Dr. Anthony Jennings (“Dr. Jennings”) brought suit against SSM Health Care St. Louis (“SSM”) in the Circuit Court of St. Charles County. He appeals from the trial court’s granting of SSM’s motion to dismiss for failure to state a claim upon which relief can be granted. Dr. Jennings argues that his claims were sufficiently pled to survive SSM’s motion to dismiss. We affirm in part, and reverse and remand in part.
I. BACKGROUND
Dr. Anthony Jennings was hired in 2002 to serve as an emergency room physician at St. Joseph’s Hospital West (“St. Joseph’s”), an affiliate of SSM. In 2006, Dr. Jennings was promoted to medical director of Emergency Services at St. Joseph’s, where he remained in that capacity until
On July 27, 2010, Dr. Jennings filed suit against SSM. In his seven-count petition, each count pled in the alternative, Dr. Jennings alleged: (1) a breach of his employment agreement; (2) a breach of SSM’s written severance policy; (3) a breach of a unilateral verbal severance contract; (4) promissory estoppel; (5) unjust enrichment; (6) fraudulent misrepresentation; and (7) negligent misrepresentation.
Following the filing of Dr. Jennings’s petition, SSM filed a motion to dismiss all counts for failure to state a claim upon which relief could be granted. After a hearing, the trial court sustained SSM’s motion to dismiss, without stating any specific ground upon which the dismissal was based, and dismissed the petition without designating the dismissal as with or without prejudice. This appeal follows.
II. DISCUSSION
The law generally favors trial on the merits. Summer Chase Second Addition Subdivision Homeowners Ass’n v. Taylor-Morley, Inc.,
Dr. Jennings raises five points on appeal. Before reaching those points, however, we must first consider, sua sponte, whether the dismissal order is a final judgment from which Dr. Jennings may appeal. We evaluate “whether a judgment is final for purposes of appeal, and if the appeal is found to be premature, it must be dismissed.” Blechle v. Goodyear Tire & Rubber Co.,
Normally, a dismissal without prejudice is not a final judgment and, therefore, is not appealable. Chromalloy
A. Dr. Jennings’s Breach of Contract Claims
Dr. Jennings’s petition advanced three separate claims for breach of contract, each pled in the alternative. Count I alleged a breach of his employment agreement. Count II alleged a breach of SSM’s written severance policy. Count III alleged a breach of a verbal severance agreement. On appeal, however, he has combined these three counts into one point. We will evaluate each claim in turn.
1. Breach of Employment Agreement
Count I of Dr. Jennings’s petition alleged that SSM breached Dr. Jennings’s employment agreement by not paying him severance in accordance with SSM’s corporate severance policy. In order to succeed on a breach of contract claim, the plaintiff must demonstrate the following necessary elements: (1) the existence and terms of a contract; (2) that plaintiff performed or tendered performance pursuant to the contract; (3) breach of the contract by the defendant; and (4) damages suffered by the plaintiff. Keveney v. Mo. Military Acad.,
Count I of the petition averred: (1) the severance policy, which was an approved published policy of SSM, was duly incorporated into the employment agreement; (2) Dr. Jennings performed his obligations under the employment agreement; (3) the employment agreement contained an implied covenant of good faith and fair dealing which forbade SSM from evading its obligations under the agreement and its attendant policies and procedures; (4) SSM breached the agreement by not paying Dr. Jennings any severance, and (5) Dr. Jennings suffered damages as a result of that breach.
SSM argued in its motion to dismiss that Count I failed to state a claim upon which relief could be granted because the employment agreement included an integration clause. That integration clause, SSM contended, effectively sealed the contract at the time of its signing and constituted the entire agreement of the parties.
This Agreement constitutes the entire agreement between Hospital and Physician and supersedes all prior proposals, negotiations, representations, communications, writings and agreements between Hospital and Physician with respect to the subject matter hereof, whether oral or written.
In response, Dr. Jennings argues against the efficacy of the integration clause by asserting to this Court that Count I actually alleged the severance agreement was incorporated due to SSM’s oral promise to provide severance. He advances this argument on the basis that, despite the clear language of Count I, he incorporated by reference the entire factual background of his petition, including his averments concerning the alleged oral promise. We find this specious argument unsupported by the petition.
