Haverly v. Kaytec, Inc.

738 A.2d 86, 169 Vt. 350, 16 I.E.R. Cas. (BNA) 91, 1999 Vt. LEXIS 202
CourtSupreme Court of Vermont
DecidedJune 18, 1999
Docket96-430
StatusPublished
Cited by25 cases

This text of 738 A.2d 86 (Haverly v. Kaytec, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haverly v. Kaytec, Inc., 738 A.2d 86, 169 Vt. 350, 16 I.E.R. Cas. (BNA) 91, 1999 Vt. LEXIS 202 (Vt. 1999).

Opinions

Skoglund, J.

Plaintiff Philip Haverly appeals from a jury verdict for defendant Kaytec, Inc., claiming that the court erred by (1) admitting in evidence a statement made by him in an application for unemployment benefits, (2) denying a motion to amend his negligent supervision complaint, and (3) granting defendant’s motion for judgment as a matter of law on plaintiff’s negligent supervision claim. We affirm.

In April 1992, defendant hired plaintiff to work as an electrician’s assistant in its Richford facility. Soon after starting the job, plaintiff complained to management about vapors and noise levels in the plant and subsequently filed a complaint with the Vermont Occupational Safety and Health Office (VOSHA). VOSHA sent an investigator, who discovered violations of its regulations. After the VOSHA inspection, plaintiff claimed that in retaliation for filing the complaint,' his co-workers and supervisors began to harass, intimidate, and threaten him, and that these incidents frightened him to such an extent that he could no longer work for Kaytec. He left his job in October 1992.

Plaintiff filed this suit in October 1994, alleging he was constructively discharged in retaliation for calling VOSHA. Plaintiff pleaded two claims for recovery: (1) Kaytec violated 21 V.S.A. § 231 by discriminating and retaliating against him for complaining about [352]*352work place health and safety regulations, and (2) Kaytec negligently failed to prevent its employees from violating 21 V.S.A. § 231.

I.

Plaintiff first argues that the court violated 21 V.S.A. § 1314(d)(1) by admitting into evidence a statement made by him to the Vermont Department of Employment and Training a year after he left Kaytec. The statement was made in support of an application for unemployment benefits from his subsequent employer, Electronic Hospital. In the statement, plaintiff referred to his job at Kaytec as a “good paying and secure job with . . . many benefits.” Plaintiff claims that the statement was a privileged communication under the statute, and was therefore inadmissible.

Section 1314(d)(1) provides in relevant part:

Except as otherwise provided in this chapter, information obtained from any employing unit or individual in the administration of this chapter, and determinations as to the benefit rights of any individual shall be held confidential and shall not be disclosed or open to public inspection in any manner revealing the individual’s or employing unit’s identity, nor be admissible in evidence in any action or proceeding other than one arising out of this chapter. . . .

21 V.S.A. § 1314(d)(1) (emphasis added). The purpose behind this section is to encourage full, free and honest reporting to the Vermont Department of Employment and Training by protecting the identities and statements of both employers and employees. Cf. Hinojosa v. Joslyn Corp., 635 N.E.2d 546, 547 (Ill. App. Ct. 1994) (state laws prohibiting disclosure of unemployment compensation are meant to advance the administration of unemployment compensation laws by encouraging complete and accurate reporting from claimants and their employers); Simpson v. Oil Transfer Corp., 75 F. Supp. 819, 822 (N.D.N.Y. 1948) (law may only be properly administered when interpreted so as to encourage full, free and truthful reports from both employer and employee).

Plaintiff cites to cases from other jurisdictions enforcing the confidentiality of unemployment information. These cases, unlike this case, involved either former employees or employers as defendants in litigation, who used the privilege as a shield against civil and criminal liability. See id. (holding that statements cannot be used as basis for [353]*353an action for libel); Goggins v. Hoddes, 265 A.2d 302 (D.C. 1970) (action for libel); Hinojosa, 635 N.E.2d at 547 (confirming that privilege applies to defendant employers as well as employees); People v. Ellis, 470 N.E.2d 524, 526 (Ill. App. Ct. 1984) (holding that statements cannot be used as basis for criminal liability); Ohio Civil Rights Comm’n v. Campbell, 345 N.E.2d 438, 440-42 (Ohio Ct. App. 1975) (holding that statements cannot be used in support of civil rights charges).

Here, plaintiff is not using the privilege as a defense to a civil or criminal charge, but as a means of precluding relevant evidence from being introduced in a proceeding initiated by him. To hold that such statements are protected under this situation would do nothing to further the purpose of full, free and honest reporting, but might enable litigants to unfairly secure more than they deserve by bringing collateral litigation. We hold that by bringing this action and putting his reasons for leaving Kaytee at issue, plaintiff waived any protection he may have had under 21 V.S.A. § 1314(d)(1) with respect to statements made by him to the Vermont Department of Employment and Training. See Mattison v. Poulen, 134 Vt. 158, 163, 353 A.2d 327, 329-30 (1976) (applying same principle to doctor/patient privilege under 12 V.S.A. § 1612). Plaintiff cannot in one breath claim protection from disclosure under 21 V.S.A. § 1314(d)(1) and in another bring an action for damages putting the content of those statements directly at issue. To do so would be to make the privilege not merely a shield, but a sword as well. See State v. Valley, 153 Vt. 380, 395, 571 A.2d 579, 586-87 (1989).

II.

Plaintiff’s final two arguments both pertain to his negligence claim. On the first day of trial, defendant brought a motion for judgment on the pleadings under V.R.C.P. 12(b)(6), requesting that the court dismiss plaintiff’s negligence claim for failing to state a valid claim. Defendant argued that the Vermont Occupational Health and Safety Act preempted any common law right of action, including negligence, for “whistleblowing.” Plaintiff contended that the negligent supervision claim was a tort claim, and not brought under VOSHA. Plaintiff did not elucidate how the negligent supervision claim was based on the common law. The court deferred ruling on defendant’s motion to dismiss.

Midway through trial, the court sought clarification of plaintiff’s negligent supervision claim. After reviewing plaintiff’s pleadings and [354]*354requests for jury instructions, the court expressed its understanding that the negligent supervision action was based on an intentional or constructive discharge or discrimination claim, i.e., that management wrongfully allowed a violation of the VOSHA statute to occur. Counsel for plaintiff initially agreed with the court’s description of the claim and stated that the negligent supervision “caused discrimination or discharge.” The court, however, indicated that if the tort of negligent supervision was being raised, plaintiff must produce evidence of a wrong done to him that was different than the statutory violation alleged in Count I of his complaint. Plaintiff then pointed to evidence of verbal and physical abuse.1

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Bluebook (online)
738 A.2d 86, 169 Vt. 350, 16 I.E.R. Cas. (BNA) 91, 1999 Vt. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haverly-v-kaytec-inc-vt-1999.