Title: Ruple v. Weinaug
Citation: 328 N.W.2d 857
Docket Number: 13792
State: south-dakota
Issuer: south-dakota Supreme Court
Date: January 12, 1983

328 N.W.2d 857 (1983) Ann RUPLE, Plaintiff and Appellant, v. Carl WEINAUG, Individually and as City Manager for the City of Vermillion, a Municipal Corporation and the City of Vermillion, a Municipal Corporation, Defendants and Appellees. No. 13792. Supreme Court of South Dakota. Argued November 16, 1982. Decided January 12, 1983. Rehearing Denied February 17, 1983. C.E. Light of Light Law Offices, Jerry L. Pollard on brief, Yankton, for plaintiff and appellant. Martin Weeks of Bogue, Weeks &amp; Rusch, Vermillion, for defendants and appellees. HENDERSON, Justice. Appellant Ann Ruple filed her complaint averring that she was wrongfully discharged *858 from employment by appellee City of Vermillion and that appellee Weinaug, City Manager of Vermillion, had committed defamation, libel, and slander. Appellees filed a motion for summary judgment. Affidavits were submitted and a hearing held thereon. From a summary judgment granted on both causes of action, this appeal ensued. We affirm. The City of Vermillion, South Dakota, an aldermanic municipality with a City Manager, created the position of City Finance Officer pursuant to SDCL 9-14-1. Appellant was hired for the new position and reappointed on April 20, 1981, at an annual salary of $17,000. Personnel and supervisory problems developed. Conflicts arose between appellant and city employees. Appellant disseminated confidential information from city personnel files and gossiped. She unnecessarily embarrassed fellow city employees by belittling their abilities. On one occasion, appellant removed from the City Manager's mailbox a memo from the Chief of Police and embarrassed the Chief by laughing at a misspelled word in his memo. Appellant hired an individual considered a security risk against clear orders not to hire this person from the City Manager. The City Manager informed the Mayor of appellant's problems and the Mayor requested and received a written report from the City Manager. An investigation was conducted by the Mayor and he confirmed appellant's problems. A meeting was held between the appellant, the Mayor, and the City Manager to correct the problems. However, appellant was uncooperative and indicated she wanted the City Council to take up the matter. A closed meeting of the City Council was held, wherein the City Manager's written report was submitted. Additionally, appellant presented her case. A decision was made to terminate appellant's employment. Appellant took the City Manager's written report to the editor of the Vermillion Plain Talk which led to a newspaper article based on the report. Appellees never provided the contents of the report to anyone other than City Council members and appellant. Appellant contends that because she was hired at an annual salary, she was therefore hired for an annual term. SDCL 60-1-3 provides: Although this Court has yet to construe SDCL 60-1-3, the statute was interpreted in Goodwyn v. Sencore, Inc., 389 F. Supp. 824 (D.S.D.1975). Goodwyn dealt with an employee who had an oral agreement to work for "a rate of $15,000 per year." Id. at 827. After being hired, the employee *859 was forced to agree to a trial period and then fired during the trial period. Nevertheless, the federal court was unconvinced that the annual employment presumption of SDCL 60-1-3 had been circumvented. Although appellant admits that she was paid monthly, she correctly cites Tretheway v. Tri-State Milling Company, 54 S.D. 201, 222 N.W. 950 (1929), for the proposition that monthly payments of a yearly salary do not change the employment term to monthly. However, appellant does concede that SDCL 9-10-9 permits the governing body of Vermillion to remove the Finance Officer at any time so long as the removal is not wrongful. Appellees advocate that appellant did not have a written employment contract and further argue that SDCL 60-1-3 simply creates a presumption of annual hiring which was overcome by the clear language of SDCL 9-10-9 which provides: In sum and substance, appellees claim that SDCL 9-10-9, supported by general principles of municipal corporation law, precludes the City of Vermillion from hiring a Finance Officer on an annual basis. As set forth in 56 Am.Jur.2d Municipal Corporations, Etc. § 333 (1971): Therefore, SDCL 9-10-9 operates to remove the presumption of annual hiring embodied in SDCL 