Madson v. Western Oregon Conference Ass'n of Seventh-Day Adventists

149 P.3d 217, 209 Or. App. 380, 2006 Ore. App. LEXIS 1916
Court of Appeals of Oregon·Decided December 6, 2006·No. 0211-11700; A124779·Published·Cited by 15 cases

Opinion

BREWER, C. J.

Plaintiffs Brusett and Madson appeal from a judgment denying their motion for summary judgment, granting the summary judgment motion of defendant Western Oregon Conference Association of Seventh-Day Adventists, and dismissing their statutory claims for unpaid wages. The issues on appeal are whether, on termination of their employment with defendant, both plaintiffs were entitled to payment for unused sick leave and whether plaintiff Madson was entitled to termination pay. We affirm in part, reverse in part, and remand.

The facts are largely undisputed. Plaintiffs Brusett and Madson were teachers at a high school owned and operated by defendant, and they worked for defendant for 17 and 18 years, respectively. In May 2002, defendant notified Brusett that it would not renew his contract for the following school year. In June 2002, defendant offered Madson a 10-month contract for the 2002-03 school year, rather than a 12-month contract as in previous years. Madson did not accept the offered contract. Thus, neither Brusett nor Madson returned to work for defendant in the 2002-03 school year.

Defendant paid Brusett a termination settlement and paid both plaintiffs for their unused accrued vacation. However, defendant rejected Brusett and Madson’s requests for payment of unused sick leave and also declined to pay Madson a termination settlement. Brusett and Madson filed a complaint under ORS 652.140(1),1 seeking unpaid wages, statutory penalties, and attorney fees.

In cross-motions for summary judgment, the parties agreed that the proper resolution of their dispute hinged on their divergent interpretations of the provisions of defendant’s employment policy manual, which was expressly incorporated into plaintiffs’ employment contracts. Both [383] plaintiffs asserted that the policy manual’s provisions unambiguously entitled them to be paid for earned, but unused, sick leave. Plaintiff Madson further asserted that, under the terms of the manual, he was entitled to termination pay. The trial court determined that the policy manual’s provisions are unambiguous and do not provide for the contested sick leave pay or termination pay. Accordingly, the court granted defendant’s motion for summary judgment and denied plaintiffs’ corresponding motion.

On appeal, plaintiffs assign error to the denial of their motion for summary judgment and to the entry of summary judgment for defendant and renew their arguments that the provisions of the policy manual unambiguously require payment of the disputed compensation. When, as here, the pertinent facts are not in dispute, we review rulings on cross-motions for summary judgment to determine whether either party is entitled to judgment as a matter of law, viewing the evidence and all reasonable inferences that may be drawn from the evidence in the light most favorable to the party opposing the motion. ORCP 47 C; Jones v. General Motors Corp., 325 Or 404, 420, 939 P2d 608 (1997); Cochran v. Connell, 53 Or App 933, 939, 632 P2d 1385, rev den, 292 Or 109 (1981).

Plaintiffs’ arguments on appeal focus on the provisions of defendant’s policy manual, which, as noted, is a part of plaintiffs’ employment contracts. In construing the relevant provisions, we apply the test set out in Yogman v. Parrott, 325 Or 358, 937 P2d 1019 (1997). First, we examine the text of the disputed provisions in the context of the document as a whole. Id. at 361. If, based on that examination and a review of the circumstances of the contract’s formation, the meaning of the provisions is clear, we construe the terms as a matter of law. Id. If the text, context, and circumstances of the contract’s formation show that the agreement is ambiguous, a trier of fact, in attempting to resolve that ambiguity, is to consider “extrinsic evidence of the contracting parties’ intent.” Id. at 363. If those inquiries fail to establish the parties’ intent, the ambiguity is resolved by resort to other relevant maxims of construction. Id. at 364.

[384] Whether a contract is ambiguous is a question of law. Id. at 361. A contract is ambiguous if it is susceptible to more than one reasonable interpretation. Batzer Construction, Inc. v. Boyer, 204 Or App 309, 313, 129 P3d 773, rev den, 341 Or 366 (2006). If a contract’s provisions are mutually inconsistent regarding a subject, the contract is ambiguous as to that subject, Alpine Mountain Homes v. Bear Creek Homes, 202 Or App 390, 398, 122 P3d 111 (2005); Portland Fire Fighters’ Assn. v. City of Portland, 181 Or App 85, 91, 45 P3d 162, rev den, 334 Or 491 (2002), unless the provisions can be reconciled in reading the contract as whole. See Yogman, 325 Or at 361. Generally, when the terms of a contract are ambiguous, summary judgment regarding their meaning is not appropriate. Brown v. American Property Management, 167 Or App 53, 61,1 P3d 1051, rev dismissed, 331 Or 334 (2000).

Plaintiffs’ first two assignments of error relate to the trial court’s summary judgment rulings on the claims for payment of unused sick leave. We turn to the pertinent provisions of the policy manual. Section 4214:98.2 of the policy manual describes various types of “leave” that defendant provided for “Certificated/Professional Personnel,” including leaves for bereavement, illness, personal reasons, jury duty, pregnancy/maternity, paternity, adoption, and professional growth. With regard to sick leave, the provision states:

“a. When employees are sick or impaired to the extent of being unable to reasonably perform all regular duties or would expose others to illness or injury, they are not expected to report for work.
******
“d. Sick leave is intended only in the case of personal illness or injury of the employee. A maximum of three days of personal sick leave may be used to care for illness/injury of immediate family members.
‡ í¡c
“f. During the contract year certified employees are eligible for up to a maximum of 20 sick leave working days.
“g. The employing organization will consider unusual cases on an individual basis.
[385] “h. In the case of an industrial accident which is covered by Worker’s Compensation insurance, full pay less compensation pay will be granted for a period equal to unused sick leave time.”

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Madson v. Western Oregon Conference Ass'n of Seventh-Day Adventists, 149 P.3d 217, 209 Or. App. 380, 2006 Ore. App. LEXIS 1916 (Or. Ct. App. 2006).

149 P.3d 217 (Madson v. Western Oregon Conference Ass'n of Seventh-Day Adventists) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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