Hunter v. Board of Trustees

481 N.W.2d 510, 1992 WL 7003
CourtSupreme Court of Iowa
DecidedMarch 20, 1992
Docket90-1078
StatusPublished
Cited by47 cases

This text of 481 N.W.2d 510 (Hunter v. Board of Trustees) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunter v. Board of Trustees, 481 N.W.2d 510, 1992 WL 7003 (iowa 1992).

Opinion

SNELL, Justice.

The appellants, the Board of Trustees of Broadlawns Medical Center (BMC), and Williám L. Meyer, the former executive director of BMC, appeal an adverse judgment rendered in favor of a former BMC employee, Quentin H. Hunter, the appellee herein. Hunter alleged that the termination of his employment was in violation of his employment contract with BMC. He further alleged that Meyer tortiously interfered with that contract and directly brought about its wrongful termination. After a jury verdict in favor of Hunter, the district court entered judgment in the amount of $521,462 against the trustees and in the amount of $173,821 against Meyer. Additional counsel for appellants, David L. Brown, joined for post trial and appellate proceedings. We now affirm the trial court’s decision in all respects.

Hunter was hired by BMC in 1974 by the then-current Executive Director, Charles Ingersoll. From that date until 1977, he served as the Director of the Alcoholism Department. In 1977, he was appointed to the position of Broadlawns Director and Associate Executive Director. As Broad-lawns Director, he reported directly to the Executive Director of the hospital. The position of Associate Executive Director required Hunter to serve as acting Executive Director whenever that need should arise. Except for his first year with BMC, Hunter had no individualized contract of employment.

In 1984, BMC approved and circulated a manual of personnel policies (MPP). Although the manual addresses a variety of personnel matters, the only sections relevant to the instant dispute are sections XIII and XVIII. Section XIII reads, in pertinent part, as follows:

XIII. SEPARATION OF EMPLOYMENT
A. POLICY: BROADLAWNS MEDICAL CENTER STRIVES TO PROVIDE AN ORDERLY EXIT PROCESS FOR EMPLOYEES WHO ARE SEPARATED FROM EMPLOYMENT THROUGH RESIGNATION, RETIREMENT OR WHO ARE DISCHARGED FOR *512 CAUSE. THE EMPLOYEE’S LAST DAY WORKED IS THE EFFECTIVE DATE OF SEPARATION. BROAD-LAWNS MEDICAL CENTER REGRETS THE LOSS OF SERVICES OF AN EMPLOYEE, BUT IT IS UNDERSTANDABLE THAT SEPARATIONS OF EMPLOYEES OCCUR. THE TYPES OF SEPARATIONS ARE:
1. VOLUNTARY RESIGNATION: EMPLOYEE-INITIATED SEPARATION WITH PROPER NOTICE.
2. VOLUNTARY QUIT: EMPLOYEE-INITIATED SEPARATION WITHOUT PROPER NOTICE.
3. RETIRED: AT EMPLOYEE’S OR BROADLAWNS MEDICAL CENTER’S REQUEST.
4. THREE (3) DAY QUIT: EMPLOYEE FAILED TO REPORT TO WORK FOR THREE CONSECUTIVE DAYS WITHOUT NOTIFYING IMMEDIATE SUPERVISOR, THEREFORE, EMPLOYEE IS CONSIDERED TO HAVE ABANDONED POSITION.
5. EXPIRED LEAVE: FAILURE OF EMPLOYEE TO REPORT TO WORK AT THE END OF AN AUTHORIZED UNPAID LEAVE OF ABSENCE.
6. DISCHARGED: BROADLAWNS MEDICAL CENTER INITIATES SEPARATION FOR CAUSE.
7. STAFF REDUCTION: BROAD-LAWNS MEDICAL CENTER INITIATES EMPLOYEE LAY OFF TO REDUCE STAFF WHEN DEEMED NECESSARY.
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B. PROCEDURES:
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7. STAFF REDUCTION: BROAD-LAWNS MEDICAL CENTER MAY AT ITS SOLE DISCRETION LAYOFF AN EMPLOYEE WHENEVER IT IS DEEMED NECESSARY. SEPARATION BY REDUCTION IN FORCE WILL BE ACCOMPLISHED IN A SYSTEMATIC MANNER. (SEE SECTION XVIII. STAFF REDUCTION).

Section XVIII, which is entitled “Staff Reduction — General Policy Statement,” outlines a detailed procedure for determining which employees will be subject to separation as a result of any given staff reduction. The section XVIII procedures include a ranking system, based on performance evaluations and years of service, as well as an in-house appeals process for contesting separation decisions.

The next event of significance was the retirement of Charles Ingersoll in 1987. BMC filled the vacant post of executive director by hiring William L. Meyer, one of the appellants, on January 1, 1987. One month after assuming the position of executive director, Meyer terminated Hunter’s employment, purportedly pursuant to a “staff reduction” as described in section XIII A.7 of the MPP. Approximately two months after Hunter’s termination, Meyer created a new position styled “Director of Professional and Support Services” and filled this position with a former coworker from Kansas, Orlin “Chick” Cunningham.

Hunter challenged his discharge of employment by filing suit for breach of contract by BMC and tortious interference with a contractual relationship on the part of Meyer. Prior to trial, both parties moved for summary judgment. The trial judge ruled as a matter of law that the MPP constituted a binding employment contract between BMC and Hunter. The court concluded that the contract limited BMC’s right to terminate an employee to one of the seven events described in section XIII A. of the MPP. The remaining issues — whether BMC breached that contract in terminating Hunter’s employment and whether Meyer tortiously interfered with the contract — were tried before a jury.

In support of his position that BMC breached the employment contract, Hunter offered the testimony of Professor Ira Do-lich, Ph.D, former dean of the College of Business and Public Administration at Drake University. Professor Dolich opined that Hunter’s former position as Broad-lawn’s Director was not truly eliminated as would be the case with a true “staff reduction.” Instead, Professor Dolich concluded that Hunter’s former position was merely retitled from “Broadlawn’s Director” to “Director of the Division of Professional *513 and Support Services,” a position then held by Meyer’s former coworker from Kansas, Orlin “Chick” Cunningham.

The jury apparently accepted Professor Dolich’s characterization of the facts and, accordingly, rendered a verdict charging BMC with breach of contract. As noted above, a verdict in favor of Hunter was also returned on the tortious interference with a contractual relationship claim.

BMC and Meyer seek reversal of the judgments entered against them on the basis of four asserted errors. First, they argue that the question as to whether the MPP constitutes a contract should not have been decided as a matter of law. In a related contention, appellants maintain that, even if the decision was properly decided as a matter of law, the conclusion that the MPP constitutes a contract is erroneous. Second, appellants assert that, if the MPP does give rise to a contract between Hunter and BMC, damages for future wages were not appropriate. In appellants’ third asserted error, they argue that Hunter’s claim for tortious interference with a contractual relationship should fail given that the alleged tortfeasor was an agent of the party in breach; it is also claimed that Hunter’s recovery in the tort action is duplicative of the award given in the breach-of-contract action. Finally, appellants challenge the admissibility of the testimony given by Hunter’s expert witness, Professor Dolich.

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Bluebook (online)
481 N.W.2d 510, 1992 WL 7003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunter-v-board-of-trustees-iowa-1992.