Clark v. Eagle Systems, Inc.

927 P.2d 995, 279 Mont. 279, 53 State Rptr. 1150, 12 I.E.R. Cas. (BNA) 507, 1996 Mont. LEXIS 238
CourtMontana Supreme Court
DecidedNovember 20, 1996
Docket96-032
StatusPublished
Cited by58 cases

This text of 927 P.2d 995 (Clark v. Eagle Systems, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Eagle Systems, Inc., 927 P.2d 995, 279 Mont. 279, 53 State Rptr. 1150, 12 I.E.R. Cas. (BNA) 507, 1996 Mont. LEXIS 238 (Mo. 1996).

Opinions

JUSTICE LEAPHART

delivered the Opinion of the Court.

Thomas Arthur Clark (Clark) appeals from the order of the Thirteenth Judicial District Court, Yellowstone County, granting Eagle Systems’ (Eagle) motion for summary judgment, concluding that the [282]*282Wrongful Discharge From Employment Act (the Act) applied and that Clark was terminated for good cause, that Clark failed to state a prima facie case under the Age Discrimination in Employment Act, that Clark could not prevail on his tortious interference with contracts claim, and that the Act is the exclusive remedy and precludes Clark’s claim for negligent or intentional infliction of emotional distress. Eagle cross-appeals from the District Court’s conclusion that the Act applies to Clark’s demotion absent a cessation in employment. We affirm.

We address the following issues on appeal:

1. Did the District Court err in concluding that the Wrongful Discharge from Employment Act applies to demotions that do not result in a cessation of employment?

2. Did the District Court err in granting Eagle’s motion for summary judgment on the issue of Clark’s claim under the Age Discrimination in Employment Act?

3. Did the District Court err in granting summary judgment in favor of the individually-named defendants on Clark’s claim of tortious interference and negligent or intentional infliction of emotional distress?

Clark was employed with Eagle as the terminal manager in Billings, Montana. Eagle contracted with Burlington Northern Railroad (BN) to provide ramp, drayage, and mechanical services for BN at the Billings terminal. In addition, Eagle is responsible for loading and unloading trains in a timely manner.

Clark had been employed in the transportation field since 1955 and had served in a variety of positions for previous contractors providing services to the railroad. Clark was hired by Eagle in May of 1985 and continued to serve as terminal manager in Billings until November 21, 1991. On that date, Clark met with Dick Schweitzer (Schweitzer), who was Clark’s supervisor, and Schweitzer notified Clark that he was being replaced the next day as terminal manager and was being demoted to the position of utility person. Eagle maintains that Clark was difficult to work with and verbally abusive to both customers and co-workers. Randal Sundquist (Sundquist), who was Clark’s subordinate and worked as shop and maintenance supervisor, reported his problems with Clark directly to Schweitzer in the months before Clark’s demotion. Several other employees at the Billings terminal stated that they had difficulties with Clark’s “paranoia” and harsh discipline.

[283]*283In May of 1992, Clark filed a complaint with the Montana Human Rights Commission (HRC) alleging that he had been discriminated against based on his age. Eagle removed the case to federal court and, in November of 1993, Clark amended the complaint alleging a cause of action for tortious interference with contract and joining John Ackerman, BN’s intermodal hub center manager, Sundquist and Schweitzer as individual defendants. Due to the addition of the Montana defendants, the federal court lost diversity jurisdiction and the matter was remanded to state district court in March of 1994.

On March 31, 1994, the HRC issued a right to sue letter. Accordingly, Clark again amended his complaint alleging a cause of action for age discrimination against Eagle. On October 25, 1995, the District Court granted summary judgment to defendants on all issues. Clark appeals from the grant of summary judgment in favor of the defendants and Eagle cross-appeals from the court’s determination that the Act applies absent a cessation in employment.

Standard of Review

Our standard in reviewing a district court’s grant of a motion for summary judgment is de novo. Heiat v. Eastern Montana College (1996), 275 Mont. 322, 327, 912 P.2d 787, 790 (citing Minnie v. City of Roundup (1993), 257 Mont. 429, 431, 849 P.2d 212, 214). That is, we review an order of summary judgment using the same criteria as the district court; we are guided by Rule 56, M.R.Civ.P. Chilberg v. Rose (1995), 273 Mont. 414, 416, 903 P.2d 1377, 1378. Thus, we determine whether a genuine issue of material fact exists and whether the moving party is entitled to judgment as a matter of law. Heiat, 912 P.2d at 791 (citing Minnie, 849 P.2d at 214). Summary judgment is an extreme remedy and should never be substituted for a trial if a material fact controversy exists. Heiat, 912 P.2d at 791 (citing Howard v. Conlin Furniture No. 2, Inc. (1995), 272 Mont. 433, 436, 901 P.2d 116, 118-19).

