Mobley v. MANHEIN SERVICES CORP.

889 P.2d 1342, 133 Or. App. 89, 10 I.E.R. Cas. (BNA) 521, 1995 Ore. App. LEXIS 295
CourtCourt of Appeals of Oregon
DecidedFebruary 15, 1995
Docket9212 08255; CA A81680
StatusPublished
Cited by16 cases

This text of 889 P.2d 1342 (Mobley v. MANHEIN SERVICES CORP.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mobley v. MANHEIN SERVICES CORP., 889 P.2d 1342, 133 Or. App. 89, 10 I.E.R. Cas. (BNA) 521, 1995 Ore. App. LEXIS 295 (Or. Ct. App. 1995).

Opinion

*91 LANDAU, J.

Plaintiff appeals from a summary judgment on his claim for breach of an employment contract. We affirm.

The following relevant facts are not in dispute. Plaintiff began work for General Electric Corporation as an auto body painter in 1988. At the time he was hired, his employer adopted and maintained a “Code of Conduct” booklet, which set out the terms and conditions of employment. The Code of Conduct contains, among other things, a declaration that the objective of any disciplinary action is to improve performance, and a provision that, upon receiving four disciplinary warnings, an employee will be terminated. It also contains this disclaimer:

“I understand that the Code of Conduct is a general guide and that the provisions of the Code of Conduct do not constitute an employment agreement (contract) or a guarantee of continued employment. As I have the right to resign at any time for any reason, the company may terminate me at any time for any reason.”

In 1991, defendant purchased the business and became plaintiffs employer. Defendant did not rescind or modify the Code of Conduct.

In late 1991, Romig, another employee, filed an action against defendant for sexual harassment. Unbeknownst to plaintiff, Romig said in a deposition that plaintiff could testify in support of her claim. A month later, defendant fired plaintiff, at least ostensibly because he had continued to work overtime without permission. Plaintiff sued defendant for breach of employment contract. According to plaintiffs complaint, defendant breached its employment contract with him by terminating him without following the disciplinary procedures set out in the Code of Conduct.

Defendant moved for summary judgment, arguing that it is entitled to judgment as a matter of law because of the disclaimer in the Code of Conduct that permits defendant to terminate its employees at any time and for any reason. Plaintiff asked for an extension of time to file a response to the motion. According to plaintiff, he had just discovered the fact that Romig had earlier testified that plaintiff could be an adverse witness to defendant in Romig’s sexual harassment *92 lawsuit, and he thought it was possible that the evidence would show that he was wrongfully terminated because of that. When he finally argued against the summary judgment motion, however, plaintiff did not assert that Romig’s testimony might support a claim for wrongful termination. He opposed the motion solely on the grounds that summary judgment was inappropriate, because the language of the Code of Conduct is ambiguous and requires further evidence as to whether the parties intended progressive discipline to precede termination, and because there was evidence that defendant acted in bad faith in terminating him. The trial court granted defendant’s motion.

Meanwhile, on the day that the trial court heard argument and ruled on the summary judgment motion, plaintiff filed a motion to amend his complaint to add a claim for wrongful termination, based on the Romig testimony. Defendant opposed that motion, arguing that it was untimely, because summary judgment had just been granted in defendant’s favor. At the hearing on the motion to amend, plaintiff explained that he did not say anything about the motion to amend at the summary judgment hearing, because he thought it was “a separate issue and not before the court. ’ ’ He further explained that he could not have filed the motion to amend earlier, because the evidence was “newly discovered.” The trial court denied the motion.

On appeal, plaintiff assigns error to the trial court’s rulings on both the motion for summary judgment and the motion to amend.

We begin with plaintiffs assignment concerning the trial court’s entry of summary judgment in favor of defendant. We review the record in the light most favorable to plaintiff to determine whether defendant demonstrated that there are no genuine issues of material fact and that it is entitled to judgment as a matter of law. Seeborg v. General Motors Corporation, 284 Or 695, 699, 588 P2d 1100 (1978).

Plaintiff argues that the trial court erred in granting summary judgment for two reasons. First, plaintiff argues that there was a genuine issue of material fact as to whether the Code of Conduct permits termination only after following *93 certain progressive discipline procedures. Plaintiff acknowledges the general rule that an employer may discharge an employee at any time, for any reason, unless doing so violates a contractual, statutory or constitutional requirement. Patton v. J. C. Penney Co., 301 Or 117,120, 719 P2d 854 (1986). He argues that, in this case, there is a contractual provision in the Code of Conduct that provides for termination if an employee receives four or more disciplinary warnings and that, consequently, the general rule of “at will” employment does not apply. He does not dispute that the Code of Conduct also contains the disclaimer on which defendant predicated its summary judgment motion. Plaintiff simply argues that the language of the disclaimer creates an ambiguity and, because “[i]t is inherently unreasonable,” cannot be considered conclusive. We disagree.

The issue turns on the construction of the Code of Conduct. Whether the language of the Code of Conduct is ambiguous is a question of law. If the language is ambiguous, then the determination of the parties’ intentions with respect to that ambiguous language is a question of fact. Generally, the construction of ambiguous language cannot be accomplished on a motion for summary judgment. Biomass One, L.P. v. S-P Construction (A68622), 120 Or App 194, 200, 852 P2d 847 (1993).

In this case, the Code of Conduct contains language that the receipt of four disciplinary warnings will result in discharge. However, it also contains language that plainly characterizes the references to disciplinary warnings as a “general guide,” and that provides that the Code of Conduct “[does] not constitute an employment agreement” and that “the company may terminate [its employees] at any time for any reason.” There is nothing ambiguous about that language. It is, in fact, quite similar to the language we held unambiguous as a matter of law in Gilbert v. Tektronix, Inc., 112 Or App 34, 827 P2d 919, rev den 313 Or 299 (1992). In that case, the employer maintained an employee handbook that spelled out various employment policies and concluded with the following:

“ ‘[The employer] intends to have a lasting relationship with its permanent employees. [The employer] also *94 recognizes that not all employees will have a long-term relationship with the company and that either party may wish to terminate the relationship at some time. [The employer] intends to preserve the right of either party to do so.’ ” 112 Or App at 37. (Emphasis theirs.)

The plaintiff sued the employer for breach of the employee handbook, and the jury returned a verdict for the plaintiff. The trial court, however, granted judgment n.o.v.

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Bluebook (online)
889 P.2d 1342, 133 Or. App. 89, 10 I.E.R. Cas. (BNA) 521, 1995 Ore. App. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobley-v-manhein-services-corp-orctapp-1995.