History
  • No items yet
midpage
Karen McCrone v. Acme Markets
561 F. App'x 169
3rd Cir.
2014
Read the full case

Background

  • Six long‑tenured Acme store directors/assistant directors in New Jersey were terminated in early 2011 after an external customer‑satisfaction survey; some were alleged to have falsified survey results.
  • Appellants claim Acme managers encouraged inflating survey scores and used threats/harassment to get favorable results. Security interviews followed; two employees signed statements and were fired, four refused and were fired.
  • Appellants allege they were not at‑will employees because Acme’s oral representations and the employee handbook created an implied contract promising continued employment if they "did their jobs and stayed out of trouble."
  • They sued in New Jersey state court asserting wrongful termination, breach of implied covenant/good faith, breach of implied employment terms, public policy violations, and interference with unemployment benefits; Acme removed under diversity jurisdiction.
  • The District Court granted Acme’s motion to dismiss under Rule 12(b)(6) for failure to state a claim; on appeal the Third Circuit affirmed, concluding the pleadings did not plausibly allege an implied contract sufficient to overcome New Jersey’s at‑will presumption.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Appellants alleged facts creating an implied employment contract overcoming New Jersey’s at‑will presumption Acme’s oral assurances and the handbook (which omitted an at‑will disclaimer) plus company practice promised continued employment if they performed and stayed out of trouble Handbook omission and a generalized oral statement are insufficient to alter at‑will status; no specific change in policy or clear promise was made Dismissal affirmed: pleadings do not plausibly allege an implied contract to overcome at‑will presumption
Whether an implied covenant of good faith and fair dealing claim survives without an implied contract (Implicit) covenant arises from the alleged implied contract and employer conduct No implied contract → no independent covenant claim based on it Dismissal affirmed: covenant claim fails because no enforceable implied contract was pleaded

Key Cases Cited

  • Bernard v. IMI Sys., Inc., 618 A.2d 338 (N.J. 1993) (New Jersey presumes employment at‑will absent agreement otherwise)
  • Witkowski v. Thomas J. Lipton, Inc., 643 A.2d 546 (N.J. 1994) (reiterating at‑will rule and that agreement can alter it)
  • Woolley v. Hoffmann‑La Roche, Inc., 491 A.2d 1257 (N.J. 1985) (employee manual can create a unilateral contract absent a clear disclaimer)
  • Shebar v. Sanyo Bus. Sys. Corp., 544 A.2d 377 (N.J. 1988) (manual promises to fire only for cause may be enforceable)
  • Troy v. Rutgers, 774 A.2d 476 (N.J. 2001) (oral promises, manuals, or conduct can create enforceable obligations depending on circumstances)
  • Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (complaint must state a plausible claim beyond speculation)
  • Marzano v. Computer Sci. Corp., Inc., 91 F.3d 497 (3d Cir. 1996) (employee handbook may create enforceable obligations under New Jersey law)
Read the full case

Case Details

Case Name: Karen McCrone v. Acme Markets
Court Name: Court of Appeals for the Third Circuit
Date Published: Mar 26, 2014
Citation: 561 F. App'x 169
Docket Number: 13-3298
Court Abbreviation: 3rd Cir.