Opinion ID: 1135943
Heading Depth: 4
Heading Rank: 2

Heading: Public Benefit Requirement

Text: 18. A finding that clear public-policy considerations are implicated is only the first step, however, in evaluating whether the employee is entitled to pursue a retaliatory-discharge claim. When an employee is discharged for whistleblowing, the employee must also demonstrate that his or her actions furthered the public interest rather than served primarily a private interest. As the Court of Appeals explained in Gutierrez: We believe that whistleblowing activity which serves a public purpose should be protected. So long as employees' actions are not merely private or proprietary, but instead seek to further the public good, the decision to expose illegal or unsafe practices should be encouraged. Gutierrez, 117 N.M. at 48, 868 P.2d at 1273 (quoting Wagner, at 89, 722 P.2d at 257). See generally Henry H. Perritt. Jr., Employee Dismissal Law and Practice §§ 5.1, 5.17 (2d ed. 1987 & Supp. 1989) (explaining that, to establish prima facie case, employee must show that discharge actually placed asserted public-policy interest in jeopardy under the facts of the case). 19. The California Supreme Court clearly laid out this public-benefit requirement, stating, Even [when] a statutory touchstone has been asserted, we must still inquire whether the discharge is against public policy and affects a duty which inures to the benefit of the public at large rather than to a particular employer or employee. Foley v. Interactive Data Corp., 47 Cal.3d 654, 254 Cal.Rptr. 211, 217, 765 P.2d 373, 379 (1988) (in bank). In Foley the employee was fired for reporting to company management that the FBI was investigating his supervisor for embezzling from a previous employer. Id. The court explained: Whether or not there is a statutory duty requiring an employee to report information relevant to his employer's interest, we do not find a substantial public policy prohibiting an employer from discharging an employee for performing that duty. Past decisions recognizing a tort action for discharge in violation of public policy seek to protect the public, by protecting the employee who refuses to commit a crime, who reports criminal activity to proper authorities, or who discloses other illegal, unethical, or unsafe practices. No equivalent public interest bars the discharge of the present plaintiff. When the duty of an employee to disclose information to his employer serves only the private interest of the employer, the rationale underlying [a wrongful discharge] cause of action is not implicated. Id. at 218, 254 Cal.Rptr. at 380 (citations omitted) (footnotes omitted). 20. Although the information reported by the employee in Foley concerned only prior criminal activity, subsequent cases have held that this distinction between serving a private interest rather than the public interest applies equally to reports of ongoing criminal activities. In American Computer Corp. v. Superior Court , an employee was fired for reporting to superiors suspected embezzlement by a coworker. American Computer Corp. v. Superior Court, 213 Cal.App.3d 664, 261 Cal.Rptr. 796, 797 (Ct.App.), review denied, (Nov. 16, 1989). The California Court of Appeal concluded that the internal reporting of suspected embezzlement of company funds primarily benefitted the private interest of the employer and only remotely protected the public interest. Id. at 798-99; see also Jeffers v. Butler, 762 F.Supp. 308, 310 (D.N.M.1990) (interpreting New Mexico law as denying retaliatory-discharge claim when employee's action benefits private rather than public interest (quoting Foley, 765 P.2d at 379)), aff'd, 931 F.2d 62, 1991 WL 59365 (10th Cir.1991). 21. The Garritys argue that any internal report of another's illegal activity should be sufficient to satisfy the public interest requirement, without any additional showing of actual public benefit. However, such an open-ended rule would broaden the publicpolicy exception to the at-will doctrine beyond its limited purpose. As we explained in Shovelin, the courts interpreting New Mexico law have adhered to the rule that retaliatory discharge is a narrow exception to the rule of employment at will and have refused to expand its application. Shovelin, 115 N.M. at 304, 850 P.2d at 1007. 22. Overland Outfitters argues, on the other hand, that an employee's internal reporting of illegal activity to his or her employer is never in the public interest. Overland Outfitters contends that the only way an employee can benefit the public interest is if the employee reports the illegal activity to a governmental agency. For support, Overland Outfitters relies on Gutierrez, in which the Court of Appeals stated that allowing an employer to retaliate against an employee for reporting unsafe working conditions to appropriate public officials is contrary to public policy in New Mexico and gives rise to a common-law remedy. Gutierrez, 117 N.M. at 47, 868 P.2d at 1272 (emphasis added). Overland Outfitters therefore contends that, because the Garritys reported their suspicions to their employer rather than the police, their retaliatory-discharge claim must fail. However, this is too limited a reading of Gutierrez and of the law of retaliatory discharge. 