Kenneth E. Williams v. Maremont Corporation

875 F.2d 1476, 4 I.E.R. Cas. (BNA) 799, 1989 U.S. App. LEXIS 7027, 50 Empl. Prac. Dec. (CCH) 39,049, 49 Fair Empl. Prac. Cas. (BNA) 1576, 1989 WL 53326
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 23, 1989
Docket86-1263
StatusPublished
Cited by23 cases

This text of 875 F.2d 1476 (Kenneth E. Williams v. Maremont Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenneth E. Williams v. Maremont Corporation, 875 F.2d 1476, 4 I.E.R. Cas. (BNA) 799, 1989 U.S. App. LEXIS 7027, 50 Empl. Prac. Dec. (CCH) 39,049, 49 Fair Empl. Prac. Cas. (BNA) 1576, 1989 WL 53326 (10th Cir. 1989).

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

Kenneth E. Williams was fired from his job as a general foreman at the Chickasha Plant of Maremont Corporation following a sexual harassment charge against him. Specifically, one male and three female employees signed statements asserting that while on company time and property, and in view and hearing of those employees, Williams pulled down the zipper of his pants. Def. Exs. E, F, G, and H. One statement further asserted that at that time Williams said “if you want it here it is.” Id., Def. Ex. F. That statement was confirmed at trial by others. R. Vol. Ill at 118. Another statement referred to an occasion around the same week when Williams allegedly said “he would f_ right out here at Maremont for $50.00 cause nothing would embarrass him.” Def. Ex. E. At trial Williams denied pulling his zipper down but admitted that “I reached down towards my belt buckle and fly, or whatever, you know, that area,” R. *1478 Yol. II at 1-22, and “said something to the effect, here it is, or try it, or something.” Id. at 1-53. He partially excused his action by explaining that the incident occurred while he was joking with a female employee, Tina Park, whom he used to date, and who had teased him about being too old to “get it up.” Id. at 1-22. The employees who signed the statements were close by Williams but not part of the immediate conversation between Williams and Park. R. Vol. II at 1-137,1-157,1-159; R. Vol. Ill at 63, 75. Williams did not regard his conduct as sexual harassment, R. Vol. II at 1-48-49, but, as indicated by the following exchange during his direct examination at trial, he knew it was wrong:

“Q. What do you feel was the most that should have happened to you for whatever it was you did?
A. I felt like I ought to have been disciplined, because I, you know, I knew it was wrong, and I knew it was a dumb stupid thing to do after I done it. At the time, you know, under the circumstances, you know, it was a joking thing, deal, and then after I done it, I knew, you know, I had done wrong, and I felt like I ought to be disciplined.”

R. Vol. II at 1-49.

Following his termination Williams sued Maremont for “wrongful discharge.” R. Vol. I, Tab 30, para. 2. He contended, among other things, that the Maremont employee handbook distributed to hourly personnel at the Chickasha Plant constituted a contract in which, in effect, Maremont promised not to discharge any employee, management or hourly, for a single instance in one year of any one of twenty-three work rule violations, set forth in the handbook. Violation 21 was: “Threatening, intimidating, coercing, using abusive language, or harassing any employee on company premises.” Pl.Ex. 3 at 37. Williams argued that sexual harassment fell within that rule. The handbook provided that an infraction under rule 21 resulted in a maximum of six disciplinary points. Termination was based on an accumulation of eight points. 1

The district court ruled that Williams’ “cause of action sounds in tort and thus the typical types of damages recoverable in tort actions are potentially recoverable in this action.” R. Vol. I, Tab 17 at 11 (Order of December 10, 1984). Consequently, in addition to back pay and insurance benefits, and front pay and insurance and retirement benefits, the court allowed Williams to seek recovery for alleged damage to his reputation, and punitive damages. Following a two-day trial a jury awarded Williams $750,000 in “actual damages” and $250,000 in punitive damages.

Maremont appeals the jury verdict and judgment entered on that verdict, and the district court’s denial of Maremont’s timely motion for a judgment notwithstanding the verdict or, in the alternative, for a new trial. It contends here, as it did in the district court: (a) that the employee handbook in question, specifically the disciplinary point system, did not apply to salaried, supervisory employees such as Williams; (b) that the jury’s verdict was unsupported by the evidence because Mare-mont had an explicit sexual harassment policy, the violation of which was grounds for discharge, and that Williams violated that policy; (c) that the district court erred in excluding evidence of other instances of sexual misconduct on the job by Williams, and erred in its instructions as to the burden of proof; and (d) that numerous errors were committed with respect to the damages. Upon consideration of the record in the light of new guidance from the Oklahoma Supreme Court, we reverse.

I.

During the pendency of this case on appeal the Oklahoma Supreme Court decided two important cases which bear on the issues under consideration: Hinson v. Cameron, 742 P.2d 549 (Okla.1987), and *1479 Burk v. K-Mart Corp., 770 P.2d 24 (Okla.1989). 2

Hinson, a nurse’s assistant at the Comanche County Hospital, was terminated for not following orders. She sued the hospital on both tort and contract grounds, asserting that the order in question was never given and that the employee manual, which “constitutes a part of her employment contract with the hospital protects her from discharge absent good cause.” Hinson v. Cameron, 742 P.2d at 551. The Oklahoma Supreme Court framed the questions on appeal, and their disposition as follows:

Two questions are presented on certio-rari: [1] Did an at-will employee, dismissed for her failure to perform an assigned duty, state a cause of action in tort for wrongful discharge from employment? and [2] Did the employee manual alter an at-will relationship between the plaintiff and her employer? We answer both questions in the negative and reinstate the trial court’s summary judgment for the defendants.

Id.

The court, in Hinson, observed that the general rule permitting termination of “at-will” employment without liability has been modified in various states by three exceptions: “(a) public policy tort, (b) tortious breach of an implied covenant of good faith and fair dealing and (c) implied contract that restricts the employer’s power to discharge.” Id. at 552. It then noted that no public policy consideration was involved in Hinson’s case; and, with respect to the tort action based on the implied covenant of good faith theory it said:

Assuming there may be an implied covenant of good faith and fair dealing in every at-will employment relation, that covenant does not operate to forbid employment severance except for good cause. The court’s adoption of a contrary view would “subject each discharge to judicial incursions into the amorphous concept of bad faith.”

Id. at 554.

The court then turned to the issue of an implied contract arising from an employee manual, and found that Hinson had not made out a claim sufficient to survive summary judgment under an implied contract theory.

In Burk the Oklahoma Supreme Court directly addressed the question left open in Hinson:

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Bluebook (online)
875 F.2d 1476, 4 I.E.R. Cas. (BNA) 799, 1989 U.S. App. LEXIS 7027, 50 Empl. Prac. Dec. (CCH) 39,049, 49 Fair Empl. Prac. Cas. (BNA) 1576, 1989 WL 53326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-e-williams-v-maremont-corporation-ca10-1989.