Opinion ID: 1301253
Heading Depth: 2
Heading Rank: 2

Heading: Directed Verdict on Wrongful Termination

Text: Appellants argue the trial court erred in ruling they had failed to exhaust their administrative remedies and in granting a directed verdict for Respondent on their wrongful termination claims. We disagree. The general rule is that administrative remedies must be exhausted absent circumstances excusing application of the general rule. Hyde v. S.C. Dep't of Mental Health, 314 S.C. 207, 442 S.E.2d 582 (1994); Andrews Bearing Corp. v. Brady, 261 S.C. 533, 201 S.E.2d 241 (1973). A general exception to the requirement of exhaustion of administrative remedies exists when a party demonstrates that a pursuit of them would be a vain or futile act. Moore v. Sumter County Council, 300 S.C. 270, 273-74, 387 S.E.2d 455, 458 (1990) (citing 82 Am.Jur.2d Zoning and Planning § 332 at 903 (1976)). Futility, however, must be demonstrated by a showing comparable to the administrative agency taking a hard and fast position that makes an adverse ruling a certainty. Thetford Properties IV Ltd. P'ship v. U.S. Dep't of Hous. and Urban Dev., 907 F.2d 445, 450 (4th Cir.1990). The question of whether to require the plaintiff to exhaust administrative remedies is a matter within the sound discretion of the trial judge. Andrews Bearing Corp., 261 S.C. at 536, 201 S.E.2d at 243. A matter within the sound discretion of the trial judge will not be disturbed on appeal absent an abuse of discretion. Tri-County Ice and Fuel Co. v. Palmetto Ice Co., 303 S.C. 237, 242, 399 S.E.2d 779, 782 (1990). An abuse of discretion occurs where the trial judge was controlled by an error of law or where his order is based on factual conclusions that are without evidentiary support. Id. Respondent, as a state agency, is governed by the State Employee Grievance Procedure Act, S.C.Code Ann. §§ 8-17-310 through 380 (1996 & Supp.2005). Section 8-17-330 provides in pertinent part: Each agency shall establish an agency employee grievance procedure.... A covered employee who wishes to appeal the decision of the agency grievance procedure to the State Human Resources Director shall file an appeal within ten calendar days of receipt of the decision from the agency head or his designee or within fifty-five calendar days after the employee files the grievance with the agency, whichever occurs later. The covered employee or the employee's representative shall file the request in writing with the State Human Resources Director. Failure to file an appeal with the State Human Resources Director within ten calendar days of the agency's final decision or fifty-five calendar days from the initial grievance, whichever occurs later, constitutes a waiver of the right to appeal.... As used in this article, a covered employee may file a grievance or appeal concerning the following adverse employment actions: terminations, suspensions, involuntary reassignments, and demotions . . . . A covered employee has the right to appeal to the State Human Resources Director an adverse employment action involving the issues specified in this section after all administrative remedies to secure relief within the agency have been exhausted. Appellants contend the trial court misinterpreted the State Employee Grievance Procedure Act as requiring an employee to appeal to the State Human Resources Director upon an adverse ruling by the agency hearing the appeal. Appellants argue the statute uses permissive language regarding the appeal to the State Human Resources Director. Appellants further argue the general rule of exhaustion of administrative remedies is inapplicable to them because they have demonstrated the pursuit of such remedies would have been vain or futile. Specifically, Appellant Mole's appeal was denied by the Director of Respondent; therefore his attempt was futile and because all Appellants were similarly situated, their attempts would have been futile. Appellants Law, Holmes, Jenkins, and Green voluntarily resigned. Therefore, we affirm the directed verdict for Respondent on their wrongful termination claims because they failed to state a cause of action. [3] See Troutman v. Facetglas, Inc., 281 S.C. 598, 316 S.E.2d 424 (Ct.App.1984) (former employee who resigned under alleged threat to fire him did not state a cause of action for wrongful discharge). Appellants Mole and Vaughan were terminated because conspiracy to traffic crack cocaine violated Respondent's internal policy regarding employee behavior. Appellants had a grievable action under the State Employee Grievance Procedure Act which they voluntarily did not appeal. [4] Failure to file an appeal with the State Human Resources Director within the statutory time period constitutes a waiver of the right to appeal. See S.C.Code Ann. § 8-17-330. Furthermore, if Appellants were concerned of bias during the Respondent's appellate process because Respondent sought the charges, then an appeal to the State Human Resources Director, who was outside the agency, should have allayed any concerns of bias. The trial judge correctly determined their wrongful termination claims were foreclosed under the State Employee Grievance Procedure Act because they did not exhaust their administrative remedies.