Gruver v. Ezon Products, Inc.

763 F. Supp. 772, 1991 U.S. Dist. LEXIS 6428, 60 Empl. Prac. Dec. (CCH) 42,034, 64 Fair Empl. Prac. Cas. (BNA) 270, 1991 WL 81217
CourtDistrict Court, M.D. Pennsylvania
DecidedMarch 22, 1991
DocketCiv. A. 1:CV-90-2078
StatusPublished
Cited by10 cases

This text of 763 F. Supp. 772 (Gruver v. Ezon Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gruver v. Ezon Products, Inc., 763 F. Supp. 772, 1991 U.S. Dist. LEXIS 6428, 60 Empl. Prac. Dec. (CCH) 42,034, 64 Fair Empl. Prac. Cas. (BNA) 270, 1991 WL 81217 (M.D. Pa. 1991).

Opinion

MEMORANDUM

RAMBO, District Judge.

Before the court is defendant’s motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) counts III and IV of plaintiff’s complaint. The issues raised have been fully briefed, and the matter is ripe for consideration.

Background

Plaintiff Karen L. Gruver had been a warehouse worker employed by defendant Ezon Products. In her complaint, the allegations of which must be taken as true for the purpose of this motion, plaintiff states that during the course of her employment with Ezon she was subjected to various forms of sexual harassment by her supervisor, which, though reported to the company, went unpunished. Gruver alleges that this conduct led to an intolerable work environment, resulting in her constructive discharge in April 1989.

In November 1990 Gruver brought suit against her former employer, alleging that the company’s conduct violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. (hereinafter Title VII), and three pendent state law claims. Count II of the complaint, the first of the state law claims, posits that plaintiff’s rights under the Pennsylvania Human Relations Act, 43 Pa.Stat.Ann. §§ 951-963 (Purdon 1964) (hereinafter “PHRA”) were violated by the company’s conduct. In Count III, plaintiff argues that defendant, by allowing the harassment to go unpunished, breached a provision of an employment contract established by an employee handbook. Count IV lists a claim for intentional infliction of emotional distress.

Defendant brought this motion to dismiss the latter two claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted.

Discussion

I. Breach of Employment Contract Claim

In her complaint, plaintiff appears to be asserting that an employee handbook circulated by defendant established an employment contract with her. She does not appear to claim that she was entitled to be discharged without just cause under the contract, but rather that the company had breached one of the contract’s terms to plaintiff’s detriment. The term in question, excerpted from the handbook, reads:

E. SEXUAL HARASSMENT

It is the policy of Ezon Products Company to provide a work environment free of sexual harassment. Sexual harassment is defined as “unwelcomed sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature” between, any Ezon employees and extends to those with whom we conduct business, including outside vendors and customers.
Also, all management employees are strongly advised to avoid any social relationships with employees over whom they have supervisory control.
Sexual harassment will result in termination.

Employee Handbook at 23-24.

Plaintiff contends that the terms of the handbook, including the one cited above, became the guidelines for a unilateral employment contract when she accepted the job at Ezon. The clearest and most recent discussion of the standards for when a *774 handbook becomes part of an employment contract appears in Morosetti v. Louisiana Land and Exploration Co., 522 Pa. 492, 564 A.2d 151 (1989). Morosetti concerned a class action suit by employees of a company who, when their employer was sold, were given the option of accepting severance pay or positions with the purchasing company. After accepting positions with the new company, the plaintiff employees then claimed that they were entitled to severance pay as well. The defendant company admitted having a severance pay policy in place, but that it was not communicated to employees. The trial court directed a verdict for the plaintiffs, holding that a corporate handbook constituted the offer of severance pay, and the acceptance of employment the acceptance of the severance offer. Morosetti, 564 A.2d at 152.

The Pennsylvania Supreme Court disagreed, and held that there was no contract for severance pay. The court was swayed by the fact that, though the defendant company from time to time issued flyers announcing various employee benefits, it never made known the severance pay policy. The guidelines for the policy were outlined in a manual for the use of the personnel manager, but not put into general circulation.

This court is cognizant that nowhere in Morosetti does the Pennsylvania Supreme Court hold that a handbook distributed to employees after the commencement of employment becomes part of an employment contract. In fact, Justice Zappala, in his concurrence, takes pains to point out this distinction:

[T]his court has not yet addressed the issue as to whether an employee handbook unilaterally issued by an employer constitutes part of an employee’s contract of employment, [nevertheless] the dicta in the majority's opinion may be construed prematurely as controlling.... Having concluded that the uncommuni-cated personnel manual could not be equated with a handbook, the majority’s statement is of no precedential value. I write then only to emphasize that the issue of the effect of the distribution of an employee handbook has not been resolved by this Court....

Id. 564 A.2d at 153 (Zappala, J., concurring).

The majority opinion appears to narrowly circumscribe the situations where portions of a handbook may become, unilaterally, part of an employment contract. The court stated that an offer must be based on more than a general awareness of the existence of a policy — the term must be “intended, definite [and] specific.” The court went on to state that “[i]t is not sufficient to show they had a policy. It must be shown they offered it as binding terms of employment. A company may indeed have a policy upon which they intend to act, given certain circumstances or events, but unless they communicate that policy as part of a definite offer of employment they are free to change as events may require.” Id. 564 A.2d at 152 (citation omitted).

In arguing that the Ezon handbook created a binding contract with her, plaintiff asserts that it was reasonable that she should interpret the language of the handbook as creating a contractual provision in her favor. She was a woman entering a male-dominated warehouse work environment, and the sexual harassment provision in the handbook states in no uncertain terms that employees who engage in sexual harassment will be terminated.

Plaintiff may be correct that this handbook section was sufficiently definite to create a term of her employment. However, Morosetti requires that, for a policy to become part of an employment contract, it must be part of the offer of employment — an inducement to join the company.

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763 F. Supp. 772, 1991 U.S. Dist. LEXIS 6428, 60 Empl. Prac. Dec. (CCH) 42,034, 64 Fair Empl. Prac. Cas. (BNA) 270, 1991 WL 81217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gruver-v-ezon-products-inc-pamd-1991.