Incorporation by reference pursuant to Rule 55.12 is a useful tool in avoiding repetition in a pleading. Hester v. Barnett,
Here, the unmistakable thrust of Count I was that SSM’s severance policy was incorporated into Dr. Jennings’s employment agreement because, at the time of contracting, the severance policy was “an approved and published policy of SSM.” Dr. Jennings laid the groundwork for this claim when he averred that, since the employment agreement required Dr. Jennings to “follow all established policies and procedures” of SSM, it necessarily followed that SSM was obligated to “follow its own policies, practices and procedures.” Additionally, Count I averred that the employment agreement contained an implied covenant of good faith and fair dealing which forbade SSM from “depriving Plaintiff of his rights and expected benefits under the Employment Agreement and [its] attendant policies and procedures.” Thus, when SSM did not pay severance,
Count I of Dr. Jennings’s petition clearly concerned the applicability of SSM’s severance policy to Dr. Jennings’s employment agreement at the time of contracting. By its terms, however, Dr. Jennings’s employment agreement does not provide for severance or incorporate the independent SSM severance policy. Thus, absent any such contractual proviso, we conclude that Dr. Jennings’s employment agreement encompassed the entire agreement between the parties.
Accordingly, Dr. Jennings did not state a claim upon which relief can be granted and the trial court did not err in dismissing Count I of Dr. Jennings’s petition.
2. Breach of Unilateral Written Severance Contract
Count II of Dr. Jennings’s petition alleged that SSM breached a unilateral written severance contract when no severance was paid. Specifically, the petition averred: (1) SSM’s severance policy constituted a general written offer to SSM employees; (2) upon acceptance by the employee, the severance policy became part of the employment contract of each employee; (3) SSM informed Dr. Jennings of this offer by disseminating the severance policy and procedures to him; (4) Dr. Jennings accepted the offer by remaining employed through the transition period; (5) Dr. Jennings’s decision to remain employed constituted consideration, making the unilateral contract enforceable; and (6) SSM breached the contract by not paying severance.
A unilateral contract is a contract in which “performance is based on the wish, will, or pleasure of one of the parties.” Cook v. Coldwell Banker,
SSM advanced two theories for why Count II of the petition failed to state a claim. First, SSM argued that the act of publishing a general severance policy was not an offer. In support, SSM directed the trial court’s attention to Johnson v. McDonnell Douglas Corp.,
McDonnell’s unilateral act of publishing its handbook was not a contractual offer to its employees. The handbook was merely an informational statement of McDonnell’s self-imposed policies.... Several of the rules and regulations in the handbook were couched in general terms and were open to broad discretion and interpretation. The handbook also provided that the rules were subject to change at any time. Given the general language of the handbook and the employer’s reservation of power to alter the handbook, a reasonable at will employee could not interpret its distribution as an offer to modify his at will status.Since McDonnell Douglas made no offer to its employees, no power of acceptance was created in the plaintiff.
Id. at 662-63 (citations omitted).
We find that Johnson is controlling here. By publishing a severance policy as a part of its general corporate policies and procedures, SSM did not make a contractual offer. SSM’s severance policy simply explained the opportunity for severance was available to qualified employees. Consequently, Dr. Jennings had no power of acceptance.
Our finding against Dr. Jennings on Count II is further bolstered by the terms of the severance policy. First, the severance policy explicitly reserved for SSM the right to change the policy and make exceptions to its provisions. This is akin to Johnson, where the Supreme Court found such exceptions clauses, which preserve for the employer a degree of discretion or power to modify, to be important indicators that a particular policy or manual is not a contractual offer. Id. at 662; see also West Cent. Mo. Regional Lodge No. 50 v. Bd. of Police Comm’rs of Kansas City,
Second, SSM’s severance policy cannot be characterized as a certain obligation on the part of SSM. In order for a contract to be both valid and enforceable, the “nature and extent of its obligations must be certain.” West Cent. Mo. Regional Lodge No. 50,
Accordingly, Dr. Jennings failed to state a claim upon which relief could be granted and the trial court properly dismissed Count II of Dr. Jennings’s petition.