23. In Gutierrez, the Court considered the claim of an employee discharged for reporting unsafe working conditions to the appropriate public agency. The Court properly concluded that such whistleblowing to a public agency furthers the public interest in a safe workplace and would serve as the basis for a retaliatory-discharge suit. Id. The Gutierrez Court, however, did not address the case of an employee reporting information only to his or her supervisor; and the above quoted language should not be read as foreclosing the possibility of bringing a retaliatory-discharge claim in such circumstances. 24. More relevant to our analysis is the Gutierrez Court's statement noting, Whether an employee has stated a sufficient policy to recover for the tort of wrongful discharge is determined on a case-by-case basis. Id. As the Court explained: [T]here is a tension between the obvious societal benefits in having employees with access to information expose activities which may be illegal or which may jeopardize health and safety, and accepted concepts of employee loyalty; nevertheless we conclude that on balance actions which enhance the enforcement of our laws or expose unsafe conditions, or otherwise serve some singularly public purpose, will inure to the benefit of the public. Id. at 48, 868 P.2d at 1273 (emphasis added) (quoting Wagner, 722 P.2d at 257). Accordingly, when evaluating a retaliatory-discharge claim in which an employee has asserted a clear mandate of public policy but did not alert the appropriate public officials, the courts must determine on a case-by-case basis whether the employee's actions furthered some singularly public purpose or served primarily to benefit the private interest of the employer or employee. 25. Turning to the present case, we conclude that the Garritys' actions served primarily to benefit their employer and themselves rather than the public at large. Both of the Garritys testified at length regarding the difficulties they had in working under Davis because of his erratic and aggressive behavior. Joan Garrity testified that on one occasion she even suspected that Davis was intentionally trying to set Dawn up and get her in trouble with the store owners. The Garritys were also concerned about Davis's temperament and his managerial skills. The Garritys' report about Davis was designed to help their employer correct what they perceived to be a potentially troublesome situation in the workplace as well as to improve their own work environment. 26. The Garritys have not demonstrated that by reporting their suspicions to their employer they would have furthered the public policy of preventing crimes or protecting the general public from the social evils associated with illegal drug use. There was no indication that Davis's behavior posed any real or direct threat of harm to the public nor that the Garritys were acting to protect the general public. 27. We note that this case does not involve an employee in a profession for which drug use would pose an immediate, identifiable risk to the public. Cf. Semore v. Pool, 217 Cal.App.3d 1087, 266 Cal.Rptr. 280, 286-88 (Ct.App.) (noting in wrongful-discharge case that public-safety interest may outweigh employee's privacy right to be free from random drug tests when employee works in dangerous or sensitive position, such as in chemical manufacturing plant), review denied, (May 31, 1990); Luck v. Southern Pac. Transp. Co., 218 Cal.App.3d 1, 267 Cal.Rptr. 618, 630-32 (Ct.App.) (holding that, although railroad operation generally involves safety considerations, employee's role as computer technician unconnected with train operation did not implicate safety interests, and therefore drug testing was unwarranted), review denied, (May 31, 1990), cert. denied, 498 U.S. 939, 111 S.Ct. 344, 112 L.Ed.2d 309 (1990). Nor does this case involve an economic crime that directly injures the general public and that an employer can remedy immediately if made aware of the problem. See, e.g., Collier v. Superior Court, 228 Cal.App.3d 1117, 279 Cal.Rptr. 453, 455-56 (Ct.App.) (noting that internal report of criminal activity that involved alleged unfair pricing, antitrust violation, and tax fraud implicated substantial public interest rather than just economic loss to employer and properly served as basis for retaliatory-discharge claim), review denied, (June 27, 1991); Vigil, 102 N.M. at 690, 699 P.2d at 620 (noting internal report of misuse of public money may serve as basis for retaliatory-discharge claim). The mere fact that the Santa Fe store was a retail establishment in which members of the public possibly could have come into contact with Davis while he was allegedly on drugs, is not sufficient to transform the nature of the Garritys' internal report from an action primarily designed to further their employer's private interests as well as to improve their own work environment into an action taken for the benefit of the public good. Accordingly, we affirm the trial court's grant of a directed verdict against the Garritys on their retaliatory-discharge claim.