Lords v. Northern Automotive Corp.

881 P.2d 256, 75 Wash. App. 589
Court of Appeals of Washington·Decided September 1, 1994·No. 12881-4-III·Published·Cited by 56 cases

Opinion

Thompson, C.J.

Northern Automotive Corporation appeals a judgment entered on a jury verdict which awarded former employee, James Wesley Lords, $80,000 in economic damages for handicap discrimination and $150,000 emotional distress damages for negligent infliction of emotional distress. Northern also appeals the denial of several of its pretrial and posttrial motions and the attorney fee awards.

Lords cross-appeals the summary judgment dismissal of his contract cause of action, several evidentiary rulings, the court’s 5-year limitation on front pay and a jury instruction regarding his age discrimination claim.

We affirm the summary judgment dismissal of Lords’ contract cause of action; affirm the judgment dismissing Lords’ age discrimination cause of action; reverse the award of damages for negligent infliction of emotional distress; affirm the handicap discrimination verdict, but remand for a new trial on economic damages; and reverse and remand as to attorney fees.

Factual Background

James Wesley Lords was an employee of Northern Automotive Corporation until November 1987. He became a *593 Northern employee when Schuck’s Auto Supply bought out and merged with his prior employer, Checker Auto Parts, and became Northern Automotive Corporation. Previously, Lords worked for Yellow Front Stores in Spokane. When they closed, he transferred to a Checker store. Apparently, Checker stores and Yellow Front Stores were owned by the same parent company. In all, Lords worked for Northern and its predecessor companies for almost 20 years. He suffered heart attacks in September 1984, June 1986 and October 1986. He was diabetic.

Prior to the Schuck’s-Checker merger, the two companies operated competing stores in the Spokane market. When they merged, Spokane had four Schuck’s stores and six Checker stores. Eventually, three of the Checker stores were closed and the remaining three were "converted” to Schuck’s stores.

Darwin Streeter was a district manager for Checker; Larry Brantner was a regional manager for Schuck’s. After the merger, Brantner became Streeter’s supervisor. Streeter continued to supervise Checker managers, including Lords, and Brantner continued to supervise Schuck’s managers in Spokane.

In early 1987, Northern devised an evaluation form for rating store managers. It contained 11 categories and used a rating scale of 1 to 5 for 8 of the 11 categories. From February through March 1987, Brantner evaluated the managers of Schuck’s Spokane stores and Streeter evaluated the five managers of Checker’s Spokane stores, including Lords. Lords received an overall rating of 3, the lowest rating of Checker’s Spokane managers.

In early 1987, Lords managed the Checker store on Spra-gue Avenue. He was there until it was closed in March 1987. He then transferred to the Checker store on Francis Avenue and remained there until it was closed. On September 17, 1987, Lords was notified he would not be retained by Northern as a store manager. He did not have a written employment contract. Northern paid Lords 13 weeks’ severance pay and did not rehire him.

*594 Lords remained unemployed until December 1989 when he was hired by All Western Industrial Supply as a salesman. His wages were lower than at Northern and he received fewer benefits.

Prior to finding new employment at All Western, Lords commenced this lawsuit for discrimination based on age and handicap, negligent infliction of emotional distress, outrage, and breach of express and implied contract. His causes of action for outrage, breach of contract, and negligent infliction of emotional distress based on a duty not to discriminate were dismissed by pretrial summary judgment motions brought by Northern. His causes of action for age and handicap discrimination and negligent infliction of emotional distress went to trial by jury.

Northern’s motion for directed verdicts was denied. The jury found no unlawful age discrimination, but did find handicap discriminátion and negligent infliction of emotional distress. Northern’s motion for judgment notwithstanding verdict, new trial or remittitur was denied. Lords was awarded attorney fees through trial and attorney fees for defending Northern’s posttrial motions. Lords’ motion for reconsideration of attorney fees was denied.

Negligent Infliction of Emotional Distress

Contentions. Northern contends there is no cause of action in Washington for negligent infliction of emotional distress based on termination of an at-will employee. The reason is, an employer has the right to terminate such employee for any reason, or no reason. He relies primarily on Thompson v. St. Regis Paper Co., 102 Wn.2d 219, 685 P.2d 1081 (1984) and Calhoun v. Liberty Northwest Ins. Corp., 789 F. Supp. 1540, 1548 (W.D. Wash. 1992). Although there is an exception for violations of public policy, Northern contends Lords’ negligence action was not based on a public policy exception. Thompson, at 233; Roe v. Quality Transp. Servs., 67 Wn. App. 604, 838 P.2d 128 (1992). See also Gaglidari v. Denny's Restaurants, Inc., 117 Wn.2d 426, 815 P.2d 1362 (1991).

*595 Lords does not challenge Thompson, Roe or Calhoun, nor does he contend a public policy exception is at issue. He contends his negligence action was based on actions arising during the course of employment, not on termination. These actions consisted of promises of continued employment, pay continuation, relocation and preferential rehiring, as well as failure to return phone calls and communications with him through employees he once supervised and those holding lower level management positions. According to Lords, actions for negligent infliction of emotional distress arising during employment are recognized in Washington. He cites Wheeler v. Catholic Archdiocese, 65 Wn. App. 552, 829 P.2d 196, review granted, 120 Wn.2d 1011 (1992), Huber v. Standard Ins. Co., 841 F.2d 980 (9th Cir. 1988), and Roth v. Kay, 35 Wn. App. 1, 4, 664 P.2d 1299, review denied, 100 Wn.2d 1026 (1983).

No Negligence Cause of Action. As Northern contends, Washington does not recognize a cause of action for negligent infliction of emotional distress based on termination of an at-will employee, unless the termination violates "a clear mandate of public policy”. Roe, at 607 (quoting Thompson, at 232). See also Lambert v. Morehouse, 68 Wn. App. 500, 503-06, 843 P.2d 1116 (employer’s faulty investigation of employee’s misconduct resulting in discharge does not give rise to negligence action), review denied, 121 Wn.2d 1022 (1993); Calhoun, at 1548 (routine discharge for poor work performance does not give rise to cause of action for negligent infliction of emotional distress).

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Lords v. Northern Automotive Corp., 881 P.2d 256, 75 Wash. App. 589 (Wash. Ct. App. 1994).

881 P.2d 256 (Lords v. Northern Automotive Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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