WERCS v. Capshaw

2004 WY 86, 94 P.3d 421, 21 I.E.R. Cas. (BNA) 908, 2004 Wyo. LEXIS 113, 2004 WL 1609104
CourtWyoming Supreme Court
DecidedJuly 20, 2004
Docket02-185
StatusPublished
Cited by8 cases

This text of 2004 WY 86 (WERCS v. Capshaw) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WERCS v. Capshaw, 2004 WY 86, 94 P.3d 421, 21 I.E.R. Cas. (BNA) 908, 2004 Wyo. LEXIS 113, 2004 WL 1609104 (Wyo. 2004).

Opinions

GOLDEN, Justice.

[¶ 1] In this wrongful employment termination case, the jury, having received appropriate instructions of applicable Wyoming employment law and a special verdict form, returned a special verdict finding that the employer had breached an oral employment contract which required cause for termination, and awarded the employee $223,656.00 as damages. On appeal, the employer assigns error in the trial court’s pretrial summary judgment determination that the employee could advance at trial the doctrine of substantial performance to counter the employer’s affirmative defense that the statute of frauds required that a contract incapable of being performed within one year must be in writing and signed by the party to be bound. We affirm.

ISSUES

[¶2] The employer states the issues on appeal to be:

1. Whether the district court erred in applying the substantial performance doctrine to an employment agreement governed by the presumption of at-will employment.
2. Whether in light of the equitable principles underlying the doctrine of substantial performance, the district court erred by applying it in a case where [employee] was paid for the performance he provided.

The employee counters with this statement of the issues:

1. Can [employer] raise an issue on appeal that it waived by virtue of its failure to move for judgment as a matter of law in the trial court?
2. Did the statute of frauds apply to a contract of employment of indefinite duration?
3. Does the statute of frauds apply to a contract of employment that could be performed within one year, i.e., if [employee] were terminated for cause?
4. Even if his contract were for a specific duration, does [employee’s] part performance take the contract out of the statute of frauds?
5. Do the equities favor enforcement of [employee’s] contract of employment?

FACTS

[¶ 3] The employer, Wyoming Employee Resource Capital and Service (WERCS), is a Wyoming corporation, doing business as Wyoming Financial Group, with its home office in Casper, Wyoming. WERCS serves as a holding company for a number of subsidiaries including Wyoming Financial Properties (WFP). In the spring of 1995, WERCS was acquiring ownership of a number of properties, performing remodels on properties, and negotiating to manage other buildings. Because of this business activity and the growth of WFP, its properties subsidiary, WERCS wanted to hire a manager for WFP. Robert Moberly, WERCS’ chief operating officer, talked to Michael R. Capshaw about taking the position as manager of WFP. At the time of their discussions, Capshaw owned a small residential construction company. The two men discussed the matter several times before Capshaw agreed to take the position. At the final meeting between the two men in Moberly’s office, Moberly gave Capshaw a sheet of paper on which Moberly had written separate columns outlining salary, bonus, and contributions to an employee stock option plan for the first five years of employment as manager of WFP. Other figures which Moberly had written on the sheet of paper projected compensation if certain contingencies were met, such as WFP’s acquisition of additional property management contracts. The two men discussed Moberly’s [423]*423notations on the sheet of paper, and Cap-shaw accepted Moberly’s offer on behalf of WERCS to become WFP’s manager. Although Capshaw signed the sheet of paper, neither Moberly nor any other WERCS representative did. WERCS and Capshaw agree that theirs was an oral contract of employment. During Capshaw’s employment with WERCS from March 1995 to June 1998, his duties as manager, and later as president, of WFP included handling leasing arrangements and tending the needs of tenants in the office buildings owned by WFP, overseeing extensive remodeling in WFP’s buildings, remodeling homes owned by WERCS’ executives and their relatives, and undertaking construction of several town-homes that would eventually be offered for sale to the public.

[¶ 4] In June 1998, WERCS fired Cap-shaw because of alleged deficiencies in his work performance including his discretionary spending on tree trimming, his work on two remodeling projects, his voiced opposition to WERCS’ purchase of a check-cashing business which was owned by Moberly’s wife and sister-in-law, and his alleged plot to set up a WERCS’ executive on an unauthorized-practice-of-law claim.

Procedural Background

[¶ 5] Following his firing, Capshaw sued WERCS for wrongful termination of employment without good cause. In his complaint, he sought relief under five claims: breach of contract, promissory estoppel, breach of the implied covenant of good faith and fair dealing, retaliatory firing in violation of public policy, and wasting corporate assets. With respect to the breach of employment contract claim in his complaint, Capshaw averred, among other things, that WERCS offered and he accepted employment for a minimum of five years with compensation as embodied on the sheet of paper on which Moberly had written such compensation information and which Moberly had given to him at their meeting in March 1995 at Moberly’s office. Capshaw also averred, among other things, that an implicit term of the job offer was that WERCS would not terminate his employment without good cause during the initial five years and for so long thereafter as Cap-shaw satisfactorily preformed his job duties. Finally, Capshaw averred, among other things, that WERCS wrongfully fired him without warning or cause, giving as reasons several alleged deficiencies in his work performance.

[¶ 6] WERCS filed an answer and asserted a counterclaim. In that part of its answer which addressed Capshaw’s breach of employment contract claim, WERCS claimed, among other things, that Capshaw was an employee at-will, and WERCS denied that his employment could not be terminated without good cause during the initial five years and as long as he satisfactorily performed his job duties. WERCS admitted that it had fired Capshaw but denied it had wrongfully fired him. WERCS pleaded a number of affirmative defenses, one of those being that Capshaw’s claims were barred by the statute of frauds.

[¶7] The parties engaged in discovery, after which WERCS moved for summary judgment on Capshaw’s five claims. With respect to the breach of employment contract claim, WERCS argued that Capshaw had alleged he was hired for a specific term of five years, i.e., an employment contract of definite duration; but WERCS maintained that Capshaw’s employment was for an indefinite duration and he was, therefore, an at-will employee whom WERCS could fire with or without a reason. Arguing in the alternative, WERCS contended that, even assuming Capshaw’s employment was of five years definite duration, and not of indefinite duration as WERCS’ asserted, a provision of Wyoming’s statute of frauds, Wyo. Stat. Ann. § 1 — 23—105(a)(i), required a writing signed by the party to be bound, namely WERCS, or the contract would be deemed void. Because no such writing existed in this case, WERCS reasoned, Capshaw’s claim failed. Next, WERCS argued that the doctrine of substantial performance, as an exception to the application of the statute of frauds, was not recognized under Wyoming law in the case of a performance-of-services contract, such as an employment contract.

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WERCS v. Capshaw
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Bluebook (online)
2004 WY 86, 94 P.3d 421, 21 I.E.R. Cas. (BNA) 908, 2004 Wyo. LEXIS 113, 2004 WL 1609104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wercs-v-capshaw-wyo-2004.