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Turner v. Anheuser-Busch, Inc. - 7 Cal.4th 1238 S029985 - Mon, 07/25/1994 | California Supreme Court Resources
Home > Opinions > Turner v. Anheuser-Busch, Inc.
Citation 7 Cal.4th 1238
Turner v. Anheuser-Busch, Inc.
Turner v. Anheuser-Busch, Inc. (1994) 7 Cal.4th 1238 , 32 Cal.Rptr.2d 223; 876 P.2d 1022
Timothy L. Taggart for Plaintiff and Appellant. [7 Cal.4th 1243]
With one exception, Turner received overall "good" ratings on written performance evaluations between June 1984 and November 1987. (He received a "needs improvement" rating in December 1984.) On his December [7 Cal.4th 1244] 28, 1988, evaluation, however, Turner received a "needs improvement" rating. On that day, Turner met with ABI supervisors who, citing specific incidents, alleged that Turner's job performance had deteriorated. Turner denied that charge and criticized the supervisors' decision to wait until the meeting to complain of the particular incidents, rather than discussing them at the time of their occurrence.
[1] Constructive discharge occurs when the employer's conduct effectively forces an employee to resign. Although the employee may say, "I [7 Cal.4th 1245] quit," the employment relationship is actually severed involuntarily by the employer's acts, against the employee's will. As a result, a constructive discharge is legally regarded as a firing rather than a resignation. (Zilmer v. Carnation Co. (1989) 215 Cal.App.3d 29, 38-39 [263 Cal.Rptr. 422] [hereafter Zilmer].)
We have not previously addressed what an employee must prove to establish a constructive discharge. The Courts of Appeal have devised and applied the following test for constructive discharge: "[A]n employee who is forced to resign due to actions and conditions so intolerable or aggravated at the time of his resignation that a reasonable person in the employee's position would have resigned, and whose employer had actual or constructive knowledge of the intolerable actions and conditions and of their impact upon the employee and could have remedied the situation, but did not, is constructively discharged." (Zilmer, supra, 215 Cal.App.3d at p. 38; see also Brady v. Elixir Industries (1987) 196 Cal.App.3d 1299, 1306 [242 Cal.Rptr. 324] [hereafter Brady].)
The doctrine of constructive discharge was first recognized in federal cases brought under the National Labor Relations Act (NLRA). Under section 8(a)(3) of the NLRA, it is "an unfair labor practice for an employer ... by discrimination ... to encourage or discourage membership in any labor organization ...." (29 U.S.C. § 158(a)(3).) Approving decisions of the National Labor Relations Board and lower courts, the United States Supreme Court has held that "an employer violates [§ 8(a)(3)] not only when, for the purpose of discouraging union activity, it directly dismisses an employee, but also when it purposefully creates working conditions so intolerable that the employee has no option but to resign-a so-called 'constructive discharge.' " (Sure-Tan, Inc. v. NLRB (1984) 467 U.S. 883, 894 [81 L.Ed.2d 732, 744, 104 S.Ct. 2803], italics added.)
The federal courts have also applied constructive discharge in employment discrimination cases under title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e) and the Age Discrimination in Employment Act of 1967 (29 [7 Cal.4th 1246] U.S.C. §§ 621-634; ADEA). Some federal cases have required "deliberate" conduct by an employer creating conditions so aggravated or intolerable that a reasonable person in the employee's position would have felt compelled to resign. fn. 1 The federal Court of Appeals for the Fourth Circuit has gone further, requiring proof of an employer's express intent to cause an employee to resign. (Bristow v. Daily Press, Inc. (4th Cir. 1985) 770 F.2d 1251, 1255, cert. den. (1986) 475 U.S. 1082 [89 L.Ed.2d 718, 106 S.Ct. 1461].)
[2] Under the cases, an employee cannot simply "quit and sue," claiming he or she was constructively discharged. The conditions giving rise to the resignation must be sufficiently extraordinary and egregious to overcome the normal motivation of a competent, diligent, and reasonable employee to remain on the job to earn a livelihood and to serve his or her employer. The proper focus is on whether the resignation was coerced, not whether it was simply one rational option for the employee. [7 Cal.4th 1247]
Various terms such as "intolerable" or "aggravated" have been used to describe the subnormal character of the working conditions required to establish constructive discharge. (Slack, supra, 423 S.E.2d at p. 556; see also Zilmer, supra, 215 Cal.App.3d at p. 38; Brady, supra, 196 Cal.App.3d at p. 1306.) The essence of the test is whether, under all the circumstances, the working conditions are so unusually adverse that a reasonable employee in plaintiff's position " ' "would have felt compelled to resign." ' " (Slack, supra, 423 S.E.2d at p. 556, quoting Calhoun v. Acme Cleveland Corp. (1st Cir. 1986) 798 F.2d 559, 561.) [7 Cal.4th 1248]
[3] As the citations and quotations in the previous section reveal, the cases are in agreement that the standard by which a constructive discharge is determined is an objective one-the question is "whether a reasonable person faced with the allegedly intolerable employer actions or conditions of employment would have no reasonable alternative except to quit." (Rochlis v. Walt Disney Co. (1993) 19 Cal.App.4th 201, 212 [23 Cal.Rptr.2d 793] [hereafter Rochlis], citing Brady, supra, 196 Cal.App.3d at p. 1306 and Lojek v. Thomas (9th Cir. 1983) 716 F.2d 675, 681.) fn. 5
From our review of the cases, we conclude that Brady's test is inadequate to the extent it allows a claim for wrongful discharge on a finding that the employer had mere constructive knowledge of the intolerable conditions leading to an employee's resignation, because such a test does not further the Brady court's goal of insuring corrective measures will be attempted before a lawsuit is required. Although the majority of courts have declined to join the Fourth Circuit in requiring an employer's express intent to force an employee to leave, they have generally demanded that the "intolerable conditions" causing a constructive discharge be expressly "created by or [7 Cal.4th 1249] known to the employer." (Slack, supra, 423 S.E.2d at p. 558.) Thus, an employer's intent to create or purposefully maintain working conditions that are intolerable from the standpoint of a reasonable employee has been deemed sufficient for a constructive discharge because it insures the claim is employer-coerced. An employer's actual knowledge of the existence of such conditions, and subsequent failure to remedy them, may constitute circumstantial evidence that the employer deliberately forced the employee to resign.
