Faumuina v. American Samoa Government Employees Retirement Fund

1 Am. Samoa 3d 112
High Court of American Samoa·Decided August 20, 1997·No. CA No. 126-96·Published

Opinion

[114]*114OPINION AND ORDER

Introduction

Plaintiff Alfred Faumuina (“Faumuina”), was employed by defendant American Samoa Government Employees Retirement Fund (“ASGERF”) from March 1974 to March 1975 and from August 1976 to April 1996. When Faumuina began his employment with the ASGERF, and when he rejoined the ASGERF in August 1976, Faumuina was a “career service employee” as described in A.S.C.A. § 7.1415.

In 1986, the American Samoa Legislature enacted Public Law 19-37 to protect the ASGERF from undue political influence and improve the efficiency of the ASGERF’s operations. Public Law 19-37 amended A.S.C.A. § 7.1415 to classify all ASGERF employees as “employees of the government, under the direction of the board, not career service employees.” On June 4,1986, Faumuina signed a written acknowledgment that he “will be hired as a Non Career Service, Government Employee of A.S.G.E.R.F.”

On March 1, 1993, the ASGERF’s Executive Director, George Odom (“Odom”), sent a letter to Faumuina complaining of Faumuina’s extended absences from the office during working hours and excessive contact with “ASG officials.” On December 7, 1994, Odom sent a lengthier letter to Faumuina registering similar criticisms.

On April 12, 1996, Faumuina was arrested and charged with possession of a controlled substance. After the arrest, Faumuina was directed to stop working and stay out of the Fund’s office. He utilized accumulated annual leave. On April 23, 2996, Faumuina’s counsel contacted Odom and expressed Faumuina’s desire to return to work. Odom declined to allow Faumuina to return to work.

Shortly thereafter, Faumuina contacted two members of the Fund’s Board of Trustees, Gata E. Gurr (“Gurr”) and Magalei Logovii (“Magalei”), for advice concerning his employment status. On April 30, 1996, Odom sent a letter to Faumuina stating that Faumuina was terminated because Faumuina “flagrantly disregarded [Odom’s] instructions” by approaching “several Trustees individually to urge their assistance in overturning administrative decisions [Odom] communicated to [Faumuina] concerning [Faumuina’s] work status and payroll situation.”

On September 9, 1996, Faumuina sued the ASGERF and the ASG for wrongful discharge and unconstitutional deprivation of due process. This court concluded a trial on the merits on June 16,1997.

[115]*115Discussion

A. The Just Cause Clause

Faumuina has conceded that he was not technically a career service employee of the ASG at the time that he was terminated. • He thus acknowledges that the Fund offered, and he accepted, a new employment relationship, where Plaintiff would relinquish his rights as an A.S.G. career service employee and receive rights to which a “Non Career Service, Government Employee of A.S.G.E.R.F.” was entitled. Thus, our inquiiy is limited to the question of whether, under the new contract, Faumuina had the right to continued employment unless Faumuina provided the ASGERF with just cause for terminating his employment.

The presumption that employment is at-will, Palelei v. Star Kist Samoa, Inc., 5 A.S.R.2d 162, 165 (Trial Div. 1987), can be rebutted with evidence of the intent of the parties, business custom and usage, the nature of the employment, the situation of the parties, and the circumstances of the case. See Roberts v. Atlantic Richfield Co., 568 P.2d 764, 769 (Wash. 1977) (citing Perry v. Sinderman, 408 U.S. 593 (1972)); Shebar v. Sanyo Business Systems Corp., 544 A.2d 377, 382 (1988). From this evidence, a court may infer that a particular employment contract contained a just cause clause.

1. Intent of the parties.

Faumuina and former coworker Sunu'i Tofi (“Tofi”) testified that ASGERF representatives made oral statements that ASGERF employees who continued employment with ASGERF after the enactment of PL 19-37 would receive essentially the same package of benefits that ASG career service employees received. Faumuina and Tofi indicated that these representations were very important to them, as they probably would not have accepted the new contracts if they had known that they were losing their job security in the process. The ASGERF, in its defense, presented no evidence that changing the official status of ASGERF employees was designed to eliminate ASGERF employees’ job security. Therefore, even though there was no express agreement with respect to job security in the written document, the evidence presented at trial favors Faumuina’s claim that the parties intended for Faumuina and other ASGERF employees to have a contractual “just cause” provision.

2. Business Custom and Usage.

There was no direct evidence at trial regarding the “custom and usage” of governmental employment in American Samoa. However, based on our own personal experience, we find that non-temporary government employment generally contemplates a relationship with greater security [116]*116than an at-will relationship, even if they are not “career service” positions. In the instant case, PL 19-37 did not “privatize” the ASGERF, and the ASGERF remained a governmental institution. Thus, we conclude that business custom in the “industry” of public service favors the conclusion that Faumuina’s employment contract was not subject to arbitrary termination.

3. Nature of the Employment.

Faumuina held the position of Deputy Director of ASGERF, a position of substantial authority. Given the importance of Plaintiffs position to the overall operation of ASGERF, we conclude that this piece of evidence supports Faumuina’s claim that his position contained a “just cause” clause.

4. The Situation of the Parties.

The evidence at trial indicated that at the time Faumuina and other ASGERF employees signed new contracts, the employment relationships between the ASGERF and its employees were mutually satisfactory.

Furthermore, when the ASGERF assumed its new form after the enactment of PL 19-37, it enjoyed valuable efficiency gains by retaining the existing ASGERF staff. In effect, the ASGERF benefited substantially during 1986 and 1987 from the employee loyalty that had, in part, been inculcated by the verbal promises of job security. Thus, the evidence of the parties’ situations when the contract was formed buttresses Faumuina’s claim that the new deal simply prolonged, in reality if not nominally, the earlier “career service” employment relationship.

5. Circumstances of the Case.

Though it is theoretically possible for an employee to relinquish voluntarily a right or benefit due him under an employment contract, we find it very difficult to believe that the entire ASGERF staff would have relinquished their important contract rights without protest and without some form of new consideration. Again, this circumstantial evidence backs Faumuina’s claim that position that the parties understood that Faumuina would not lose his job security rights when they formed the new contract.

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Faumuina v. American Samoa Government Employees Retirement Fund, 1 Am. Samoa 3d 112 (amsamoa 1997).

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