Court Opinion

ID: 9592488
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:14:39.221238+00
Date Added: 2024-06-11T12:06:04.174546
License: Public Domain

SABERS, Justice
(dissenting).
1. CONTRARY TO THE LAW AND THE EMPLOYEE’S MANUAL, THE TRIAL COURT GRANTED SUMMARY JUDGMENT UPHOLDING TERMINATION, BASED SOLELY ON RETALIATION FOR AN ANONYMOUS LETTER, WITHOUT PROOF OF AUTHORSHIP, AGAINST AN EXCELLENTLY RATED NONPROBATION-ARY EMPLOYEE.
Bobbi Richardson worked as a permanent employee of East River from October 1985 until her termination on July 20, 1992. During her employment, her job performance was excellent as evidenced by a performance review conducted just two months prior to her termination.
East River’s Employee Manual constituted a contract in which East River agreed to follow certain procedures prior to terminating employees, and to surrender its right to terminate employees at will. “Where a provision of a contract is ambiguous, evidence must be introduced to determine what the intentions of the parties were and such evidence creates a question of fact which must be resolved by a jury ... Summary judgment will be affirmed only if there are no genuine issues of material fact and the legal questions have been correctly decided.” Butterfield v. Citibank of S.D., N.A, 437 N.W.2d 857, 858 (S.D.1989) (citations omitted). Here, there are genuine issues of material fact and the legal questions have been incorrectly cited.
In accordance with Osterkamp v. Alkota Mfg., Inc., 332 N.W.2d 275 (S.D.1983), East River’s Employee Manual provides, in the same or comparable language, the discharge can occur “for cause only.” East River’s Employee Manual contains a section entitled “Series 500 — Employee Relations.” Section II(K) of policy number 501 provides:
New employees are considered probationary for the first twelve (12) months in their position. New employees may be dismissed with or without cause at any time during the probationary period and promoted and transferred employees may be demoted or reduced to their original position with cause. (Emphasis added.)
Bobbi Richardson was neither a new nor a probationary employee. She had obviously been there longer than twelve months. Therefore, she could be demoted or reduced to her original position only with cause.
If East River’s Employee Manual is interpreted to mean that regular employees may be terminated without cause, Section II(K) of *30policy 501 becomes senseless. If regular employees could be terminated without cause, there would be no difference between probationary and regular employees and no reason to point out that probationary employees could be terminated with or without cause.
East River has agreed that employees can be demoted for cause only. Termination is the ultimate demotion. Because East River has agreed to demote for cause only, it can likewise terminate for cause only. Any other construction makes no sense.
A similar provision was contained in the employee handbook in Petersen v. Sioux Valley Hospital Association, 486 N.W.2d 516 (S.D.1992) (Petersen I). However, this court noted that the provision was followed by a disclaimer stating that the handbook was not a contract of employment and a further statement which explicitly stated: “Employment can be terminated by the employee or the employer at any time for any reason.” Id. at 520. (Emphasis in original). East River’s Manual contains no such disclaimer or explicitly terminable-at-will language. Therefore, the clear import of Section II(K) is that regular employees may be terminated for cause only.
In June of 1992, East River’s manager, Jeff Nelson, called a meeting of approximately 80 employees and asked for information regarding the authorship of the anonymous letter. At this meeting, Nelson stated that he “layed awake at night thinking of ways to retaliate” against the author.
Under these circumstance, a genuine material issue of fact arises as to the identity of the author of the anonymous letter. East River has an obligation to show that no genuine issues of material fact exist. Dept. of Rev. v. Thiewes, 448 N.W.2d 1, 2-3 (S.D.1989). They have failed in their burden of proof to do this. Secondly, to eliminate the genuine issue of material fact, East River had to prove that Bobbi Richardson wrote the letter. They have also faded to do this.
2. THE TRIAL COURT INCORRECTLY GRANTED SUMMARY JUDGMENT AS TO EMOTIONAL DISTRESS AND PUNITIVE DAMAGE CLAIMS.
In Bass v. Happy Rest, Inc., 507 N.W.2d 317 (S.D.1993), this court held that a jury issue was presented on an intentional infliction of emotional distress claim in connection with a wrongful termination claim, even though the court found the employee could be fired at will. Similarly, the evidence viewed in the light most favorable to Richardson presents a question of fact on the negligent and/or intentional infliction of emotional distress claims.
The evidence shows that until she was terminated, Bobbi Richardson had been a long-time, faithful and dedicated East River employee. Jeff Nelson terminated Richardson relying on the word of an employee who was herself considered a possible author of the anonymous letter. Further, the evidence in the record shows that some of the information in the letter was known only to top East River officials and the accusing employee. The evidence also shows that Richardson was never asked if she wrote the letter, and was not told until long after her termination had been finalized, what evidence had been presented against her. Finally, Richardson denies writing the letter. Taken in a light most favorable to Richardson these facts present a jury issue as to whether East River and Nelson’s acts were reasonable, and whether Richardson would be foreseeably affected, both physically and mentally by such acts.
Intentional infliction of emotional distress includes reckless conduct resulting in emotional distress. Bass, 507 N.W.2d at 322; Petersen v. Sioux Valley Hospital, 491 N.W.2d 467, 469 (S.D.1992) (Petersen II).
As indicated, Nelson admitted he “layed awake in bed at night thinking of ways to retaliate” against the author of the letter. Richardson argues that “retaliate” means “to take revenge” and that it can hardly be argued that one can take revenge unintentionally. Richardson further claims that Mr. Nelson took his revenge on the wrong person. These and other questions are appropriate for a jury. Petersen I, 486 N.W.2d at 519-20; Wright v. Coca Cola Bottling Co., 414 N.W.2d 608, 609-10 (S.D.1987).
Applying the information in the record to Bass, 507 N.W.2d at 317; Wangen v. Knud-*31son, 428 N.W.2d 242, 247 (S.D.1988) and Petersen I, 486 N.W.2d at 519-20, reasonable minds could differ, and the evidence when viewed most favorably to Richardson presents jury questions on negligent and intentional infliction of emotional distress.
Finally, “[pjunitive damages may be considered in connection with intentional infliction of emotional distress.” Bass, 507 N.W.2d at 324. Finally, Richardson argues that she was accused, tried, convicted and sentenced for a wrong she did not commit, all in the space of about ninety minutes.
East River argues that Richardson did not suffer enough emotional distress to warrant presenting her case to a jury. However, South Dakota precedent indicates that Richardson’s claim should go to a jury. See e.g., Petersen I, 486 N.W.2d at 519 (only evidence of emotional distress was plaintiffs affidavit stating circumstances surrounding termination caused her to be “nervous and upset.”); Bass, 507 N.W.2d at 323 n. 22 (evidence of emotional distress consisted of evidence of “depression and other symptomatic emotional distress.”). Wangen, 428 N.W.2d at 248 (evidence of emotional distress consisted of treatment for depression). In each of these cases, there was “sufficient evidence so that reasonable minds could differ on whether [plaintiff] suffered from emotional distress.” Id. at 248-49. Bobbi Richardson testified that she suffered “emotional damages beyond belief’ and that she had seen a counselor and a physician and received prescription medication in connection with her mental state resulting from her termination. Clearly, reasonable minds could differ on whether Richardson suffered emotional distress. Therefore, her case should go to the jury.