Hayes v. Eateries, Inc.

1995 OK 108, 905 P.2d 778, 11 I.E.R. Cas. (BNA) 110, 66 O.B.A.J. 3281, 1995 Okla. LEXIS 129, 1995 WL 608161
CourtSupreme Court of Oklahoma
DecidedOctober 17, 1995
Docket78,415, 78,761
StatusPublished
Cited by91 cases

This text of 1995 OK 108 (Hayes v. Eateries, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. Eateries, Inc., 1995 OK 108, 905 P.2d 778, 11 I.E.R. Cas. (BNA) 110, 66 O.B.A.J. 3281, 1995 Okla. LEXIS 129, 1995 WL 608161 (Okla. 1995).

Opinion

LAVENDER, Justice.

This case has its genesis in the discharge of appellant, John M. Hayes from his employment as an assistant manager at a Garfield’s restaurant. We decide whether the trial court correctly granted the motion to dismiss of the employer, appellee, Eateries, Inc., d/b/a Garfield’s, for failure of Hayes to state • a claim against it upon which relief could be granted, made pursuant to 12 O.S. 1991, § 2012(B)(6). We hold Hayes’ petition was insufficient to state a claim to continued employment under either an express or implied contract theory, and it was insufficient to state a claim for the public policy tort exception to the employment-at-will doctrine. Accordingly, we affirm the trial court’s dismissal.

I. STANDARD FOR REVIEWING MOTION TO DISMISS.

Review of a trial court’s dismissal for failure to state a claim upon which relief can be granted is de novo and involves consideration of whether a plaintiffs petition is legally sufficient. Gay v. Akin, 766 P.2d 985, 989 f.n. 13 (Okla.1988). When reviewing such a dismissal an appellate court must take as true all of the challenged pleading’s allegations together with all reasonable inferences which may be drawn from them. Great Plains Federal Savings and Loan Association v. Dabney, 846 P.2d 1088, 1090 f.n. 3 (Okla.1993). “A pleading must not be dismissed for failure to state a legally cognizable claim unless the allegations indicate beyond any doubt that the litigant can prove no set of facts which would entitle him to relief.” Frazier v. Bryan Memorial Hospital Authority, 775 P.2d 281, 287 (Okla.1989) (emphasis in original). The above standards -guide our review in this case.

II. FACTS AND PROCEDURAL HISTORY.

Hayes alleged two causes of action or theories of recovery in his trial court petition. The following facts are taken from the petition, unless otherwise indicated. In support of his first theory Hayes alleged essentially the following: In May 1990 he had been employed at the Stillwater Garfield’s for about two years- and had recently been promoted to assistant manager. He was led to believe he would be employed as long as he did an adequate job and performed his duties. On May 29, 1990, Hayes was terminated despite the fact he had at all times *781 performed Ms job satisfactorily and there were no grounds for Ms discharge. Hayes was terminated m violation of Ms contractual entitlement to contmued employment.

In support of his second theory Hayes alleged: He was discharged because he reported and was attemptmg to mvestigate theft of property and embezzlement from Garfield’s. Accordingly, Ms discharge violated the public policy of Oklahoma and constituted the tort of wrongful discharge.

As can be seen, the allegations in Hayes’ petition are extremely general. He does not indicate the person who termmated him, who he believed was embezzling from Garfield’s, or who he reported any theft or embezzlement to. From what we can glean from Hayes’ brief in the trial court and Ms submissions on appeal it appears he asserts it was his supervisor, i.e. the manager at the Still-water Garfield’s, that was embezzling money from the restaurant, that Hayes either directly or indirectly confronted tMs manager with Ms concern about missmg money, that the manager had Hayes sign a statement that he, Hayes, had left the restaurant and/or restaurant safe uMocked on one occasion and that it was this manager who termmated him. We also glean from Hayes’ submissions that he was gomg to eontmue to mvestigate the embezzlement he had uncovered and he was gomg to report it and tMs is the reason the manager fired Hayes. Hayes also informs us m his appellate submissions that after Ms discharge the manager was actually charged and convicted of six counts of embezzlement from Garfield’s.

In essence then, Hayes asserted two claims. The first a breach of contract claim based on oral assurances from Ms supervisors that Ms employment with Garfield’s would continue so long as he satisfactorily performed Ms job or his good job performance contmued. Second, a tort claim, al-legmg violation of the public policy exception to the employment-at-will doctrine under Burk v. K-Mart Corp., 770 P.2d 24 (Okla.1989). Garfield’s moved to dismiss Hayes’ petition for failure to state a claim upon wMch relief could be granted. The trial court granted the motion, Hayes appealed and the Court of Appeals affirmed. 1 We previously granted certiorari to decide whether either theory advanced stated a claim sufficient to overcome or act as an exception to the employment-at-will doctrine.

III. EXCEPTIONS TO THE EMPLOYMENT-AT-WILL DOCTRINE.

Where an employment contract is of indefimte duration, it is terminable at will by either party. Singh v. Cities Service Oil Company, 554 P.2d 1367, 1369 (Okla.1976). In Burk v. K-Mart, supra, tMs Court recognized that, under the classic statement of the at-will rule “an employer may discharge an employee for good cause, for no cause or even for cause morally wrong, without bemg thereby guilty of legal wrong.” 770 P.2d at 26. However, the employment-at-will doctrine has been judicially limited by exceptions that restrict the grounds on which an at-will employee may be discharged. Hayes *782 relies on two exceptions to the at-will doctrine: (1) breach of contract that he contends restricts the employer’s power to discharge, and (2) public policy tort under Burk v. K-Mart, supra. We now turn to a discussion of both.

III(A). THE BREACH OF CONTRACT EXCEPTION.

Hayes argues that an otherwise at-will employee who has been discharged may maintain an action for breach of contract where the at-will presumption is rebutted by a contractual promise of continued employment. In his petition, Hayes claims “[he] was led to believe that he would be employed as long as he did an adequate job and performed his duties,” i.e. as long as he performed his job satisfactorily. In addition to these oral assurances, he points to his recent promotion to assistant manager, which his appellate submissions indicate was approximately two months prior to his discharge, to support his claim. Relying on these purported representations and the recent promotion he urges he had a contractual claim to job security which was breached by his discharge. He also urges that because Oklahoma recognizes no distinction between oral and written promises as providing a valid basis for a breach of contract action, except for cases falling within the statute of frauds, he has sufficiently stated a claim for breach of contract. In essence, what Hayes is alleging is that the alleged oral assurances he relies upon, i.e. he would be employed as long as he did an adequate job and/or performed his duties satisfactorily, constituted a binding agreement that protected him from discharge except for “just cause”. We disagree.

The trial court dismissed Hayes’ breach of contract claim, finding him to be an employee-at-will with no contractual entitlement to continued employment.

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Bluebook (online)
1995 OK 108, 905 P.2d 778, 11 I.E.R. Cas. (BNA) 110, 66 O.B.A.J. 3281, 1995 Okla. LEXIS 129, 1995 WL 608161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-v-eateries-inc-okla-1995.