Flanigan v. Prudential Federal Savings & Loan Assoc.

720 P.2d 257, 221 Mont. 419, 1 I.E.R. Cas. (BNA) 1410, 1986 Mont. LEXIS 906, 122 L.R.R.M. (BNA) 2597
CourtMontana Supreme Court
DecidedJune 5, 1986
Docket85-380
StatusPublished
Cited by52 cases

This text of 720 P.2d 257 (Flanigan v. Prudential Federal Savings & Loan Assoc.) 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
Flanigan v. Prudential Federal Savings & Loan Assoc., 720 P.2d 257, 221 Mont. 419, 1 I.E.R. Cas. (BNA) 1410, 1986 Mont. LEXIS 906, 122 L.R.R.M. (BNA) 2597 (Mo. 1986).

Opinions

MR. JUSTICE MORRISON

delivered the Opinion of the Court.

Plaintiff brought this action in the First Judicial District Court to recover damages based upon wrongful termination from employment. The jury returned a verdict in favor of plaintiff, awarding her $94,170 in economic damages, $100,000 for emotional distress and exemplary damages in the amount of $1,300,000. Defendants appeal. We affirm.

[422]*422Mildred Flanigan (respondent) was hired as a teller on January 28, 1952, by Prudential Federal Savings and Loan Association. She worked in various capacities until April 15,1980, at which time Fred Ogolin, Vice President and Manager of Prudential Federal Savings and Loan, Butte Branch, fired her. Hereafter, the two defendants will be referred to jointly as the appellants unless it is necessary to distinguish them by specific reference.

The issues presented for review involve substantial credible evidence questions. We therefore will detail the facts and, as we must, in a light favorable to respondent. First National Bank in Libby v. Twombly (Mont. 1984), [213 Mont. 66,] 689 P.2d 1226, 1230, 41 St.Rep. 1948, 1952; Jacques v. Montana National Guard (Mont. 1982), 199 Mont. 493, 503, 649 P.2d 1319, 1325.

Following commencement of her employment, respondent worked as a teller for approximately 14 years, performing in a satisfactory fashion. In 1966 she became branch office bookkeeper. That position was eliminated because of a change in technology and in 1973, the respondent moved into the mortgage loan department where she became branch general clerk. She maintained this position until 1976, when she became assistant loan counselor. Respondent performed satisfactorily in all positions.

On December 7, 1979, prior to respondent’s termination, the president of Prudential prepared an interoffice memorandum entitled “Personnel Information and Policy Change”. This memorandum was distributed to all employees formally advising them of economic turndowns and the resulting need of Prudential to reduce its work force. The memorandum was discussed at the staff meeting in Butte, Montana, on December 13, 1979. Respondent was present. In the latter part of January, 1980, respondent was advised by Fred Ogolin that her position as assistant loan counselor was to be terminated as of June 1, 1980. After discussion, Ogolin advised respondent of a teller training program in Salt Lake City, Utah, and asked her if she desired to broaden her job skills. Respondent accepted the offer and on March 2, 1980, she attended the week-long program. On March 18, 1980, after her return to Butte, respondent began working as a teller. Less than one month later, respondent was terminated without notice and without hearing. She was given six months pay as a severance benefit and paid her accumulated profit sharing benefits of $48,428.02. After respondent was terminated, she was offered, by letter dated June 9, 1981, a part-time position as teller. After consultation with counsel, the offer was rejected.

[423]*423Within two weeks following her termination, respondent filed an age discrimination complaint with the Human Rights Commission. She received a “right to sue” letter and filed this complaint on April 13, 1983.

After consolidating several of appellants’ issues, we find the following questions govern the outcome of this appeal:

1. Was there substantial credible evidence to support submission of respondent’s case to the jury based upon breach of the implied covenant of good faith and fair dealing?

2. Did the District Court err in its treatment of the negligence issue? As sub-issues we determine whether it was error for the trial court to allow amendment of the pleadings; whether the negligence count was barred by the statute of limitations; whether comparative negligence was applicable; and whether workers’ compensation was the exclusive remedy?

3. Did the District Court err in allowing opinion testimony from expert witnesses about the covenant of good faith and fair dealing?

4. Was it error to refuse admission of defendant’s Exhibit U.U.?

5. Did the District Court err in failing to reduce damages by $26,290.53, the amount the plaintiff would have received had she not refused to accept the position as a part-time teller following her termination?

6. Was there substantial credible evidence to submit punitive damages to the jury? We include within this issue the question of whether punitive damages were excessive as a matter of law.

ISSUE ONE

Was there substantial credible evidence to support submission of respondent’s case to the jury based upon breach of the implied covenant of good faith and fair dealing?

The principal argument advanced by appellants is that Prudential was experiencing severe economic conditions and terminated the respondent in a legitimate reduction-in-force move designed to curb costs. Appellants argue that a Montana jury should not be a silent partner in every decision made to terminate employees. Reliance is placed upon the language of Professor Gary Murg and Clifford Scharman, in an article titled “Employment at Will: Do the Exceptions Overwhelm the Rule?” 23 Boston College L.R. 329, 372 (1982), wherein it was said:

“. . . A jury should not be entitled to second guess an employer’s policy or practices to determine that they are insufficient justifica[424]*424tions for a discharge. Such an approach would leave virtually all personnel practices open to communal comment. A personnel practice that is justifiable to one jury may be found pernicious to another. The likely result would then be to subject employers to the threat of suit in every instance of a discharge as the employee attempts to find a jury sympathetic to his cause. Thus, the only issue that should be posed to the jury is whether the personnel practice was applied equally to all employees. It is submitted that if an employer’s promise of continued employment is to be given contractual force courts must limit the discretion of the jury in determining what constitutes good cause.”

Respondent disputes that she was terminated as part of a reduction-in-force program. She points to the testimony of Ogolin, who fired her. Ogolin testified at trial that, but for the respondent’s alleged poor performance as a teller, she would have remained employed by Prudential. In earlier testimony Ogolin had said that under no circumstances would the respondent have remained with the company.

Respondent argues that the dual and contradictory reasons for termination advanced at trial by the appellants reveal an arbitrary, capricious and bad faith firing. Respondent notes the following Ogolin testimony which is supportive of a reduction in force:

“Q. (By Mr. Robinson) . . . Would Mildred have been let go if in the three weeks she worked as a teller she had appeared to be performing as well as any other average teller in your operation?
“A. (By Mr. Ogolin) Yes. I had already made the decision that Mildred’s job was going to be, or position was going to be eliminated
“Q. So, how well she performed in that three-week period

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Bluebook (online)
720 P.2d 257, 221 Mont. 419, 1 I.E.R. Cas. (BNA) 1410, 1986 Mont. LEXIS 906, 122 L.R.R.M. (BNA) 2597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flanigan-v-prudential-federal-savings-loan-assoc-mont-1986.