An employer's intent to cause a resignation will rarely be revealed by direct evidence. Self-interest will most often prevent an employer from announcing a constructive discharge strategy from the rooftops. An express intent requirement might unduly focus the trier of fact's attention on the presence or absence of direct evidence. But we see no reason why a standard requiring the employer's actual (rather than mere constructive) knowledge of the intolerable conditions would do so. Such a standard serves to emphasize a central aspect of constructive discharge law-the resignation must be employer-caused and against the employee's will. Consistent with this principle, the employer must either deliberately create the intolerable working conditions that trigger the resignation or, at a minimum, must know about [7 Cal.4th 1250] them and fail to remedy the situation in order to force the employee to resign.
Finally, the dissent's unnecessary concern over a purely hypothetical situation is aggravated by its reliance on federal circuit court cases that either support our actual knowledge test for constructive discharge cases or focus exclusively on title VII (or its equivalent under title IX) sexual harassment causes of action. (Compare Paroline v. Unisys Corp. (4th Cir. [7 Cal.4th 1251] 1989) 879 F.2d 100 [constructive discharge in sexual harassment case under title VII occurs only when employer deliberately makes work conditions intolerable in an effort to induce employee to quit] with Ellison v. Brady (9th Cir. 1991) 924 F.2d 872, 880 [title VII claim for sexual harassment is not a fault-based tort claim].) Thus, even though sexual harassment claims sometimes are considered within the context of constructive discharge allegations, the focus in a constructive discharge case is the employer's knowledge and conduct in forcing the employee to resign in light of the intolerable working conditions. (Ibid.) In criticizing our modification of the Brady test, therefore, the dissent simply strains to create a point of departure where none exists.
An employee may prove, for example, that a constructive discharge is a breach of an express or implied contract of employment. In the absence of an [7 Cal.4th 1252] express or implied agreement to the contrary, an employment relationship without a fixed term is presumed to be validly terminable at the will of either party, employer or employee, at any time. (Lab. Code, § 2922; Foley v. Interactive Data Corp. (1988) 47 Cal.3d 654, 675-682 [254 Cal.Rptr. 211, 765 P.2d 373] [hereafter Foley].) However: "In the employment context, factors apart from consideration and express terms may be used to ascertain the existence and content of an employment agreement, including 'the personnel policies or practices of the employer, the employee's longevity of service, actions or communications by the employer reflecting assurances of continued employment, and the practices of the industry in which the employee is engaged.' " (Id. at p. 680.)
Apart from the terms of an express or implied employment contract, an employer has no right to terminate employment for a reason that contravenes fundamental public policy as expressed in a constitutional or statutory provision. (Gantt v. Sentry Insurance (1992) 1 Cal.4th 1083, 1094-1095 [4 Cal.Rptr.2d 874, 824 P.2d 680] [hereafter Gantt].) An actual or constructive discharge in violation of fundamental public policy gives rise to a tort action in favor of the terminated employee. (Foley, supra, 47 Cal.3d at pp. 665-671; Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167, 178 [164 Cal.Rptr. 839, 610 P.2d 1330, 9 A.L.R.4th 314] [hereafter Tameny].)
In reviewing a ruling on a motion for summary judgment, an appellate court (1) "identif[ies] the issues framed by the pleadings," (2) "determine[s] whether the moving party's showing has established facts which negate the opponent's claim and justify a judgment in movant's favor," and (3) "[w]hen a summary judgment motion prima facie justifies a judgment, ... determine[s] whether the opposition demonstrates the existence of a triable, [7 Cal.4th 1253] material factual issue." (AARTS Productions, Inc. v. Crocker National Bank (1986) 179 Cal.App.3d 1061, 1064-1065 [225 Cal.Rptr. 203].) fn. 6 B. Turner's Claim for Constructive Wrongful Discharge in Violation of Fundamental Public Policy
Observing that Turner resigned more than four years after his "whistleblowing" reports of alleged misconduct by ABI employees, ABI contends Turner's claim fails as a matter of law under the "statute of limitations" rule announced in Panopulos v. Westinghouse Electric Corp. (1989) 216 Cal.App.3d 660 [264 Cal.Rptr. 810] (hereafter Panopulos). Turner urges us to reject the rule in Panopulos in favor of the more fact-specific and flexible principles applied in Valdez, supra, 231 Cal.App.3d 1043.
