Wood v. Wabash County

722 N.E.2d 1176, 309 Ill. App. 3d 725, 243 Ill. Dec. 107, 15 I.E.R. Cas. (BNA) 1656, 1999 Ill. App. LEXIS 877
Appellate Court of Illinois·Decided December 16, 1999·No. 5-99-0200·Published·Cited by 15 cases

Opinion

JUSTICE HOPKINS

delivered the opinion of the court:

Plaintiff, Carol J. Wood, appeals the trial court’s dismissal with prejudice of her complaint for breach of an implied employment contract against defendant, Wabash County Health Department, for failure to state a cause of action. The basis of plaintiffs complaint is defendant’s personnel policy handbook, which plaintiff alleges defendant violated by wrongfully terminating her employment. The only issue on appeal is whether the personnel policy handbook contained sufficiently clear promises such that plaintiff would reasonably have believed that an offer had been made and that an implied contract was formed. We reverse and remand for the reasons set forth below.

The essential facts are as follows: Plaintiff was employed by defendant from October 1994 until April 16, 1998. At the time of plaintiffs discharge, defendant’s personnel policy handbook, which had been in effect since July 1996, contained a section entitled “Disciplinary Procedure.” The disciplinary procedure section stated in pertinent part as follows:

“The following disciplinary actions have been adopted for dealing with violations of conduct and/or poor job performance. They are intended to be primarily progressive, corrective measures and have been designed to insure a smooth running organization in the best interest of employees, the department and its clients. The infractions and disciplinary actions listed are not all-inclusive. Repeated infractions or combined infractions or offenses may result in accelerated or compound disciplinary action as determined by the administrator. The department retains absolute discretion to skip action steps when it is deemed by the administrator to be in the best interest of the department.
Any of the steps listed below may be used as disciplinary measures or in conjunction with a plan of remediation. ***
Verbal Warning: ***
Written Warning: ***
Suspension: ***
Dismissal: The administrator may dismiss any employee for any reasonable cause. Prior to dismissal, the employee will be given written notification, stating the grounds for dismissal, and a hearing will be scheduled with the administrator. All dismissal notices shall be in writing, setting forth the reason(s) for dismissal and the effective date of termination. Each Board of Health member shall receive a copy of dismissal notices.
Actions which are causes for immediate termination of employment without warning could include, but are not limited to:
—Refusing to obey a reasonable order of supervisor (pertaining to work);
—Deliberate destruction or damage of department property or property of a fellow employee;
—Falsifying information on department records, employee time-sheets, etc.;
—Theft of property of the health department or other employee;
—Willfully falsifying application for employment or other data requested by the department;
—Illegal conduct during working hours;
—Brandishing a weapon during working hours;
—Harassing (sexually or otherwise), threatening, intimidating, or assaulting another employee, client, or member of the public;
—Reporting to work under the influence of alcohol or illegal drugs; —Conviction of a felony.”

On April 16, 1998, plaintiff received a written notice from defendant that her employment was terminated as of 11:59 a.m. that day. The written notice did not give a reason for plaintiffs termination, and a hearing was not scheduled with the administrator. Plaintiff filed a complaint for breach of implied contract, stating that defendant failed to follow the terms and conditions of the employment contract as set forth in the personnel policy handbook. Defendant moved to dismiss plaintiffs complaint for failure to state a cause of action under section 2 — 615(a) of the Code of Civil Procedure (735 ILCS 5/2 — 615(a) (West 1998)). Defendant asserted that the language of the personnel policy is discretionary and insufficient to establish an implied contract and that without an employment contract, plaintiffs complaint fails to state a cause of action.

The trial court determined that the language of defendant’s personnel policy was insufficient to amount to a clear promise such that plaintiff could reasonably believe that an offer had been made and that no implied-in-fact contract existed. The court found that plaintiff was an at-will employee with no contractual rights against defendant and no viable cause of action. The trial court granted defendant’s motion to dismiss plaintiffs complaint, and plaintiff appeals.

The review of a section 2 — 615 motion requires a court to determine whether a complaint sufficiently states a cause of action. See Davis v. Temple, 284 Ill. App. 3d 983 (1996). In reviewing such a motion, a court considers disputed questions of law de novo. See Davis, 284 Ill. App. 3d at 989. An implied-in-fact contract exists when a promissory expression may be inferred from the facts and circumstances and the expressions on the part of the promisor. See Lampe v. Swan Corp., 212 Ill. App. 3d 414 (1991). Whether an implied-in-fact contract exists is a threshold question of law. See Lampe, 212 Ill. App. 3d at 415.

Generally, an employment relationship with no fixed duration is terminable at will by either party. See Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482 (1987). The presumption that an employee is “at will” can be overcome if it is demonstrated that the parties contracted otherwise. See Duldulao, 115 Ill. 2d at 489. An employee handbook or other policy statement can create enforceable contractual rights if the traditional requirements for contract formation are met, i.e., the language of the policy contains a promise clear enough that an employee reasonably believes that an offer has been made, the policy statement has been disseminated to the employee so that the employee is aware of the promise and believes it to be an offer, and the employee accepts the offer by commencing or continuing to work after learning of the policy statement. See Duldulao, 115 Ill. 2d at 490.

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Wood v. Wabash County, 722 N.E.2d 1176, 309 Ill. App. 3d 725, 243 Ill. Dec. 107, 15 I.E.R. Cas. (BNA) 1656, 1999 Ill. App. LEXIS 877 (Ill. Ct. App. 1999).

722 N.E.2d 1176 (Wood v. Wabash County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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