Melicharek v. Carson Pirie Scott and Co.

576 N.E.2d 99, 215 Ill. App. 3d 873, 159 Ill. Dec. 430, 6 I.E.R. Cas. (BNA) 945, 1991 Ill. App. LEXIS 966
CourtAppellate Court of Illinois
DecidedJune 12, 1991
Docket1-90-1455
StatusPublished
Cited by1 cases

This text of 576 N.E.2d 99 (Melicharek v. Carson Pirie Scott and Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melicharek v. Carson Pirie Scott and Co., 576 N.E.2d 99, 215 Ill. App. 3d 873, 159 Ill. Dec. 430, 6 I.E.R. Cas. (BNA) 945, 1991 Ill. App. LEXIS 966 (Ill. Ct. App. 1991).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Plaintiff, Vlasta Melicharek, brought this action in the circuit court of Cook County, alleging that defendant, Carson Pirie Scott & Company, had wrongfully discharged her from its employ in violation of a contract between plaintiff and defendant.

Plaintiff claims that the employee handbook distributed by defendant created enforceable contract rights and that the defendant breached that contract by plaintiffs wrongful discharge.

Defendant asserts that no contract is created under the guidelines of Duldulao v. Saint Mary of Nazareth Hospital Center (1987), 115 Ill. 2d 482, 505 N.E.2d 314, and that, in any event, plaintiff’s discharge was appropriate even if a contract had been established.

At the conclusion of plaintiff’s case in chief at a bench trial, the court granted defendant’s motion for a directed finding, concluding: (1) the employee handbook distributed by defendant and the surrounding factors relative to it did create a contract between the parties; however, (2) the discharge of plaintiff was an action appropriate within the contemplation of the agreement and not wrongful.

We agree with the trial court’s analysis and we affirm.

Plaintiff, who was the only witness testifying in the case, was employed by defendant from August 1956 until June 1976. At the time of her discharge, she was the manager of a branch store at the Prudential Plaza in Chicago, Illinois. She testified that she had received an employee handbook at the time of her employment in 1956 that was similar, but not identical, to the 1975 employee handbook that had been received in evidence. She acknowledged that defendant periodically revised its handbooks and that there were provisions with respect to probation and termination contained in these handbooks.

The Carson Pirie Scott handbook provides information on issues such as vacation time, insurance, medical needs, discount buying rates for employees, name badges, security procedures, smoking restrictions, pension plan, as well as store policy regarding the demeanor expected of employees “on the floor” with customers.

The handbook also included material on “probation and termination” and provided, inter alia:

“Rules and regulations are necessary in every successful business and when broken some sort of disciplinary action is the result, ranging from a simple reprimand to termination. In the preceding pages we have covered some of the basic Policies and Rules of the company which you must know and understand.
The following is a list of offenses which will'result in IMMEDIATE DISMISSAL.
1. Improper handling of Company money.”

The handbook then describes 15 other violations for which there may be immediate dismissal, before continuing in a new paragraph:

“Violation of any of the following will result in a WRITTEN WARNING INTERVIEW followed by DISMISSAL if necessary. (In no case will a written warning be required during the 90 day probationary period.)”

The handbook then identifies 10 minor offenses that warrant a written warning interview.

Two other employees worked with plaintiff at the Prudential Plaza branch although plaintiff was responsible for counting money at the close of each business day, locking the money in a safe and depositing the envelope at the Mid-America National Bank on the following morning. Occasionally, the plaintiff delegated this responsibility to the assistant manager.

On June 16, 1976, the receipts were not tallied, but were placed in the store safe. At 9:30 a.m. on the following day, the plaintiff counted the money and placed it into a money pouch for deposit, placed the pouch in the locked compartment in the store room and instructed the assistant manager to make the necessary bank deposit.

Plaintiff then left the store at 10:00 a.m. to attend a business meeting at defendant’s State Street store. She returned some hours later and was advised by the assistant manager that the money was missing.

Plaintiff instructed the assistant manager to inform the security department of the missing funds, did not talk to security officers herself and then left the premises on that day earlier than was usual.

On June 18, 1976, plaintiff was questioned by her supervisors and representatives of defendant’s security department. Thereafter, she submitted to a lie detector test, but the results were inconclusive. Plaintiff then declined to allow defendant to review her bank account records.

On June 23, 1976, plaintiff was advised that she would be held responsible for the missing funds and was given the option of resignation or involuntary dismissal. Plaintiff refused to resign voluntarily and was thereafter dismissed from employment by defendant.

The issues considered on appeal are: (1) Did the employee handbook create a contract binding defendant to a particular procedure for terminating plaintiff’s employment, and (2) if so, did the manner in which plaintiff was terminated violate the provisions of the employee handbook?

Plaintiff asserts that the record does not indicate that she was guilty of “improper handling of company money” which would have given reason for immediate dismissal.

An employee handbook or other policy statement may create enforceable contractual rights if the traditional requirements for contract formation are present. In Duldulao v. Saint Mary of Nazareth Hospital Center (1987), 115 Ill. 2d 482, 490, 505 N.E.2d 314, the Illinois Supreme Court set out the criteria:

“First, the language of the policy statement must contain a promise clear enough that an employee would reasonably believe that an offer has been made. Second, the statement must be disseminated to the employee in such a manner that the employee is aware of its contents and reasonably believes it to be an offer. Third, the employee must accept the offer by commencing or continuing to work after learning of the policy statement. When these conditions are present, then the employee’s continued work constitutes consideration for the promises contained in the statement, and under traditional principles a valid contract is formed.”

After examining the specific provisions set out in the handbook and considering plaintiff’s testimony with regard to commencement of her employment, we agree that the handbook and surrounding facts create an enforceable contract and that the Duldulao requirements have been satisfied. The handbook contains clear and definitive statements regarding salaries, lunch hours, vacation pay, insurance, sick pay, employee discounts, probation and termination. According to Duldulao, these statements are clear enough to have caused plaintiff to reasonably believe that an offer has been made.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wehde v. Regional Transportation Authority
604 N.E.2d 446 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
576 N.E.2d 99, 215 Ill. App. 3d 873, 159 Ill. Dec. 430, 6 I.E.R. Cas. (BNA) 945, 1991 Ill. App. LEXIS 966, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melicharek-v-carson-pirie-scott-and-co-illappct-1991.