60-1-3. We hold that appellant's discharge was lawful in light of the specific authority of a municipality under SDCL 9-10-9. Appellant further maintains that a genuine issue of fact exists. Appellees counter that they are entitled to a judgment as a matter of law. Our guidelines in reviewing summary judgments are drawn from SDCL 15-6-56(c) and Wilson v. Great Northern Railway Company, 83 S.D. 207, 157 N.W.2d 19 (1968). We have reviewed the pleadings and evidence in light of SDCL 15-6-56(c) and Wilson. We hold that summary judgment was properly entered as appellant's showing did not raise a genuine issue of material fact. We simply fail to see any evidence of wrongful discharge by appellees. Appellant Ruple failed to obey orders, hired employees when told not to and supervised poorly. Appellant next asserts that summary judgment was unwarranted on her claims of defamation, libel, and slander. Appellant concedes that she must prove appellee Weinaug acted with actual malice, knowledge, or reckless disregard for the truth or falsity of his statements. We have addressed this issue in Uken v. Sloat, 296 N.W.2d 540 (S.D.1980), wherein a group of parents and teachers who were dissatisfied with their school superintendent, presented a document embodying their complaints at a school board meeting. In response to the superintendent's defamation action, we held: Uken, 296 N.W.2d at 542-43. Appellee Weinaug asserts his communication was without malice and was made in the proper discharge of his official duty. We agree. Appellee Weinaug claims an absolute privilege under SDCL 20-11-5 which in relevant part provides: A privileged communication is one made: For authority, appellee cites Brech v. Seacat, 84 S.D. 264, 170 N.W.2d 348 (1969) and Hackworth v. Larson, 83 S.D. 674, 165 N.W.2d 705 (1969). Hackworth was a libel action brought by two state employees who were discharged by the Secretary of State. We find it on point. The Secretary of State had published reasons for the discharge to the Associated Press. We granted summary judgment holding: Hackworth, 83 S.D. at 682-83, 165 N.W.2d at 709. Although appellee Weinaug is not a constitutional officer, he stresses that SDCL 20-11-5 applies to all officers. Appellee additionally notes, and rightfully so, that under SDCL 9-10-13 and SDCL 9-10-15, he had supervisory control over the Finance Officer. Weinaug certainly was an officer and public official, who communicated in that capacity and was entitled to the protection of SDCL 20-11-5(1). Appellees importantly point out that appellant, in her pleadings and affidavits, has not specifically denied the substance of appellee's communication. Appellant failed to show the trial court and has failed to convince us that appellee's statements were made with malice. Appellant's pleadings and evidence are comprised of conclusory *861 statements which are insufficient to create a material issue of fact. Lastly, appellee correctly brings to light that appellant, and only appellant, published the information to the local press. Summary judgment was appropriate on the defamation issue. Appellant contends that her verified complaint and affidavit satisfied SDCL 15-6-56(e) which provides: We examined SDCL 15-6-56(e) in Hughes-Johnson Co. v. Dakota Midland Hospital, 86 S.D. 361, 364, 195 N.W.2d 519, 520-21 (1972) and held: Hackworth, 83 S.D. at 687, 165 N.W.2d at 712, lends additional support in citing the following passage from Durasteel Co. v. Great Lakes Steel Corp., 205 F.2d 438, 441 (8th Cir.1953): We find nothing wrong in incorporating a verified complaint. It must, however, satisfy the requirements of SDCL 15-6-56(e). Here, appellant denied the truth of appellee's statements in a generalized conclusory manner. Facts must be met by facts, not by mere conclusions or denials. Specifically, appellant fails to deny disseminating confidential information, embarrassing the police chief, or hiring an individual against orders. Appellant simply provides an organizational chart and asserts appellee Weinaug was without supervisory authority over her position. On the other hand, appellee presents a statutory basis for his authority over appellant. SDCL 9-10-13; SDCL 9-10-15. Appellant's response did not create an issue of fact that had probative force as to a controlling issue. See Runnels v. Rosendale, 499 F.2d 733 (9th Cir.1974). Thus, appellant has failed to "set forth specific facts showing that there is a genuine issue for trial." Affirmed. All the Justices concur.