Silva v. American Federation of State, County & Municipal Employees

2001 NMSC 038, 37 P.3d 81, 131 N.M. 364
CourtNew Mexico Supreme Court
DecidedNovember 26, 2001
Docket26,641
StatusPublished
Cited by12 cases

This text of 2001 NMSC 038 (Silva v. American Federation of State, County & Municipal Employees) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silva v. American Federation of State, County & Municipal Employees, 2001 NMSC 038, 37 P.3d 81, 131 N.M. 364 (N.M. 2001).

Opinion

OPINION

MINZNER, Justice.

{1} In this case, we accepted certification of several questions relating to the tort of retaliatory discharge from the United States Court of Appeals for the Tenth Circuit. See Silva v. Am. Fed’n of State, County, and Mun. Employees, 231 F.3d 691 (10th Cir.2000). These questions arose in an appeal by the American Federation of State, County and Municipal Employees (AFSCME) from the denial of their motions for judgment, for a new trial, and for remittitur following a substantial jury verdict for an employee who was subject to a collective bargaining agreement. We have jurisdiction under NMSA 1978, § 39-7-4 (1997) and Rule 12-607 NMRA 2001. The first question certified is:

Does the New Mexico Supreme Court’s holding in Gandy v. Wal-Mart Stores, Inc., 117 N.M. 441, 872 P.2d 859 (1994), allow a plaintiff who is not an at-will employee to pursue an action for the tort of retaliatory discharge under the public policy exception outlined in Silva v. Albuquerque Assembly & Distribution Freeport Warehouse Corp., 106 N.M. 19, 738 P.2d 513, 515 (1987), when the plaintiff has an alternative remedial grievance procedure available under a collective bargaining agreement?

231 F.3d at 691. We conclude that Gandy does not “allow a plaintiff who is not an at-will employee to pursue an action for the tort of retaliatory discharge under the public policy exception,” to the at-will doctrine. Because we answer the first question in the negative, we do not need to address the remaining questions that were certified.

I.

{2} Jeremías Silva worked for AFSCME as a union organizer, and Silva’s employment was governed by a collective bargaining agreement. 231 F.3d at 692. That agreement, in relevant part, states that “[n]o employee shall be discharged or otherwise disciplined except for just and sufficient cause.” The agreement also provides for a grievance procedure potentially ending in final and binding arbitration. Id.

{3} AFSCME fired Silva. After he was fired, he brought several claims against his former employer in federal district court: (1) breach of employment contract, (2) intentional infliction of emotional distress, (3) violations of the Americans with Disabilities Act, and (4) retaliatory discharge. The federal district court granted AFSCME’s motion to dismiss the first two claims and at the close of Silva’s case granted AFSCME’s motion for judgment as a matter of law on the third.

{4} The retaliatory discharge claim went to the jury, which awarded Silva $624,940 in compensatory damages and $1,000,000 in punitive damages. AFSCME then moved for judgment as a matter of law, or an order granting a new trial and vacating the punitive damage award, or a remittitur of the punitive damage award. The district court denied these motions.

{5} AFSCME appealed the denial of these motions to the Court of Appeals for the Tenth Circuit. On appeal, AFSCME argued, among other things, that the New Mexico tort of retaliatory discharge did not apply to Silva because his employment contract protected him from wrongful discharge.

{6} The Court of Appeals for the Tenth Circuit then certified three questions to this court. The first question, quoted above, asked about the effect of Gandy on this Court’s statements in Silva concerning the tort of retaliatory discharge. The second and third questions concern the effect of the collective bargaining agreement on the tort, and expressly request a response only if the answer to the first question is yes.

{7} AFSCME had argued on appeal to the Tenth Circuit — and continues to argue — that Silva states a holding not affected by Gandy. AFSCME relied on the following language from Silva:

A retaliatory discharge cause of action was recognized in New Mexico as a narrow exception to the terminable at-will rule; its genesis and sole application has been in regard to employment at-will. The express reason for recognizing this tort, and thus modifying the terminable at-will rule, was the need to encourage job security for those employees not protected from wrongful discharge by an employment contract. Obviously, if an employee is protected from wrongful discharge by an employment contract, the intended protection afforded by the retaliatory discharge action is unnecessary and inapplicable.

106 N.M. at 21, 738 P.2d at 515 (citations and internal quotation marks omitted).

{8} Silva argued to the federal district court and on appeal — and continues to argue — that Gandy modifies or clarifies the holding in Silva. Silva relied on the following language in Gandy:

Wal-Mart relies on Silva v. Albuquerque Assembly & Distribution Freeport Warehouse Corp., 106 N.M. 19, 738 P.2d 513 (1987) and McGinnis v. Honeywell, Inc. 110 N.M. 1, 791 P.2d 452 (1990), for the proposition that the tort of retaliatory discharge will not lie where an employee is protected against wrongful discharge by another cause of action (in those cases, breach of an employment contract). We agree with Wal-Mart’s position to the extent it intimates that a plaintiff cannot recover twice for the same harm — once under the employment contract (or the Human Rights Act, as the case may be) and again under the tort____

117 N.M. at 444, 872 P.2d at 862.

{9} We agree with AFSCME that Gandy does not alter the rule reiterated in Silva. Thus, we answer the first question in the negative. Our reasons are as follows.

II.

{10} The law of retaliatory discharge in New Mexico must be read against the backdrop of the doctrine of at-will employment. Absent an express employment contract that limits the ability of an employer to discharge his or her employees, the employer or the employee may terminate the relationship “for good cause, for no cause or even for cause morally wrong, without being thereby guilty of legal wrong.” Vigil v. Arzola, 102 N.M. 682, 686, 699 P.2d 613, 617 (Ct.App.1983) (quoted authority and quotation marks omitted), rev’d on other grounds, 101 N.M. 687, 687 P.2d 1038 (1984), overruled in part by Chavez v. Manville Prods. Corp., 108 N.M. 643, 649, 777 P.2d 371, 377 (1989). New Mexico common law has recognized breach of implied contract and retaliatory discharge as two exceptions to this doctrine and has rejected a third — the implied covenant of good faith and fair dealing. Melnick v. State Farm Mut. Auto. Ins. Co., 106 N.M.

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Bluebook (online)
2001 NMSC 038, 37 P.3d 81, 131 N.M. 364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silva-v-american-federation-of-state-county-municipal-employees-nm-2001.