McClintick v. Timber Products Manufacturers

21 P.3d 328
CourtCourt of Appeals of Washington
DecidedApril 19, 2001
Docket19325-0-III
StatusPublished
Cited by7 cases

This text of 21 P.3d 328 (McClintick v. Timber Products Manufacturers) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClintick v. Timber Products Manufacturers, 21 P.3d 328 (Wash. Ct. App. 2001).

Opinion

21 P.3d 328 (2001)
105 Wash.App. 914

Max W. McCLINTICK and Allison McClintick, husband and wife, Appellants,
v.
TIMBER PRODUCTS MANUFACTURERS, INC., a corporation, and Timber Products Manufacturers Trust, an MEWA entity, and the Executive Committee Members of Timber Products Manufacturers, Inc., consisting of Wayne King, John Bennett, Pat Malloy, Glen Kartheiser, Nep Lynch, Jr., individually and in their respective marital capacities, and Dorthea King, Susan Bennett, Mary Malloy, Respondents,
Jane Doe Kartheiser, and Jane Doe Lynch, Defendants.

No. 19325-0-III.

Court of Appeals of Washington, Division 3, Panel Four.

April 19, 2001.

*329 John A. Bardelli, Spokane, for Appellants.

Keller W. Allen, Spokane, for Respondents.

KATO, J.

Max W. McClintick appeals the summary dismissal of his wrongful termination claims against Timber Products Manufacturers, Inc. (TPM). He contends he presented evidence he was not an at-will employee. He also contends the court erred in concluding federal law preempts his claim that he was fired for pursuing an investigation into practices of the employer's trust and 401(k) retirement plan. We affirm.

TPM is an association of dues-paying companies in the timber and wood-products industries. It provides human resources advice and consulting services; safety and risk management advice; education and training; newsletters and other publications; and life, dental, vision, and retirement benefits to member companies' employees. TPM hired Mr. McClintick as its general manager in 1993. A letter offering Mr. McClintick the job stated he would "hold office at the pleasure of the Board of Directors." Clerk's Papers (CP) at 255.

By 1997, Mr. McClintick's annual salary had grown from $70,000 to $100,000 (plus performance bonuses), and several members of the board commended him for his efforts. Mr. McClintick supervised the publication of "Essentials of Hiring and Firing," a guidebook for TPM's member-employers. CP at 257. The guidebook contains general employment advice and various sample documents. One section warns that language in an employee handbook or manual may modify the general rule of at-will employment. A sample employment letter expressly provides for at-will employment. The guidebook also contains the following advice regarding progressive discipline:

Most companies impose discipline in a progressive manner—each time employees are disciplined, they receive an increasingly severe penalty. With the exception of very serious offenses, an employee is rarely discharged on the first offense. The sequence of penalties generally moves from verbal warning to written warning, suspension, and ultimately to discharge. Over the years it has been proven that Progressive Discipline is one of the best defenses a supervisor and the company can *330 have against a wrongful discharge suit. If supervisors follow progressive discipline properly, it's unlikely that a termination decision will be challenged. And even if it is, the company will be able to point to a complete, objective record of every violation that has occurred and specific steps taken in an effort to correct the situation. When discharge is the last step in a progressive discipline process, it is seldom arbitrary or unjust.

CP at 329.

Mr. McClintick alleges that members of TPM's board of directors and its executive committee instructed him to implement this principle of progressive discipline. He also alleges progressive discipline became TPM's policy, which he followed in firing two employees.

However, TPM's employee policy manual, which was revised in 1996, contained the following provision:

EMPLOYMENT IS AT-WILL

THIS MANUAL, AND THE INFORMATION CONTAINED IN IT, IS NOT A GUARANTEE OF CONTINUED EMPLOYMENT OR BENEFIT PLAN CONTINUATION. NOTHING IN THIS MANUAL OR ANY OTHER COMMUNICATION, EITHER WRITTEN OR ORAL MADE AT THE TIME OF HIRE OR DURING THE COURSE OF EMPLOYMENT BY ANY REPRESENTATIVE OF TPM SHALL CREATE OR IS INTENDED TO CREATE, A CONTRACT OF EMPLOYMENT EXPRESSED OR IMPLIED. ACCORDINGLY, EITHER YOU OR TPM CAN TERMINATE THE RELATIONSHIP AT WILL, WITH OR WITHOUT CAUSE, AT ANY TIME. ONLY THE GENERAL MANAGER OF TPM HAS THE AUTHORITY TO ENTER INTO AN AGREEMENT WITH ANYONE FOR ANY REASON OTHER THAN ONE FOR AT-WILL EMPLOYMENT. ANY SUCH AGREEMENT MUST BE IN WRITING AND SIGNED BY THE GENERAL MANAGER.

CP at 370. Mr. McClintick concedes there is no document modifying this employment-at-will provision either for himself or for any other TPM employee.

During his employment at TPM, Mr. McClintick became concerned that the TPM Trust was not in compliance with federal law. Over the objections of two trustees who believed he was too aggressive, the TPM Trust documents were rewritten, and a payroll audit was being conducted to determine whether some persons were participating illegally. Mr. McClintick also concluded that TPM's 401(k) retirement plan needed to be audited and brought into compliance with state and federal law. The chairperson of the 401(k) committee vigorously disagreed, and the board of directors rejected the audit in the spring of 1997.

Shortly after that, the board's executive committee fired Mr. McClintick without warning. The committee notified the full board of directors of the firing by circulating a memo asking board members to vote to approve a severance package. A majority of the board approved.

Mr. McClintick sued TPM, the TPM Trust, and the members of the executive committee, alleging: (1) wrongful discharge; (2) breach of an implied covenant of good faith and fair dealing; (3) discharge in violation of an implied public policy favoring compliance with state and federal law regarding trust and 401(k) accounts; (4 & 5) age discrimination in violation of state and federal law; (6) deprivation of a liberty interest; and (7) negligent and intentional infliction of emotional distress.

On the defendants' motion for summary judgment, the court dismissed all of Mr. McClintick's claims. His appeal challenges the dismissal of claims (1) and (3).

In reviewing a summary judgment order, our inquiry is the same as the superior court's. Our Lady of Lourdes Hosp. v. Franklin County, 120 Wash.2d 439, 451, 842 P.2d 956 (1993). Summary judgment is appropriate "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is *331 entitled to a judgment as a matter of law." CR 56(c). The burden is on the moving party to establish its right to judgment as a matter of law, and facts and reasonable inferences from the facts are considered in favor of the nonmoving party. Our Lady of Lourdes, 120 Wash.2d at 452, 842 P.2d 956.

Mr. McClintick first contends the court erred in concluding he failed to establish TPM had modified the at-will employment relationship by instituting a policy of progressive discipline. Employment relationships in Washington generally are terminable at will by either party. Thompson v. St. Regis Paper Co., 102 Wash.2d 219, 223, 685 P.2d 1081 (1984). However, this rule does not apply if an employee manual or handbook creates an express contract to terminate employees only for cause. Id.

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Bluebook (online)
21 P.3d 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclintick-v-timber-products-manufacturers-washctapp-2001.