French v. Dell Rapids Community Hospital, Inc.

432 N.W.2d 285, 1988 S.D. LEXIS 174, 1988 WL 126451
CourtSouth Dakota Supreme Court
DecidedNovember 30, 1988
Docket15901
StatusPublished
Cited by29 cases

This text of 432 N.W.2d 285 (French v. Dell Rapids Community Hospital, Inc.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
French v. Dell Rapids Community Hospital, Inc., 432 N.W.2d 285, 1988 S.D. LEXIS 174, 1988 WL 126451 (S.D. 1988).

Opinions

MILLER, Justice (on reassignment).

Appellants, Roger French (French) and his wife Margie, appeal an order of partial [287]*287summary judgment in favor of Dell Rapids Community Hospital (Hospital), Dell Rapids, South Dakota, and its administrator, Donald J. Olson (Olson). French, a former laboratory supervisor at Hospital, sued Hospital and Olson after he was fired from his position. The trial court granted summary judgment for Hospital and Olson on claims of (1) intentional infliction of emotional distress, (2) breach of contract, (8) fraud and deceit, (4) “detrimental reliance,” (5) breach of fiduciary duty, and denied French’s motion to amend the complaint to include a cause of action for breach of a covenant of good faith and fair dealing.1 We affirm in part, reverse in part and remand.

FACTS

In April of 1983, the lab supervisor position at Hospital became open. French, at the urging of Olson,2 applied for the job but was not hired because he lacked the four-year degree required for the position. In July 1983, the position again became open and Olson recommended that French be given the position. Although some members of the medical staff and the assistant administrator still preferred hiring a person with a four-year degree, Hospital agreed to hire French, who had sixteen years’ experience. French received Hospital’s personnel manual which set forth a ninety-day probation period. After French was hired, but prior to the completion of his probationary period, the job description for lab supervisor was rewritten to specifically allow a person with a two-year degree to hold the position.

Shortly after French began work, doctors and other medical staff began to complain about his performance. The complaints alleged mistakes with X-rays and lab tests, lack of contribution to the lab’s work load, and poor relations with other employees. Meetings were held and Hospital’s administration decided to terminate French at the expiration of his probationary period. He was offered a nonsupervi-sory position in the lab, but declined it. Subsequently, he was given ninety days to find another job and $2,000 severance pay.

Frenchs then brought suit against Hospital and Olson on the grounds stated above. The trial court granted summary judgment on all issues except for fraud stemming from French’s purchase of a home. Frenchs appeal from that order.

DECISION

FRAUD AND DECEIT

We first consider the claim of fraud and deceit in inducing French to accept employment at Hospital. Liability for deceit is defined as follows: “One who willfully deceives another, with intent to induce him to alter his position to his injury or risk, is liable for any damage which he thereby suffers.” SDCL 20-10-1. Under SDCL 20-10-2, deceit is either:

(1) The suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(2) The assertion, as a fact, of that which is not true, by one who has no reasonable ground for believing it to be true;
(3) The suppression of a fact by one who is bound to disclose it, or who gives information of other facts which are likely to mislead for want of communication of that fact; or
(4) A promise made without any intention of performing.

The fraud claimed by French is that Olson contacted him, urged him to apply for the position and ultimately hired him for the job knowing that he was not academically qualified. French claims his hiring caused “dissatisfaction” with those at Hospital who would have preferred someone with a four-year degree. French further claims that Olson withheld the news of this dissatisfaction from him and that he was induced to accept employment in Dell [288]*288Rapids upon the intentional misrepresentations and material omissions by Olson that his academic credentials had been accepted. French further asserts the dissatisfaction stemming from his academic credentials eventually led to his dismissal.

Hospital claims that the complaints about French came only after he had started work and that the complaints stemmed from French’s failure to carry his share of the work load, his lack of necessary lab expertise, and his inability to answer the questions of his lab technicians.

