Leithead v. American Colloid Co.

721 P.2d 1059, 1 I.E.R. Cas. (BNA) 864, 1986 Wyo. LEXIS 576, 105 Lab. Cas. (CCH) 55,648
CourtWyoming Supreme Court
DecidedJune 24, 1986
Docket85-199
StatusPublished
Cited by131 cases

This text of 721 P.2d 1059 (Leithead v. American Colloid Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leithead v. American Colloid Co., 721 P.2d 1059, 1 I.E.R. Cas. (BNA) 864, 1986 Wyo. LEXIS 576, 105 Lab. Cas. (CCH) 55,648 (Wyo. 1986).

Opinions

[1061]*1061CARDINE, Justice.

After he was discharged from his job, appellant Vance Leithead sued his former employer, American Colloid Company, and his former supervisor, Myron Durtsche, Jr., alleging breach of contract, breach of the covenant of good faith, slander, misrepresentation of employment, promissory estop-pel, tortious interference with contract, and intentional infliction of emotional distress. The district court granted summary judgment in favor of the employer on all the claims except slander, which the parties then settled. We must decide whether the court properly granted summary judgment.

PACTS

In June of 1978, appellant telephoned Myron Durtsche about a job opening at American Colloid’s Lovell plant. The company mines and processes bentonite, a clay that is used in the oil industry. In their initial conversation, Mr. Durtsche offered appellant the job and invited him to start the following Monday. On his first day of work, appellant was given a handbook entitled “For the New Employee of American Colloid Company.” Under the heading, “Employment Policies and Objectives,” the following statements appeared:

“Probation
“All new employees are automatically on a probationary period at the beginning of their employment. During this period, their abilities and work performance are closely evaluated by their supervisor. If for any reason, on or before the end of this period, it is determined that an employee is not suited for the job for which he was hired, his employment may be terminated. At the completion of the probationary period, you will become a permanent employee.”
“Absence from Work
******
“If you are absent for three days, and do not report to your supervisor, it is possible that your employment will be considered as automatically terminated.
“If you are chronically absent, or late in arriving to work, you will seriously jeopardize your employment. Please do not let this happen.”
“Our Rules of Conduct
******
“Of course, it is impossible to list every possible type of misconduct which may result in a disciplinary action. If you will act as a reasonable, law-abiding citizen, and do your job well, you will get along all right and enjoy your membership in the family of American Colloid’s employees.”
“Termination of Employment
“Employees wishing to terminate their services should give a minimum of two weeks’ notice to their supervisors in or-' der to leave in good standing.
“If you are dismissed, and we certainly hope this never happens, a full explanation for the reasons given to you by your supervisor will be provided.”

Sometime in 1982, a new loose-leaf personnel policy handbook entitled “Employee Information Handbook” was given to appellant. It contained essentially identical rules regarding the probationary period, conduct, absences, and termination.

Appellant changed jobs within the company several times between 1978 and his termination on June 29,1983. In his capacity as a driller and surveyor, appellant had access to confidential information about the location of potential bentonite claims. It was important to the company that this information stay confidential and, to that end, Mr. Durtsche requested, in 1981, that the employees under his supervision sign a secrecy agreement which stated in part:

“[The employee] agrees that either during or after termination of his employment he will not disclose to any person, firm or corporation any information concerning such matters as have been disclosed to him as confidential or treated by Company as confidential during his employment with Company.”

Until May of 1983, Mr. Durtsche had considered appellant to be an excellent employee. But his opinion began to change [1062]*1062when he became suspicious that appellant was leaking confidential information to American Colloid’s competitors. According to Mr. Durtsche, appellant was the only one who could have been responsible for the leaks. But in his affidavit attached to the motion opposing summary judgment, appellant denied leaking any information to competitors. Mr. Durtsche also had become disgruntled with appellant because of poor work performance in the summer of 1982 and a change in appellant’s attitude reported by appellant’s immediate supervisor, Ned Walker.

On June 29, 1983, Mr. Durtsche called appellant into his office and fired him. Mr. Durtsche told him that he did not fit into the company’s long-range plan but did not accuse him of leaking information. Appellant later learned the reasons for his discharge from fellow employees who attended a safety meeting at the American Colloid Plant several months after the firing. According to Art Schatz, one of those employees, Mr. Durtsche told them:

“Most of you know now that I have fired Vance Leithead. Some son-of-a-bitch is talking too much. I think we have got him now, but if I did not get the right one, I will fire every damn one of you in here until I get the right one. Even if I have to run this whole field department by myself. I don’t know who the mole is or what he is gaining by running to our competitors and telling them everything we are doing.”

In October of 1983, appellant filed a complaint against appellees American Colloid Company and Myron Durtsche alleging slander, breach of contract, and malicious conspiracy and interference with employment. On June 19, 1984, the appellees moved for partial summary judgment on the breach of contract claim, and after a hearing, the court granted the motion. The court held that the employment contract was at will, so appellant could be discharged at any time for any reason.

With the court’s permission, appellant filed an amended complaint on July 3,1984, in which he added claims for breach of the covenant of good faith, intentional infliction of emotional distress, misrepresentation of permanent employment, and promissory estoppel. Appellees then filed a second motion for summary judgment on May 15, 1985. After a hearing, the court granted the motion on all claims except the claim for slander which the parties eventually settled.1

INTERPRETATION OF THE CONTRACT

Without the handbooks, the contract was at will, which meant that the employer could discharge appellant without cause. Alexander v. Phillips Oil Company, Wyo., 707 P.2d 1385, 1386 (1985). The district court held that the two handbooks did not become part of appellant’s employment contract, because they were not supported by consideration running from appellant to the company. The court quoted the following from 53 Am.Jur.2d Master & Servant § 32, at 107:

“It is the general rule that a contract to give a person permanent employment, in the absence of some further express or implied stipulation as to the duration of the employment or of a good consideration in addition to the services contracted to be rendered, is no more than an indefinite general hiring terminable at the will of either party.”

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Bluebook (online)
721 P.2d 1059, 1 I.E.R. Cas. (BNA) 864, 1986 Wyo. LEXIS 576, 105 Lab. Cas. (CCH) 55,648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leithead-v-american-colloid-co-wyo-1986.