Opinion ID: 2995063
Heading Depth: 2
Heading Rank: 2

Heading: Interpretation of the Problem

Text: Resolution Clause Although we hold that the 1997 SPD did create an enforceable contract that rendered Dr. Thomas eligible for the FMLA, this alone does not carry the day for Dr. Thomas. This is because of the simple principle that what a contract gives, it can also take away. Pearle argues that, even if the 1997 SPD did make Dr. Thomas eligible for benefits under the FMLA, other parts of the 1997 SPD took away certain benefits. Principally, Pearle contends that the Problem Resolution clause/2 serves either as an exclusive remedy for any violations of the FMLA or as a requirement that must be exhausted before an aggrieved employee may bring suit. Thus, Pearle argues that Dr. Thomas’s claim for breach of contract is barred because Dr. Thomas failed to follow the procedure set forth in the Problem Resolution clause. Dr. Thomas suggests, however, that the Problem Resolution clause is ambiguous, pointing to two ambiguities: 1) whether it is mandatory or permissive; 2) whether it applies to any claim under the FMLA or only claims of retaliation or discrimination for exercising FMLA rights. A contract is ambiguous if it is reasonably or fairly susceptible to more than one interpretation. Owens v. McDermott, Will & Emery, 736 N.E.2d 145, 150 (Ill. App. Ct. 2000); Pennsylvania Life Ins. Co. v. Pavlick, 637 N.E.2d 1160, 1162 (Ill. App. Ct. 1994); Omnitrus Merging Corp., 628 N.E.2d at 1168. However, merely because the parties do not agree on the contract’s meaning does not render it ambiguous. Pennsylvania Life Ins. Co., 637 N.E.2d at 1102. Thus, we must determine whether Dr. Thomas’s interpretations of the Problem Resolution clause are reasonable, bearing in mind that Illinois has long recognized the rule of contract construction that any ambiguity in the contract should be resolved against the drafting party, in this case Pearle. See Liccardi v. Stolt Terminals (Chicago), Inc., 669 N.E.2d 1192, 1199 (Ill. App. Ct. 1996); Wheeler v. Phoenix Co. of Chicago, 658 N.E.2d 532, 537 (Ill. App. Ct. 1995) (ambiguities in language contained within employee manual construed against the drafter); Epstein v. Yode 391 N.E.2d 432 (Ill. App. Ct. 1979).
We note at the outset that the plain language of the contract is permissive, not mandatory. See Owens, 736 N.E.2d at 150 (holding that a party’s intent is best determined from the plain language of the contract). The clause reads, [i]f you think you have been treated unfairly, please contact the Sr. Vice President of Human resources. It does not read, you must contact the Sr. Vice President or failure to contact the Sr. Vice President will result in a loss of your rights and benefits. If Pearle had wished the Problem Resolution clause to be an exclusive and mandatory remedy that must be exhausted before a complainant resorts to litigation, then it could very easily have drafted the clause with clear, unambiguous, and express mandatory language. Cf. Lee v. Canuteson, 573 N.E.2d 318, 320 (1991) (failure to comply with any of the time limits listed below shall constitute a waiver of the grievance.). Even though the district court’s interpretation could perhaps be deemed reasonable, so too is an interpretation that the Problem Resolution clause merely offered Pearle employees the additional benefit of an informal resolution procedure. Pearle suggests that to interpret the clause as permissive eviscerates its meaning, and deprives Pearle of a bargained for right, citing Mayfair v. Waveland, 619 N.E.2d 144, 152 (Ill. App. Ct. 1993) (contracts should be construed to give effect to every clause). We disagree. Pearle may have intended the Problem Resolution clause to grant employees additional rights, giving them an informal remedy should they chose to avoid retaining an attorney. This could both generate good will among Pearle employees (who may not have to struggle as mightily to validate their FMLA rights when management makes an honest mistake), but also, in turn, helps Pearle avoid legal expenses when those employees choose that remedy. Pearle’s suggestion that employees would never avail themselves of a permissive remedy and would instead always resort to litigation is but speculation. But there is more to cast doubt on Pearle’s interpretation of the Problem Resolution clause. The FMLA prohibitscovered employers from discouraging eligible employees from exercising their rights under the FMLA, see 29 C.F.R. sec. 825.220(a)(1), and Pearle distributed the 1997 SPD to all of its employees, including those statutorily eligible for protection under the FMLA. Accordingly, if the Problem Resolution clause is obligatory, then it arguably violates the FMLA and would be entirely invalid against its FMLA- eligible employees. Pearle suggests that every contract should be read so that every clause is given effect, but the very interpretation of the contract that it proposes would strip the Problem Resolution clause of meaning for many Pearle employees./3 Because the express language of the Problem Resolution clause is permissive and because an interpretation of the clause as such is reasonable, we hold that the Problem Resolution clause is ambiguous. Therefore, there is a genuine issue of material fact as to whether Pearle intended the procedure set forth in the Problem Resolution clause to be permissive or mandatory.
