Mecurio v. Therm-O-Disc, Inc.

634 N.E.2d 633, 92 Ohio App. 3d 131, 9 I.E.R. Cas. (BNA) 1834, 1993 Ohio App. LEXIS 3758
CourtOhio Court of Appeals
DecidedJuly 21, 1993
DocketNo. 92-CA-64.
StatusPublished
Cited by3 cases

This text of 634 N.E.2d 633 (Mecurio v. Therm-O-Disc, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mecurio v. Therm-O-Disc, Inc., 634 N.E.2d 633, 92 Ohio App. 3d 131, 9 I.E.R. Cas. (BNA) 1834, 1993 Ohio App. LEXIS 3758 (Ohio Ct. App. 1993).

Opinion

Reader, Judge.

Appellant Therm-O-Disc, Inc. appeals a judgment of the Richland County Common Pleas Court on a jury verdict awarding appellee Phyllis J. Mecurio $95,365.13 on a claim of breach of implied contract. Appellant assigns twenty-five errors, attached and incorporated herein as an Appendix.

For purposes of this opinion, we condense these twenty-five errors into six issues:

1. Did the trial court err in overruling appellant’s motion for summary judgment on the implied contract claim?

2. Did the trial court err in overruling appellant’s motion for directed verdict?

3. Did the trial court err in overruling appellant’s motion for judgment notwithstanding the verdict (“JNOV”)?

4. Is the judgment against the manifest weight of the evidence?

5. Did the court err in failing to enter judgment for appellant because appellee failed to mitigate her damages?

6. Did the court err in awarding front-pay damages?

Therm-O-Disc manufactures and assembles thermostatic controls, switches, and related devices. Therm-O-Disc is headquartered in Mansfield, Ohio. Appel-lee Mecurio began working at Therm-O-Disc in 1959. She quit several years later to start a family. She was rehired by the company in 1968 as an assembly-line worker. In 1986, she was promoted to assistant supervisor.

In late May 1990, Therm-O-Disc conducted its annual inventory. Mecurio and one of the employees under her supervision removed small parts from the plant to avoid counting them in the inventory. Mecurio claimed that she removed the parts at the direction of a supervisor. There was evidence that during the term of her employment, a practice existed at Therm-O-Disc whereby certain parts were hidden during inventory to avoid counting the parts. Employees hid these parts in desk drawers, in the plant basement, or in their purses.

*135 During the 1990 inventory, Merv Marshall, appellee’s supervisor, asked her if parts had been taken off the line during inventory. She denied knowledge that another employee took the parts, but did confront the employee about the parts. Because the employee had the parts at home, appellee and the employee left the plant to retrieve the parts. Neither one clocked out of the plant. Appellee claimed that she believed they were to retrieve the parts on company time, in accordance with Marshall’s instruction to her to get the parts back into the plant. She did not return the parts which she herself had taken.

On June 5, 1990, appellee was discharged by management for removing parts from inventory and instructing an employee to do so, failing to clock out and instructing an employee to do so, and falsifying inventory. When questioned about the parts she had taken, she told management that she did not have the parts, although they were in her possession at the time.

Appellee brought the instant action claiming that her termination was in violation of promissory estoppel, breach of an implied contract, gender discrimination, and wage discrimination. The jury returned a verdict for appellee on the implied contract claim only, awarding damages of $95,365.13 (back pay of $63,366.60; front pay of $31,998.53).

Pursuant to interrogatories, the jury found that by conduct or spoken words, the parties mutually agreed that Therm-O-Disc could not discharge appellee except in accordance with its corrective action policy, which was not followed in. this instance.

Appellant’s motion for judgment notwithstanding the verdict was overruled. The court entered judgment for appellee in accordance with the jury’s verdict.

Summary Judgment — Implied Contract

Appellant argues that the court erred in overruling its motion for summary judgment on the implied contract claim.

Summary judgment shall be rendered if there is no genuine issue as to any material fact, and the moving party is entitled to judgment as a matter of law. Civ.R. 56(C). Summary judgment shall not be entered unless it appears from the evidence or stipulations that reasonable minds could come to but one conclusion, and that conclusion is adverse to the party against whom the motion is made, such party being entitled to have the evidence construed most strongly in his favor. Id. In reviewing summary judgment, we stand in the shoes of the trial court, reviewing the summary judgment on the same standard and evidence. Smiddy v. The Wedding Party, Inc. (1987), 30 Ohio St.3d 35, 30 OBR 78, 506 N.E.2d 212.

*136 Appellant first argues that there was no evidence from which reasonable minds could conclude that appellee was not an employee at will, and therefore she could be discharged without a reason. Appellant argues that the alleged implied contract does not alter the at-will employment because appellee made no promise of employment for a specific duration.

For her implied contract claim, appellee relies on appellant’s corrective action policy, arguing that the policy created an implied contract that she could only be discharged in accordance with the terms of the policy.

The existence of a disciplinary procedure does not in and of itself alter the employment-at-will relationship. Peters v. Mansfield Screw Mach. Prod. Co. (1991), 73 Ohio App.3d 197, 596 N.E.2d 1071. However, in certain circumstances, a cause of action for breach of an implied contract may lie where the company does not comply with its disciplinary procedure before discharge. See, e.g., Hamann v. Timken Mercy (Sept. 14, 1987), Stark App. No. 7114, unreported, 1987 WL 17635; Jones v. Alliance City Hosp. (Jan. 4, 1988), Stark App. No. 7286, unreported, 1988 WL 2423.

The corrective action policy listed a series of rules, violations of which could result in punishment, up to and including discharge. These rules included punishment for failure to clock out and for falsifying reports. The policy specified major work rule violations, including falsifying company records and theft. The policy specified that no supervisor could discharge an employee on the spot for a major work rule violation.

The policy provided a four-step corrective action procedure. The first step was a verbal warning between the supervisor and employee, which the supervisor should document. The second step was a first written warning, for which the supervisor must complete a form; discuss the warning with a representative of the industrial relations department, who would give final approval; and discuss the warning with the employee. The third step was a final written warning, for which the supervisor must again complete the form, submit it for approval to industrial relations, and review the warning with the employee.

The fourth step was discharge of the employee. To discharge an employee, the supervisor must complete a recommendation for discharge form. The supervisor and the manager of industrial relations meet to review the circumstances leading to the recommendation for discharge.

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634 N.E.2d 633, 92 Ohio App. 3d 131, 9 I.E.R. Cas. (BNA) 1834, 1993 Ohio App. LEXIS 3758, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mecurio-v-therm-o-disc-inc-ohioctapp-1993.