In Panopulos, plaintiff resigned in 1983 and thereafter filed suit for constructive discharge in violation of an implied contract. Plaintiff maintained he had been transferred in 1978 and made to work under intolerable [7 Cal.4th 1254] conditions until his resignation. Reasoning that "sound policy requires that there be a limit beyond which claims such as that of plaintiff here may not be asserted," the Panopulos court held "the applicable limitations period must constitute an outer limit beyond which an employee may not, as a matter of law, remain employed after the onset of allegedly intolerable conditions and thereafter maintain a claim for wrongful constructive discharge." (Panopulos, supra, 216 Cal.App.3d at pp. 669, 670.). Because plaintiff's transfer had occurred more than four years (the longest applicable limitations period) before his resignation, the court held his suit time-barred.
The mere existence of illegal conduct in a workplace does not, without more, render employment conditions intolerable to a reasonable employee. Turner was not requested, let alone required, to participate in any of the illegal conduct he complains of. Nor does he contest ABI's statements that his supervisors duly acknowledged and investigated at least some of his complaints. Although Turner may have been a witness to allegedly illegal conduct condoned by his employer, the nature of the conduct (violations of state law regulating the economic and contractual relationships between [7 Cal.4th 1255] beverage manufacturers and their customers and competitors) was not so obnoxious or aggravated as to cause a reasonable employee to feel compelled to resign.
Moreover, the so-called illegal acts in 1984 and Turner's 1985 reassignment were remote in time and context from the 1989 resignation. Although not dispositive, the passage of this much time after purportedly unbearable conditions arose strongly suggests that neither Turner, nor a reasonable employee, would have regarded the working conditions at ABI as intolerable. fn. 8 (Wagner v. Sanders Associates, Inc. (C.D.Cal.) 638 F.Supp. 742, 745 [passage of time between allegedly intolerable condition and resignation "goes a long way toward destroying" assertion that conditions were intolerable]; Vaughn v. Pool Offshore Co. (5th Cir. 1982) 683 F.2d 922, 926 [no constructive discharge when alleged misconduct occurred several months prior to resignation].)
Finally, Turner's 1988 performance rating, an event he contends triggered his resignation, is not a basis for a claim of constructive discharge. As we have observed in part II.A.(1), ante, a single negative performance rating does not amount to a constructive discharge. "In order to properly manage its business, every employer must on occasion review, criticize, demote, transfer, and discipline employees." (Cole v. Fair Oaks Fire Protection Dist. (1987) 43 Cal.3d 148, 160 [233 Cal.Rptr. 308, 729 P.2d 743], quoted in Soules, supra, 2 Cal.App.4th at p. 401.) Thus, the dissent errs in claiming that Turner's pleadings show a campaign to drive him "out of the company by means of adverse performance evaluations based on charges deliberately fabricated." (Dis. opn., post, at p. 1270.)
Even if Turner's miscellaneous charges of employer misconduct are considered together, no continuous pattern of harassment or aggravating conditions emerges. (See Soules, supra, 2 Cal.App.4th at p. 402.) Turner concedes that he received good performance reviews and increases in his compensation from 1985-1987, more than three years after his complaints of illegal activity. He also admits that he resigned when he did because he believed ABI was "setting him up" for termination and that his "chances would be better" in future litigation if he preempted his discharge. Turner's attempt to weave unrelated and disjointed events together into an insidious pattern unravels quickly in these circumstances. Turner's resignation was voluntary and strategic, not, as the dissent claims, coerced or compelled by ABI's acts. In short, Turner was not constructively discharged. [7 Cal.4th 1256] (2) No Wrongful Discharge in Violation of Fundamental Public Policy
Turner also maintains that Liakos "harassed" employees who failed to implement ABI policies concerning refrigeration of beer, arbitrarily and capriciously performed annual evaluations of salaried employees, used threats of probation and harassment to subject all salaried employees to his "whimsical" practices, fabricated merit reviews to justify decisions to discharge employees, and falsified records at ABI's Riverside operation to further its success in interbranch sales competitions. [7 Cal.4th 1257]
Violations of these sections might be construed as implicating fundamental public policy. The Legislature's declaration of purpose in section 23001 [7 Cal.4th 1258] of the Act provides as follows: "This division is an exercise of the police powers of the State for the protection of the safety, welfare, health, peace, and morals of the people of the State, to eliminate the evils of unlicensed and unlawful manufacture, selling, and disposing of alcoholic beverages, and to promote temperance in the use and consumption of alcoholic beverages. It is hereby declared that the subject matter of this division involves in the highest degree the economic, social, and moral well-being and the safety of the State and of all its people. All provisions of this division shall be liberally construed for the accomplishment of these purposes." (Italics added.) fn. 12
Assuming that Turner has identified ABI violations of state statutes implicating fundamental public policies, he has nonetheless fallen short of creating a triable issue on a cause of action for wrongful discharge in violation of fundamental public policy. Initially, Turner does not show that he was ever asked to participate in any illegal activity or that he was subjected to harassment for performing a statutory obligation or exercising a statutory right or privilege. (Gantt, supra, 1 Cal.4th at pp. 1090-1091.) Therefore, he cannot assert a wrongful discharge claim in the classic Tameny sense. (See Tameny, supra, 27 Cal.3d 167 [employee discharged for refusing to participate in illegal price-fixing scheme].) Thus, Turner's claim is limited to an assertion of "whistle-blower harassment," i.e., a contention that he was harassed and ultimately forced to quit because he reported to ABI "an alleged violation of a statute of public importance." (Gantt, supra, 1 Cal.4th at p. 1091.)
