter and spirit of the laws of the United States and the State of Maryland, particularly, that the Hospital must cease its policy of discriminating against Blacks in its hiring, that the Hospital must fully investigate and cease the sexual harassment situation which existed toward female employees within the Hospital, and that the Hospital must cease its illegal policy regarding wage and hour laws.” Chappell claimed damages, compensatory and punitive, in the total amount of $600,000.

SMH moved to dismiss Chappell’s complaint under Maryland Rule 2-322 for failure to state a claim upon which relief could be granted. In a supporting memorandum, SMH conceded that employment discrimination on the basis of race, and violations of state and federal wage and hour laws, may contravene the public policy of this State. But it did not follow, SMH maintained, that Chappell’s discharge from his employment for bringing these alleged violations to the attention of upper management also violated the state’s public policy, warranting a tort action under Adler for wrongful discharge. SMH recited that Adler concerned an at-will management employee whose tort complaint was that he was discharged as a result of his effort to inform upper management of various violations of the criminal laws of Maryland, i.e., corporate improprieties, including commercial bribery, falsification of corporate records and financial data. While acknowledging that Adler sanctioned a tort action for wrongful discharge in a proper case, SMH argued that our holding in that case was that Adler’s complaint did not state a cause of action because he failed to sufficiently allege that his discharge violated any legislative enactment, judicial decisions or state regulations; and hence did not constitute a violation of the state’s public policy. SMH further alleged, in support of its motion to dismiss, that Chappell’s complaint asserted no more than *488 that the hospital was displeased that Chappell, as a management employee, would raise allegations of unlawful conduct by the hospital and therefore discharged him. A discharge for this reason, SMH argued, did not contravene any specific provision of Maryland public policy and consequently would not support a tort action for wrongful discharge.

As a separate ground for dismissal of Chappell’s complaint, SMH contended that a tort action for wrongful discharge could in no event be brought because exclusive statutory remedies existed to vindicate the violations of Maryland public policy alleged in Chappell’s complaint. As to the racial discrimination allegations, SMH pointed to the Maryland Fair Employment Practices Law which prohibits employment discrimination based upon sex and race, Maryland Code (1957, 1986 Repl.Vol.), Article 49B, §§ 14-18. As to the alleged wage and hour violations, SMH noted that they are proscribed by the Maryland Minimum Wage Act, Code (1957, 1985 Repl.Vol.), Article 100, §§ 81-93A. In particular, SMH claimed that Chappell, as a management employee, was specifically excluded by § 82(e)(2) from the protections afforded by the statute and therefore no public policy considerations were implicated as to this component of Chappell’s complaint. Thus, SMH suggested that because Chappell was excluded from the statute’s coverage, his discharge did not violate any provision of Maryland public policy.

At a hearing, on June 21, 1989, the court (Ahalt, J.) granted SMH’s motion to dismiss. In concluding that the facts alleged in Chappell’s complaint “do not fall within the four corners of Adler,” the court said it adopted the “reason set forth in the Defendant’s memorandum.”

Upon Chappell’s appeal to the Court of Special Appeals, we granted certiorari prior to argument in that court to consider the important issues raised in the case.

I.

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578 A.2d 766, 320 Md. 483, 1990 Md. LEXIS 133, 55 Empl. Prac. Dec. (CCH) 40,502, 60 Fair Empl. Prac. Cas. (BNA) 1300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chappell-v-southern-maryland-hospital-inc-md-1990.