PERU SCHOOL CORP. v. Grant

969 N.E.2d 125, 2012 WL 2250140, 2012 Ind. App. LEXIS 289
CourtIndiana Court of Appeals
DecidedJune 18, 2012
Docket52A04-1107-PL-352
StatusPublished
Cited by3 cases

This text of 969 N.E.2d 125 (PERU SCHOOL CORP. v. Grant) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PERU SCHOOL CORP. v. Grant, 969 N.E.2d 125, 2012 WL 2250140, 2012 Ind. App. LEXIS 289 (Ind. Ct. App. 2012).

Opinion

OPINION

VAIDIK, Judge.

Case Summary

Gary Grant was a school-bus driver with a yearly contract and an at-will custodian *127 for Peru School Corporation a/k/a Peru Community Schools (hereinafter, “Peru Schools”) for nearly twenty-four years. After being terminated during the 2007-08 school year, Grant filed a complaint for wrongful termination. Following a jury trial in which the jury found in favor of Grant and awarded him nearly $175,000 in damages, Peru Schools now appeals the trial court’s denial of its motions for summary judgment and judgment on the evidence and the trial court’s admission of evidence regarding Grant’s salary as a school-bus driver and a custodian until he turns sixty-five years old.

We conclude that the trial court erred in denying Peru Schools’ motion for judgment on the evidence as it pertains to Grant’s employment as an at-will custodian because there is no substantial evidence of detrimental reliance, which is required to defeat the presumption of at-will employment. However, we reach a different result regarding Grant’s employment as a contracted school-bus driver. Because there is a genuine issue of material fact as to why Grant was fired, Grant denies one of the two grounds, and cause is required in order to terminate an employee with a contract for a definite term, we conclude that the trial court properly denied Peru Schools’ motion for summary judgment and left the matter for the jury to resolve. As for damages, because an employee discharged in breach of an employment contract for a definite term is entitled to recover his or her salary for the balance of the term, we conclude that Grant is only entitled to $2422.82 in damages, which represents the rest of his salary as a school-bus driver for the 2007-08 school year minus the unemployment compensation he received. Because of our resolution of the above issues, we do not need to reach the merits of the issues raised in Grant’s cross-appeal. We therefore affirm in part, reverse in part, and remand.

Facts and Procedural History

Peru Schools is an Indiana public-school corporation in Peru, Indiana. From 1983 to 2007, Grant was employed by Peru Schools in two capacities: (1) a school-bus driver under a yearly contract and (2) a full-time, at-will custodian. Grant received a letter each year from the Peru Schools superintendent thanking him for his services “as a bus driver” and providing “reasonable assurance” that he would be employed for the upcoming school year. Ex. 13. Grant received such a letter on May 18, 2007, for the 2007-08 school year. Id. Grant then entered into a School Bus Driver’s Employment Contract for the 2007-08 school year. This contract provides, in relevant part:

In consideration of the agreements hereinafter contained, Driver agrees to drive a school bus furnished by the Employer over a designated route or routes established by the Employer in and for said school corporation during the school year beginning AUGUST 15, 2007, consisting of 9 1/2 months, and continuing until MAY 28, 2008....
* * * * * *
13. This contract incorporates by reference all present policies of the School Corporation with respect to the transportation of students and passengers and are hereby made part of this contract.
⅜ * ⅜ * * *
15. Failure of Driver to comply with the terms of this contract, including all terms and conditions incorporated by reference, shall be deemed cause for dismissal at the option of Employer. In the event of such breach by Driver, Employer’s authorized agent shall first recommend dismissal to Employer’s Governing Body, which may act upon such *128 recommendation without notification or opportunity for Driver to be heard, but such dismissal shall not be effective until the Governing Body takes action on such recommendation. Notwithstanding the above, Employer, acting by its authorized agent, may suspend Driver immediately, for any conduct or omission constituting cause for dismissal, pending actual dismissal.

Appellant’s App. p. 20-21 (emphases added).

The Bus Drivers Handbook, which was incorporated by reference into the School Bus Driver’s Employment Contact, provides in relevant part:

RULES AND REGULATIONS
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6. No school bus driver shall permit any other person to drive their school bus, occupy the driver[’]s seat, tamper with the engine/any controls, [or] tamper or use the 2-way bus radio except such persons who are authorized by the School Board or proper school authorities.
* * ⅜ * * ⅜
BUS PARKING
* :|: * * * *
3. When buses are parked at locations other than S & S (Blair Pointe or the high school) care must be taken to secure the buses. If [the] bus is equipped with vandal locks they must be used, the emergency exits and service door must be secured. If the bus is not equipped with vandal locks the bus must be made secure as possible and KEYS REMOVED.

Id. at 189,196.

Grant was assigned Bus 18, which was owned by Peru Schools and equipped with two video cameras. Peru Schools paid for the bus fuel and maintenance. Grant parked the school bus at his house when it was not in use. In November 2007, Grant reported vandalism to a bus seat. Stanley Hall, Director of Finance and Operations for Peru Schools, and David Frushour, Transportation Director for Peru Schools, reviewed the video from Grant’s bus.

On November 20, Grant was called to Hall’s office; Frushour was also there. Hall and Frushour told Grant that the video showed that for three consecutive days during the week of November 12, the bus was started around 4:45 a.m., which meant that it was running for about one and a half hours before Grant even began his route. Because of the placement of the cameras and the darkness, however, it could not be determined who started the bus. Hall and Frushour showed the video to Grant, 1 but Grant denied starting the bus that early because he was still asleep. Grant did not know how the bus was started so early. Grant, however, told Hall and Frushour that he did not secure the bus and left the keys in the bus every night. After Grant left the meeting, Hall and Frushour concluded that Grant had been starting the bus around 4:45 a.m. to waste fuel because he was not assigned extra trips and, therefore, Grant was untruthful in his answers. Id. at 150.

Hall and Frushour then met with the superintendent, Dr. Andrew Melin, and showed him the video. Dr. Melin confirmed that the bus was “started much *129 earlier than normal and the bus was left running for a long period of time.” Tr. p. 228. Dr.

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969 N.E.2d 125, 2012 WL 2250140, 2012 Ind. App. LEXIS 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peru-school-corp-v-grant-indctapp-2012.