Maw v. Advanced Clinical Communications, Inc.

846 A.2d 604, 179 N.J. 439, 21 I.E.R. Cas. (BNA) 471, 13 A.L.R. 6th 825, 2004 N.J. LEXIS 461
CourtSupreme Court of New Jersey
DecidedMay 4, 2004
StatusPublished
Cited by58 cases

This text of 846 A.2d 604 (Maw v. Advanced Clinical Communications, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maw v. Advanced Clinical Communications, Inc., 846 A.2d 604, 179 N.J. 439, 21 I.E.R. Cas. (BNA) 471, 13 A.L.R. 6th 825, 2004 N.J. LEXIS 461 (N.J. 2004).

Opinions

PER CURLAM.

Plaintiff, Karol Maw, filed this action under the Conscientious Employment Protection Act, N.J.S.A. 34:19-1 to -8 (CEPA), after she was terminated for refusing to execute an employment agreement containing a do-not-compete provision. She claimed that her employer committed impermissible retaliatory action when it terminated her employment because she refused to sign an employment agreement that she perceived to be contrary to public policy. We disagree and reverse the judgment of the Appellate Division, substantially for the reasons expressed in the cogent dissent by Judge Cuff. Maw v. Advanced Clinical Communications, Inc., 359 N.J.Super. 420, 442-48, 820 A.2d 105, 118-122 (App.Div.2003) (Cuff, J.A.D., dissenting). Briefly, we add the following in explanation of our conclusion that plaintiff has failed to present a cause of action under CEPA.

I.

CEPA prohibits an employer from taking retaliatory action against an employee who “objects to, or refuses to participate in any activity, policy or practice which the employee reasonably [444]*444believes ... is incompatible with a clear mandate of public policy-concerning public health, safety or welfare or protection of the environment.” N.J.S.A. 34:19 — 3c(3) (Section 3c(3)). In this ease we confront for the first time a question as to the meaning of the phrase “clear mandate of public policy.” More specifically, we must determine the contours and scope of a “clear mandate” sufficient to assert a claim under Section 3c(3). We begin with the observation that a public policy expressed in the form of a statute, rule or regulation promulgated pursuant to law, is not what was meant under Section 3e(3). To so hold would reduce N.J.S.A. 34:19 — 3c(1) (Section 3c(l)) to mere surplusage, since it employs those legal precepts as a frame of reference for evaluating an employer’s conduct.

That said, Section 3c(l) is helpful in resolving the question before us. Like Section 3c(l), the reference in Section 3c(3) to a “clear mandate of public policy” conveys a legislative preference for a readily diseemable course of action that is recognized to be in the public interest. A “clear mandate” of public policy suggests an analog to a constitutional provision, statute, and rule or regulation promulgated pursuant to law such that, under Section 3c(3), there should be a high degree of public certitude in respect of acceptable verses unacceptable conduct. Indeed, prior decisions involving CEPA claims have reasoned similarly when discussing Section 3c(3) claims. E.g., Higgins v. Pascack Valley Hosp., 158 N.J. 404, 420, 730 A.2d 327, 336 (1999) (citing Mehlman v. Mobil Oil Corp., 153 N.J. 163, 189-90, 707 A.2d 1000, 1013-1014 (1998) (finding that CEPA “prohibits employer retaliation against an employee who objects to an employer practice that violates a foreign country’s public policy, as expressed in an industry safety guideline”)). The legislative approach vis-á-vis a “clear” mandate of public policy bespeaks a desire not to have CEPA actions devolve into arguments between employees and employers over what is, and is not, correct public policy. Such an approach also fits with the legislative requirement of a “mandate” as opposed to [445]*445a less rigorous standard for the type of public policy that is implicated.

The dissent below is in accord with our analysis in respect of its discussion of both the purpose of CEPA, Maw, supra, 359 N.J.Super. at 444-446, 820 A.2d at 119-121 (Cuff, J.A.D., dissenting), and our precedent construing CEPA Id. at 446-47, 820 A.2d at 120-21. Judge Cuffs summary of CEPA’s purpose echoes our observation last term that “[t]he Legislature enacted CEPA to ‘protect and encourage employees to report illegal or unethical workplace activities and to discourage public and private sector employers from engaging in such conduct.’ ” Dzwonar v. McDevitt, 177 N.J. 451, 461, 828 A.2d 893, 900 (2003) (quoting Abbamont v. Piscataway Twp. Bd. of Educ., 138 N.J. 405, 431, 650 A.2d 958, 971 (1994)). As stated in Dzwonar, supra, CEPA is designed to “ ‘prevent retaliation against those employees who object to employer conduct that they reasonably believe to be unlawful or indisputably dangerous to the public health, safety or welfare.”’ 177 N.J. at 464, 828 A.2d at 901 (quoting Mehlman v. Mobil Oil Corp., 153 N.J. 163, 193-94, 707 A.2d 1000, 1015-1016 (1998) (emphasis added)). The dissent found “that a helpful limiting principle [for CEPA claims] is that the offensive conduct must implicate the public interest.” Maw, supra, 359 N.J.Super. at 446, 820 A.2d at 120 (Cuff, J.A.D., dissenting) (citing Mehlman, supra, 153 N.J. at 187-88, 707 A.2d at 1012-1013). “[T]he offensive activity must pose a threat of public harm, not merely private harm or harm only to the aggrieved employee.” Mehlman, supra, 153 N.J. at 188, 707 A.2d at 1013. We reaffirm the limiting principle enunciated in Mehlman that the complained of activity must have public ramifications, and that the dispute between employer and employee must be more than a private disagreement.

II.

In this matter, plaintiffs dispute with her employer is private in nature. Plaintiff concedes that she possessed eonfiden[446]*446tial and proprietary information, and that she had no objection to those portions of the noncompete agreement that would preclude her from sharing such information with future employers. In other words, plaintiffs true dispute was over the reasonableness of the terms of the noncompete agreement, an argument she was free to make if and when her employer tried to prevent her from working at another company. It is telling that plaintiff uniformly refers to the effect that signing the noncompete agreement would have on “her ability to find employment in her field,” and that “she believed that there was no legitimate business reason for defendants to require her to enter into a noncompete agreement.” (Emphasis added). Allowing plaintiffs admittedly private dispute with her employer to go forward under CEPA’s rubric dilutes the statute’s salutary goals.

The private nature of plaintiffs dispute notwithstanding, her CEPA claim must fail because our State’s public policy respecting noncompete agreements is not set forth in a “clear mandate,” and does not “concem[] the public health, safety or welfare or protection of the environment.” N.J.S.A. 34:19 — 3c(3). Over a generation ago, our Court sketched the broad parameters for determining whether a noncompete agreement was unenforceable. Whitmyer Bros., Inc. v. Doyle, 58 N.J. 25, 274 A.2d 577 (1971); Solari Indus., Inc. v. Malady, 55 N.J. 571, 264 A.2d 53 (1970). In Solari,

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846 A.2d 604, 179 N.J. 439, 21 I.E.R. Cas. (BNA) 471, 13 A.L.R. 6th 825, 2004 N.J. LEXIS 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maw-v-advanced-clinical-communications-inc-nj-2004.