213 N.C. App. 160
N.C. Ct. App.2011Background
- Elliott, Fire Chief for Enka-Candler, began as at-will employee in 1996.
- An Employment Agreement (2004) set a term June 1, 2004–October 31, 2008 with salary/benefits preserved and severance if terminated early.
- An Extension Agreement (2006) extended the term to October 31, 2013; other terms remained in force.
- Defendant terminated Elliott on March 3, 2008; Elliott sued April 15, 2009 for breach of contract to pay salary/benefits through end of term.
- Trial court granted summary judgment to Elliott, awarding damages; defendant sought relief/new trial, which was denied on appeal.
- Defendant appeals arguing lack of consideration and public policy violations; court affirms enforceability and damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contracts lack consideration to be enforceable | Elliott relinquished at-will status for definite term | No consideration flowed from Elliott to Enka-Candler | Contracts had valid consideration |
| Whether the contracts violate public policy | Public purpose served by securing Fire Chief services | Public policy violated by paying private individual irrespective of duties | Contracts do not violate public policy |
| Whether summary judgment procedure notice was proper | Rule 56 motions adequately presented without exclusion; notice sufficient | Defendant lacked notice of plaintiff's motion, limited defense | No abuse of discretion; not reversible on notice issue |
Key Cases Cited
- Labarre v. Duke Univ., 99 N.C.App. 563 (1990) (consideration sufficient when promise binds employee to future benefit)
- Bennett v. Eastern Rebuilders, Inc., 52 N.C.App. 579 (1981) (giving up own rights can constitute consideration for promise)
- Franco v. Liposcience, Inc., 197 N.C.App. 59 (2009) (continued at-will employment alone not consideration)
- Leete v. County of Warren, 341 N.C. 116 (1995) (severance payments no contract where no written contract; distinction reinforced)
- Myers v. Town of Plymouth, 135 N.C.App. 707 (1999) (open question on severance/payments under contract with public duties)
- Menzel v. Metrolina Anesthesia Assocs., 66 N.C.App. 53 (1984) (severance triggered by discharge for cause limitation)
- Salt v. Applied Analytical, Inc., 104 N.C.App. 652 (1991) (at-will status context; definite term modifies termination rights)