3. Breach of Unilateral Oral Contract
In Count III of Dr. Jennings’s petition, he alleged that SSM breached its unilateral oral contract with him when he was not paid severance. Specifically, Dr. Jennings averred: (1) SSM held various meetings with Dr. Jennings and other physicians and, during those meetings, SSM promised to pay severance if he remained employed through the transition period; (2) the severance offer did not have any exceptions or qualifications; (3) Dr. Jennings accepted this offer by rendering the requested performance; (4) Dr. Jennings’s performance amounted to consideration and an enforceable unilateral contract was formed; and (5) SSM did not pay severance, thus breaching the contract and damaging Dr. Jennings.
In response, SSM argued in its motion to dismiss that Count III failed to state a claim because the employment agreement contained an integration clause that disallowed oral modification. The clause provided that the employment agreement “may only be amended or modified by a
Missouri law is well-established that “no oral modification” clauses have no preclusive effect when the parties engage in modification by valid contractual formalities. Fritts v. Cloud Oak Flooring,
We conclude that Dr. Jennings’s petition sufficiently stated a claim for a unilateral breach of an oral contract. Count III of Dr. Jennings’s petition averred that a contractual offer was made to him during SSM’s meetings with the Emergency Services physicians. He further averred that he accepted that offer, and supplied consideration, when he remained employed for the entirety of the requested timeframe. See Cook,
Dr. Jennings’s petition sufficiently pled the required elements for a breach of a unilateral contract, and therefore, the trial court erred in dismissing Count III of Dr. Jennings’s petition.
B. Promissory Estoppel
In Count IV of Dr. Jennings’s petition, Dr. Jennings made a claim of promissory estoppel against SSM. In response, SSM argued in its motion to dismiss that Dr. Jennings failed to demonstrate reliance because Dr. Jennings remained employed in the St. Joseph’s emergency as the medical director for the third-party vendor following his termination by SSM. Had Dr. Jennings not remained employed with SSM during the transition, SSM asserted, Dr. Jennings would not have received that position with the third-party vendor. We disagree.
Promissory estoppel contains four elements: (1) a promise; (2) on which a party relies to his or her detriment; (3) in a way the promisor expected or should have expected; and (4) resulting in an injustice that only enforcement of the promise could cure. Clevenger v. Oliver Ins. Agency, Inc.,
Dr. Jennings’s Count IV satisfied each element necessary to state a claim for promissory estoppel. First, he averred that SSM made an oral promise of severance if he remained employed through the transition. Next, Dr. Jennings averred that, as a result of that promise, he turned down other employment in order to stay at SSM through the transition, and his decision was precisely the reliance SSM would have expected in response to its promise. Lastly, Dr. Jennings averred he was injured as a result of staying employed during the transition because he passed on an opportunity for a job with better pay and benefits and ultimately received no severance payment, either. Those averments
SSM’s contention that Dr. Jennings cannot plead reliance because he was subsequently employed by the third-party vendor, and would not have received that position had he opted to leave SSM, is mere supposition and unsupportive of its motion to dismiss.
Thus, we conclude that Dr. Jennings’s sufficiently pled promissory estoppel, and therefore, the trial court erred in dismissing Count IV of Dr. Jennings’s petition.
C. Unjust Enrichment
Count V of Dr. Jennings’s petition sought restitution from SSM, claiming that SSM was unjustly enriched the amount of severance it refused to pay Dr. Jennings. A claim for unjust enrichment has three elements: (1) a benefit conferred by a plaintiff on a defendant; (2) the defendant’s appreciation of the fact of the benefit; and (3) the acceptance and retention of the benefit by the defendant under circumstances in which retention without payment would be inequitable. Hertz Corp. v. RAKS Hospitality, Inc.,
Dr. Jennings averred the following in his unjust enrichment claim: (1) SSM was enriched by its retention of the severance pay it was obligated to pay Dr. Jennings for his service during the transition period; (2) SSM’s enrichment was at the expense and detriment of Dr. Jennings; and (8) SSM’s retention of the severance without payment to Dr. Jennings would be unjust and inequitable.
SSM argued in its motion to dismiss that Dr. Jennings’s pleading fell short of establishing a claim for unjust enrichment because the severance was not a benefit conferred upon SSM by Dr. Jennings; it was merely an employment benefit that Dr. Jennings believes should have been conferred to him. Thus, SSM contended, Dr. Jennings failed to state a claim for unjust enrichment. We disagree.