But Turner's claim of whistle-blower harassment fails because he cannot demonstrate the required nexus between his reporting of alleged statutory violations and his allegedly adverse treatment by ABI. Turner's reporting activity occurred some four to five years before the negative performance evaluations that Turner maintains caused him to quit. Indeed, contrary to the dissent, there is no indication in the record that management regarded Turner as a disloyal employee and troublemaker for his reporting of illegal activity. In response to Turner's complaints, ABI managers did not dismiss his concerns or admonish him to cease communication, but investigated and made their own determinations that illegal activity was not taking place. The ABI managers receiving Turner's reports were not on the scene when other ABI managers later found his performance less than satisfactory. Turner's performance evaluations and status within ABI were generally satisfactory [7 Cal.4th 1259] throughout the three-year period following his complaints. On their face, the evaluations appear to be regularly prepared and well documented.
Nonetheless, I concur in the judgment of the majority because I agree that, as a matter of law, Turner did not suffer in his employment "actions and conditions ... so intolerable or aggravated at the time of the employee's resignation that a reasonable person in the employee's position would have resigned." (Brady v. Elixir Industries (1987) 196 Cal.App.3d 1299, 1306 [242 Cal.Rptr. 324].) I agree in principle with Justice Kennard that unjustified poor performance evaluations may, in the proper context, constitute an intolerable condition that would cause a reasonable employee to resign. The majority opinion does not declare otherwise. But, although an employee who believes he must look forward to a series of undeservedly negative performance evaluations that will blot his employment record and block his chances for advancement may be able to maintain a cause of action for [7 Cal.4th 1260] constructive discharge, a single "needs improvement" evaluation after four years of good evaluations does not reasonably warrant that belief. A plaintiff must show at least that the questionable evaluation is more than a singular or occasional occurrence.
In Brady v. Elixir Industries (1987) 196 Cal.App.3d 1299, 1306 [242 Cal.Rptr. 324], the Court of Appeal identified the elements of a cause of action for wrongful constructive discharge in violation of public policy: "(1) the actions and conditions that caused the employee to resign were violative of public policy; [¶] (2) these actions and conditions were so intolerable or aggravated at the time of the employee's resignation that a reasonable person in the employee's position would have resigned; and [¶] (3) facts and circumstances showing that the employer had actual or constructive knowledge of the intolerable conditions and of their impact on the employee and could have remedied the situation." (Italics added.) [7 Cal.4th 1261]
This definition of constructive discharge has met with unanimous approval in subsequent decisions of the Courts of Appeal. (See, e.g., Rochlis v. Walt Disney Co. (1993) 19 Cal.App.4th 201, 212 [23 Cal.Rptr.2d 793]; Soules v. Cadam, Inc. (1991) 2 Cal.App.4th 390, 399 [3 Cal.Rptr.2d 6]; Valdez v. City of Los Angeles (1991) 231 Cal.App.3d 1043, 1059 [282 Cal.Rptr. 726]; Zilmer v. Carnation Co. (1989) 215 Cal.App.3d 29, 36-37 [263 Cal.Rptr. 422].)
Apart from the Court of Appeal's decision in Brady v. Elixir Industries, supra, 196 Cal.App.3d 1299, and the unanimous acceptance of that decision by this state's appellate courts, is there other substantial persuasive authority for the inclusion of an employer's constructive knowledge within the elements of constructive wrongful discharge? There is.
As the majority explains, federal courts have considered the elements of constructive wrongful discharge in the context of actions brought under title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), and a clear majority of the federal appellate courts has rejected a requirement that the [7 Cal.4th 1262] employer intend to force the employee to resign. Under the majority rule in title VII cases, "a constructive discharge occurs whenever the complainant's resignation results from intolerable working conditions, for which the employer is responsible, that would have caused a reasonable person in the plaintiff's position to resign." (Lindemann & Kadue, Sexual Harassment in Employment Law (1992) p. 260, italics added.) Thus, employer responsibility is an element of a title VII claim for constructive discharge. How is employer responsibility established under title VII?
