Williams v. Chicago Housing Authority

578 N.E.2d 71, 217 Ill. App. 3d 1055, 160 Ill. Dec. 892, 1991 Ill. App. LEXIS 1232
CourtAppellate Court of Illinois
DecidedJuly 18, 1991
Docket1-90-0985
StatusPublished
Cited by6 cases

This text of 578 N.E.2d 71 (Williams v. Chicago Housing Authority) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Chicago Housing Authority, 578 N.E.2d 71, 217 Ill. App. 3d 1055, 160 Ill. Dec. 892, 1991 Ill. App. LEXIS 1232 (Ill. Ct. App. 1991).

Opinion

JUSTICE LINN

delivered the opinion of the court:

Plaintiff, Eric Williams, filed suit against the Chicago Housing Authority, Zirl Smith, and Renault Robinson (CHA), alleging that he was wrongfully discharged from employment at the CHA. He claims that the CHA failed to follow its own written policies regarding the discipline of employees and thereby breached an implied contract of employment between the parties. He seeks reinstatement, back pay, interest, and damages.

The trial court dismissed Williams’ complaint, holding that it failed to state a cause of action. On appeal, Williams argues that the court applied the wrong standard of review and that his complaint states a cause of action for breach of employment contract.

We affirm.

Background

Williams’ third amended complaint alleges that Williams had been employed by the CHA since 1961. His last performance evaluation before his discharge was favorable. In March 1985 Williams was an “acting maintenance supervisor” at the Robert Taylor Homes. He was notified in writing, on March 4, 1985, that he was being suspended pending termination. According to Williams, the reasons the CHA gave in the written notice were either “false, unrelated to Plaintiff, or trivial.”

On April 2, 1985, the CHA provided Williams with a termination hearing. The hearing officer found from the matters presented that the termination should be upheld. Thereafter, Williams met with Zirl Smith, executive director of the CHA, to appeal the hearing officer’s findings. Smith affirmed the decision in writing, and Williams filed suit in the circuit court of Cook County.

Williams alleges that the CHA’s written policies and procedures require it to provide employees in Williams’ situation “progressive disciplinary action” for “minor” violations. Under the written policy circulars in issue, progressive discipline means that the employee is first given warnings and counseling in order to correct “poor performance, disruptive or unprofessional behavior or violation of policy or procedure.”

The CHA also has a written procedure for “gross” violations, which are those deemed to be “of a serious nature or detrimental to the good order and efficiency of the CHA” so as to warrant immediate suspension pending investigation. The CHA determined that Williams’ conduct fell into this category, and terminated him from employment without the progressive discipline approach.

Williams argues on appeal that the CHA was required to follow the progressive discipline procedures because the CHA gave notice of these written policies to its employees and this gave rise to enforceable contractual rights. Williams also alleges that his discharge was not for “just cause” and that the hearing officer’s findings were not supported by the evidence.

Opinion

In his brief, Williams frames two issues: (1) whether his complaint adequately sets forth a cause of action for breach of implied contract of employment; and (2) whether the trial court erroneously treated the CHA’s motion to dismiss as if it were one for summary judgment.

I

In attempting to state a cause of action against the CHA, Williams relies on Duldulao v. St. Mary of Nazareth Hospital Center (1987), 115 Ill. 2d 482, 505 N.E.2d 314, the first Illinois Supreme Court case to address the contractual rights of otherwise “at will” employees who assert breach of contract claims based on the existence of employee handbooks or manuals. Duldulao held that “an employee handbook or other policy statement creates enforceable con-

tractual rights if the traditional requirements for contract formation are present,” meaning the acceptance of an offer supported by consideration. (115 Ill. 2d at 490, 505 N.E.2d at 318.) The court held:

“[T]he policy statement must contain a promise clear enough that an employee would reasonably believe that an offer has been made. Second, the statement must be disseminated to the employee in such a manner that the employee is aware of its contents and reasonably believes it to be an offer. Third, the employee must accept the offer by commencing or continuing to work after learning of the policy statement.” (115 Ill. 2d at 490, 505 N.E.2d at 318.)

The court concluded that when those three elements are present, the employee’s continued work constitutes the legal consideration for the promises in the handbook or policy statement.

In Duldulao, the employee handbook contained unequivocal, mandatory language granting employees “permanent” employee status after completing a 90-day probationary period. The handbook stated that termination of permanent employees “cannot occur” without proper notice and investigation and that such employees “are never” dismissed without prior written admonitions and documented investigation. The handbook also stated that three warnings within a 12-month period “are required” before an employee is dismissed, “except in the case of immediate dismissal.” (115 Ill. 2d at 491, 505 N.E.2d at 318.) Immediate dismissal was permitted for “grave and valid” reasons such as mistreatment of patients or possession of weapons. These grounds were specifically listed, along with types of offenses that were not subject to immediate dismissal. The latter group included “Unwillingness to Render Satisfactory Service” and “Deliberate Violation of Instructions.” The plaintiff in Duldulao had been terminated for “failure to follow instructions” and “[Unsatisfactory performance [for] failure to properly monitor the Legal Implications of Documentation seminar.” (115 Ill. 2d at 485, 505 N.E.2d at 316.) The supreme court held that the plaintiff would reasonably believe that she would not be terminated for such conduct without prior written warnings. By the very terms of the handbook, her conduct did not fall into the category of grave offenses. The court therefore reversed, concluding that summary judgment in favor of the plaintiff must be entered on her complaint for breach of contract.

Duldulao recognized that freedom of contract in private employment relationships should not be abridged by the general rule that an employment relationship without a fixed duration may be terminated at the will of either party. (115 Ill. 2d at 489, 505 N.E.2d at 317-18.) Such a terminable-at-will employment relationship is presumed, however, unless a contrary intent is sufficiently established. If a court determines that the parties intended to bestow the employee with the right to be terminated only for just cause or only after a hearing on the grounds for discharge, the court will enforce the contract.

In the pending case, the trial court summarized the allegations of the complaint and attached exhibits, emphasizing the undisputed fact that the CHA follows two “channels” for employee termination. One is for gross violations, which triggers an immediate suspension followed by a hearing. The second, designed for less serious violations, provides for a series of warnings and counseling that may or may not ultimately lead to termination.

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Cite This Page — Counsel Stack

Bluebook (online)
578 N.E.2d 71, 217 Ill. App. 3d 1055, 160 Ill. Dec. 892, 1991 Ill. App. LEXIS 1232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-chicago-housing-authority-illappct-1991.