Sharon R. Hammer v. City of Sun Valley
414 P.3d 1178
| Idaho | 2016Background
- Sharon Hammer was City Administrator for Sun Valley under a written employment agreement providing severance for termination without cause, conditioned on signing a release.
- After disputes and investigations, Hammer was placed on leave, sued the City, later voluntarily dismissed that suit, and then was terminated by a unanimous council vote in January 2012.
- Hammer executed a Supplemental Release drafted by her husband and received the contractual severance payment; the Supplemental Release referenced Section 3.A of the Employment Agreement and released the City for claims defined there.
- Hammer later sued under the Idaho Protection of Public Employees Act (IPPEA), alleging retaliatory discharge; the district court granted summary judgment for the City and dismissed individual defendants.
- The district court found the Supplemental Release barred Hammer’s claim against the City and held the IPPEA does not create individual liability for city officials; Hammer appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Supplemental Release bars Hammer’s IPPEA claim against the City | Release ambiguous / severance was for past services so no consideration for release | Release unambiguous; severance was consideration for release of all claims as provided in Section 3.A | Release is clear and bars Hammer’s claim against the City; summary judgment affirmed |
| Whether extrinsic evidence (intent) can alter the unambiguous release | Extrinsic evidence shows parties did not intend to waive IPPEA claims | Parol evidence rule bars extrinsic evidence for an unambiguous integrated agreement | Parol evidence inadmissible; parties’ plain words control; issue waived on appeal when not properly challenged |
| Whether the IPPEA permits claims for adverse actions occurring after termination | Post-termination conduct falls within IPPEA protection | IPPEA protects employees; after termination Hammer was not an employee so statute doesn’t apply | IPPEA applies to actions affecting employment; Hammer cannot sue under IPPEA for post-termination acts |
| Whether the IPPEA creates individual liability for supervisory officials | IPPEA definitions and venue provision imply individual liability | Statute’s structure, remedies, and legislative context show liability is against the governmental entity, not individuals | IPPEA does not create individual liability for agents or officials; dismissal of individual defendants affirmed |
Key Cases Cited
- Infanger v. City of Salmon, 137 Idaho 45 (summary judgment standard and inferences) (explains summary judgment review)
- Parker v. Underwriters Labs., Inc., 140 Idaho 517 (consideration for severance-release agreements and interpretation of ‘‘severance pay’’)
- City of Idaho Falls v. Home Indem. Co., 126 Idaho 604 (contract interpretation; plain meaning controls)
- Lindberg v. Roseth, 137 Idaho 222 (parol evidence rule for integrated, unambiguous agreements)
- Holve v. Draper, 95 Idaho 193 (release is complete abandonment of cause of action)
- Cabinet for Families & Children v. Cummings, 163 S.W.3d 425 (Ky. 2005) (statutory "agent" language interpreted to impose respondeat superior, not individual liability)
- De Armas v. Ross, 680 So. 2d 1130 (Fla. Dist. Ct. App.) (remedies under whistleblower statute run against entity, not individuals)
- Block v. City of Lewiston, 156 Idaho 484 (attorney-fee statute under a specific statutory scheme is exclusive)
