Hollenback v. SHRINERS HOSPITALS

206 P.3d 337
CourtCourt of Appeals of Washington
DecidedApril 30, 2009
Docket26626-5-III
StatusPublished

This text of 206 P.3d 337 (Hollenback v. SHRINERS HOSPITALS) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hollenback v. SHRINERS HOSPITALS, 206 P.3d 337 (Wash. Ct. App. 2009).

Opinion

206 P.3d 337 (2009)

Cheryl L. HOLLENBACK, Appellant,
v.
SHRINERS HOSPITALS FOR CHILDREN (Spokane, Washington), Respondent.

No. 26626-5-III.

Court of Appeals of Washington, Division 3.

March 17, 2009.
Publication Ordered April 30, 2009.

*340 Michael J. McMahon, Jennifer C. Underwood, Etter, McMahon, Lamberson, Clary, Spokane, WA, for Appellant.

James M. Kalamon, Paine Hamblen LLP, Spokane, WA, for Respondents.

KULIK, A.C.J.

¶ 1 In 1996, Cheryl Hollenback was hired as an at-will employee by Shriners Hospitals for Children in Spokane, Washington. At the time she was terminated in 2006, Ms. Hollenback held the position of Director of Patient Care Services, one of three top management positions at Shriners. Ms. Hollenback reported harassment, discrimination, and fear of retaliation to Shriners resulting from problems caused by Chief of Staff Dr. Ronny Ferguson's romantic relationship with one of Ms. Hollenback's subordinates. Ultimately, Dr. Ferguson resigned, and Shriners terminated Ms. Hollenback.

¶ 2 Ms. Hollenback filed this action alleging retaliation, failure to provide specific treatment in specific situations, breach of contract, and wrongful discharge in violation of public policy. The trial court granted summary judgment in favor of Shriners and dismissed all of Ms. Hollenback's claims. Ms. Hollenback appeals. We affirm the trial court's dismissal of Ms. Hollenback's claims of wrongful discharge, failure to provide specific treatment, and breach of contract. We reverse the trial court's dismissal of her claim for retaliation.

FACTS

¶ 3 In 1996, Ms. Hollenback began working for Shriners as the Director of Nursing. On her job application, she acknowledged that her employment would be at-will and that only the Chairman of the Board of Trustees of Shriners Hospitals had the authority to alter the at-will relationship and that any alteration must be in writing. Once on the job, Ms. Hollenback received a copy of Shriners Hospitals for Children Employee Handbook (Employee Handbook). She signed a document dated August 1, 1996, acknowledging her receipt of the handbook, and her at-will employment at Shriners.

¶ 4 The Employee Handbook contains several policies, including an at-will employee policy and a policy concerning disciplinary procedures. The disciplinary policy states, in part, that: "Termination of employment may be warranted for severe actions without prior disciplinary action." Clerk's Papers (CP) at 160. Ms. Hollenback was aware that as a Shriners employee she could be terminated for severe infractions.

¶ 5 2003 Site Visit. One year after she was hired, Ms. Hollenback was promoted to Director of Patient Care Services (DPCS). In that position, Ms. Hollenback held one of three top management positions at Shriners. This group of managers was known as the "Triad." The two other members of the Triad were the Chief of Staff, Dr. Ronny Ferguson, and the Hospital Administrator, Charles Young.

*341 ¶ 6 In April 2003, Shriners adopted a new reporting structure. Under the new structure, Ms. Hollenback, as the DPCS, was to report to the hospital administrator, Mr. Young, for all nonpatient care issues, and to the Chief of Staff, Dr. Ferguson, for all patient care issues.

¶ 7 In August 2003, an investigative team conducted a site visit at Shriners to evaluate its strengths and weaknesses. The team consisted of several individuals from Shriners Corporate Headquarters in Florida and members of the local Board of Governors. The investigative team concluded that the most significant concern at Shriners was that the Triad was struggling to work together as a team.

¶ 8 Ms. Hollenback believed that the Triad was experiencing problems because of Dr. Ferguson's conduct. She felt that Dr. Ferguson was inconsistent and unsupportive, and an ineffective leader.

¶ 9 Ferguson/Blakely Relationship. Initially, the relationships within the Triad members improved after the 2003 Site Visit. However, by Spring 2005, communication among the members began to deteriorate. Ms. Hollenback felt that one of the reasons for the deterioration was that Karen Blakely, who reported to Ms. Hollenback, was in a romantic relationship with Dr. Ferguson.

¶ 10 In late 2005, Ms. Hollenback counseled Ms. Blakely on her performance and gave her a verbal warning. When Dr. Ferguson learned that Ms. Hollenback had disciplined Ms. Blakely, he contacted the local Chairman of the Board of Governors, Lawrence Tassie, and told him that he wanted Ms. Hollenback removed from her job.

¶ 11 December Investigation. Mr. Young and Dr. Ferguson each contacted Mr. Tassie about the problems between Dr. Ferguson and Ms. Hollenback. On December 12, 2005, Mr. Tassie contacted the Corporate Chairman of the Board of Trustees, Ralph Semb, and notified him that the Triad was continuing to have difficulties. Mr. Semb decided to send a team from Corporate Shriners to investigate.

¶ 12 On December 28, the investigative team from Corporate Shriners arrived in Spokane. The investigative team met with various employees. Ms. Hollenback told the team that she felt that Dr. Ferguson's relationship with Ms. Blakely had a negative impact on the hospital. During her meeting with the team, Ms. Hollenback was told that there was to be no retaliation against any employee who talked to the team. Ms. Hollenback admitted that she had an obligation to comply with the prohibition against retaliation and to avoid anything that would be perceived as retaliation.

¶ 13 During the investigation, Mr. Tassie and the members of Corporate Shriners had discussions on how to resolve the problems with the Triad. Mr. Semb suggested releasing all three members of the Triad, but no decision was reached. Corporate Shriners investigative team began a second round of meetings on January 23 and 24, 2006.

¶ 14 Ms. Hollenback's Letter to Mr. Young. Prior to the arrival of the investigative team, Ms. Hollenback gave Mr. Young an undated letter. In the letter, Ms. Hollenback stated that she was the subject of harassment as the direct result of Dr. Ferguson's relationship with Ms. Blakely. Ms. Hollenback also stated that Dr. Ferguson had retaliated against her for counseling Ms. Blakely. Ms. Hollenback expressed her fear that Dr. Ferguson would retaliate against her for reporting these problems.

¶ 15 On January 6, Ms. Hollenback gave the letter to Mr. Tassie, who shared the letter with Mr. Semb. Sometime after the December visit and before the January visit, Mr. Tassie told Ms. Hollenback that her performance was not being reviewed by the team.

¶ 16 January Investigation. Ms. Blakely resigned from Shriners on January 11, 2006, effective January 23. On January 23, the investigative team returned to Spokane. Several employees contacted Mr. Semb and asked to speak with him about their concerns related to Shriners Hospital.

¶ 17 On January 24, Mr. Semb held an all-staff town hall meeting. Ms. Hollenback attended this meeting. During the meeting, Mr. Semb explained that the investigative team was there to address some grave issues. *342 Mr. Semb also said that there would be no retaliation against employees who met with the team and that any retaliation would be dealt with severely.

¶ 18 After the town hall meeting, Mr. Semb again reminded Ms. Hollenback and Mr. Young that they were not to retaliate against any employees who spoke to the team or to engage in any conduct that could be perceived as retaliation.

¶ 19 On January 25, Mr. Tassie informed Mr. Young that his job and Ms. Hollenback's job were safe. Mr.

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