Noel v. Elk Brand Manufacturing Co.

53 S.W.3d 95, 2000 Ky. App. LEXIS 27, 2000 WL 331769
CourtCourt of Appeals of Kentucky
DecidedMarch 31, 2000
DocketNo. 1998-CA-002052-MR
StatusPublished
Cited by26 cases

This text of 53 S.W.3d 95 (Noel v. Elk Brand Manufacturing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noel v. Elk Brand Manufacturing Co., 53 S.W.3d 95, 2000 Ky. App. LEXIS 27, 2000 WL 331769 (Ky. Ct. App. 2000).

Opinion

OPINION

HUDDLESTON, Judge:

After she lost her job as a seamstress at Elk Brand Manufacturing Company, Hilda J. Noel sued her former employer seeking damages for retaliatory discharge,1 breach of contract, and discrimination under the Kentucky Civil Rights Act2 and the Americans with Disabilities Act.3 Following the taking of discovery depositions and the submission of affidavits, Trigg Circuit Court granted Elk Brand’s motion for summary judgment and dismissed Noel’s complaint. Noel appeals claiming that the court erred when it determined that there is no genuine issue as to any material issue of fact and that Elk Brand is entitled to judgment as a matter of law.4

Noel worked for Elk Brand for almost twenty years before her employment was terminated on August 2, 1996. While employed at Elk Brand, Noel developed severe carpal tunnel syndrome5 in her left wrist. On January 15, 1996, Noel filed a workers’ compensation claim. Following surgery on her left arm, Noel returned to work with restrictions on January 22, 1996. Although she was given a different job, she began to experience swelling in her right wrist and was treated with braces and physical therapy. During this period, she was moved to a non-production job.

A final evidentiary hearing on the merits of Noel’s workers’ compensation claim was held on July 3, 1996. Approximately thirty days later, she, along with twenty-nine other employees, was laid off. Twenty of the laid-off employees were given “T” status, indicating that they would probably be off work five days or less. The remaining employees, including Noel, were given “P” status, indicating that they would be eligible for recall according to the company’s need for their work in the order of their productivity. At the time of the lay-off, Noel had the lowest production average in Elk Brand’s plant. Although at least two of the persons given “P” status by Elk Brand were reemployed within two months, Noel did not apply for reemployment.

In January 1997, an Administrative Law Judge rendered an opinion in which he found that Noel has a fifty percent occupational disability as the result of bilateral upper extremity problems which became manifest in February 1994. According to the ALJ:

[98]*98[Noel] can no longer lift more than 10 lbs, either maximum or frequently, cannot push or pull more than 10 lbs. with either hand and should avoid repetitive use of her upper extremities, use of vibratory tools, extremes in temperature, either hot or cold, or extreme humidity. * * * Therefore, [Noel] can no longer do the type of work in which she was engaged for almost her entire vocational life. This will have a marked effect on her ability to be gainfully employed.6

Before analyzing the evidence developed on discovery to determine whether the circuit court erred when it determined that there is no genuine issue as to any material fact, we look to the law governing the granting of summary judgments. According to Kentucky Rule of Civil Procedure (CR) 56.03, summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, stipulations, and admissions on file, together with the affidavits, ,.. show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” The record must be viewed by the circuit court in a light most favorable to the party opposing the motion for summary judgment and all doubts resolved in her favor. The circuit court “must examine the evidence, not to decide any issue of fact, but to discover if a real issue exists.”7

“[A] party opposing a properly supported summary judgment motion cannot defeat it without presenting at least some affirmative evidence showing that there is a genuine issue of material fact for trial.”8 Summary judgment “should only be used ‘to terminate litigation when, as a matter of law, it appears that it would be impossible for the respondent [Noel] to produce evidence at the trial warranting a judgment in [her] favor and against the movant [Elk Brand].’ ”9

We review a summary judgment de novo to determine “whether the trial court correctly found that there were no genuine issues as to any material fact and that the moving party was entitled to judgment as a matter of law.”10

I. BREACH OF CONTRACT

Noel claims that there is a material issue of fact as to whether Elk Brand’s Employee Manual created a contract between her and the company. Employment in Kentucky is “at will” unless the parties otherwise agree. In Nork v. Fetter Printing Co.,11 this court said that an express disclaimer in an employee manual stating that it was not a contract effectively precluded deviation from the terminable at will doctrine. We made the same observation regarding language in an employee application form which stated that “ ‘[i]t is further agreed that this contract may be terminated at will by either the employer or employee.’ ”12

Noel argues that Elk Brand’s disclaimer is materially different from those at issue in Nork because the Elk Brand employee handbook does not specifically provide that Noel was an “at will” employee. Further[99]*99more, Noel points out, the handbook states that employees can rely on the company for wages, benefits, holidays, seniority and workforce adjustment. The Elk Brand employee handbook, however, does provide that it is “not a contract.” The lack of express “at will” language does not render Elk Brand’s disclaimer ineffective, nor does the inclusion of reliance language. Accordingly, Elk Brand employed Noel “at will,” and she had no contractual right to continued employment.

Noel cites Shah v. American Synthetic Rubber Corp,13 for the proposition that her claim for breach of contract cannot be resolved until there has been a trial on the merits. In Shah, the Supreme Court joined “a number of other jurisdictions which hold that parties may enter into a contract of employment terminable only pursuant to its express terms — as ‘for cause’ — by clearly stating their intention to do so....”14 Neither Elk Brand nor Noel clearly stated an intent to enter an employment contract terminable only for cause. Elk Brand expressed its intent not to enter a “discharge only for cause” employment contract with Noel by including the phrase “[this] booklet is not a contract” in its employee manual.

In Nork we declined to nullify a clearly stated disclaimer because we could not do so without “totally annihilating Shah’s holding of ‘clear intention.’ ” 15 In order for Noel to prevail on her breach of contract claim, we would have to disregard a disclaimer and create a “discharge only for cause” employment contract in the absence of the intent of both parties to do so. This we may not do. Noel does not claim that there was any contractual agreement between her and Elk Brand other than the Employee Manual. Accordingly, we agree with the circuit court that there is no genuine issue of material fact as to the existence of an employment contract between the parties and that Elk Brand was entitled to judgment as a matter of law on this claim.

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Cite This Page — Counsel Stack

Bluebook (online)
53 S.W.3d 95, 2000 Ky. App. LEXIS 27, 2000 WL 331769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noel-v-elk-brand-manufacturing-co-kyctapp-2000.