This test for employer responsibility for the abusive acts of coworkers has been widely adopted by the federal courts, which have applied the test not only to acts of sexual harassment, but also to harassment on the basis of race, ethnic origin, and other prohibited grounds. Indeed, every federal appellate court that has considered the question has held that, absent prompt and appropriate corrective action, an employer is liable for a hostile workplace environment of which the employer has constructive knowledge. (Lipsett v. University of Puerto Rico (1st Cir. 1988) 864 F.2d 881, 901 [applying title VII standard in a title IX case]; Kotcher v. Rosa and Sullivan Appliance Center, Inc. (2d Cir. 1992) 957 F.2d 59, 63; Andrews v. City of Philadelphia (3d Cir. 1990) 895 F.2d 1469, 1486; Paroline v. Unisys Corp. (4th Cir. 1989) 879 F.2d 100, 107; Nash v. Electrospace System, Inc. (5th Cir. 1993) 9 F.3d 401, 403; Kauffman v. Allied Signal, Inc., Autolite Div. (6th Cir. 1992) 970 F.2d 178, 183; Juarez v. Ameritech Mobile Communications, Inc. (7th Cir. 1992) 957 F.2d 317, 320; Hall v. Gus Const. Co., Inc. (8th Cir. 1988) 842 F.2d 1010, 1015; Ellison v. Brady (9th Cir. 1991) 924 F.2d 872, 881; Hirschfeld v. New Mexico Corrections Dept. (10th Cir. 1990) 916 F.2d 572, [7 Cal.4th 1263] 577; Steele v. Offshore Shipbuilding, Inc. (11th Cir. 1989) 867 F.2d 1311, 1316; see also Note, Sexual Harassment Claims of Abusive Work Environment Under Title VII (1984) 97 Harv.L.Rev. 1449, 1462-1463.) fn. 2
Under what circumstances might an employer (or its agents, including immediate supervisors) be said to have constructive knowledge of an employee's intolerable working conditions attributable to the actions of coworkers or subordinates? First, constructive knowledge exists when the intolerable conditions, or the improper practices that result in the intolerable conditions, are so obvious and pervasive that any reasonably attentive employer would notice them. (See E.E.O.C. v. Hacienda Hotel (9th Cir. 1989) 881 F.2d 1504, 1516; Hunter v. Allis-Chalmers Corp., Engine Div. (7th Cir. 1986) 797 F.2d 1417, 1422; Taylor v. Jones (8th Cir. 1981) 653 F.2d 1193, 1199; Note, Sexual Harassment Claims of Abusive Work Environment Under Title VII, supra, 97 Harv.L.Rev. 1449, 1462, fn. 69; Lindemann & Kadue, Sexual Harassment in Employment Law, supra, pp. 242-244.) Second, constructive knowledge exists when the employer declines to read or listen to employee complaints, otherwise discourages employee complaints, or gives the employee no reasonably available means to complain. (See Kotcher v. Rosa and Sullivan Appliance Center, Inc., supra, 957 F.2d 59, 63; [7 Cal.4th 1264] Levendos v. Stern Entertainment, Inc. (3d Cir. 1990) 909 F.2d 747, 753 [116 A.L.R.Fed. 653].)
To justify punitive action against plaintiff, plaintiff's supervisors solicited and encouraged coworkers to fabricate accusations against plaintiff and to document these false accusations, which could then be used in annual merit reviews. Plaintiffs' supervisors also harassed plaintiff by changing his work shift schedule to affect his service on a federal jury panel. [7 Cal.4th 1265]
The parties agree that the June 1984 evaluation was based solely on an objective evaluation of plaintiff's performance during the appraisal period, but they disagree about the reason for the "needs improvement" rating in the [7 Cal.4th 1266] December 1984 evaluation. The written appraisal states that the lower rating was caused primarily by plaintiff's failure to timely and accurately complete important sales reports and to follow through on sales and marketing projects. In his declaration, Liakos states that the appraisal was based "solely on an objective review of Plaintiff's performance during the appraisal period." By contrast, plaintiff's deposition reveals his belief that he had performed competently during the rating period and that the adverse rating was given in retaliation for his complaints about certain practices by his supervisor, Schmitt.
(3) Schmitt encouraged ABI sales employees to remove competitors' advertising displays from retail liquor stores. At the morning meeting of the sales department, Schmitt would initial the purloined displays and award the responsible employee points toward "salesman of the month." During the course of the meeting, Schmitt would, in plaintiff's words, "take these things, some of these things that were particularly good and he would hold them up as documentation, identify the person who brought them in and give him an 'atta boy.' " Based on briefings by ABI attorneys, plaintiff believed [7 Cal.4th 1267] that handling or removing a competitor's retail displays was illegal. fn. 5 Plaintiff mentioned his concern to Schmitt. According to plaintiff's testimony, Schmitt responded with these words: "This is not a debating society. If I tell you to do it you do it." Plaintiff then raised the problem with Liakos. According to plaintiff, Liakos's response was: "Thank you for telling me. I'll handle it."
In his December 1988 performance appraisal, plaintiff received an overall rating of "needs improvement." The decline from the November 1987 appraisal was dramatic. In the earlier evaluation, plaintiff was rated "good" in eight categories, "very good" in six categories, and "excellent" in one category. He did not receive a single "needs improvement" rating in any of the 15 rating categories. In the December 1988 appraisal, by contrast, plaintiff was rated "needs improvement" in eight categories, and "good" in the remaining seven categories. [7 Cal.4th 1268]
Plaintiff also informed Liakos about a provision of the union contract defining eligibility for what plaintiff described as "health and welfare benefits." Plaintiff told Liakos that ABI could be "in jeopardy" for withholding [7 Cal.4th 1269] benefits under this provision. He recommended that the provision be revised when the union contract was renegotiated, but it was never changed. Plaintiff also believed that the company was violating a contract provision stating, in plaintiff's words, that "clerical staff would be paid for 40 hours and work 37 and a half." When plaintiff mentioned this problem to Liakos, Liakos replied, "We'll live with it until we are caught."
The essential elements of a claim for constructive discharge in violation of public policy are, as I have previously observed, the following: (1) working conditions so intolerable or aggravated that a reasonable person in the employee's position would have felt compelled to resign; (2) circumstances sufficient to establish the employer's responsibility for the intolerable conditions, and (3) circumstances showing that the discharge violated public policy. (Brady v. Elixir Industries, supra, 196 Cal.App.3d 1299, 1306.) The majority concludes that the state of the evidence relating to the first element-intolerable working conditions-warrants summary judgment for defendant ABI. I disagree. Although I would not characterize the evidence of intolerable conditions as "overwhelming," I am convinced it was sufficient to establish a triable issue of fact.
By itself, a single adverse performance review does not constitute intolerable working conditions, even when the low evaluation is unjustified. But the record here, viewed in the light most favorable to the party opposing summary judgment (Molko v. Holy Spirit Assn. (1988) 46 Cal.3d 1092, 1107 [252 Cal.Rptr. 122, 762 P.2d 46]), shows considerably more.
