Ryan v. Dan's Food Stores, Inc.

972 P.2d 395, 14 I.E.R. Cas. (BNA) 512, 350 Utah Adv. Rep. 3, 1998 Utah LEXIS 64, 1998 WL 480823
CourtUtah Supreme Court
DecidedAugust 18, 1998
Docket970213
StatusPublished
Cited by77 cases

This text of 972 P.2d 395 (Ryan v. Dan's Food Stores, Inc.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan v. Dan's Food Stores, Inc., 972 P.2d 395, 14 I.E.R. Cas. (BNA) 512, 350 Utah Adv. Rep. 3, 1998 Utah LEXIS 64, 1998 WL 480823 (Utah 1998).

Opinions

ZIMMERMAN, Justice:

James Ryan asks this court to overturn a trial court’s grant of summary judgment in favor of his former employer, Dan’s Foods, Inc. (“Dan’s”). Ryan argues that summary judgment is improper because a material issue of fact exists as to whether Dan’s terminated him in breach of an express or implied employment contract or in violation of public policy. We affirm.

We first turn to a review of the facts. Because this is an appeal from a grant of summary judgment, “we view the facts and all reasonable inferences drawn therefrom in the light most favorable to the nonmoving party.” Higgins v. Salt Lake County, 855 P.2d 231, 233 (Utah 1993). We recite the facts accordingly.

Ryan began employment with Dan’s as a part-time pharmacist in 1992. In September of 1993, Ryan met with Ted D. Gardiner, president of Dan’s, to interview for a full-time pharmacy position. During this meeting, Ryan told Gardiner that his previous employer, Harmon’s, had fired him from one of its pharmacies; Ryan also told Gardiner that he believed Harmon’s fired him because he reported that another Harmon’s employee was taking narcotics from the pharmacy. In response, Gardiner stated, “I’ve got no problem with that.... I’ll never reprimand a pharmacist for following the law.... That’s one thing I demand of all my pharmacists that work for me, that they do everything by the book.” Following this meeting, Gardiner made Ryan a full-time pharmacist at Dan’s Sandy, Utah, store.

On September 7, 1993, a manager at Dan’s gave Ryan a copy of Dan’s employee handbook. The manager told Ryan that he needed to read the handbook and return a signed acknowledgment form before he could receive his paycheck. Ryan read the handbook and signed and returned the acknowledgment form. In reviewing the handbook, Ryan had concerns about its statement: “Your employment at Dan’s is at will and may be terminated without cause or prior notice by either you or Dan’s.” He spoke to his supervisor, Melissa Hong, about his concerns. Although he told her he could not believe that that was Dan’s policy, he also acknowledged that he understood it.

During the eighteen months that Ryan worked full-time for Dan’s, many customers complained about Ryan’s treatment of them: the store director, Ray Carter, received at least 30 customer complaints about Ryan, and Ryan’s direct supervisor, Melissa Hong, received at least two complaints every month. Most of the customers who complained said that Ryan was rude to them or treated them poorly. When Ryan worked part-time for Dan’s, Scott Buchanan, head pharmacist overseeing all Dan’s pharmacies, received dozens of reports from pharmacy [400]*400managers relaying customers’ complaints about Ryan.

Dan’s management repeatedly counseled and warned Ryan about these complaints and his treatment of customers: Ryan’s direct supervisor, the store manager, and Buchanan counseled Ryan on a monthly basis about the customer complaints. Ryan told them he would try to change and promised to do better. On the other hand, Ryan received at least five letters, two from Gardiner and three from area law enforcement officers, complimenting him on his thoroughness in detecting fraudulent prescriptions.

On April 21, 1995, Buchanan asked Gard-iner for permission to terminate Ryan because of the numerous customer complaints. Gardiner gave his permission, and on April 26th, Ryan was given notice that Dan’s was terminating him for his treatment of customers. At this time, Ryan received and signed an employee separation report, a report in which Dan’s explained its reasons for terminating Ryan.

Ryan filed an action in state court on October 23, 1995, alleging that Dan’s wrongfully terminated him in violation of public policy. Ryan later amended his complaint, adding a claim for wrongful termination based on a breach of an implied-in-fact contract of employment. Dan’s moved for summary judgment on both claims. Pursuant to rule 56(c) of the Utah Rules of Civil Procedure, the trial court granted summary judgment in Dan’s favor. The court ruled: (i) Ryan was an at-will employee, and therefore Dan’s did not terminate him in violation of any employment contract, and (ii) Dan’s did not terminate Ryan in violation of public policy; rather, it terminated him for the way he treated Dan’s customers.

On appeal, Ryan argues that the court erred in granting summary judgment. We begin by setting forth the standard of review and then proceed with our analysis. “Summary judgment is appropriate only when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law.” V-l Oil Co. v. Utah State Tax Comm’n, 942 P.2d 906, 910 (Utah 1996). Because “a challenge to summary judgment presents only a question of law,” we review it for correctness. West v. Thomson Newspapers, 872 P.2d 999, 1004 (Utah 1994). In reviewing a grant of summary judgment, “[w]e determine only whether the trial court erred in applying the governing law and whether the trial court correctly held that there were no disputed issues of material fact.” Ferree v. State, 784 P.2d 149, 151 (Utah 1989).

On the merits, Ryan argues that Dan’s breached an express or implied contract of employment and terminated him in violation of public policy. Because both issues involve the at-will employment doctrine, we begin with an overview of that doctrine before proceeding to our analysis.

Utah law presumes that an employment arrangement that does not have a specified term of duration is at-will. See. Fox v. MCI Communications Corp., 931 P.2d 857, 859 (Utah 1997). An at-will employment arrangement allows either the employer or the employee to terminate the employment for any reason, or no reason at all, at any time; moreover, the employer may “do so without extending any procedural safeguards to an employee, except as required by law.” Id. However, the at-will presumption is only that — a presumption. See id. An employee may overcome that presumption by showing that (i) an express or implied employment agreement existed that prohibited an employer from terminating an employee without cause or without satisfying other agreed-upon conditions; (ii) a statute or regulation restricts the employer’s right to terminate; (in) the termination “constitutes a violation of a clear and substantial public policy.” Id. (internal footnote omitted). In this case, Ryan attempts to overcome the at-will presumption by arguing that Dan’s breached an express or implied contract and that it terminated him in violation of public policy. We address each argument in turn.

Ryan first asserts that Gardiner created an express or implied-in-fact employment contract when he told Ryan that Dari’s would not reprimand him for following the law. “A wrongful termination case based on a violation of an express or implied term of the employment agreement rests on a duty [401]*401that an employer voluntarily undertakes as a consequence of the employment agreement itself, whether express or implied.” Id. at 860. Although the existence of an implied contract is a factual question, “the court retains the power to decide whether, as a matter of law, a reasonable jury could find that an implied contract exists.” Sanderson v. First Sec. Leasing Co.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
972 P.2d 395, 14 I.E.R. Cas. (BNA) 512, 350 Utah Adv. Rep. 3, 1998 Utah LEXIS 64, 1998 WL 480823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryan-v-dans-food-stores-inc-utah-1998.