Richardson v. East River Electric Power Cooperative, Inc.

531 N.W.2d 23, 10 I.E.R. Cas. (BNA) 1073, 1995 S.D. LEXIS 52, 1995 WL 256361
CourtSouth Dakota Supreme Court
DecidedMay 3, 1995
Docket18634
StatusPublished
Cited by33 cases

This text of 531 N.W.2d 23 (Richardson v. East River Electric Power Cooperative, Inc.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richardson v. East River Electric Power Cooperative, Inc., 531 N.W.2d 23, 10 I.E.R. Cas. (BNA) 1073, 1995 S.D. LEXIS 52, 1995 WL 256361 (S.D. 1995).

Opinions

WUEST, Retired Justice.

Bobbi Richardson had been employed by East River Electric Power Cooperative, Inc. (East River) since October 1985. In July 1992, her employment was terminated. Richardson brought action against her former employer claiming wrongful termination, negligent infliction of emotional distress, and intentional infliction of emotional distress. Richardson sought compensatory and punitive damages against both East River and its general manager, Jeffrey L. Nelson. East River and Nelson moved for summary judgment based on Richardson’s employee-at-will status. The circuit court granted the defendants’ motion and Richardson appeals. We affirm.

[25]*25 FACTS

Bobbi Richardson was an employee of East River’s since October 1985. In December 1991, members of East River’s board of directors received a typewritten anonymous letter accusing the managers of East River, including defendant Nelson, of various unlawful and unethical practices and asking the board to investigate. In May 1992, a second anonymous letter, similar in nature to the first, was received by some of the board members. This second letter was also sent to outside agencies, including some in Washington, D.C. In June 1992, Nelson, general manager at East River, spoke to a group of about eighty East River employees about the letters during a regular company meeting and requested employees with any knowledge of their authorship to come forward. Two employees from this group gave information to Nelson which led him to believe plaintiff Richardson had authored the first letter.

On July 20, 1992, Richardson’s immediate supervisor was informed of Nelson’s intention to confront Richardson that afternoon and advise her he had information indicating she had written the first anonymous letter. The supervisor knew Nelson planned to give Richardson the opportunity to resign or be terminated. Later that day, Richardson, her immediate supervisor, Nelson, and another manager met in East River’s conference room. Nelson told Richardson he had credible evidence that she wrote the letter but he did not tell her what that evidence was. She denied that she was the author but indicated she knew the identity of that person. Nelson then gave Richardson the opportunity to resign. When she did not do so, he informed her she was terminated effective immediately. Her immediate supervisor escorted her to her office where she cleaned out her desk and left that afternoon.

Richardson appealed her termination under East River’s employee appeals policy. While her appeal was pending, East River advertised her vacant position. When her appeal was denied, Richardson claims she sought counseling and medical attention to alleviate the psychological and physical effects of her termination. Thereafter, Richardson brought the lawsuit giving rise to this appeal.

ANALYSIS AND CONCLUSION

The trial court granted defendants’ motion for summary judgment on the basis that Richardson was an employee-at-will and, as such, could be terminated at any time by East River. On a motion for summary judgment, the trial court must consider the following:

[T]he evidence must be viewed most favorably to the non-moving party; the movant has the burden of proof to clearly show that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law; summary judgment is not a substitute for trial; a belief that the non-moving party will not prevail at trial is not an appropriate basis for granting the motion on issues not shown to be sham, frivolous, or unsubstantiated; summary judgment is an extreme remedy and should be awarded only when the truth is clear and reasonable doubts touching upon the existence of a genuine issue of material fact should be resolved against the movant.

