48 A.3d 931
N.H.2012Background
- Susan Jeffery began in the City's payroll department (1977) and later became risk manager (circa 1998).
- In 2004–2005 she warned her supervisor about budget health-line item funding, but was told numbers were fine.
- An ad hoc health care budget committee investigated a $1M shortfall discovered April 2005; Jeffery was questioned about responsibility but denied fault.
- The November 2005 committee report attributed the shortfall to lack of long-term health-insurance experience and training; some recommendations fell to Jeffery as risk manager.
- In 2006 Jeffery received two formal warnings; the department was reorganized, reducing her duties and denying a raise; she was demoted and suspended after a September 2006 incident with unsecured checks.
- She resigned by letter on December 21, 2006 (effective December 31, 2006) while on FMLA; she filed suit December 29, 2009, asserting constructive discharge and breach of contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether constructive discharge accrues on resignation date. | Jeffery argues accrues when termination occurs (Dec. 31, 2006). | City argues accrual begins at resignation notice (Dec. 21, 2006). | Accrues at resignation/notice; claim time-barred. |
| Whether breach of contract claim is timely. | Handbook created contract; breach upon constructive discharge. | Timeliness governs; breach occurred at resignation date. | Timeliness bar applies; contract claim barred. |
Key Cases Cited
- Mac's Shell Service v. Shell Oil Products, 130 S. Ct. 1251 (2010) (discusses accrual timing for constructive termination claims (applicability to resignation))
- Daniels v. Mutual Life Ins. Co., 773 A.2d 718 (N.J. Super. Ct. App. Div. 2001) (constructive discharge accrues when intolerable conditions compel resignation)
- Flaherty v. Metromail Corp., 235 F.3d 133 (2d Cir. 2000) (constructive discharge accrual when employee gives definite notice of retirement)
- Whye v. City Council for the City of Topeka, 102 P.3d 384 (Kan. 2004) (accrual upon tender of resignation or plan to retire)
- Patterson v. State, Dept. of Health, 256 P.3d 718 (Idaho 2011) (constructive discharge accrual tied to resignation notice)
- Singer Asset Finance Co. v. Wyner, 156 N.H. 468 (N.H. 2007) (standard for accrual and limitations in personal actions (NH))
- UTMB v. Hohman, 6 S.W.3d 767 (Tex. App. 1999) (accrual of claims in constructive discharge context)