The essence of unjust enrichment is that the defendant has received a benefit that it would be inequitable for him to retain. Pitman v. City of Columbia,
Given our standard of review, we hold that Dr. Jennings sufficiently alleged the elements for unjust enrichment, and therefore, the trial court erred in dismissing Count V of Dr. Jennings’s petition.
D. Fraudulent Misrepresentation
SSM argued in its motion to dismiss that Count VI failed to state a claim due to the pleadings’ failure to comply with Rule 55.15. We agree. Under Rule 55.15, “[i]n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be stated with particularity.” Rule 55.15. No claim is stated without compliance with Rule 55.15. Birkenmeier v. Keller Biomedical, LLC,
The elements of fraudulent misrepresentation are: (1) a false, material representation; (2) the speaker’s knowledge of its falsity or his ignorance of its truth; (3) the speaker’s intent that it should be acted upon by the hearer in the manner reasonably contemplated; (4) the hearer’s ignorance of the falsity of the representation; (5) the hearer’s reliance on its truth; (6) the hearer’s right to rely thereon; and (7) the hearer’s consequent and proximately caused damages. Misischia v. St. John’s Mercy Med. Ctr.,
In this case, Dr. Jennings’s Count VI was not pled with sufficient particularity. Dr. Jennings merely set forth allegations that mirrored the elements of fraudulent misrepresentation. For example, he alleged, “SSM knew, or in the exercise of reasonable care, should have known that [the representations to pay severance] were untrue.” He also alleged, “[Dr. Jennings] had no reason to know ... the representations concerning severance pay were false until SSM failed to pay.” Dr. Jennings failed to set forth any facts in support of these allegations. Therefore his allegations were not sufficient to state a fraudulent misrepresentation cause of action and the trial court did not err in dismissing Count VI of Dr. Jennings’s petition.
E. Negligent Misrepresentation
Dr. Jennings’s final claim, Count VII, alleged he suffered damages as a result of SSM’s negligent misrepresentation. The petition averred: (1) Dr. Jennings received SSM’s published severance policy and its verbal representation to pay him severance; (2) SSM failed to exercise reasonable care or competence in communicating that information; (3) the representations regarding severance were false; (4) SSM intentionally provided that information to Dr. Jennings in connection with his employment; and (5) Dr. Jennings relied on that information and suffered a pecuniary loss when he was not paid severance. We conclude that the trial court erred in dismissing Dr. Jennings’s Count VII.
A prima facie case of negligent misrepresentation consists of the following elements: (1) the speaker supplied or omitted information in the course of its business; (2) due to the speaker’s failure
In its motion to dismiss, SSM limited its argument to asserting that Dr. Jennings failed to plead supporting facts. Specifically, SSM argued that Dr. Jennings’s Count VII failed to state a claim because it did not plead facts “giving rise to an inference that [SSM] provided false information to [Dr. Jennings] concerning the severance policy” or proving his reliance “upon any alleged oral representations regarding severance.” Taking Dr. Jennings’s averments are true, and liberally granting him all reasonable inferences, we find no merit to SSM’s argument. See Nazeri,
Dr. Jennings alleged he was promised severance if he remained employed by SSM during the transition period. However, despite having remained employed by SSM during that period, he nevertheless received no severance. Those aver-ments clearly give rise to an inference that the information provided to Dr. Jennings concerning the payment of severance was false. In addition, Dr. Jennings averred that he remained employed throughout the transition as a result of SSM’s promise to pay severance. That similarly supports a finding of reliance.
Accordingly, we conclude that Dr. Jennings sufficiently pled each element necessary to state a cause of action for negligent misrepresentation, and therefore, we find the trial court erred in dismissing Count VII of Dr. Jennings’s petition.
III. CONCLUSION
We affirm the judgment of the trial court as to Counts I, II, and VI. However, we hold the trial court erred in granting SSM’s motion to dismiss as against Counts III, IV, V, and VII. We reverse and remand for proceedings consistent with this decision.
Notes
. In support of its argument, SSM directed the trial court to our finding in Milton v. SSM Health Care St. Louis,
. Because we find SSM’s first argument dis-positive of Count II, we need not address the merits of SSM’s second contention.
