Graham v. Community Action Agency of North Central Alabama, Inc.

702 So. 2d 1215, 13 I.E.R. Cas. (BNA) 109, 1997 Ala. LEXIS 357
CourtSupreme Court of Alabama
DecidedJuly 25, 1997
Docket1951038
StatusPublished

This text of 702 So. 2d 1215 (Graham v. Community Action Agency of North Central Alabama, 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
Graham v. Community Action Agency of North Central Alabama, Inc., 702 So. 2d 1215, 13 I.E.R. Cas. (BNA) 109, 1997 Ala. LEXIS 357 (Ala. 1997).

Opinions

ALMON, Justice.

The petitioner, Pamela Graham, was discharged from her employment with the Community Action Agency of North Central Alabama, Inc. (“the Agency”). Graham sued the Agency; its executive director, Thomas M. Wood III; and two other employees, Sue Murphy and Linda Vest, alleging breach of an employment contract, slander, and the tort of outrage. The slander claim was dismissed on the joint stipulation of the parties.

Following oral argument and the submission of briefs and supporting documents, the trial court entered a summary judgment in favor of the defendants. As to the breach of contract claims, it held that Graham was an employee at will and that the Agency’s Manual did not “rise to the level of an employment contract sufficient to abrogate the ‘at-will’ nature of her employment.” The trial court held that the conduct of the defendants, while “in bad taste and insulting and not the kind of conduct to be recommended in dealing with employees,” did not rise to the level of conduct contemplated by Ameri[1216]*1216can Road Service Co. v. Inmon, 394 So.2d 361 (Ala.1981), as “outrageous.”

The Court of Civil Appeals affirmed the judgment, without opinion. Graham v. Community Action Agency of North Central Alabama, Inc. (No. 2941320), 682 So.2d 517 (Ala.Civ.App.1996) (table). This Court granted Graham’s petition for the writ of certiorari to review her argument that the Court of Civil Appeals’ decision conflicts with prior decisions of this Court on the question of when an employee handbook constitutes an employment contract.1

The employee handbook in issue here is the Agency’s “Personnel Policies and Procedures Manual” (“the Manual”), pertinent excerpts of which provide:

“These Personnel Policies and Procedures attempt to pull together certain laws, regulations, and policies governing the Ageney.[2] Some items in this document are recommendations and others are Agency and legal requirements. These Policies and Procedures have been carefully reviewed by the staff and Personnel Committee, who will continue to make policy changes as needed. This document, then, represents a continuing effort and not an end— a place from which we continue to work as our Agency seeks improvement.”
“The purpose of this Manual is to state specific policies of the Board, of Directors through which the Agency and its employees may achieve understanding of their responsibilities and obligations to each other. ...
“Further, it is recognized that no policy statement can cover every situation arising; therefore, matters not covered are subject to the approval of the Personnel Committee within the [purview] of its assignment by the Agency’s Board of Directors.”
“The Executive Director ... retains the responsibility and the right to hire, evaluate staff performance, promote, transfer, assign, retain employees in positions, suspend, demote, discharge or take disciplinary action against employees if a just cause exists; to reheve employees from duties because of a lack of work or for other legitimate reason.”
“Current Personnel Policies and Procedures will be issued to each employee. ... Approved revisions [of the personnel policies] in completed Manual format will be reproduced and copies win be distributed to all Agency employees along with a ‘Manual Revision Transmittal Memo’ providing instructions for removing outdated pages from the Manual and inserting the attached revised pages.
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“Current Personnel Policies and Procedures will be issued to each employee. As each employee receives these Policies, he/ she will be required to sign a receipt which will become a part of his/her personnel file.”
“Employees of the Agency will fall into one of five classes:
“1. Full-Time Employee: An employee who works a full-time normal work week of forty (40) hours and whose position is considered to be of a permanent nature; or an employee who works less than ... forty (40) hours, hired on a permanent basis.
“2. Probationary Employee: An employee, either full or part-time, who has not completed the probationary employment period [of] ninety (90) days.
“3. Permanent Employee: An employee hired on a full-time basis who has , served a satisfactory probationary period.
[1217]*1217“4. Temporary Employee:
“5. Volunteer Employee: .
“The purpose of the probationary period is to provide a period during which a new employee’s ability to function in a new position with the Agency can be evaluated. At any time during the ninety (90) days, the supervisor may recommend termination/or cause.”
“11.3 DISCIPLINARY ACTIONS
“The following types of disciplinary action will be utilized in enforcing Agency work rules and standards of conduct, the specific type and degree of disciplinary action to be determined by the nature of the offense. In making judgments, one or more of the following actions may be taken and no order is established.
“11.3.1 CORRECTIVE INTERVIEW
“When an employee has violated an Agency rule or regulation or for some other reason requires supervisory attention, the first step may take the form of a corrective interview ....
“11.3.2 PROBATION ....
“11.3.3 SUSPENSION WITH PAY .... “11.3.4 SUSPENSION WITHOUT PAY
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“11.3.5 INVOLUNTARY TERMINATION (DISMISSAL)
“When circumstances so warrant, an employee may be involuntarily terminated (discharged, dismissed, fired).
“Such action will be recommended by the employee’s supervisor and approved by the Executive Director following careful consideration of all aspects of the specific case. In the ease of a Head Start employee, the Head Start Policy Council has the responsibility for final approval or disapproval.
‘When an employee is terminated, a written notice of termination, which states the reason(s) for dismissal, will be signed by the employee’s supervisor and the Executive Director. ...
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“Any employee involuntarily terminated uñll be referred to the Grievance Procedures outlined in the Personnel Policies and Procedures Manual, which is in the possession of each employee.”

(Emphasis added.)

Section XV of the Manual is entitled “Grievance Procedures,” and it begins by stating that the purpose of “this policy is to provide a procedure for the prompt consideration and equitable disposition of formal grievances presented by individual employees of the Agency.” Subsection 15.4, “Formal Grievance Procedures,” contains this warning:

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Bluebook (online)
702 So. 2d 1215, 13 I.E.R. Cas. (BNA) 109, 1997 Ala. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-v-community-action-agency-of-north-central-alabama-inc-ala-1997.