Johnson v. Federal Reserve Bank

557 N.E.2d 328, 199 Ill. App. 3d 427, 145 Ill. Dec. 558, 5 I.E.R. Cas. (BNA) 633, 1990 Ill. App. LEXIS 727
CourtAppellate Court of Illinois
DecidedMay 21, 1990
Docket1-89-1450
StatusPublished
Cited by41 cases

This text of 557 N.E.2d 328 (Johnson v. Federal Reserve Bank) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Federal Reserve Bank, 557 N.E.2d 328, 199 Ill. App. 3d 427, 145 Ill. Dec. 558, 5 I.E.R. Cas. (BNA) 633, 1990 Ill. App. LEXIS 727 (Ill. Ct. App. 1990).

Opinion

JUSTICE O’CONNOR

delivered the opinion of the court:

Richard Johnson sued his employer, the Federal Reserve Bank of Chicago (the Bank), alleging intentional infliction of emotional distress. The trial court granted the Bank’s motion to dismiss the complaint as insufficient, and on the grounds that the claim was barred by the Workers’ Compensation Act (Ill. Rev. Stat. 1987, ch. 48, par. 138.1 et seq.). For the reasons below, we reverse.

Plaintiff alleges that in May 1984, Johnson, a 14-year employee of the Bank, was instructed by his superiors to begin using unauthorized procedures to access the Bank’s computer files. The procedures compromised the confidentiality of the files, and Johnson objected to their use. Several days after implementation of the unauthorized procedures, Johnson’s department was inspected by internal auditors. Johnson disclosed the unauthorized procedures to the internal auditors, contrary to orders from his superiors to conceal the procedures, and Johnson’s superiors were cited for violations of the Bank’s internal operating rules.

In January 1985, the Bank, plaintiff alleges, was using procedures that violated United States Treasury Department Regulations. When the Bank received notice of a Treasury Bureau inspection, Johnson was instructed to use conforming procedures for the duration of the inspection and conceal the use of the violative procedures. Johnson, however, disclosed the violations to the Treasury Bureau. (The record does not indicate whether the Treasury Bureau took any action against the Bank as a result of Johnson’s disclosures.)

Plaintiff further alleges that in February 1985, he was instructed to conceal from customers the length of time for completion of their transactions with the Bank, because the Bank was not completing the transactions within the time required by Federal banking regulations. When Johnson objected, he was told, in essence, to be quiet.

Johnson’s superiors are alleged to have harassed Johnson from May of 1984 to January of 1986 in retaliation for his objections to the claimed illegal practices: Johnson’s superiors threatened to fire him, gave him excessive work loads, required him to work up to 20 hours a week longer than other employees in his department, denied him opportunities for advancement, undervalued the quality of his work and gave him poor performance reviews, and undercut his instructions to his direct subordinates.

Plaintiff further alleges that due to the harassment, his mental and physical health deteriorated and he was forced to take a medical leave of absence from November 1985 to December 1986. He was treated for severe arterial hypertension, and when he returned to work at the Bank, he told his superiors that he was taking medication for hypertension and should not be subjected to undue stress. Nevertheless, Johnson’s superiors resumed their conduct of verbal abuse and gave Johnson an excessive work load. Several days after returning to work, Johnson met with one of his superiors, Arnold Pugh, and complained that the continued harassment and excessive work was endangering his health. Pugh replied, “I don’t give a damn that you’re sick.”

Johnson further alleges that he left the Bank in January 1986, and as the result of his physical and mental condition, has been unable to work. Johnson continues to be treated for severe hypertension and has received psychotherapy.

On January 4, 1989, Johnson filed his amended complaint, alleging the above facts and seeking recovery for intentional infliction of emotional distress. The Bank moved to dismiss the complaint pursuant to section 2—615 of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2—615), and also argued that the claim was barred by section 5(a) of the Workers’ Compensation Act (Ill. Rev. Stat. 1987, ch. 48, par. 138.5(a)). The trial court granted the Bank’s motion. Johnson appeals. Because this appeal arises from a motion pursuant to section 2—615, the facts above are taken from the amended complaint and assumed true, with all reasonable inferences drawn most favorably to Johnson.

The Bank first argues that Johnson alleged no facts to establish that its conduct was either intentional, or extreme and outrageous, necessary elements of a claim for intentional infliction of emotional distress. (See Public Finance Corp. v. Davis (1976), 66 Ill. 2d 85, 360 N.E.2d 765.) But the complaint was not so lacking that no set of facts could be proved that would entitle Johnson to relief. Conant v. Karris (1987), 165 Ill. App. 3d 783, 520 N.E.2d 757; Griffis v. Board of Education, District 122 (1979), 72 Ill. App. 3d 784, 391 N.E.2d 451.

The Bank contends that the complaint failed to establish that its conduct was intentionally calculated to cause emotional distress. But Johnson alleged that his superiors, acting in their capacity as his supervisors, engaged in a pattern of abusive conduct for almost two years. The allegations establish the nature and duration of the superiors’ conduct and support the reasonable inference that the Bank, as employer, knew of and allowed the conduct either with the purpose of inflicting severe emotional distress, or knowing that the conduct was substantially certain .to result in severe emotional distress.

The Bank further contends that its conduct was not sufficiently extreme or outrageous to support a complaint for emotional distress, but ignores the allegation that its conduct was retaliatory. The complaint alleged facts establishing a pattern of abusive conduct, which began immediately after Johnson’s first disclosure of improper banking practices and continued for the remainder of his employment at the Bank, even after Johnson had notified his superiors of his deteriorated physical condition. The allegations support the reasonable inference that the Bank’s conduct was retaliatory, a motivation that defeats the Bank’s assertions of proper conduct.

The Bank asserts that the threats of dismissal, extra hours, onerous work load, unfavorable performance reviews, and subversion of Johnson’s authority were part of a normal work environment which a reasonable person should have been expected to endure. Had the Bank’s conduct been genuine efforts to improve the performance of an employee, Johnson might have either found relief by following directions and performing to his superiors’ expectations, or been expected to endure the vagaries of the work environment. But where the conduct, motivated by a retaliatory animus, imposed arbitrary and punitive hardships and continued even after the Bank knew of Johnson’s deteriorated condition, Johnson could have had no expectation of relief while he remained in the employ of the bank, regardless of his performance. The Bank’s conduct, though not extreme and outrageous per se, became so by its retaliatory and punitive nature.

The retaliatory motivation also defeats the Bank’s contention that its conduct served a legitimate purpose. The Bank contends that it had a legitimate employment objective in demanding that Johnson follow procedures that were lawful and improper only according to its own policies.

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Bluebook (online)
557 N.E.2d 328, 199 Ill. App. 3d 427, 145 Ill. Dec. 558, 5 I.E.R. Cas. (BNA) 633, 1990 Ill. App. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-federal-reserve-bank-illappct-1990.