407 S.W.3d 717
Mo. Ct. App.2013Background
- Tettamble was hired by TCSI under a Management Contract and an Addendum that stated compensation as "$1,250 per week for 52 weeks = $65,000." He began work April 4, 2011, and was terminated January 27, 2012.
- Tettamble sued for wrongful discharge, claiming termination before the end of the 52-week period breached the Addendum and seeking nine weeks' pay ($11,250) plus benefits.
- The trial court found the Addendum fixed the employment duration (52 weeks) and awarded Tettamble $11,250 plus interest.
- TCSI appealed, arguing the Contract/Addendum did not create a definite-term employment contract and instead established at-will employment.
- The appellate court reviewed the contract interpretation de novo because the facts were stipulated and considered whether the phrase "$1,250 per week for 52 weeks = $65,000" constituted a statement of duration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Addendum’s phrase "$1,250 per week for 52 weeks = $65,000" is a definite statement of employment duration | The phrase plainly indicates mutual intent to fix employment for 52 weeks | The phrase only states pay over 52 weeks and does not fix term; employment remains at will | Phrase is not a definite statement of duration; employment was at will |
| Whether wrongful discharge remedy is available | Tettamble entitled to nine weeks' wages for early termination | No wrongful discharge claim if employment was at will | No wrongful discharge because no definite term existed |
Key Cases Cited
- Luethans v. Washington University, 894 S.W.2d 169 (Mo. banc 1995) (statement of duration is essential to create a definite-term employment contract)
- Margiotta v. Christian Hosp. Northeast Northwest, 315 S.W.3d 342 (Mo. banc 2010) (absent definite duration, employment is at will)
- Campbell v. Sheraton Corp. of America, 253 S.W.2d 106 (Mo. 1952) (salary stated as per year does not, by itself, fix duration)
- Kaskowitz v. Commerce Magazine, Inc., 793 S.W.2d 628 (Mo.App.E.D.1990) (compensation terms without duration create at-will employment)
- Clark v. Washington University, 906 S.W.2d 789 (Mo.App.E.D.1995) (salary stated "for the year" insufficient to establish a contract term)
- Adcock v. Newtec, 939 S.W.2d 426 (Mo.App.E.D.1996) (contract with explicit "Term of Agreement" language establishes duration)
- Fullington v. Ozark Poultry Supply Co., 39 S.W.2d 780 (Mo. 1931) (contractual employee for a stated period can be discharged before end only for cause)