591 S.W.3d 335
Ark. Ct. App.2019Background:
- Jessica McCabe and Amy Purdy were Walmart discovery specialists who were terminated after using company records/ processes: McCabe read a terminated boyfriend’s disciplinary records to him; Purdy used the open-door process to report coworkers’ affair and later accessed a department list to confirm a promotion code.
- Both sued Walmart for breach of contract and promissory estoppel (detrimental reliance), alleging Walmart’s open-door and ethics policies promised no retaliation and constituted contractual or enforceable promises.
- Walmart’s written policies and Global Statement of Ethics explicitly disclaimed any express or implied employment contract and stated employment was at-will; the open-door policy prohibited retaliation but included the at-will language.
- The Benton County Circuit Court dismissed the complaint under Ark. R. Civ. P. 12(b)(6) (with prejudice), accepting Walmart’s at-will defense and finding plaintiffs failed to plead an exception to at-will employment.
- After dismissal, the trial court awarded Walmart $13,658 in attorney’s fees under Ark. Code Ann. §16-22-308; Walmart submitted no billing records to the public record (offered to file in camera), and plaintiffs objected to lack of evidentiary support.
- On appeal the Arkansas Court of Appeals affirmed the dismissals but reversed and remanded the attorney-fee award, holding the court abused its discretion by awarding a substantial fee without evidence (lodestar data, affidavits, or other proof).
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether breach-of-contract and promissory-estoppel claims survive despite Walmart’s at-will disclaimers | Plaintiffs: Walmart’s open-door/ethics policies created enforceable promises or induced reasonable reliance against retaliation | Walmart: Policies expressly disclaim contracts; at-will employment bars claims; no pleaded implied-contract or public-policy exception | Held: Affirmed dismissal with prejudice — McCabe’s facts didn’t show she engaged in protected open-door conduct; Purdy’s claims defeated by clear at-will disclaimers and failure to plead an exception or reasonable reliance |
| Whether trial court properly awarded $13,658 in attorney’s fees without billing evidence | Plaintiffs: Fee award unsupported — no time records, affidavits, lodestar, or Chrisco analysis; award must be reversed or remanded for proper proof | Walmart: Prevailing party entitled to fees; court familiar with record and may rely on its experience; offered to submit bills in camera | Held: Reversed and remanded — court abused discretion by awarding substantial fees without evidentiary support; remand for proper fee determination (lodestar or other admissible proof and opportunity to oppose) |
Key Cases Cited
- Gladden v. Ark. Children’s Hosp., 292 Ark. 130 (1987) (implied-contract exception to at-will requires an express promise of job security)
- Chrisco v. Sun Indus., Inc., 304 Ark. 227 (1990) (factors trial courts should consider in awarding attorney’s fees)
- Faulkner v. Ark. Children’s Hosp., 347 Ark. 941 (2002) (personnel policies like grievance procedures typically do not create implied-contract exceptions)
- Crain Indus., Inc. v. Cass, 305 Ark. 566 (1991) (handbook language may create an express provision against wrongful discharge if it guarantees job-security-related terms)
- Cottrell v. Cottrell, 332 Ark. 352 (1998) (discussion of at-will employment doctrine)
- Tharp v. Smith, 326 Ark. 260 (1996) (movant must introduce evidence of damages/claims to support monetary awards)
- Sterling Drug, Inc. v. Oxford, 294 Ark. 239 (1988) (public-policy exception to at-will prohibits discharge for reasons violating public policy)