Plaintiff suffered two adverse performance reviews, both of which followed plaintiff's complaints about actions of his supervisors that he considered illegal or otherwise improper. After the first adverse evaluation, he was [7 Cal.4th 1270] given a lateral transfer from the sales department to the delivery department. It is a reasonable inference, although disputed by defendant, that Liakos's purpose in transferring plaintiff was to prevent him from observing and opposing activities by Schmitt, the sales manager, that were illegal but that Liakos was willing to tolerate or even encourage because they increased the company's sales. It is also a reasonable inference that after plaintiff opposed certain practices in the delivery department, Liakos made a similar decision to prevent him from observing and opposing improper activities in that department; lateral transfer no longer being feasible, Liakos, in concert with Garcia and Richards, fabricated charges that would support adverse performance evaluations of plaintiff and eventually lead to his discharge or resignation.
The question, then, is not whether one, or even two, adverse performance reviews justify an employee's decision to resign. Rather, the issue is whether a reasonable employee would find working conditions intolerable, and feel compelled to resign, when the employee's supervisors had launched a campaign to drive the employee out of the company by means of adverse performance evaluations, based on charges deliberately fabricated. Knowing that the poor evaluations would continue and would eventually lead to discharge, and knowing also that discharge would reduce the prospects of employment elsewhere, an employee of normal sensibilities might very well find the described situation intolerable. Because plaintiff presented substantial evidence to support this description of his predicament at the Riverside [7 Cal.4th 1271] WOD when he resigned, the existence of intolerable conditions presents a triable issue of fact.
Moreover, the record shows that the period between plaintiff's transfer to the delivery department and his December 1988 adverse performance evaluation was not uneventful. Plaintiff continued to oppose activities he regarded as improper. Although these activities did not violate fundamental public policy (see fn. 7, ante), they gave his superiors, and particularly Liakos, continuing grounds to regard plaintiff as a disloyal employee and a troublemaker. Thus, there is sound evidentiary support for plaintiff's belief that his final adverse evaluation was not based on an objective appraisal of his performance, but rather was made to force him out of the company in retaliation for his "disloyal" opposition to established practices at the Riverside WOD. If this is true, then the only issue as to "nexus" is whether the [7 Cal.4th 1272] negative appraisal was only in retaliation for plaintiff's opposition to certain practices in the delivery department, or whether it was also, in significant part, in retaliation for plaintiff's opposition to law violations in the sales department. In my view, the answer to this question, and thus the existence of the required nexus, presents a triable issue of fact.
­FN *. Presiding Justice, Court of Appeal, Second Appellate District, Division Four, assigned by the Acting Chairperson of the Judicial Council.
­FN 1. See, e.g., Stetson v. Nynex Service Company (2d Cir. 1993) 995 F.2d 355, 361 (employer "deliberately created working conditions that were ' "so difficult or unpleasant that a reasonable person in the employee's shoes would have felt compelled to resign" ' "); McKethan v. Texas Farm Bureau (5th Cir. 1993) 996 F.2d 734, 740 (employer " 'deliberately makes an employee's working conditions so intolerable that the employee is forced into involuntary resignation' "); Irving v. Dubuque Packing Co. (10th Cir. 1982) 689 F.2d 170, 172 (employer "deliberately makes or allows the employee's working conditions to become so intolerable that the employee has no other choice but to quit"); Johnson v. Bunny Bread Co. (8th Cir. 1981) 646 F.2d 1250, 1256 (employer " 'deliberately renders the employee's working conditions intolerable and thus forces [the employee] to quit' ").
­FN 2. The federal ADEA cases are collected in Annotation, Circumstances Which Warrant Finding of Constructive Discharge Under Age Discrimination in Employment Act (1989) 93 A.L.R.Fed. 10.
­FN 3. In some circumstances, a single intolerable incident, such as a crime of violence against an employee by an employer, or an employer's ultimatum that an employee commit a crime, may constitute a constructive discharge. Such misconduct potentially could be found "aggravated." No such misconduct is alleged in this case.
­FN 4. See Valdez v. City of Los Angeles (hereafter Valdez) (1991) 231 Cal.App.3d 1043, 1056 [282 Cal.Rptr. 726] ("In general, a 'single isolated instance' of employment discrimination is insufficient as a matter of law to support a finding of constructive discharge.... Thus, the mere failure to promote the plaintiff, even if unlawfully discriminatory, will not support a finding of constructive discharge.... Nor is it sufficient to show only that the employee received a poor performance rating."); Soules v. Cadam, Inc. (1991) 2 Cal.App.4th 390, 401 [3 Cal.Rptr.2d 6] (hereafter Soules) ("Further, demotion of job level, even when accompanied by reduction in pay, does not constitute constructive discharge.").
­FN 5. See also Slack, supra, 423 S.E.2d at page 556; 93 A.L.R.Fed., supra, at page 16 (Courts "generally recognize the view that the standard of intolerability is an objective one, viewed from the standpoint of the reasonable person .... These courts generally hold that a constructive discharge occurs when an employer makes working conditions so difficult or unpleasant that a reasonable person in the employee's shoes would feel compelled to resign.").
