Havill v. Woodstock Soapstone Co.

2004 VT 73, 865 A.2d 335, 177 Vt. 297, 21 I.E.R. Cas. (BNA) 1130, 2004 Vt. LEXIS 251
CourtSupreme Court of Vermont
DecidedAugust 13, 2004
DocketNo. 03-032
StatusPublished
Cited by10 cases

This text of 2004 VT 73 (Havill v. Woodstock Soapstone Co.) 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
Havill v. Woodstock Soapstone Co., 2004 VT 73, 865 A.2d 335, 177 Vt. 297, 21 I.E.R. Cas. (BNA) 1130, 2004 Vt. LEXIS 251 (Vt. 2004).

Opinion

Johnson, J.

¶ 1. Defendant Woodstock Soapstone Company appeals the trial court’s conclusions that plaintiff Lois Havill had an implied employment contract with defendant and that defendant breached that contract when it discharged plaintiff without adhering to the procedures for just cause firings detailed in defendant’s personnel policies. Defendant also appeals various aspects of the trial court’s damage award of front and back pay as excessive or unwarranted. Plaintiff cross-appeals the trial court’s damage award because it makes no provision for bonuses and wages plaintiff might have earned but for her improper discharge and because plaintiff claims the court made other errors calculating her award. We affirm the trial court’s conclusions regarding the existence of the implied contract and defendant’s liability for violating that contract, but remand for a recalculation of damages.

I. Contractual Liability

¶ 2. Defendant manufactures wood-burning and gas-burning stoves. Plaintiff began working for defendant in 1982. She worked part-time at first and then full-time, until she was terminated in April 1987 when the company was experiencing financial difficulties. Plaintiff resumed employment with defendant in 1990 working initially as an independ[300]*300ent contractor from her home and later that year as a part-time employee in defendant’s office. Defendant made plaintiff a full-time employee in August 1994.

¶ 3. In 1994, defendant also issued and distributed personnel policies, which were the functional equivalent of a personnel manual. The policies detailed a process whereby an employee was entitled to two written warnings in a twelve-month period prior to termination for “willful or repeated violations, or exaggerated behavior not in the best interest of the company or its employees.” Most significantly, the policies established a “just cause” requirement for the termination of defendant’s employees with problems such as unauthorized absences, violation of safety procedures, theft, careless or faulty work, and incompatibility with other employees. According to the policies, employees’ “responsibilities will often change, and responsibilities will often be broad and/or overlapping with responsibilities of other employees.”

¶ 4. The trial court found that when plaintiff resumed employment with defendant in 1990 her duties included data entry, database maintenance, and mailings to prospective customers. The trial court’s findings detail the expansion of plaintiff’s responsibilities into the area of customer service and sales, primarily on the telephone and occasionally in the showroom. The trial court estimated, based on testimony of both plaintiff and defendant, that sales and customer service activities were twenty-five percent of plaintiff’s work by 1997. Plaintiff received “very positive” performance reviews in 1995 and 1996 as well as a $1000 bonus in August 1997. The performance reviews in evidence indicated that plaintiff was steadily improving at sales and customer service on the telephone, though she remained reluctant to do this work. The reviews encouraged plaintiff to take a more active role in this regard. Plaintiff also testified that during the slow work seasons when she offered to go home without pay, defendant’s president required her to stay so she could work the telephones, reasoning that if she even made one sale it would be worth it to the company.

¶ 5. Meanwhile, defendant’s business was declining seriously for various market-related reasons. Many of defendant’s competitors went out of business. This led defendant’s president, Tom Morrissey, to reorganize the company by adding a line of gas-burning stoves and outsourcing in-house functions, including many of the letter shop and order fulfillment functions that comprised much of plaintiff’s workload. As part of this reorganization, defendant hired Laura Scott to stream[301]*301line the operation. There is no dispute that this reorganization was warranted by outside economic factors, that it actually occurred, and that it had a positive effect on the business.

¶ 6. All parties agree that tension developed between plaintiff and Scott soon after Scott’s arrival. Plaintiff felt humiliated by the way Scott dealt with her. Scott and Morrissey began to perceive that plaintiff was resisting the reorganization. The conflict between Scott and plaintiff manifested itself in instances of plaintiff’s “rude” and “insubordinate” conduct towards Scott. In response, Morrissey sent plaintiff a letter dated September 30, 1997, in which he stated, “As a courtesy to you, and in light of the length of time you have worked here, you are not being issued a written warning now,” although a newer employee would have received one. The letter goes on to reprimand plaintiff for her unacceptable behavior toward Scott the prior week, to indicate that she was being temporarily relieved of her customer service duties, and criticized her for not voluntarily participating in a team building lunch for all employees.

¶ 7. The letter was written forty-one days before plaintiff was terminated. Nonetheless, Morrissey’s letter states that “[t]o accommodate any additional growth we need customer service people who are flexible, professional and cooperative team players. I need to know if you will make a commitment to accommodate our needs. This decision is really yours to make.” The letter also states that if plaintiff “cannot make this commitment now, and regularly in the future, then we will do everything we reasonably can to help [plaintiff] secure another job,” but that Morrissey “would like to have [plaintiff] continue to work here” because Morrissey valued her hard work and dedication and considered her a friend.

¶ 8. On October 1,1997, plaintiff entered into a written agreement with Morrissey and Scott in which they all pledged to cooperate as team members in the best interests of the company. Despite these efforts, defendant terminated plaintiff on November 10,1997. According to plaintiff’s testimony as recounted in the court’s findings, when plaintiff asked Morrissey the reason for her termination, he replied “I don’t know why. You just are.” Plaintiff did not receive any written warnings prior to termination. Subsequently, plaintiff obtained her personnel file, which contained a memo dated November 10, 1997 indicating that her position had been eliminated due to lack of work. The memo also indicated that defendant would not object to plaintiff’s [302]*302application for unemployment benefits and that the company would provide a written recommendation letter for plaintiff.

¶ 9. Defendant did in fact provide a recommendation letter for plaintiff authored by Morrissey. The trial court noted that the letter speaks of plaintiff in “fairly glowing terms.” The letter lauds plaintiff as someone who would be a “big asset in a busy office which requires organization, dedication and sound office skills.” Two weeks after providing plaintiff with the letter, defendant placed an ad in the Valley News seeking an “office whiz” who would be “a well organized person with fast and accurate typing and keyboard ability, basic computer literacy, and sound office skills.” The advertisement indicated that the position was full-time with benefits, generous pay and incentives, and the company was growing. The evidence shows that Heather Dahlin responded to this advertisement and was hired. She worked for the company handling telephone inquiries, taking and processing orders, bookkeeping, and other miscellaneous tasks until she quit in November 1998.

¶ 10.

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Bluebook (online)
2004 VT 73, 865 A.2d 335, 177 Vt. 297, 21 I.E.R. Cas. (BNA) 1130, 2004 Vt. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havill-v-woodstock-soapstone-co-vt-2004.