Crawford Rehabilitation Services, Inc. v. Weissman

938 P.2d 540, 12 I.E.R. Cas. (BNA) 1671, 1997 Colo. LEXIS 491, 1997 WL 304917
CourtSupreme Court of Colorado
DecidedJune 9, 1997
Docket95SC451
StatusPublished
Cited by81 cases

This text of 938 P.2d 540 (Crawford Rehabilitation Services, Inc. v. Weissman) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crawford Rehabilitation Services, Inc. v. Weissman, 938 P.2d 540, 12 I.E.R. Cas. (BNA) 1671, 1997 Colo. LEXIS 491, 1997 WL 304917 (Colo. 1997).

Opinions

Justice KOURLIS

delivered the Opinion of the Court.

This ease arises out of the termination of Susan Weissman by her former employer, Crawford Rehabilitation Services, Inc., and its successor, Crawford and Company, Inc. (collectively, Crawford). Weissman sued Crawford alleging causes of action for breach of implied contract, promissory estoppel, outrageous conduct, and wrongful discharge. During the course of discovery Crawford learned that Weissman had made fraudulent misrepresentations on her application for employment with Crawford. In Weissman v. Crawford Rehabilitation Services, Inc., 914 P.2d 380 (Colo.App.1995), the court of appeals concluded that the evidence of Weiss-man’s resume fraud1 could bar her claims for breach of implied contract and promissory estoppel if Crawford reasonably relied on Weissman’s misrepresentations at the time it hired her. However, in reliance upon McKennon v. Nashville Banner Publishing Co., 513 U.S. 352, 115 S.Ct. 879, 130 L.Ed.2d 852 (1995), the court of appeals also held that the after-acquired evidence that Weissman fraudulently completed her application for employment could be used as only a limited defense to the claim for wrongful discharge. The court of appeals remanded the claims to the trial court for further proceedings.

We granted certiorari to review certain aspects of the court of appeals opinion. We now adopt the after-acquired evidence doctrine and hold that evidence of Weissman’s resume fraud completely bars her claims for promissory estoppel and breach of implied contract. We conclude that Weissman failed [543]*543to state a cognizable claim for wrongful discharge and therefore do not reach the scope of the application of the after-acquired evidence doctrine to wrongful discharge claims. We reverse the court of appeals and remand with instructions to reinstate the trial court’s decision dismissing Weissman’s claims.

I.

Plaintiff Susan Weissman was employed as a clerical typist by Crawford for approximately eighteen months, from July 1988 until January 1990. On January 25, 1990, Weiss-man asked permission to take a personal holiday on Monday, January 29. Crawford alleges that this request was in contravention of its policy requiring employees to schedule personal holidays two weeks in advance. Weissman’s supervisor denied the request, but Weissman stated her intention to take the day off anyway. On January 26, Weiss-man was absent from work without permission.

Crawford alleges that on January 26 it made the decision to terminate Weissman based on her insubordination in declaring her intent to take a personal holiday after her request had been denied and her unexcused absence on January 26. Crawford’s Denver office requested Weissman’s final paycheck on the 26th and the home office in Atlanta issued the check on that date. Consistent with her stated plans, Weissman did not report for work on January 29, and Crawford discharged her when she did return to work on January 30,1990.

Following her termination, Weissman filed a complaint against Crawford stating causes of action for breach of implied contract, promissory estoppel, outrageous conduct, and wrongful discharge, seeking compensatory and punitive damages.2 The claims for breach of implied contract and promissory estoppel were based on the assertion that Crawford breached its duty to adhere to termination procedures set forth in an employee’s manual that was in effect during the period of Weissman’s employment with Crawford. In the claim for outrageous conduct, Weissman asserted that Crawford’s reliance upon too many unexcused absences as a ground for termination was outrageous when in fact Crawford knew that her termination occurred for other reasons.

Weissman’s claim for wrongful discharge related to a dispute between Weissman and the manager of Crawford’s Denver office, Leonard Francois, regarding the number of breaks Weissman was entitled to take. Weissman believed that in addition to her lunch, restroom, and drink breaks, she was also entitled to rest breaks in the morning and afternoon. After Francois instructed Weissman that she was not entitled to take the rest breaks, Weissman telephoned the Division of Labor of the Department of Labor and Employment (the division) to inquire whether Crawford could eliminate those breaks. Weissman claims that a division representative informed her that Crawford could not deny her the rest breaks. Weiss-man then notified Francois of her conversation with the division representative and continued to take the rest breaks. There is no information in the record as to when the call or the conversation took place. In her complaint, Weissman alleged that Crawford terminated her in retaliation for her telephone call to the division and that this conduct violated her legal rights and the public policy of the State of Colorado and the United States.

Finally, Weissman alleged that she was entitled to punitive damages because Crawford’s conduct was attended by circumstances of fraud, malice, and a wanton disregard for her rights and feelings.

On July 21, 1992, before Crawford responded to the complaint, it deposed Weiss-man. During that deposition, Crawford discovered that Weissman had made fraudulent [544]*544misrepresentations on her application for employment with Crawford. Specifically, Weissman admitted that she failed to disclose one of her previous employers, which employer had discharged her and with whom she had been engaged in litigation regarding wrongful termination.

On her application, Weissman listed three previous employers. She indicated that she had worked full-time for the second of the three, Kirk Advertising, during the period from 1980 to 1985,3 and she listed William Kirkhuff as her supervisor. Weissman then signed the application directly beneath the following statement: “The information I am presenting in this application is true and correct to the best of my knowledge, and I understand that any falsification or misrepresentation herein could result in my discharge in the event that I am hired by Crawford & Company.” In addition, as part of the process of applying for a job with Crawford, Weissman was required to fill out an application for a fidelity bond. On the fidelity bond application, Weissman listed the same three previous employers and indicated that she had never been discharged from any employment.

Prior to hiring Weissman, Crawford contacted Kirkhuff and received an excellent recommendation, but did not contact either of the other previous employers. Based in part on KirkhufPs recommendation, Crawford hired Weissman.

In her deposition on July 21, 1992, Weiss-man admitted that, contrary to her representations on the employment and bond applications, from 1980 to 1985 she had worked full-time for the Association of Operating Room Nurses (AORN),4 and that she was discharged from her employment there. In a subsequent deposition, on August 19, 1992, Weissman admitted that she only worked for Kirk Advertising on a part-time basis, some weeks working there two to three hours and some weeks not working there at all.5

In her July deposition, Weissman stated that she did not list her employment with AORN on the application documents because

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938 P.2d 540, 12 I.E.R. Cas. (BNA) 1671, 1997 Colo. LEXIS 491, 1997 WL 304917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crawford-rehabilitation-services-inc-v-weissman-colo-1997.