Harmon v. State

62 A.3d 1198, 2013 WL 563343, 2013 Del. LEXIS 91
CourtSupreme Court of Delaware
DecidedFebruary 15, 2013
DocketNo. 676, 2011
StatusPublished
Cited by21 cases

This text of 62 A.3d 1198 (Harmon v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harmon v. State, 62 A.3d 1198, 2013 WL 563343, 2013 Del. LEXIS 91 (Del. 2013).

Opinion

BERGER, Justice.

In this appeal we consider whether a jury verdict in favor of a racing official should be reinstated. The racing official, who had been suspended by the Delaware Harness Racing Commission (“Commission”), claimed that the Commission reneged on its promise to reinstate him. The jury agreed, but the trial court later determined that the racing official’s claim failed as a matter of law. We hold that the racing official’s promissory estoppel claim, which the jury accepted, subjected the Commission to liability. Accordingly, the trial court’s entry of judgment in favor of the Commission must be reversed. The trial court also held that the jury verdict was excessive and against the great weight of the evidence, thereby justifying a new trial. We disagree, and reinstate the jury’s verdict.

Factual and Procedural Background

In December 1998, the Commission hired Donald J. Harmon to serve as Presiding Judge. His job was to oversee both the racing and other racing officials. Harmon made sure the Commission’s rules were followed, and held hearings if racing participants were charged with infractions. As Presiding Judge he was employed at-will, and paid per diem.

In April 2003, Harmon allegedly changed the judging sheet for a qualifying race as a favor to the horse’s owner. The Commission investigated the allegations and, several months later, the Delaware State Police conducted an independent investigation. In January 2004, Harmon was charged with one misdemeanor and one felony based on Harmon’s alteration of the judging sheet. When the Commission learned about Harmon’s arrest, it suspended him without pay pending the outcome of the criminal case.

John Wayne was the Administrator of Racing during the relevant time period. Harmon asked Wayne to find out from the Commission whether he (Harmon) would be reinstated if he was acquitted on both charges. Wayne testified that he asked the commissioners, who looked at each other and then said he would be reinstated. The Commission authorized Wayne to advise Harmon accordingly.

Harmon was acquitted of the criminal charges, and promptly asked Wayne to discuss with the Commission getting his job back. The Commission agreed to meet with Harmon and his attorney to consider Harmon’s reinstatement. Ultimately, the Commission decided not to reinstate Harmon, and advised him by letter dated November 18, 2004. In January 2007, Harmon filed his complaint, which purported to allege claims for breach of good faith and fair dealing, abuse of process, violation of the Delaware Whistle Blower’s Act, and promissory estoppel. In January 2011, the trial court held a five day jury trial on the promissory estoppel claim. The jury entered a verdict of $102,273. The Commission then filed a motion for judgment as a matter of law or a new trial. The trial court granted both motions. This appeal followed.

Discussion

The first issue is whether the Commission, as a state agency, can be held liable on a promissory estoppel claim. To prevail on a promissory estoppel claim, a plaintiff must establish that:

[1201]*1201(i) a promise was made; (ii) it was the reasonable expectation of the promisor to induce action or forbearance on the part of the promisee; (iii) the promisee reasonably relied on the promise and took action to his detriment; and (iv) such promise is binding because injustice can be avoided only by enforcement of the promise.1

As a general rule, however, the “state is not estopped in the exercise of its governmental functions by the acts of its officers.” 2 The trial court relied on the general rule in holding that Harmon’s claim failed as a matter of law.

But, this Court has recognized an exception to the general rule in the context of employment. In Keating v. Board of Educ. of the Appoquinimink Sch. Dist.,3 a teacher was assured by the school principal that her contract would be renewed, but the school district Board of Education decided not to rehire the teacher. The trial court rejected the Board’s argument that promissory estoppel does not apply to “creatures of the State.”4 This Court affirmed.5 Harmon’s promissory estoppel claim is analogous, as it is based on the Commission’s failure to reinstate him after promising to do so.6 Accordingly, we conclude that Harmon’s claim does not fail as a matter of law.

The next issue is whether there was sufficient evidence for a rational juror to find each element of a promissory estoppel claim. The first element is a promise. The evidence readily supports a finding that the Commission promised to reinstate Harmon. Wayne testified that he posed the question to the Commission, and that the Commission members looked at each other and then said ‘Yes.” Wayne is the Administrator of Racing. By statute, the Administrator is the executive officer of the Commission. Wayne testified that the Commission expressly authorized him to give Harmon its answer.

The trial court found that there was no promise because Wayne had no actual authority to transmit the Commission’s decision to Harmon. “An agent acts with actual authority when, at the time of taking action that has legal consequences for the principal, the agent reasonably believes, in accordance with the principal’s manifestations to the agent, that the principal wishes the agent so to act.”7 The trial court reasoned that, because the Commission must act by a vote and no vote was taken before the members said ‘Yes,” Wayne could not have reasonably believed that the Commission wanted him to commit to reinstate Harmon. But the jury could have found actual authority on either of two bases. First, the fact that the Commission members all looked at each other before answering Wayne’s question could be construed as a vote, albeit an informal one. Second, the Commission did not address all matters by vote. It was not hiring or reinstating Harmon at the time Wayne conveyed its posi[1202]*1202tion to Harmon. The Commission was only promising to take action in the future. Under this view of events, the Commission had the authority to convey its promise to Harmon. In short, there was evidence to support a finding that the promise was made.

The second element of the claim is that the Commission reasonably expected Harmon to rely on Wayne’s representations. If Wayne’s testimony is credited, there is no real dispute about this point. The third element is that Harmon reasonably relied on the Commission’s promise and took action to his detriment. Harmon testified that, but for the Commission’s promise to reinstate him, he would have looked for other work in Delaware or another state. He was offered several horse training opportunities, but he could not pursue them because, if he did, he would not be allowed to return to his position as a judge for one year. Harmon also considered applying to be a judge in another jurisdiction, but decided that he could not start elsewhere and walk away from a new position as soon as he was reinstated in Delaware. This testimony, if credited by the jury, satisfies Harmon’s burden of showing reliance to his detriment.

The final element of a promissory estoppel claim is a finding that the promise must be enforced to avoid injustice. That is another way of saying that it would be unjust not to enforce the Commission’s promise because Harmon suffered damages by relying on it.

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

Related

NICbyte, LLC v. StarTop Investments, LLC
Court of Chancery of Delaware, 2026
Untitled Case
D. Delaware, 2026
Welgo, Inc. v. Wellgistics, LLC
Court of Chancery of Delaware, 2024
Wellgistics, LLC v. Welgo, Inc.
Superior Court of Delaware, 2024
Davis v. Town of South Bethany Beach
Superior Court of Delaware, 2022
Hyetts Corner, LLC v. New Castle County
Court of Chancery of Delaware, 2021
Parke Bancorp Inc. v. 659 Chestnut LLC
Supreme Court of Delaware, 2019
Lively v. Government Employees Insurance Company
Superior Court of Delaware, 2018
Richardson v. Board of Pension Trustees
Supreme Court of Delaware, 2017
Yenchi, E. v. Ameriprise Financial, Aplts.
161 A.3d 811 (Supreme Court of Pennsylvania, 2017)
Hydrogen Master Rights, Ltd. v. Weston
228 F. Supp. 3d 320 (D. Delaware, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
62 A.3d 1198, 2013 WL 563343, 2013 Del. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harmon-v-state-del-2013.