Irvin v. Community Bank

717 So. 2d 369, 13 I.E.R. Cas. (BNA) 402, 1997 Ala. Civ. App. LEXIS 710, 1997 WL 546027
CourtCourt of Civil Appeals of Alabama
DecidedSeptember 5, 1997
Docket2960935
StatusPublished

This text of 717 So. 2d 369 (Irvin v. Community Bank) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Irvin v. Community Bank, 717 So. 2d 369, 13 I.E.R. Cas. (BNA) 402, 1997 Ala. Civ. App. LEXIS 710, 1997 WL 546027 (Ala. Ct. App. 1997).

Opinion

CRAWLEY, Judge.

In 1992, Billy Irvin was employed by the Community Bank (the “Bank”) as a vice-president and loan officer. He worked in the Bank’s branch located in Blountsville. In May 1995, the Bank offered Irvin a promotion to president of the Snead branch of the Bank, with the express condition that Irvin move to the Snead area. Irvin expressed some concern over the possibility that he might take a loss on his house if he attempted to sell; however, he was assured that the Bank was drafting a policy that would allow the Bank to purchase the homes of relocated Bank officers. He accepted the promotion and began serving as the Snead branch president on May 15,1995.

According to Irvin, the Bank responded to his concerns by enacting a “relocation policy,” under which the Bank would offer to purchase the home of a promoted bank officer in order to effectuate a speedy and problem-free relocation. The relocation policy was approved by the Bank on June 20, 1995, and it was distributed to Irvin and the Bank’s other employees on or about July 10. The policy reads:

“Community Bank will offer to purchase the existing home at a price to be determined by an appraisal performed by the Senior Appraiser of Community Bank Appraisal, Inc., based upon the reasonable market value for a sale within 6 to 12 months market exposure. Community Bank would not expect to suffer any loss in the sale of such Real Estate, except for the cost of funds for the period of time necessary to sell said home. After the appraisal is completed, the officer shall have 10 days to accept or reject such offer.
“The Board of Directors will require a full and complete relocation to occur within 30 days whether the offer is accepted or rejected.”

Although he accepted the promotion and began serving as president of the Snead branch, Irvin made no attempts to sell his Blountsville home between May and September 1995. In his deposition testimony, Irvin states that he was waiting for the Bank to make its offer under the relocation policy. He did, however, attempt, without success, to find a suitable home in Snead. In September, in accordance with the relocation policy, the Bank had Irvin’s house appraised, and it made an offer on the house on September 13, 1995. Irvin expressed some dissatisfaction with the offer, but he did not accept or reject it. However, on September 21, 1995, before the expiration of the 10-day period in which he was allowed to accept or reject the Bank’s offer, Irvin was terminated.

He sued the Bank, alleging that the Bank had breached its contract with him and requesting damages to compensate him for lost benefits and wages, mental anguish, and loss of reputation in the banking community. The trial court entered a summary judgment for the Bank. Irvin appealed to the Alabama Supreme Court, which transferred the case to this court pursuant to Ala.Code 1975, § 12-2-7(6). We reverse and remand.

[371]*371Our review of a summary judgment is de novo; we review the judgment by the same standard applied in the trial court. A motion for summary judgment is to be granted when no genuine issue of material fact exists and the moving party is entitled to a judgment as a matter of law. Rule 56(c)(3), Ala. R. Civ. P. When a party moves for a summary judgment, it “must make a prima facie showing that ... no genuine issues of material fact [exist] and that [it] is entitled to a judgment as a matter of law.” Lee v. City of Gadsden, 592 So.2d 1036, 1038 (Ala.1992). Once the movant has made this showing, “the burden then shifts to the nonmovant to rebut the movant’s prima facie showing by ‘substantial evidence.’ ” Lee, 592 So.2d at 1038. “[Substantial evidence is evidence of such weight and quality that fair-minded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved.” West v. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala.1989). See West, 547 So.2d at 871 (Ala.1989), and Bass v. SouthTrust Bank of Baldwin County, 538 So.2d 794 (Ala.1989), for further discussion of the application of the summary judgment standard.

