Green v. Ralee Engineering Co.

960 P.2d 1046, 78 Cal. Rptr. 2d 16, 19 Cal. 4th 66, 98 Cal. Daily Op. Serv. 6792, 14 I.E.R. Cas. (BNA) 449, 98 Daily Journal DAR 9379, 1998 Cal. LEXIS 5590
CourtCalifornia Supreme Court
DecidedAugust 31, 1998
DocketS060370
StatusPublished
Cited by290 cases

This text of 960 P.2d 1046 (Green v. Ralee Engineering Co.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Ralee Engineering Co., 960 P.2d 1046, 78 Cal. Rptr. 2d 16, 19 Cal. 4th 66, 98 Cal. Daily Op. Serv. 6792, 14 I.E.R. Cas. (BNA) 449, 98 Daily Journal DAR 9379, 1998 Cal. LEXIS 5590 (Cal. 1998).

Opinions

[71]*71Opinion

CHIN, J.

May administrative regulations be a source of fundamental public policy that limits an employer’s right to discharge an otherwise at-will employee? Although our Legislature has determined that an emplovment contract is generally terminable at either-party’s will (Lab. Code, § 2922),1 we have created a narrow exception to this ..rule, by-recognizing that an employer’s right to discharge an at-will employee is subject to limits that fundamental public policy imposes. (Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167, 172 [164 Cal.Rptr. 839, 610 P.2d 1330, 9 A.L.R.4th 314] (Tameny).) In Tameny, we drew from Petermann v. International Brotherhood of Teamsters (1959) 174 Cal.App.2d 184 [344 P.2d 25] (Petermann) to hold that at-will employees may recover tort damages from their employers if they can show they were discharged in contravention of fundamental public policy. (Tameny, supra, 27 Cal.3d at p. 177.) Both Tameny and Petermann relied on substantial public policy concerns to limit the employer’s discharge right, and subsequent cases have recognized similarly narrow public policy violations for discriminatory or retaliatory termination. (Tameny, supra, 27 Cal.3d at p. 172; Petermann, supra, 174 Cal.App.2d at p. 188 [perjury]; Stevenson v. Superior Court (1997) 16 Cal.4th 880, 894 [66 Cal.Rptr.2d 888, 941 P.2d 1157] (Stevenson) [age discrimination]; Rojo v. Kliger (1990) 52 Cal.3d 65, 90-91 [276 Cal.Rptr. 130, 801 P.2d 373] [sex discrimination].)

Following Tameny, supra, 27 Cal.3d 167, this court explained that employees who assert Tameny claims must show that the important public interests they seek to protect are “tethered to fundamental policies that are delineated in constitutional or statutory provisions.” (Gantt v. Sentry Insurance (1992) 1 Cal.4th 1083, 1095 [4 Cal.Rptr.2d 874, 824 P.2d 680] (Gantt).) Here, we address a related, albeit narrow issue. We must decide whether particular administrative regulations implementing the Federal Aviation Act of 1958 (72 Stat. 731, 49 U.S.C. former appen. § 1301 et seq., now § 40101 et seq.), a public safety statute that created the Federal Aviation Administration (FAA), should be included as a source of fundamental public policy that limits an employer’s right to discharge an at-will employee. Like the Court of Appeal, we conclude they should.

We continue to believe that, aside from constitutional policy, the Legislature, and not the courts, is vested with the responsibility to declare the public policy of the state. (See AIU Ins. Co. v. Superior Court (1990) 51 Cal.3d 807, 818, 824, fn. 10 [274 Cal.Rptr. 820, 799 P.2d 1253]; see also Hentzel v. Singer Co. (1982) 138 Cal.App.3d 290, 297 [188 Cal.Rptr. 159, [72]*7235 A.L.R.4th 1015] [Courts must not “mistake their own predilections for public policy which deserves recognition at law.”].) Recognizing this important distinction, however, does not allow us to ignore the fact that statutorily authorized regulations that effectuate the Legislature’s purpose to ensure commercial airline safety are “tethered to” statutory provisions.

We therefore affirm the Court of Appeal’s judgment in favor of Richard Green (plaintiff) and against Ralee Engineering Company (defendant), and we remand the matter for proceedings consistent with this judgment.

Discussion

A. Summary Judgment Rules

Because the case arises out of a summary judgment motion that the trial court originally granted, we initially note that under the 1992 and 1993 amendments to Code of Civil Procedure section 437c, a defendant moving for summary judgment “has met his or her burden of showing that a cause of action has no merit if that party has shown that one or more elements of the [plaintiff’s] cause of. action . . . cannot be established . . . .” (Code Civ. Proc., § 437c, subd. (o)(2).)2 Once the defendant satisfies this obligation, the burden shifts to the plaintiff “to show that a triable issue of one or more material facts exists as to that cause of action or a defense thereto.” (Code Civ. Proc., § 437c, subd. (o)(2).)

Both the trial courts and the appellate courts apply these principles in resolving summary judgment motions. “On appeal, however, the appellate court conducts an independent review of the trial court’s resolution of questions of law. [Citations.]” (Davis v. Consolidated Freightways (1994) 29 Cal.App.4th 354, 360 [34 Cal.Rptr.2d 438].) Keeping these rules in mind, we turn our attention to defendant’s appeal.

B. Facts

The principal facts alleged are these: Defendant manufactures fuselage and wing components for military and civilian aircraft. It supplies those parts to major airline assembly companies such as Boeing and to major war plane assembly companies such as Northrop. In 1968, defendant hired plaintiff as a quality control inspector. Plaintiff was an at-will employee, and, as such, could be discharged at any time, and for any reason not otherwise prohibited [73]*73by law. (§ 2922.) By the early 1990’s, plaintiff was in his 50’s and working the night shift as part of a 4-member team inspecting aircraft parts before defendant shipped them to Boeing, Northrop, and other aviation companies.

Beginning in 1990, plaintiff allegedly noticed defendant was shipping some airplane parts even though, according to plaintiff, they failed the inspections his team performed. On several occasions over the next two years, plaintiff objected to defendant’s practice to supervisory and management personnel and to the company president. Plaintiff made all of his complaints internally, and at no time did he complain to outside government sources.

According to plaintiff, his complaints met with varying results. Defendant corrected its practices to conform to Northrop’s contractual requirements. Nonetheless, defendant continued to ship allegedly defective parts to Boeing. In an effort to provide proof of the ongoing practice, plaintiff began photocopying the inspection reports, including some reports concerning parts destined for Boeing.

In March 1991, defendant shut down its night shift, citing a downturn in orders for the parts it produced. Defendant then discharged plaintiff along with other night shift employees. At the same time, defendant retained several other night shift inspectors, some with less experience than plaintiff.

Plaintiff filed a timely wrongful termination action against defendant. He alleged defendant terminated him in retaliation for his complaints about its inspection practices. Plaintiff also claimed his complaints served a broad public policy favoring aviation safety, entitling him to tort damages even though he was an at-will employee.

Defendant sought summary judgment against plaintiff. Defendant observed it was entitled to discharge plaintiff, an at-will employee, even if it was motivated by his objections to its inspection and shipping practices, because no statute or constitutional provision specifically prohibited these practices.

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960 P.2d 1046, 78 Cal. Rptr. 2d 16, 19 Cal. 4th 66, 98 Cal. Daily Op. Serv. 6792, 14 I.E.R. Cas. (BNA) 449, 98 Daily Journal DAR 9379, 1998 Cal. LEXIS 5590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-ralee-engineering-co-cal-1998.