­FN 6. ABI's motion for summary judgment was heard and granted in 1989, well before the 1992 amendments to the summary judgment statute. (See, e.g., Code Civ. Proc., § 437c, subd. (n), added by Stats. 1992, ch. 1348, § 1.) Therefore, our discussion of summary judgment procedure necessarily reflects pre-1993 law. We have no occasion in this case to determine the effect of section 437c as amended.
­FN 7. The record suggests there may be some question as to the applicable limitations period in this case. It may be four years (Code Civ. Proc., § 343), two years (id., 339, subd. 1), or one year (id., § 340, subd. (3)). Because of our rejection of the Panopulos rule, we need not and do not decide this question.
­FN 8. The Court of Appeal suggested that Turner may have postponed his resignation in an effort to secure retirement benefits. As ABI notes, there was no contention by Turner, nor any evidence before the court, that Turner waited to resign until he was eligible for retirement benefits. Turner does not challenge this assertion.
­FN 9. See also Foley, supra, 47 Cal.3d at page 670, footnote 11 (policy must be " 'firmly established'..., 'fundamental'..., and 'substantial' "); Sequoia Ins. Co. v. Superior Court (1993) 13 Cal.App.4th 1472, 1480 [16 Cal.Rptr.2d 888] ("constitutional or statutory provision must sufficiently describe the type of prohibited conduct to enable an employer to know the fundamental public policies that are expressed in that law").
­FN 10. The interest advanced by the policy must inure to the benefit of the public at large, rather than simply to the individual employer or employee. (Gantt, supra, 1 Cal.4th at pp. 1090, 1095-1096; see Foley, supra, 47 Cal.3d at p. 669.)
­FN 11. Turner also asserts in his brief in this court that his ABI supervisors "harassed" him by "changing his work shift schedule to affect his service on a federal jury panel." Like the balance of Turner's argument, this assertion is both factually and legally devoid of merit. The portion of the record Turner cites shows only that he had some difficulty reaching his immediate supervisor by phone to coordinate his schedule while on jury duty. At the time, he did not feel the problem was sufficiently important even to mention to another ABI manager, with whom Turner was in contact about his jury service. Turner nowhere demonstrates how, if at all, his jury service was interfered with nor, again, does he direct our attention to any specific statute or constitutional provision implicating a fundamental public policy. Thus, Turner fails to meet his burden of showing a triable issue of fact.
­FN 12. In addition, although Turner does not cite the applicable law, ABI's alleged conduct in interfering with product display and advertising of competing sellers inside retail outlets might be construed as illegal "ribbonizing" in violation of Business and Professions Code sections 25502, subdivision (b) and 25503.3 and California Code of Regulations, title 4, section 106, subdivision (b). (Markstein Distributing Co. v. Rice (1976) 65 Cal.App.3d 333 [135 Cal.Rptr. 255].)
­FN 1. The EEOC has also issued guidelines for discrimination because of religion (29 C.F.R. § 1605.1 et seq. (1993)), but the guidelines for religious discrimination do not appear to define employer responsibility for harassment by coworkers.
­FN 2. In most instances, the language of the federal appellate court rulings closely tracks the language of the EEOC guidelines. (E.g., Andrews v. City of Philadelphia, supra, 895 F.2d 1469, 1486 ["management-level employees had actual or constructive knowledge about the existence of a sexually hostile environment and failed to take prompt and adequate remedial action"]; Katz v. Dole (4th Cir. 1983) 709 F.2d 251, 255 ["the employer had actual or constructive knowledge of the existence of a sexually hostile working environment and took no prompt and adequate remedial action"]; Nash v. Electrospace System, Inc., supra, 9 F.3d 401, 403 ["the employer either knew or should have known of the harassment and failed to take prompt remedial action"].) The one exception is the Second Circuit, which has phrased the rule under which an employer is responsible for a hostile environment resulting from coworker harassment in terms of a requirement that the employer "either provided no reasonable avenue for complaint or knew of the harassment but did nothing about it." (Kotcher v. Rosa and Sullivan Appliance Center, Inc., supra, 957 F.2d 59, 63.)
­FN 3. Plaintiff's belief was well founded: By state law, a liquor wholesaler is generally prohibited from giving any gift to any off-premises retailer or in connection with the sale or distribution of any alcoholic beverage. (Bus. & Prof. Code, §§ 25502, subd. (a)(2), 25600; see also, Smith v. Brown-Forman Distillers Corp. (1987) 196 Cal.App.3d 503, 510 [241 Cal.Rptr. 916]; Markstein Distributing Co. v. Rice (1976) 65 Cal.App.3d 333 [135 Cal.Rptr. 255].)
­FN 4. In his declaration, Liakos admitted that plaintiff had informed him that Schmitt had provided an Anheuser-Busch jacket to a customer, but he stated that upon inquiry Schmitt had told him that the customer had paid for the jacket. Liakos declared that he had been satisfied with this representation and had terminated his investigation. He denied that plaintiff had ever complained to him about other alleged unlawful or improper activity.
­FN 5. Plaintiff's belief that it was illegal to handle the products or advertising displays of competing alcoholic beverage distributors was well founded. (See Smith v. Brown-Forman Distillers Corp., supra, 196 Cal.App.3d 503, 510; Markstein Distributing Co. v. Rice, supra, 65 Cal.App.3d 333.)
­FN 6. Plaintiff described the case of an employee named Van Hoy, who had reported to ABI's head office in St. Louis that employees at the Riverside facility were fabricating sales documents "for accounts that never received the goods." Van Hoy's report triggered an investigation, as a result of which two employees were fired. But Van Hoy was given reduced responsibilities, his keys were taken away, and he was not allowed to handle cash any more. Plaintiff stated that Van Hoy "got the message and left."