Because there is a factual discrepancy surrounding whether dissatisfaction with French accrued before he began working for Hospital (as French asserts) or afterward (as Hospital asserts), a genuine question of fact exists upon which the trial court erroneously granted summary judgment. Wilson v. Great Northern Railway Co., 83 S.D. 207, 157 N.W.2d 19 (1968). We reverse that portion of the trial court’s decision and remand it for further factual development.

DETRIMENTAL RELIANCE

French also pleads a cause of action denominated as “detrimental reliance.” French claims he relied on “verbal assurances” of permanent employment before leaving the hospital at Lake Preston and moving to Dell Rapids. Hospital and Olson deny that they made any assurances of permanent employment to French.

We believe that French’s theory sounds in tort and is thereby subsumed in his cause of action for fraud and deceit. This belief is further buttressed by French’s prayer for punitive damages (which infers a tort-based claim) and by our reading of SDCL 20-10-1, which provides liability for anyone who willfully deceives another with the intent to induce him to alter his position to his injury or risk. Given our reading of SDCL 20-10-1 and our prior reading case authority, see Aschoff v. Mobil Oil Corp., 261 N.W.2d 120 (S.D.1977); Culver v. Burnside, 43 S.D. 398, 179 N.W. 490 (1920); McAlpin v. Baird, 40 S.D. 180, 166 N.W. 639 (1918), we affirm the circuit court’s grant of summary judgment to Hospital.

BREACH OF CONTRACT

French contends that he had a contract with Hospital for permanent employment, with job security, and that he could be terminated only for cause or for some reason beyond the control of Hospital. French claims that Hospital breached that agreement by terminating him because he was not academically qualified to be laboratory supervisor, especially when it knew those academic qualifications before he was hired.

French did not enter into a written employment contract with Hospital, nor was there a specified term of employment. Since there is no written contract or definite period of employment, we must examine Hospital’s personnel manual, which was furnished to French, to determine whether it rises to the level of a contract. To do so, the manual must outline causes and procedures for termination. Osterkamp v. Alkota Mfg., Inc., 332 N.W.2d 275 (S.D.1983).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stratmeyer v. Engberg
2002 SD 91 (South Dakota Supreme Court, 2002)
Christians v. Christians
2001 SD 142 (South Dakota Supreme Court, 2001)
Richardson v. East River Electric Power Cooperative, Inc.
531 N.W.2d 23 (South Dakota Supreme Court, 1995)
Petersen v. Sioux Valley Hospital Ass'n
486 N.W.2d 516 (South Dakota Supreme Court, 1992)
Dede v. Rushmore National Life Insurance Co.
470 N.W.2d 256 (South Dakota Supreme Court, 1991)
Garrett v. BankWest, Inc.
459 N.W.2d 833 (South Dakota Supreme Court, 1990)
S.W. Croes Family Trust v. Small Business Administration
446 N.W.2d 55 (South Dakota Supreme Court, 1989)
Peterson v. Glory House of Sioux Falls
443 N.W.2d 653 (South Dakota Supreme Court, 1989)
Finck v. City of Tea
443 N.W.2d 632 (South Dakota Supreme Court, 1989)
Butterfield v. Citibank of South Dakota, N.A.
437 N.W.2d 857 (South Dakota Supreme Court, 1989)
Merritt v. Edson Express, Inc.
437 N.W.2d 528 (South Dakota Supreme Court, 1989)
Pickering v. Pickering
434 N.W.2d 758 (South Dakota Supreme Court, 1989)
Johnson v. Kreiser's, Inc.
433 N.W.2d 225 (South Dakota Supreme Court, 1988)
Breen v. Dakota Gear & Joint Co., Inc.
433 N.W.2d 221 (South Dakota Supreme Court, 1988)
French v. Dell Rapids Community Hospital, Inc.
432 N.W.2d 285 (South Dakota Supreme Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
432 N.W.2d 285, 1988 S.D. LEXIS 174, 1988 WL 126451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/french-v-dell-rapids-community-hospital-inc-sd-1988.