Tuttle v. ANR Freight System, Inc.

797 P.2d 825, 14 Brief Times Rptr. 1077, 5 I.E.R. Cas. (BNA) 1103, 1990 Colo. App. LEXIS 239, 53 Fair Empl. Prac. Cas. (BNA) 1186, 1990 WL 114240
CourtColorado Court of Appeals
DecidedAugust 9, 1990
Docket88CA0239
StatusPublished
Cited by45 cases

This text of 797 P.2d 825 (Tuttle v. ANR Freight System, Inc.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tuttle v. ANR Freight System, Inc., 797 P.2d 825, 14 Brief Times Rptr. 1077, 5 I.E.R. Cas. (BNA) 1103, 1990 Colo. App. LEXIS 239, 53 Fair Empl. Prac. Cas. (BNA) 1186, 1990 WL 114240 (Colo. Ct. App. 1990).

Opinions

Opinion by

Judge DUBOFSKY.

Defendant, ANR Freight System, Inc., appeals from the jury verdict in favor of plaintiff, Helen Tuttle, on her claim of breach of a written employment contract based on defendant’s “Employee Guidelines” and her implied contract claim. We affirm.

Plaintiff, a former employee of defendant, brought this action against defendant seeking damages for lost wages, merit increases, and benefits. Plaintiff’s claims for breach of oral contract, breach of implied contract, breach of written contract, and promissory estoppel were submitted to the jury. The jury found that there was an oral contract which was breached and awarded Tuttle $1 in damages on that claim. It also found that there was a breach of a written or implied contract based upon the “Employee Guidelines” and [827]*827awarded Tuttle $26,000 in damages on those claims. The jury'did not reach a verdict on the claim of promissory estoppel.

Plaintiff worked as an accountant with another trucking company that was purchased and taken over by defendant. When the other company was purchased, defendant approached many of the employees of the pre-existing company and offered them continued employment. Plaintiff, one of these employees, agreed to work for defendant and moved from Wisconsin to Denver.

Plaintiff testified that, both at the time she initially discussed employment and thereafter, the defendant informed her of a commitment to gender equality in employment. Additionally, advancement as well as the pay scale was to be based on the responsibilities of the job and the individual’s performance.

Plaintiff contends that this commitment or promise is largely presented through an employee handbook, known as “Employee Guidelines,” and constituted an offer for terms of employment which she accepted. On that basis, she asserts the defendant is liable for breach of contract as a result of violating the terms of employment.

Plaintiff also testified that, when she assumed the duties and responsibilities of higher paid employees and received excellent evaluations, she reasonably expected to be compensated at the same rate as those employees. The source of this expectation was, in large part, statements contained in the employee handbook.

Defendant, on the other hand, maintains that the employee handbook was denominated “Employee Guidelines” because it did not consider its contents to consist of concrete promises to the employees. Rather, the statements made therein were merely guidelines or aspirational goals of the company, and therefore, it argues they cannot serve as a basis for either a breach of written contract or implied contract claim.

I.

A.

Defendant argues that, as a matter of law, its “Employee Guidelines” lacked the certainty or specificity necessary to constitute an offer and, therefore, the trial court erred in not granting its motion for directed verdict or for a judgment notwithstanding the verdict as to plaintiffs breach of written contract claim. We disagree.

In ruling on a motion for judgment notwithstanding the verdict, the court must determine whether there is sufficient evidence for a reasonable person to reach the same verdict as the jury. In making this determination, the court must consider the evidence in the light most favorable to the prevailing party. Ekberg v. Greene, 196 Colo. 494, 588 P.2d 375 (1978).

An employee handbook may alter at-will employment, and provisions of the handbook may create an enforceable contract. However, liability for breach of contract exists only if the employee can prove all the elements of the formation and breach of a contract. Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo.1987).

When the existence of a contract is in issue and the evidence is in conflict or admits of more than one inference or conclusion, then it is for the jury to decide whether a contract exists. I.M.A., Inc. v. Rocky Mountain Airways, Inc., 713 P.2d 882 (Colo.1986). Also, whether an employer and employee have entered into a contract based upon an employee handbook is generally a question of fact for the jury. See DeRubis v. Broadmoor Hotel, Inc., 772 P.2d 681 (Colo.App.1989); Cronk v. Intermountain Rural Electric Ass ’n, 765 P.2d 619 (Colo.App.1988). And, whether the parties intended to enter a contract is a factual question. Chambliss/Jenkins Associates v. Forster, 650 P.2d 1315 (Colo.App.1982).

Here, defendant’s employee handbook stated the company would not discriminate on the basis of race, sex, religion, or national origin. In conjunction with this statement, the handbook also states:

“[w]e commit to provide you with a fair and equitable working environment....” (emphasis added)

[828]*828V/ebster’s Third New International Dictionary 457 defines “commit” as: “to obligate or bind to take some ... course of action” and “to pledge to some particular course or use: contract or bind by obligation to a particular disposition.” Hence, defendant’s use of that word demonstrates a promise by defendant to follow an equal employment program within the company.

Plaintiff also assertedly relied on the section entitled “Compensation Position,” which states:

“It is the objective [of defendant] to assure that individuals are fairly compensated on the basis of their own performance and that all positions are appropriately graded in terms of both internal alignment and competitiveness with external labor markets.”

The handbook describes in detail three main tools that are used to determine salaries: (1) job evaluation or position description, (2) salary ranges, and (3) performance appraisal.

Furthermore, defendant placed great emphasis on this handbook in dealing with plaintiff. For example, the handbook was read line by line to her at the beginning of her employment. This factor and other evidence demonstrate that defendant highlighted the handbook as an integral part of the parties’ employment relationship.

Whether the language of a promise is sufficiently clear to constitute an offer is a matter for the jury to decide. Wagenseller v. Scottsdale Memorial Hospital, 147 Ariz. 370, 710 P.2d 1025 (1985); Finley v. Aetna Life & Casualty Co., 5 Conn.App. 394, 499 A.2d 64 (1985).

Under circumstances involving more general language, other courts have construed the terms of employee handbooks as being too vague to constitute an offer and, therefore, determined that no contract was created between the employer and employee. See Sanchez v. The New Mexican, 106 N.M. 76, 738 P.2d 1321

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797 P.2d 825, 14 Brief Times Rptr. 1077, 5 I.E.R. Cas. (BNA) 1103, 1990 Colo. App. LEXIS 239, 53 Fair Empl. Prac. Cas. (BNA) 1186, 1990 WL 114240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuttle-v-anr-freight-system-inc-coloctapp-1990.