Ex Parte Michelin North America, Inc.

795 So. 2d 674, 2001 WL 29198
CourtSupreme Court of Alabama
DecidedJanuary 12, 2001
Docket1990615
StatusPublished
Cited by25 cases

This text of 795 So. 2d 674 (Ex Parte Michelin North America, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex Parte Michelin North America, Inc., 795 So. 2d 674, 2001 WL 29198 (Ala. 2001).

Opinion

795 So.2d 674 (2001)

Ex parte MICHELIN NORTH AMERICA, INC., Wilton Crawford, and Jorge Roa.
(Re Douglas Ray Cannon v. Michelin North America, Inc., et al.)

1990615.

Supreme Court of Alabama.

January 12, 2001.

*675 Jeffrey A. Lee and Stuart D. Roberts of Maynard, Cooper & Gale, P.C., Birmingham, for petitioners.

*676 Dennis G. Pantazis and Craig L. Lowell of Gordon, Silberman, Wiggins & Childs, P.C., Birmingham, for respondent.

On Application for Rehearing

MADDOX, Justice.

The opinion of October 27, 2000, is withdrawn, and the following is substituted therefor.

The issue presented in this case is whether an employee who was dismissed because of his failure to comply with a company policy regarding returning to work after being out on sick leave can, under the particular facts of his case, maintain an action alleging breach of contract, fraud, and fraudulent suppression. Douglas Ray Cannon was dismissed by his employer, Michelin North America, Inc. He sued the employer and two other employees. The trial court, apparently concluding that Cannon had been an "at-will" employee, entered a summary judgment in favor of the defendants. Cannon appealed from the summary judgment, but only as it related to the breach-of-contract and fraudulent-suppression claims. This Court transferred the appeal to the Court of Civil Appeals.[1] That court reversed the circuit court's judgment as it related to the two claims. Cannon v. Michelin North America, Inc., 795 So.2d 668 (Ala.Civ.App.1999). We granted the defendants' petition for certiorari review. We reverse and remand.

I. Background

The facts are not seriously disputed. Cannon was injured in an ice-skating accident in February 1996, while on vacation with his family in Tennessee; he was hospitalized and was unable to return to work for over a month. When he did return, he was able to work only intermittently, working only 33 days between February and November 1996. In November, Jorge Roa, personnel manager at the Michelin plant where Cannon worked, told Cannon's supervisor, Wilton Crawford, that, under the company's policies, for Cannon to keep his job he would have to work 90 consecutive days within a 12-month period from the day he was injured. Crawford told Cannon "that in order for him to clean his record, ... he would have to work 90 consecutive days prior to the end of the 12 months when he first went on leave." (C.R. at 319.)[2] Cannon did work for the required 90 days; however, he did not perform his full duties during that period. Michelin's medical-leave policy required that Cannon perform his full duties during the 90-day period. Because he did not do so, the company fired him. Cannon testified that he was never told of the requirement that he perform his full duties during the 90-day period. Indeed, Crawford testified that he had not been aware of the requirement that Cannon perform his full duties.

Cannon sued Michelin, Crawford, and Roa, alleging fraud, fraudulent suppression, and breach of contract. The defendants *677 moved for a summary judgment on all counts. Cannon opposed that motion only as it related to his claims of fraudulent suppression and breach of contract. The trial court granted the motion as to all claims. The Court of Civil Appeals reversed the judgment as it related to the fraudulent-suppression and breach-of-contract counts.

II. Discussion

In reviewing the disposition of a motion for summary judgment, we use the same standard the trial court used in determining whether the evidence before it created a genuine issue of material fact and whether the movant was "entitled to a judgment as a matter of law." Bussey v. John Deere Co., 531 So.2d 860, 862 (Ala. 1988); Rule 56(c), Ala. R. Civ. P. When the movant makes a prima facie showing that there is no genuine issue of material fact, the burden shifts to the nonmovant to present substantial evidence creating such an issue. Bass v. SouthTrust Bank of Baldwin County, 538 So.2d 794, 797-98 (Ala.1989). Evidence is "substantial" if it is of "such weight and quality that fairminded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved." West v. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala.1989).

Our review is further subject to the caveat that this Court must review the record in a light most favorable to the nonmovant and must resolve all reasonable doubts against the movant. Hanners v. Balfour Guthrie, Inc., 564 So.2d 412, 413 (Ala.1990).

We first consider the summary judgment as it relates to Cannon's claim that Michelin had breached a contract of employment between them. In Alabama, an employment relationship is ordinarily "at will," and the fundamental principle of employment at will is that the employment relationship is terminable by either party at any time and for any reason. Hoffman-La Roche, Inc. v. Campbell, 512 So.2d 725, 728 (Ala.1987); Hinrichs v. Tranquilaire Hosp., 352 So.2d 1130, 1131 (Ala.1977). Thus, Alabama is what is commonly known as an "employment-at-will" state. In Hoffman-La Roche,[3] this Court reaffirmed a well-settled rule:

"[T]hree elements must be shown to establish that an employment contract is one other than one terminable at will: (1) that there was a clear and unequivocal offer of lifetime employment or employment of [a] definite duration, Bates v. Jim Walter Resources, Inc., 418 So.2d 903 (Ala.1982); (2) that the hiring agent had authority to bind the principal to a *678 permanent employment contract, Alabama Mills, Inc. v. Smith, 237 Ala. 296, 186 So. 699 (1939); and (3) that the employee provided substantial consideration for the contract separate from the services to be rendered, United Security Life Ins. Co. v. Gregory, 281 Ala. 264, 201 So.2d 853 (1967)."

512 So.2d at 728; see also Birmingham-Jefferson County Transit Auth. v. Arvan, 669 So.2d 825 (Ala.1995) (citing Hoffman-La Roche).

Cannon argues the three conditions stated in Hoffman-La Roche were met when Crawford told Cannon "that in order for him to clean his record, ... he would have to work 90 consecutive days prior to the end of the 12 months when he first went on leave." (C.R. at 319.) The Court of Civil Appeals concluded that Crawford's statement and Cannon's actions met the requirements of Alabama law for establishing that the employment relationship was not at will. Two Judges of that Court dissented, concluding: "The evidence simply fails to support a clear and unequivocal offer of employment." 795 So.2d at 674. We agree with the views expressed by the dissenting Judges.

Alabama law provides that for an employment contract to be other than one at will, the employer must have made "a clear and unequivocal offer of lifetime employment or employment of [a] definite duration." Hoffman-La Roche, 512 So.2d at 728. Even assuming that Crawford's statement was an offer of employment, we cannot, based on the record before us, conclude that the defendants made a clear and unequivocal offer of lifetime employment or employment of a definite duration. This Court has held that "[a]n oral employment contract that neither includes, nor specifies, any particular term, length, or duration of employment is considered an employment at will contract." Bates v. Jim Walter Resources, Inc., 418 So.2d 903, 905 (Ala.1982).

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Bluebook (online)
795 So. 2d 674, 2001 WL 29198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-michelin-north-america-inc-ala-2001.