Tuika v. American Samoa Development Corp.

3 Am. Samoa 3d 155
CourtHigh Court of American Samoa
DecidedAugust 10, 1999
DocketCA No. 42-97
StatusPublished

This text of 3 Am. Samoa 3d 155 (Tuika v. American Samoa Development Corp.) is published on Counsel Stack Legal Research, covering High Court of American Samoa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tuika v. American Samoa Development Corp., 3 Am. Samoa 3d 155 (amsamoa 1999).

Opinion

OPINION AND ORDER

On April 9, 1997, plaintiff Mafa Tuika (“Tuika”) filed a complaint for wrongful termination against defendants American Samoa Development Corporation, dba Rainmaker Hotel (“the Rainmaker”), Rimoni Taga'i (“Taga'i”), and Elisa Tuisamatatele (“Tuisamatatele”).

Tuika was employed by the Rainmaker from 1989 to May of 1996. No employment contract was ever signed between Tuika and the Rainmaker. At the time of employment, Tuika received a copy of the Rainmaker’s Operations and procedures Manual (“the Manual”) that, among other matters, delineated the Rainmaker’s polices regarding promotions, transfers, vacations, conduct, hiring, severance, and termination procedures. A subsequent handbook, the Rainmaker’s Employee Handbook (“the Handbook”), was then published and distributed. No procedures regarding termination, however,' were included in the Handbook.

On May 9, 1996, Tuika was presented with a written notice of suspension by the Rainmaker. At the time of her suspension, Tuika was the Rainmaker’s purchasing officer. The suspension was to allow time for an investigation into accusations concerning the contents of three particular containers and irregularities occurring in the Purchasing Office. Tuika was formally terminated on approximately May 21, 1996. The reasons given by Taga'i, the Rainmaker’s controller, included spreading false stories and rumors, dishonesty and stealing, and various failures to perform duties in a satisfactory manner.

The determination of whether Tuika was wrongfully terminated depends initially on whether Tuika’s employment with the Rainmaker is a just cause or an at-will relationship. Both parties agree that a formal written contract was not negotiated and signed by Tuika and the Rainmaker. Rather, the determination of Tuika’s employment relationship depends on whether the Manual or the Handbook justified an employee’s expectation of a just cause firing and subsequent termination procedures.

Tuika has the burden of proving the existence of a contract and all the facts essential to the cause of action. Stiles v. Skylark Meats, Inc., 438 N.W.2d 494, 496 (Neb. 1989). In order to establish a breach of employment contract claim based upon violation of personnel rales, an employee must prove that a personnel manual actually became part of an employment contract and that the terms of the manual were breached. Wagner v. City of Globe, 722 P.2d 250, 254 (Ariz. 1986); see also [158]*158Poklitar v. CBS Inc., 652 F. Supp. 1023, 1029-1030 (S.D.N.Y. 1987).

For these purposes, we find that the Handbook is controlling for determining whether the guidelines justified an expectation of just cause employment. However, even if the Manual created contractual rights, the Handbook superceded (he Manual and modified the terms of employment created by the Manual. See Burton v. Atomic Workers Federal Credit Union, 803 P.2d 518, 520 n.1 (Idaho 1990) (employment manual may modify terms of employment); Sadler v. Basin Elec. Power Co-op., 431 N.W.2d 296, 300 (N.D. 1988) (an original employment contract may be modified or replaced by subsequent unilateral contract in employee handbook)

