Ring v. R.J. Reynolds Industries Inc.

597 F. Supp. 1277, 119 L.R.R.M. (BNA) 2693, 40 Fed. R. Serv. 2d 1158, 1984 U.S. Dist. LEXIS 21718, 37 Empl. Prac. Dec. (CCH) 35,310
CourtDistrict Court, N.D. Illinois
DecidedNovember 27, 1984
Docket84 C 3208
StatusPublished
Cited by15 cases

This text of 597 F. Supp. 1277 (Ring v. R.J. Reynolds Industries Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ring v. R.J. Reynolds Industries Inc., 597 F. Supp. 1277, 119 L.R.R.M. (BNA) 2693, 40 Fed. R. Serv. 2d 1158, 1984 U.S. Dist. LEXIS 21718, 37 Empl. Prac. Dec. (CCH) 35,310 (N.D. Ill. 1984).

Opinion

Memorandum

LEIGHTON, District Judge.

Plaintiff, Thomas Ring brings this diversity action to recover damages for his alleged wrongful discharge as an employee of defendant, R.J. Reynolds Industries. The cause is before the court on defendant’s motions to dismiss and for an award of attorneys’ fees and costs. For the following reasons, both motions are granted. The facts as alleged, and taken as true for the purpose of these motions, are as follows.

I

Plaintiff began working for defendant in 1969 as a salesman and was continually employed until his termination in 1983. His complaint makes no mention of any contract of employment; however, he does allege that defendant had a policy wherein employees would be given a reprimand and/or probation before they were terminated. Defendant also had a written policy whereby supervisors would spot check reports of sales activity; and any defects in performance would be called to the employee’s attention by a written reprimand. He then alleges that during fourteen years of his employment, he was reprimanded twice and placed on probation once. He also alleges that in 1982, one of his supervisors advised him to falsify his sales report; and when he declined to do so, the supervisor filed the false report. In 1983, another supervisor checked his sales calls and discovered some 28 reporting errors and summarily terminated his employment; plaintiff was 39 years at the time.

Plaintiff’s complaint is stated in four counts. In Count I he alléges that a contract of employment existed and that defendant breached the contract by terminating him without first issuing a reprimand or placing plaintiff on probation, pursuant to defendant’s established policy. In Count II plaintiff purports to state a cause of action for retaliatory discharge. He alleges that his termination at the age of 39 violated the public policy embodied in the Illinois Human Rights Act, 68 Ill.Rev.Stat. ch. 68, § 1-101 et seq. Count III alleges that plaintiff’s termination was a violation of an alleged covenant of good faith and fair dealing. As to Count IV, the court is unable to ascertain what cause of action plaintiff is attempting to plead. It appears that he is alleging. a “right” to receive reprimands, probation, notice and a hearing from defendant prior to his termination. It is undisputed that Illinois law controls this diversity action. A review of the relevant Illinois statutes and decisions discloses that each count of the complaint fails to state a claim on which relief can be granted.

II

In Count I plaintiff attempts to state a claim for breach of an employment contract. He does not allege that a written employment contract exists, nor does he allege that there was a specific stated duration to the employment relationship between him and defendant. If an employment contract, whether oral or written, does not specify a duration, then the contract is terminable “at will”, and the employment relation can be terminated by either party at any time and for any reason. See Rynar v. Ciba-Geigy Corp., 560 *1280 F.Supp. 619 (N.D.Ill.1983); Lukasik v. Riddell, Inc., 116 Ill.App.3d 339, 72 Ill.Dec. 123, 452 N.E.2d 55 (1983). Because plaintiff has not alleged that his contract of employment had a specified duration, his employment is terminable “at will” and he cannot state a claim for breach of an employment contract.

Plaintiff, although it is hard to discern what his contentions are from his brief in response to the motion to dismiss, apparently is arguing that the company is contractually bound to adhere to the “reprimand and/or probation prior to termination” policy. Thus, this policy modified plaintiffs at will status and imposed a condition which the company had to follow before it terminated plaintiff. Generally, a personnel policy of an employer is not part of an employment contract unless it is “bargained for.” Rynar v. Ciba-Geigy Corp., 560 F.Supp. at 624. In order for the personnel policy to be bargained for and thus included in the employment contract two facts must be established: (1) the terms of the policy itself must establish that a mutuality of obligation was intended when the policy was adopted; and (2) the facts surrounding implementation of the policy must establish that the policy modified a pre-existing employment contract. Enis v. Contential Illinois National Bank, 582 F.Supp. 876 (N.D.Ill.1984); Rynar v. Ciba-Geigy Corp., supra; Sargent v. Illinois Institute of Technology, 78 Ill.App.3d 117, 33 Ill.Dec. 937, 397 N.E.2d 443 (1979); Carter v. Kaskaskia Community Action Agency, 24 Ill.App.3d 1056, 322 N.E.2d 574 (1974). In this case, plaintiffs allegations fail to adequately set forth a breach of contract claim. All plaintiff alleges is the existence of defendant’s policy of issuing reprimands and probation before termination. He does not allege, as he must, that the policy was implemented after he started to work for defendant; Sargent v. Illinois Institute of Technology, supra; or that the terms of the alleged policy specifically or even implicitly suggest mutuality. Rynar v. Ciba-Geigy Corp., supra.

In Count II plaintiff alleges that his termination was a violation of the age discrimination provisions of the Illinois Human Rights Act. Ill.Rev.Stat. ch. 68, § 1-101 et seq. (“IHRA”). He claims that defendant has “consistently, deliberately and maliciously followed a course of conduct of weeding out, culling and terminating their [sic] employees ... when such employees reach or become close to or are over forty (40) years of age____” Plaintiff then alleges that he was wrongfully, maliciously and deliberately terminated at the age of 39.

The IHRA make it unlawful for an employer to discriminate against an employee on the basis of age; however, the Act only applies to individuals who are between 40 and 70 years old. Ill.Rev.Stat. ch. 68, § 1-103. Plaintiff admits that he was 39 years of age at the time of termination; therefore, he cannot claim a violation of the IHRA because he was not in the age group covered by the Act at the time of the alleged violation. Furthermore, IHRA provides for extensive administrative review prior to the filing of a suit. Section 8-111(D) of the Act provides that no party can bring an action until he has first exhausted his administrative remedies. Plaintiff does not allege that he has done so. Therefore, Count II fails to state a claim on which relief can be granted.

Plaintiff would have this court construe Count II as alleging a cause of action in tort on the grounds that this was a retaliatory discharge which contravened the public policy underlying IHRA. Assuming arguendo, that the court construes this count in the manner urged by plaintiff, it still does not state a claim. While Illinois courts have recognized, in limited circumstance, the tort of wrongful discharge in contravention of public policy, see e.g. Palmateer v. International Harvester Co., 85 Ill.2d 124, 52 Ill.Dec. 13, 421 N.E.2d 876

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597 F. Supp. 1277, 119 L.R.R.M. (BNA) 2693, 40 Fed. R. Serv. 2d 1158, 1984 U.S. Dist. LEXIS 21718, 37 Empl. Prac. Dec. (CCH) 35,310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ring-v-rj-reynolds-industries-inc-ilnd-1984.