Walsh v. Jefferson Memorial Hospital

589 S.E.2d 527, 214 W. Va. 385, 2003 W. Va. LEXIS 123
CourtWest Virginia Supreme Court
DecidedNovember 10, 2003
DocketNos. 31266, 31267
StatusPublished

This text of 589 S.E.2d 527 (Walsh v. Jefferson Memorial Hospital) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walsh v. Jefferson Memorial Hospital, 589 S.E.2d 527, 214 W. Va. 385, 2003 W. Va. LEXIS 123 (W. Va. 2003).

Opinions

PER CURIAM:

This appeal consists of two eases involving actions seeking to collect unpaid earned and accrued fringe benefits as wages by invoking the provisions of West Virginia Code §§ 21-5-1 through 18, the West Virginia Wage Payment and Collection Act. The cases were consolidated for decision because they present identical challenges1 to the grant of summary judgment by the Circuit Court of Jefferson County in orders dated July 12, 2002. Plaintiffs below and appellants herein, Patricia McDowell and Sydney Walsh (hereinafter collectively referred to as “Appellants”), were former employees of the defendant below/ap-pellee herein, Jefferson Memorial Hospital (hereinafter referred to as “the Hospital”), who were not paid at the time they separated from employment with the Hospital for the sick leave they had accrued during the course of their employment. Appellants contend that they, rather than the Hospital, should have been awarded summary judgment because the personnel policies in effect [387]*387at the time of their discharge from employment were ambiguous with regard to whether accrued sick leave benefits would be a paid severance benefit and such ambiguity is required by law to be resolved in favor of the employee. After careful and studied review of the issues raised, the documents filed and the arguments presented, we affirm the orders of the circuit court.

I.Factual and Procedural Background

The facts in these cases are undisputed. Patricia McDowell was employed at the Hospital from June 1978 until September 2000. At the time of her separation from employment, Ms. McDowell had accrued 976.61 hours of unused sick leave. Sydney Walsh’s employment with the Hospital began in April of 1979 and ended in May of 2000. Ms. Walsh had accrued 774 hours of unused sick leave at the time of her departure from employment with the Hospital.

At all times relevant to this appeal, the Hospital had a written personnel policy manual which, among other things, delineated the leave policy of the Hospital. While the manual was revised from time to time, the change having significance to this appeal is that made to the leave policy effective June 11,1999. Before that date, the leave benefits outlined in the manual as available to employees included holiday, vacation, personal days and sick leave. While accrual of sick leave was unlimited, the former manual stated that “[ujnused sick leave will not be paid as a severance benefit.” The June 11, 1999, manual established a single leave benefit called annual paid leave (hereinafter referred to as “APL”) which by its terms replaced the provisions for accrual of the former types of leave, including sick leave.2 Nevertheless, the Hospital’s new policy allowed use of the sick leave employees had accrued under the old policy in certain situations.

After the hospital refused Appellants’ requests for payment of sick leave which had accrued under the former policy, Appellants each filed suit in the circuit court.3 After discovery was completed, the parties filed cross motions for summary judgment. By orders dated July 12, 2002, the lower court granted the Hospital’s motion for summary judgment and entered a final judgment in favor of the Hospital in both eases.4 The July 12 orders form the basis of this consolidated appeal.5

II.Standard of Review

The parties agree summary judgment was appropriate in this instance since there were no disputed material facts. Syl. Pt. 2, Mandolidis v. Elkins Industries, Inc., 161 W.Va. 695, 246 S.E.2d 907 (1978) (“A motion for summary judgment may only be granted where there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law.”). The disagreement between the parties regarding the ruling below is limited to matters of law. Consequently, the “circuit court’s entry of summary judgment is reviewed de novo.” Syl. Pt. 1, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994).

III.Discussion

As this Court has previously explained, “ ‘ “[t]he West Virginia Wage Payment and Collection Act [hereinafter referred to as Act’] is remedial legislation designed to protect working people and assist them in the collection of compensation wrongly withheld.” Syllabus, Mullins v. Venable, 171 W.Va. 92, 297 S.E.2d 866 (1982).’ Syl. Pt. 3, Jones v. Tri-County Growers, Inc., 179 W.Va. 218, 366 S.E.2d 726 (1988).” Syl. Pt. 3, Lipscomb v. Tucker County Com’n, 206 W.Va. 627, 527 S.E.2d 171 (1999). Under the provisions of the Act, wages include “compensation for labor or services rendered” which may include accrued fringe benefits. W.Va.Code § 21-5-l(e) (1987) (Repl. Vol. 2002). The terms [388]*388of employment determine whether unused accrued fringe benefits are payable as compensation to employees upon separation from employment. See Syl. Pt. 5, Meadows v. Wal-Mart Stores, Inc., 207 W.Va. 203, 530 S.E.2d 676 (1999).

The heart of Appellants’ argument is that the terms of employment set forth in the Hospital’s June 11, 1999, personnel policy manual created uncertainty about whether sick leave they had accrued under the previous personnel policy of the hospital was a benefit which was subject to payment as compensation under the Act. Appellants claim that the cause of the ambiguity was the deletion of the express provision in the former policy stating that unused sick leave-would not be paid as a severance benefit. In furtherance of their argument, Appellants rely upon the provisions of syllabus point six of Meadows, which states:

Terms of employment concerning the payment of unused fringe benefits to employees must be express and specific so that employees understand the amount of unused fringe benefit pay, if any, owed to them upon separation from employment. Accordingly, this Court will construe any ambiguity in the terms of employment in favor of employees.

207 W.Va. at 206, 530 S.E.2d at 679.6 Appellants contend that because the terms of employment must be express and specific, in order to avoid ambiguity the Hospital had to include the statement excluding payment of unused sick leave as a severance benefit in its superseding policy. Appellants further contend that the ambiguity thus created was not resolved by the lower court’s finding that the Hospital eliminated its entire sick leave policy because the new policy continued to refer to the accrued but unused sick leave. In response, the Hospital maintains that the lower court correctly ruled that the new policy was not ambiguous in this regard because there was no need to account for leave that no longer could be earned and accrued after the effective date of the new personnel policies.

Essential to our review of this matter is a close examination of both the June 11, 1999, personnel policy and the circuit court’s specific ruling. The relevant portion of the personnel policy at issue states:

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Related

Meadows v. Wal-Mart Stores, Inc.
530 S.E.2d 676 (West Virginia Supreme Court, 2000)
Jones v. Tri-County Growers, Inc.
366 S.E.2d 726 (West Virginia Supreme Court, 1988)
Painter v. Peavy
451 S.E.2d 755 (West Virginia Supreme Court, 1994)
Mullins v. Venable
297 S.E.2d 866 (West Virginia Supreme Court, 1982)
Lipscomb v. Tucker County Commission
527 S.E.2d 171 (West Virginia Supreme Court, 1999)
Mandolidis v. Elkins Industries, Inc.
246 S.E.2d 907 (West Virginia Supreme Court, 1978)

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Bluebook (online)
589 S.E.2d 527, 214 W. Va. 385, 2003 W. Va. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walsh-v-jefferson-memorial-hospital-wva-2003.