­FN 7. I do not challenge the majority's conclusion that the alleged activities in the delivery department-violations of collective bargaining agreements and internal company policies-were not against fundamental public policy.
[End of Volume 7 Cal.4th]
Petition for review after the Court of Appeal reversed a summary judgment in a civil action. The court limited review to issues concerning the adequacy of a claim for constructive wrongful discharge.
Mon, 07/25/1994 7 Cal.4th 1238 S029985 Review - Civil Appeal closed; remittitur issued
STONE v. BELL INDUSTRIES (S032363)
GIBSON v. ARO CORPORATION (S036202)
1 Anheuser-Busch, Inc. (Respondent)
Represented by John B. Golper
Ballard, Rosenberg & Golper
2 Turner, James M. (Appellant)
Represented by Timothy Lee Taggart
11750 Cedar Avenue
3 California Employment Law Council (Amicus curiae)
Jul 25 1994 Opinion: Reversed
Dec 1 1992 Petition for review filed
By Resp Anheuser-Busch Inc
Dec 4 1992 Request for publication filed (initial case entry)
Partial - from California Employment Law Council.
Dec 4 1992 Received:
Jan 19 1993 Time Extended to grant or deny Petition for Review
Review to 3-1-93
Feb 11 1993 Petition for Review Granted
Resp'S. issues to be Argued before this Court Shall be Limited to (A) What issues of Material Fact, If Any, Are Presented with Respect to >>>>>> Plaintiff's Cause of Action for Constructive Wrongful Discharge in Violation of public Policy and (B) Is Defendant entitled to Judgment as >>>>> A Matter of Law on that Cause of Action? Votes: Lucas,CJ; Panelli, Arabian, Baxter, J.
By: Resp.to file Opening brief on the merits.
Resp's answer brief on the merits Is Due 4-14-93
Apr 14 1993 Opening brief on the merits filed
By: Aplnts. to file Aplnt'S. Opposing brief on the merits
To file Applt's answer brief on the merits To 6-14-93
May 17 1993 Received application to file Amicus Curiae Brief
From California Employment Law Council in support of Anheuser-Busch Inc.(AC Under Separate Cover).
Calif Employment Law Council in support of Resp. answer Due: 6-11-93
May 21 1993 Amicus Curiae Brief filed by:
Jun 14 1993 Answer brief on the merits filed
By: Applts. James M.Turner
Jul 2 1993 Reply brief filed (case fully briefed)
by respondent Anheuser-Busch, Inc.
Jul 15 1993 Received application to file Amicus Curiae Brief
By Calif Employment Lawyers Assoc in support of App Turner (A/C/brief Under Same Cover)
Jul 19 1993 Received application to file Amicus Curiae Brief
William C. Quackenbush [Appellant Turner] AC brief Under Same Cover
Jul 22 1993 Permission to file amicus curiae brief granted
Calif Employment Lawyers Assn [Appellant] answer Due:8-13-93
Jul 22 1993 Amicus Curiae Brief filed by:
Calif Employment Lawyers Assn [Appellant]
William C. Quackenbush [Appellant] answer Due:8-13-93
William C. Quackenbush [Appellant]
Aug 13 1993 Response to Amicus Curiae Brief filed by:
Anheuser-Busch, Inc. [Resp]
Nov 18 1993 Received application to file Amicus Curiae Brief
California Chamber of Commerce [Respondent]
California Chamber of Commerce [Respondent] brief Due: 12-07-93 answer Due: 12-22-93
To file AC brief by Calif. Chamber of Commerce. (12/7:Dmc: I Assume this request Is Moot. A/C brief filed 12/8 (40n)
California Chamber of Commerce in support of Resp Anheuser-Busch (Rule 40n)
Appellant James M. Turner AC brief of California Chamber of Commerce
Tuesday, April 5, 1994, 9 A.M. - L.A. *** Continued to SF May 1994 - Amended Calendar filed 3/17/94 ***
John Golper, Counsel for Anheuser-Busch requesting case be Continued to Future Calendar
Atty Golper Advising that Court granted request to Continue Oral Argument to SF May (CC all Counsel) (Legal Asst to Atty Taggart Confirmed no Objection
Jun 7 1994 Letter sent to:
Riverside County Superior Court Reqtg file .
Superior Court file (3 Volumnes) from Riverside.
Jul 25 1994 Opinion filed: Judgment reversed
Majority Opinion by Lucas, C.J. -- joined by Arabian, Baxter & George, JJ. C&D Opinion by Mosk, J. Dissent by Kennard, J. -- joined by Arleigh Woods, CA 2/4, JPT.
Jul 26 1994 Returned record
Riverside County Superior Court - 3 Volumes
Anheuser-Busch Shall Recover its costs
Receipt for Remittitur (Paula)
Sep 16 1994 Received:
Telephone Call from Dca4/2 (Cathy Rodgers) asking US to return Their Record (E008849). [Carl Notified to Expedite]
John B. Golper (Ballard, Rosenberg & Golper)
Paul W. Cane (California Employment Law Council)
Timothy Lee Taggart (Attorney At Law)
SCOCAL, Turner v. Anheuser-Busch, Inc. , 7 Cal.4th 1238 available at: (https://scocal.stanford.edu/opinion/turner-v-anheuser-busch-inc-31539) (last visited Friday August 23, 2019).