A party seeking summary judgment has the burden of establishing a complete absence of any genuine factual issue. Howard, 901 P.2d at 118. In light of the pleadings and the evidence before the district court, there must be no material issue of fact remaining which would entitle a non-moving party to recover. Howard, 901 P.2d at 118. Once the moving party has met its burden, the party opposing the summary judgment motion must present material and substantial evidence, rather than conclusory or speculative statements, to raise a genuine issue of material fact. Howard, 901 P.2d at 119. In addition, [284]*284all reasonable inferences that might be drawn from the offered evidence should be drawn in favor of the party who opposed summary judgment. Howard, 901 P.2d at 119 (citing Cereck v. Albertson’s, Inc. (1981), 195 Mont. 409, 411, 637 P.2d 509, 511).

1. Did the District Court err in concluding that the Wrongful Discharge from Employment Act applies to demotions that do not result in a cessation of employment?

Relying on this Court’s recent opinion in Howard, the District Court stated that "the case at bar involves neither a lateral transfer nor a minor change in job description. Plaintiff was also absolutely and finally terminated from his managerial position despite the offer of another, inferior, position.” The court concluded that “a jury might conclude that plaintiff’s demotion qualified as a discharge within the meaning of the Act.” Having determined that the Act did apply, the court went on to conclude that there was good cause for Clark’s reclassification and granted Eagle’s motion for summary judgment on that basis. In reviewing a district court’s conclusions of law, we determine whether the court’s interpretation of the law is correct. Stratemeyer v. Lincoln County (1996), 276 Mont. 67, 915 P.2d 175, 177 (citing Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 474-75, 803 P.2d 601, 603-04).

Application of the Act hinges on the existence of a “discharge” or a “constructive discharge.” Section 39-2-903, MCA, defines the terms “discharge” and “constructive discharge” as follows:

(1) “Constructive discharge” means the voluntary

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

Related

Estate of Frazier v. Miller
2021 MT 85 (Montana Supreme Court, 2021)
Bank of America, N.A. v. Alexander
2017 MT 31 (Montana Supreme Court, 2017)
Rennie v. Hess Oil Virgin Islands Corp.
62 V.I. 529 (Supreme Court of The Virgin Islands, 2015)
Morrow v. Bank of America, N.A.
2014 MT 117 (Montana Supreme Court, 2014)
Williams v. PLUM CREEK TIMBER CO., INC.
2011 MT 271 (Montana Supreme Court, 2011)
Dr. William P. Harman v. The University of Tennessee
Court of Appeals of Tennessee, 2010
Peterson v. Eichhorn
2008 MT 250 (Montana Supreme Court, 2008)
Phelps v. Frampton
2007 MT 263 (Montana Supreme Court, 2007)
Anderson v. Stokes
2007 MT 166 (Montana Supreme Court, 2007)
Cole v. Valley Ice Garden
2005 MT 21 (Montana Supreme Court, 2005)
Whalen v. Mt Right to Life
2004 MT 319N (Montana Supreme Court, 2004)
Cape v. Crossroads Correctional Center
2004 MT 265 (Montana Supreme Court, 2004)
Olson v. Osmolak
2003 MT 151 (Montana Supreme Court, 2003)
Mathews v. BJS Construction, Inc.
2003 MT 116 (Montana Supreme Court, 2003)
Morton v. Lanier
2002 MT 214 (Montana Supreme Court, 2002)
Molina v. Panco Construction Inc.
2002 MT 136 (Montana Supreme Court, 2002)
Sherrard v. Prewett
2001 MT 228 (Montana Supreme Court, 2001)
In Re Parenting of JNP
2001 MT 120 (Montana Supreme Court, 2001)
Hillabrand v. McDougal Trust
2001 MT 125N (Montana Supreme Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
927 P.2d 995, 279 Mont. 279, 53 State Rptr. 1150, 12 I.E.R. Cas. (BNA) 507, 1996 Mont. LEXIS 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-eagle-systems-inc-mont-1996.