Doyle v. Holy Cross Hospital

682 N.E.2d 68, 289 Ill. App. 3d 75, 224 Ill. Dec. 507
CourtAppellate Court of Illinois
DecidedMarch 26, 1997
Docket1-95-3243
StatusPublished
Cited by19 cases

This text of 682 N.E.2d 68 (Doyle v. Holy Cross Hospital) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doyle v. Holy Cross Hospital, 682 N.E.2d 68, 289 Ill. App. 3d 75, 224 Ill. Dec. 507 (Ill. Ct. App. 1997).

Opinion

JUSTICE CAHILL

delivered the opinion of the court:

Plaintiffs appeal a trial court dismissal of their complaint under section 2 — 619(9) of the Code of Civil Procedure. 735 ILCS 5/2—619(9) (West 1994). They allege defendant terminated their employment in violation of the terms of defendant’s employee handbook. The trial court relied on the second district decision in Condon v. American Telephone & Telegraph Co., 210 Ill. App. 3d 701, 569 N.E.2d 518 (1991), which held that an employer could unilaterally modify an existing contract to claim a contract no longer exists. We reverse.

Plaintiffs are nurses and former employees of Holy Cross Hospital. Mary Doyle and Leni Serra were hired in 1960 and 1968, respectively. Susan Valderrama and Valerie Zorek were hired in 1972. In 1971 Doyle and Serra received employee handbooks, which set out certain policies of the hospital. These policies were in effect when the handbooks were given to Valderrama and Zorek in 1972. Plaintiffs’ complaint relies upon policy number 7 — G, titled "Economic Separation,” which reads in part:

"Holy Cross Hospital is committed to providing a working environment where employees feel secure in their job. We understand that job security is important to an employee and to that employee’s family. There are instances, though, that for economic or other reasons it becomes apparent that the permanent elimination of departments, job classifications and/or jobs must be made, and there is no reasonable expectation that employees affected could be placed in other positions in the hospital or be recalled for work in one year or less. To ensure that the economic separation is handled in an objective, structured and consistent way, the following policies will be followed in determining which employees will be affected.
1. Job Classification
2. Length of Continuous Hospital Service
3. Ability and Fitness to Perform the Required Work
* * *
Because of the special needs of our patients, the following factors will be used in an economic separation affecting R.N.’s:
1. Nursing Areas of Expertise
2. Length of Service Within Each Area of Expertise
3. Ability and Fitness to Perform the Required Work
* * *
Employees affected by an economic separation will be placed on a priority rehire list and will be contacted by the Human Resources Department if a position becomes available for which the separated employees may be eligible through experience, training, education and/or other qualifications. Priority rehire consideration shall be for a period of one year.”

In 1983 Holy Cross added policy 5 — I. That policy, titled "Employment Relationship,” reads:

"The Personnel Policies and other various Hospital employee and applicant communications are subject to change from time to time and are not intended to constitute nor do they constitute an implied or express contract or guarantee of employment for any period of time. The employment relationship between the Hospital and any employee may be terminated at any time by the Hospital or the employee with or without notice.”

In November 1991 Holy Cross terminated the plaintiffs. Plaintiffs filed a complaint for wrongful discharge, alleging breach of contract and promissory estoppel. They allege in their complaint that Holy Cross violated policy 7 — G because: "a) there was in fact no permanent elimination of any departments, job classifications or jobs; b) there were other positions available on November 1, 1991, which plaintiffs could fill, but Holy Cross failed and refused to employ them in these positions; c) other employees with less continuous hospital service were retained; and d) more than one year has passed since plaintiffs were terminated, and subsequent to November 1, 1991, Holy Cross has had positions for which they were eligible through experience, training, education and qualifications, but Holy Cross has failed and refused to offer them any such positions.”

Holy Cross filed a motion to dismiss the complaint under section 2 — 619(9) of the Code of Civil Procedure. 735 ILCS 5/2—619(9) (West 1994). Holy Cross argued that plaintiffs were at-will employees and that economic-separation policy 7 — G no longer constituted an enforceable contractual right because the hospital had amended its handbook.

The trial court followed the decision in Condon v. American Telephone & Telegraph Co., 210 Ill. App. 3d 701, 569 N.E.2d 518 (1991), and granted defendant’s motion to dismiss.

The plaintiff in Condon argued that his employer breached an employment contract when it demoted him without following the procedures set out in personnel and management training manuals. After the plaintiff was hired, the employer inserted disclaimers in the manuals. The plaintiff argued that the disclaimers were invalid because they were not contained in the original manuals he received when hired. The second district court rejected the plaintiff’s argument and held "an employer may unilaterally alter existing policies to disclaim those policies in order to prevent contractual obligations from arising under Duldulao.” Condon, 210 Ill. App. 3d at 705. The Condon court reasoned that, because the plaintiff continued to work after the disclaimers were inserted in the handbook, he was bound by them. Explicit in the court’s holding is that the plaintiff’s continued performance constituted consideration for the contract modification. The court reached this conclusion based upon a reading of Duldulao in which it found implicit support. The Condon court wrote:

"The implied contract which arises under the Duldulao doctrine is unilateral in nature. In setting out its test for contract formation, the Duldulao court states in part three of the test that the employee accepts the offer by working or continuing to work. [Citation.] The only way an employee could accept an offer by continuing to work is if the employee was already employed and the employer altered an existing policy. Implicit in this requirement is that the employer may unilaterally change its own policies.” London, 210 Ill. App. 3d at 708.

We respectfully disagree with this analysis of Duldulao. In that case, our supreme court applied traditional requirements for contract formation to determine whether an employee handbook created an enforceable contract — offer, acceptance, and consideration. Duldulao v. St. Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 505 N.E.2d 314 (1987).

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Bluebook (online)
682 N.E.2d 68, 289 Ill. App. 3d 75, 224 Ill. Dec. 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doyle-v-holy-cross-hospital-illappct-1997.