Jarvenpaa v. Glacier Electric Cooperative, Inc.

898 P.2d 690, 271 Mont. 477, 52 State Rptr. 582, 10 I.E.R. Cas. (BNA) 1514, 1995 Mont. LEXIS 135
CourtMontana Supreme Court
DecidedJuly 11, 1995
Docket94-377
StatusPublished
Cited by11 cases

This text of 898 P.2d 690 (Jarvenpaa v. Glacier Electric Cooperative, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jarvenpaa v. Glacier Electric Cooperative, Inc., 898 P.2d 690, 271 Mont. 477, 52 State Rptr. 582, 10 I.E.R. Cas. (BNA) 1514, 1995 Mont. LEXIS 135 (Mo. 1995).

Opinions

DISTRICT JUDGE DOROTHY MCCARTER, sitting for JUSTICE NELSON, delivered the Opinion of the Court.

The plaintiff, Donald Jarvenpaa, brought this action alleging that he was wrongfully discharged by defendant Glacier Electric Cooperative, Inc. (Glacier). Glacier moved for summary judgment, which was granted by the District Court for the Ninth Judicial District, Glacier County. Jarvenpaa appeals from this order. We reverse and remand.

Jarvenpaa began working for Glacier in 1962 and was Manager of Operations at the time of the alleged discharge. On September 29, 1992, Jarvenpaa’s supervisor advised him that his employment would be terminated on December 31,1992, because of problems with his job performance. Jarvenpaa was also informed that he could choose to retire prior to being dismissed and could accept a “Special Early Retirement Package” (SERP) which was being offered to five eligible employees. David Chapman, General Manager of the Board of Trustees, stated in a letter to Jarvenpaa dated November 2, 1992, “[Y]ou are being offered two options — retire under SERP or be terminated December 31, 1992.1 have not made, and do not herein make any offer to negotiate further.” Jarvenpaa responded on November 10, 1992, that he did not believe that Glacier had any basis to terminate his thirty-year employment, but “in view of your ultimatum that if I do not accept the offer of early retirement I will be terminated, I obviously have no alternative in this matter. Accordingly, with reluctance, I accept the offer to retire under SERP as set forth in your letter of November 2, 1992.”

Jarvenpaa subsequently filed this suit for wrongful discharge. The District Court granted Glacier’s motion for summary judgment. Although the court concluded that retirement can be a form of discharge under § 39-2-903(2), MCA, it found that, in this case, retirement was not a discharge because the employee signed an acknowledgement that his retirement was voluntary, and he accepted the benefits of the retirement package; he could have waited to be fired and then file an action for wrongful discharge. The court also concluded that the “retire or be fired” ultimatum was not a constructive discharge -under § 39-2-903(1), MCA, because the choice between discharge and retirement cannot be said to be so intolerable that voluntary termination, in this case retirement, is the only reasonable alternative.

[480]*480Our standard of review from a grant of summary judgment is the same as that of the district court under Rule 56(c), M.R.Civ.P. Summary judgment is proper when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. However, summary judgment is not a substitute for a trial on the merits. Morton v. M-W-M, Inc. (1994), 263 Mont. 245, 249, 868 P.2d 576, 578-79.

All reasonable inferences must be drawn in favor of the party opposing the motion. In making its determination, the court must consider the entire record. Smith v. Barrett (1990), 242 Mont. 37, 40, 788 P.2d 324, 326.

Summary judgment motions, however, clearly are not favored. “[T]he procedure is never to be a substitute for trial if a factual controversy exists.” Reaves v. Reinbold (1980), 189 Mont. 284, 288, 615 P.2d 896, 898. If there is any doubt as to the propriety of a motion for summary judgment, it should be denied. Rogers v. Swingley (1983), 206 Mont. 306, 312, 670 P.2d 1386, 1389; Cheyenne Western Bank v. Young (1978), 179 Mont. 492, 496, 587 P.2d 401, 404.

The primary issue in this case, simply stated, is whether an employee, presented with a choice between being fired or accepting an early retirement package, has been “discharged” for purposes of bringing an action under Montana’s Wrongful Discharge From Employment Act.

Montana has chosen to protect the rights of a worker to challenge the validity of an employer’s decision to terminate his or her employment. While Montana law still provides that, absent provisions to the contrary, employment is “at will,” under the Wrongful Discharge From Employment Act, an employer in most cases must have good cause to fire an employee. “Good cause” is defined in the Act as “reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer’s operation, or other legitimate business reasons.” Section 39-2-903(5), MCA.

In most cases the situation presented is one where the employment was actually terminated by the employer. The Wrongful Discharge From Employment Act, however, also allows for those situations in which the employer has made working conditions so intolerable that the employee is forced to quit — i.e., a constructive discharge. Under the Act, this type of situation is no less wrongful than an actual firing. Constructive discharge is defined in the Act as “the voluntary termination of employment by an employee because [481]*481of a situation created by an act or omission of the employer which an objective, reasonable person would find so intolerable that voluntary termination is the only reasonable alternative.” Section 39-2-903(1), MCA. This definition is essentially the same as we defined constructive discharge in our pre-Act cases. Kestell v. Heritage Health Care Corp. (1993), 259 Mont. 518, 524, 858 P.2d 3, 6-7. We have held that in determining “whether an employee has been constructively discharged, the fact finder must decide whether the employer has rendered working conditions so intolerable that resignation is the only reasonable alternative.” Kestell, 858 P.2d at 7. This determination must be based on the totality of the circumstances, not on the employee’s subjective judgment that working conditions are intolerable.

In the case before us, the termination was initiated by the employer when it issued its ultimatum to the employee that he would be fired if he did not accept the retirement package. The employer’s statements to this effect were clear and unequivocal. Other courts have held that where an employer tells an employee to resign or be fired, the resignation can be a constructive discharge. Sheets v. Knight (Or. 1989), 779 P.2d 1000; Cameron v. Beard (Alaska 1993), 864 P.2d 538. See also Dept. of Air Force v. Dept. of Emp. Sec. (Utah App. 1990), 786 P.2d 1361, 1365 (where employee resigned in the face of inevitable discharge, the termination was initiated by the employer and was not a voluntary termination).

In Gates v. Life of Montana Ins. Co. (1982), 196 Mont. 178, 638 P.2d 1063, appeal after remand 205 Mont. 304, 668 P.2d 213

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Jarvenpaa v. Glacier Electric Cooperative, Inc.
898 P.2d 690 (Montana Supreme Court, 1995)

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Bluebook (online)
898 P.2d 690, 271 Mont. 477, 52 State Rptr. 582, 10 I.E.R. Cas. (BNA) 1514, 1995 Mont. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jarvenpaa-v-glacier-electric-cooperative-inc-mont-1995.