Clause Even if, however, the Problem Resolution clause clearly expressed Pearle’s intent to create an obligatory remedy that aggrieved employees must utilize before resorting to litigation, Dr. Thomas further argues that the Problem Resolution clause is ambiguous as to its scope. Dr. Thomas contends that the clause applies only if an employee seeks to bring a claim of retaliation for exercising rights under the FMLA. She points to language in the clause that reads [i]t is the policy of the organization not to discharge or discriminate against any employee exercising his or her rights under the Family and Medical Leave Act. Pearle largely ignores this argument, relegating its response to a footnote in which it claims that Thomas’s reading of the clause is tortured and facially unavailing. But an examination of the structure of the FMLA suggests that Dr. Thomas’s reading of the Problem Resolution clause is, in fact, reasonable. The FMLA establishes two categories of broad protections for employees--one prescriptive in nature, the other proscriptive. See 29 U.S.C. sec. 2615
Express, 209 F.3d 1008, 1016-17 (7th Cir. 2000); King v. Preferred Technical Group, 166 F.3d 887 (7th Cir. 1999); Strickland v. Water Works and Sewer Bd. of the City of Birmingham, 239 F.3d 119, 1206-07 (11th Cir. 2001); Chaffin v. John H. Carter Co., 179 F.3d 316, 319 (5th Cir. 1999); Hodgens v. General Dynamics Corp., 144 F.3d 151, 159-60 (1st Cir. 1998). The prescriptive category of protections ensures the availability of the FMLA’s substantive statutory rights, making it unlawful for any employer to interfere with, restrain, or deny the exercise of or the attempt to exercise, any right provided. See 29 U.S.C. sec. 2615(a)(1); see also King, 166 F.3d at 891; Strickland, 239 F.3d 1206-07. The proscriptive category of protections does not ensure substantive rights, but instead, protects employees from retaliation, making it unlawful for employers to discriminate against employees who have exercised their rights under the FMLA. See 29 U.S.C. sec. 2615 (a)(2); 29 C.F.R. sec.825.220(c); see also King, 166 F.3d at 891; Strickland, 239 F.3d at 1206-07. Courts have routinely recognized the difference between the two types of claims, and have applied different tests when employees bring only one of the two types of claims. See, e.g., Diaz v. Fort Wayne Foundry Corp., 131 F.3d 711 (7th Cir. 1997); Nero v. Industrial Molding Corp., 167 F.3d 921 (5th Cir. 1999); Chaffin, 179 F.3d at 319. In this case, language of the Problem Resolution clause suggests that it applies to proscriptive claims of retaliation and discrimination and not to prescriptive claims that Pearle failed to provide substantive FMLA rights. It directs employees who believe they have been discriminated against for exercising their rights under the FMLA (and not those employees who believe they have unlawfully been denied FMLA benefits) to contact the Sr. Vice President. Further, the second paragraph of the clause directs employees who have questions about their FMLA benefits to contact their benefits coordinator./4 A reasonable interpretation of the entire clause, which differs from that offered by Pearle, is that employees who have questions about substantive FMLA benefits (such as Dr. Thomas) contact their benefits coordinator, while employees who believe that they have been retaliated against for exercising FMLA rights (a category in which Dr. Thomas would not be included) contact the Sr. Vice President. Accordingly, we hold that the Problem Resolution clause is also ambiguous as to its scope. Therefore, there is a genuine issue of material fact as to whether the procedure set forth in the Problem Resolution clause applies to Dr. Thomas.