Irvin begins his argument by stating that the Bank terminated him for failing to relocate to Snead before the time for his acceptance or rejection of the Bank’s offer on his house had expired. He argues that the Bank’s action resulted in a breach of contract. A breach of contract is defined as a “failure, without legal excuse, to perform any promise which forms the whole or part of a contract.” Black’s Law Dictionary 188 (6th ed.1990); see also 17A Am.Jur.2d Contracts § 716 (1991). To establish that a breach of contract occurred, Irvin must prove: “(1) the existence of a valid contract binding the parties in the action, (2) his own performance under the contract, (3) the [Bank’s] nonperformance, and (4) damages.” Southern Medical Health Systems, Inc. v. Vaughn, 669 So.2d 98, 99 (Ala.1995) (citations omitted).

Irvin correctly argues that an employer’s policies, such as the Bank’s relocation policy, can create a binding contract between the employer and its employees. See Hoffman-La Roche, Inc. v. Campbell, 512 So.2d 725, 735 (Ala.1987). Although Hoffman-La Roche focused on the language contained in an employee handbook, the ease has been interpreted to cover not only handbooks, but other employment policies as well. See Howard v. Wolff Broadcasting Corp., 611 So.2d 307, 310 (Ala.1992), cert. denied, 507 U.S. 1031, 113 S.Ct. 1849, 123 L.Ed.2d 473 (1993); see also Evans v. National Microsystems, Inc., 576 So.2d 207 (Ala.1991)(involving not a handbook, but instead a memorandum distributed to all employees). Irvin’s argument is that the Bank’s relocation policy was a binding contract and that, by terminating him before the expiration of the 10 days allowed for his response to the Bank’s offer, the Bank made his performance of the contract impossible and thereby breached that contract. See Dixson v. C. & G. Excavating, Inc., 364 So.2d 1160, 1162 (Ala.1978); Big Thicket Broadcasting Co. v. Santos, 594 So.2d 1241, 1244 (Ala.Civ.App.1991).

In Hoffman-La Roche, the Alabama Supreme Court set out the appropriate analysis for determining whether the language of an employment policy is “sufficient to constitute an offer to create a binding unilateral contract.” Hoffman-La Roche, 512 So.2d at 735.

“First, the language contained in the [policy] must be examined to see if it is specific enough to constitute an offer. Second, the offer must have been communicated to the employee by issuance of the [policy], or otherwise. Third, the employee must have accepted the offer by retaining employment after he has become generally aware of the offer. His actual performance supplies the necessary consideration.”

Id. Whether an employment policy meets the Hoffman-La Roche test is a question of law to be determined by the court. Stinson v. American Sterilizer Co., 570 So.2d 618, 621 (Ala.1990).

The basic facts in this ease are undisputed; and, when the test enunciated in Hoffman-La Roche is applied to those facts, the conclusion that the relocation policy was sufficient to constitute an offer to make a unilateral contract is inescapable. The Bank adopted the relocation policy. That policy [372]*372contains language specific enough to constitute an offer to Irvin.

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Related

Dixson v. C. & G. EXCAVATING, INC.
364 So. 2d 1160 (Supreme Court of Alabama, 1978)
Bass v. SOUTHTRUST BANK OF BALDWIN CTY.
538 So. 2d 794 (Supreme Court of Alabama, 1989)
Hoffman-La Roche, Inc. v. Campbell
512 So. 2d 725 (Supreme Court of Alabama, 1987)
Southern Medical Health Systems, Inc. v. Vaughn
669 So. 2d 98 (Supreme Court of Alabama, 1995)
Evans v. National Microsystems, Inc.
576 So. 2d 207 (Supreme Court of Alabama, 1991)
Stinson v. American Sterilizer Co.
570 So. 2d 618 (Supreme Court of Alabama, 1990)
Lee v. City of Gadsden
592 So. 2d 1036 (Supreme Court of Alabama, 1992)
West v. Founders Life Assur. Co. of Florida
547 So. 2d 870 (Supreme Court of Alabama, 1989)
BIG THICKET BROADCASTING v. Santos
594 So. 2d 1241 (Court of Civil Appeals of Alabama, 1991)
Howard v. WOLFE BROADCASTING CORP.
611 So. 2d 307 (Supreme Court of Alabama, 1992)
Sandpiper Mobile Village v. City of Carpinteria
507 U.S. 1032 (Supreme Court, 1993)

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Bluebook (online)
717 So. 2d 369, 13 I.E.R. Cas. (BNA) 402, 1997 Ala. Civ. App. LEXIS 710, 1997 WL 546027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irvin-v-community-bank-alacivapp-1997.