Larson v. Sysco Corp.

767 P.2d 557, 4 I.E.R. Cas. (BNA) 97, 99 Utah Adv. Rep. 19, 1989 Utah LEXIS 2, 1989 WL 770
CourtUtah Supreme Court
DecidedJanuary 10, 1989
Docket20682
StatusPublished
Cited by18 cases

This text of 767 P.2d 557 (Larson v. Sysco Corp.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson v. Sysco Corp., 767 P.2d 557, 4 I.E.R. Cas. (BNA) 97, 99 Utah Adv. Rep. 19, 1989 Utah LEXIS 2, 1989 WL 770 (Utah 1989).

Opinion

HOWE, Associate Chief Justice:

Plaintiff Kit C. Larson appeals from a summary judgment granted in favor of his former employer, SYSCO Corporation, and his supervisors, defendants Robert Jenson and Robert Wagner, in a suit arising out of Larson’s termination of employment.

Larson was employed by SYSCO as a commissioned salesman from March 1981 through April 1984. He worked under a written employment agreement which provided that his employment could be terminated by SYSCO at any time upon notice. Larson was terminated by his immediate supervisor, Wagner, without explanation except for the statement that he was to be “let go.” SYSCO paid Larson all commissions due him plus severance pay for a two-week period, representing approximately 30 percent per week more than that which he had earned as commissions immediately prior to his termination. SYSCO submitted to the Utah Department of Employment Security the required “blue slip,” which indicated that Larson’s employment had been terminated for “poor performance.”

Larson subsequently filed this suit, alleging breach of contract, defamation, and the intentional infliction of emotional distress *559 arising from the termination. After discovery was conducted, SYSCO moved for summary judgment on all of Larson’s claims. The motion was granted. Larson brings this appeal, assailing the grant of summary judgment and the denial of his motion to amend his complaint.

I.

Larson contends that there are numerous issues of disputed fact which should have precluded the grant of summary judgment. First, he argues that the manner of his termination did not comply with the provision of the written employment contract governing notice to be afforded him upon termination. In this respect, the agreement provides:

Employee’s employment with the Company may be terminated at any time by the Company or by Employee upon proper written notice. Proper notice is related to the length of employment as follows: ... over one (1) year employment, two weeks’ notice.

Larson worked for SYSCO for more than three years and under the contract was entitled to two weeks’ written notice. It is undisputed that after the employment contract had been executed, SYSCO revised its policy concerning employee termination, and instead of giving the employee the advance notice required by the contract, it terminated the employee without notice but provided him with severance pay for a period of time equal to the advance-notice time specified in the contract. This was done in response to SYSCO’s experience that sales performance typically declined after receiving written notice of termination. We find no violation of the contract by this policy. Larson was entitled to two weeks’ advance notice. He received pay for two weeks but was relieved of the obligation to render any services during that time. This left him free to seek other employment while enjoying full pay without any employment responsibility.

Larson contends that the legality of his termination should be determined according to Idaho law inasmuch as the written agreement provided that “[i]n the event of any dispute arising under this agreement, it is agreed between the parties that the law of the State of Idaho will govern the interpretation, validity and effect of this agreement.” He concedes that the general rule in Idaho is that an employee hired for an indeterminate period of time is an employee at will and can be terminated by his employer at any time. Jackson v. Minidoka Irr. Dist., 98 Idaho 330, 563 P.2d 54 (1977). However, he contends that Jackson pointed out that an exception will be made to the general rule when the motivation for the termination contravenes public policy. The court cited and discussed cases from other states which illustrate this exception to the general rule. Those cases involve the firing of an employee because of his refusal to give false testimony before the California legislature; termination because an employee filed for worker’s compensation for an injury sustained in the course of employment; termination for a female employee's refusal to “go out” with her supervisor; and firing because an employee served jury duty against the wishes of her employer.

Assuming that Idaho law does apply, we find nothing in Larson’s pleadings or in his argument which would bring him within the public policy exception to Idaho’s employment-at-will rule. At bottom, Larson’s defense to his termination is nothing more than a challenge to his employer’s determination that his performance was poor. Larson asserts that he was a superior producer and that he was on the verge of acquiring two large accounts which would have proved profitable to both him and SYSCO. Even assuming Larson to be correct in the evaluation of his own performance, SYSCO’s motivation for terminating him in no way contravenes public policy as illustrated by the Idaho court in Jackson v. Minidoka lrr. Dist. Later Idaho cases make it clear that the public policy exception only protects employees who refuse to commit unlawful acts, who perform important public obligations, or who exercise certain legal rights or privileges. Staggie v. Idaho Falls Consol. Hosps., Inc., 110 Idaho 349, 715 P.2d 1019 (Idaho Ct.App.1986). *560 The Supreme Court of that state has refused to extend the exception to instances of arbitrary and capricious firing. Spero v. Lockwood, Inc., 111 Idaho 74, 721 P.2d 174 (1986). See also Anderson v. Farm Bureau Mut. Ins. Co. of Idaho, 112 Idaho 461, 732 P.2d 699 (Ct.App.1987), for another example of a case where no public policy violation was found. Clearly, Larson cannot bring his case under that exception.

Nor is there any merit in Larson’s argument that SYSCO may have violated an implied covenant of good faith and fair dealing such as was imposed by the Massachusetts court in Fortune v. National Cash Register, 373 Mass. 96, 364 N.E.2d 1251 (1977). Larson has cited no Idaho case which has recognized that covenant in the termination of employees at will. Rosecrans v. Intermountain Soap & Chemical Co., 100 Idaho 785, 605 P.2d 963 (1980), did hold that the employer in that case had the burden of proving the existence of good cause for termination, but the employment contract there was for a definite period and the employee was fired before the expiration of that period. We have no quarrel with that result, but it clearly has no application here where the employment was at-will.

Lastly, Larson contends that his termination was wrongful because he had provided SYSCO with separate and independent consideration which should have precluded it from terminating him without good cause. Again, we find no merit in this argument.

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Bluebook (online)
767 P.2d 557, 4 I.E.R. Cas. (BNA) 97, 99 Utah Adv. Rep. 19, 1989 Utah LEXIS 2, 1989 WL 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-sysco-corp-utah-1989.