Upon reviewing relevant case law and the Handbook, we find that the Handbook does not give rise to contractual rights and obligations by employees. Evidence relevant to this decision includes the language of the personnel manual, any representations made by the employer, and the course of dealing between the employee and employee. Wagner, 722 P.2d at 254 (citation omitted). In Palelei v. Star Kist Samoa, 5 A.S.R.2d 162, 166 (Trial Div. 1987), this court found that the handbook then at issue gave way to contractual rights. Among the provisions the court found persuasive were a description of a progressive discipline scheme, a list of transgressions that resulted in immediate dismissal, and the requirement that the employee sign the handbook, indicating that he or she understood the terms set forth. Id. at 166. The progressive discipline scheme was detailed, allowing for counseling by the employee’s supervisor and written notice. The Star Kist handbook also specified which provisions of the discipline scheme would be utilized for each offense, up to the fourth offense. The level of detail included in the Star Kist handbook is sufficient to justify an employee’s expectation of this disciplinary procedure. A combination of all these items resulted in contractual rights. The Rainmaker Handbook simply does not contain this kind of mutual commitments.

Even if the original Manual was not subsequently amended by the Handbook, we find that the Manual also does not give rise to contractual rights. The only element similar to the Star Kist handbook is that the Manual lists violations which subject employees to “disciplinary action up to and including immediate discharge for cause.” Manual at 2. This statement, by itself, does not lead to contractual rights. In addition, the Manual does not specify any progressive discipline procedures or require a signature evidencing understanding of the guidelines. Unlike the Handbook, however, the Manual does provide for certain termination procedures, but they are internal, managerial procedures. For example, the termination procedures simply specify .procedures that the employee’s supervisors must follow for terminating personnel. These procedures do not require the employers to provide the employees with [159]*159notice of termination or allow for a hearing of any kind.

The Handbook is even more vague. All that the Handbook contains are random sentences specifying causes which result in immediate termination. In addition, the Handbook does not provide for any discipline scheme or signatures by the employee. Nor are there any other relevant guidelines which may lead us to conclude that a just-cause employment relationship had been formed. Tuika was an at-will employee. Her employment could be terminated for any reason or even no reason, regardless of the merits of the grounds assigned as the basis of this result. Dodd v. Singer Co., 669 F. Supp. 1079, 1085 (N.D. Ga. 1987); Gilbert v. Tulane Univ., 909 F.2d 125, 126 (5th Cir. 1990); Breen v. Dakota Gear & Joint Co., Inc. 433 N.W.2d 221, 223 (S.D. 1988).

Tuika still contends that, in any event, she was not afforded any opportunity to pursue the Rainmaker’s customarily established post-termination grievance procedure. According to three witnesses, a grievance procedure was commonly available at the Rainmaker in termination situations. Without express terms conveyed to an employee, however, an employer is not legally bound to treat each and every employee in the same fashion based upon past policies and practices. First Atlantic Leasing Corp. v. Tracey, 738 F. Supp. 863, 878 (D.N.J. 1990). Moreover, causes for termination listed in the handbook resulting in immediate dismissal do not require post-termination grievance procedures. See Palelei,

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Related

Connolly v. Montana Board of Labor Appeals
734 P.2d 1211 (Montana Supreme Court, 1987)
Burton v. Atomic Workers Federal Credit Union
803 P.2d 518 (Idaho Supreme Court, 1990)
Stiles v. Skylark Meats, Inc.
438 N.W.2d 494 (Nebraska Supreme Court, 1989)
First Atlantic Leasing Corp. v. Tracey
738 F. Supp. 863 (D. New Jersey, 1990)
Pollas v. Hardware Wholesalers, Inc.
663 N.E.2d 1188 (Indiana Court of Appeals, 1996)
Breen v. Dakota Gear & Joint Co., Inc.
433 N.W.2d 221 (South Dakota Supreme Court, 1988)
Sadler v. Basin Electric Power Cooperative
431 N.W.2d 296 (North Dakota Supreme Court, 1988)
Poklitar v. CBS, INC.
652 F. Supp. 1023 (S.D. New York, 1987)
Dodd v. Singer Co.
669 F. Supp. 1079 (N.D. Georgia, 1987)
Southwest Land Title Co. v. Gemini Financial Co.
752 S.W.2d 5 (Court of Appeals of Texas, 1988)
Wagner v. City of Globe
722 P.2d 250 (Arizona Supreme Court, 1986)

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