Tibke v. McDougall, 479 N.W.2d 898, 904 (S.D.1992); Pickering v. Pickering, 434 N.W.2d 758, 760 (S.D.1989); SDCL 15-6-56(c). On appeal from a motion for summary judgment, our task is to determine only whether a genuine issue of material fact exists and whether the law was correctly applied. Affirmance of a summary judgment is proper if there exists any basis which supports the ruling of the trial court. Garrett v. BankWest, Inc., 459 N.W.2d 833, 837 (S.D.1990); Pickering, 434 N.W.2d at 760. We will affirm a grant of summary judgment only if there are no genuine issues of material fact and the legal questions have been correctly decided. Butterfield v. Citibank of S.D., N.A., 437 N.W.2d 857, 858 (S.D.1989). “ ‘Summary judgment is generally not feasible in negligence cases because the standard of the reasonable man must be applied to conflicting testimony.... It is only when the evidence is such that reasonable men can draw but one conclusion from facts and inferences that they become a matter of law and this occurs rarely.’ ” Trammell v. Prairie [26]*26States Ins. Co., 473 N.W.2d 460, 462 (S.D.1991) (quoting Wilson v. Great N. Ry. Co., 83 S.D. 207, 212-13, 157 N.W.2d 19, 22 (1968)) (citations omitted).

South Dakota’s employment-at-will doctrine is codified at SDCL 60-4-4. The statute provides:

An employment having no specified term may be terminated at the will of either party on notice to the other, unless otherwise provided by statute.

In 1983, this court adopted a narrow exception to that doctrine in Osterkamp v. Alkota Mfg., Inc., 332 N.W.2d 275 (S.D.1983). In Osterkamp, we held that an employee handbook could constitute a contract of employment where the employer specifically agrees to discharge employees “for cause only.” Where such an agreement exists in the handbook and an employer fails to abide by its terms in discharging an employee, that employee has a cause of action for wrongful discharge of employment based on breach of the agreement. We defined the Osterkamp exception in later cases as providing two possible ways an employee handbook could create a “for cause only” agreement:

First, such an agreement may be found where the handbook explicitly provides, in the same or comparable language, that discharge can occur ‘for cause only.’ Second, a ‘for cause only’ agreement may be implied where the handbook contains a detailed list of exclusive grounds for employee discipline or discharge and, a mandatory and specific procedure which the employer agrees to follow prior to any employee’s termination.

Butterfield, 437 N.W.2d at 859; Breen v. Dakota Gear & Joint Co., Inc. 433 N.W.2d 221 (S.D.1988). The handbook language must clearly indicate the employer’s intention to surrender his statutory power under SDCL

Related

Allen v. M.G. Oil
D. South Dakota, 2024
Velez v. AutoZoners, LLC
D. South Dakota, 2023
Harvey v. Regional Health Network
2018 SD 3 (South Dakota Supreme Court, 2018)
Estate of Johnson Ex Rel. Johnson v. Weber
2017 SD 36 (South Dakota Supreme Court, 2017)
Nichols v. MMIC Insurance
68 F. Supp. 3d 1067 (D. South Dakota, 2014)
People of Michigan v. Michael Peter Murray
Michigan Court of Appeals, 2014
Dunn v. Lyman School District 42-1
35 F. Supp. 3d 1068 (D. South Dakota, 2014)
Fix v. First State Bank of Roscoe
2011 S.D. 80 (South Dakota Supreme Court, 2011)
Murphy v. Kmart Corp.
255 F.R.D. 497 (D. South Dakota, 2009)
Petersen v. ProxyMed, Inc.
617 F. Supp. 2d 835 (D. South Dakota, 2008)
McDowell v. Citicorp U.S.A.
2007 SD 53 (South Dakota Supreme Court, 2007)
Aberle v. City of Aberdeen
2006 SD 60 (South Dakota Supreme Court, 2006)
Zavadil v. Alcoa Extrusions, Inc.
363 F. Supp. 2d 1187 (D. South Dakota, 2005)
Citibank (S.D.), N.A. v. Hauff
2003 SD 99 (South Dakota Supreme Court, 2003)
Harris v. Jefferson Partners, L.P.
2002 SD 132 (South Dakota Supreme Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
531 N.W.2d 23, 10 I.E.R. Cas. (BNA) 1073, 1995 S.D. LEXIS 52, 1995 WL 256361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-v-east-river-electric-power-cooperative-inc-sd-1995.