Lead Opinion
delivered the opinion of the court:
The plaintiff, Ray Palmateer, complains of his discharge by International Harvester Company (IH). He had worked for IH for 16 years, rising from a unionized job at an hourly rate to a managerial position on a fixed salary. Following his discharge, Palmateer filed a four-count complaint against IH, alleging in count II that he had suffered a retaliatory discharge. According to the complaint, Palmateer was fired both for supplying information to local law-enforcement authorities that an IH employee might be involved in a violation of the Criminal Code of 1961 (Ill. Rev. Stat. 1979, ch. 38, par. 1 — 1 et seq.) and for agreeing to assist in the investigation and trial of the employee if requested. The circuit court of Rock Island County ruled the complaint failed to state a cause of action and dismissed it; the appellate court affirmed in a divided opinion. (
In Kelsay the plaintiff was discharged in retaliation for filing a worker’s compensation claim. The court noted that public policy strongly favored the exercise of worker’s compensation rights; if employees could be fired for filing compensation claims, that public policy would be frustrated. Despite a dissent urging that thе creation of a new tort should be left to the legislature, the court said, “We are convinced that to uphold and implement this public policy a cause of action should exist for retaliatory discharge.” (
With Kelsay, Illinois joined the growing number of States recognizing the tort of retaliatory discharge. The tort is an exception to the general rule that an “at-will” employment is terminable at any time for any or no cause. (Pleasure Driveway & Park District v. Jones (1977),
“May I not refuse to trade with any one? May I not forbid my family to trade with any one? May I nоt dismiss my domestic servant for dealing, or even visiting, where I forbid? And if my domestic, why not my farm-hand, or my mechanic, or teamster? ***
*** All may dismiss their employes at will, be they many or few, for good cause, for no cause or even for cause morally wrong, without being thereby guilty of legal wrong.” Payne v. Western & Atlantic R.R. Co. (1884),81 Tenn. 507 , 518-20.
Recent analysis has pointed out the shortcomings of the mutuality theory. With the rise of large corporations conducting specialized operations and employing relatively immobile workers who often have no other place to market their skills, recognition that the employer and employee do not stand on equal footing is realistic. (Blades, Employment At Will vs. Individual Freedom: On Limiting thе Abusive Exercise of Employer Power, 67 Colum. L. Rev. 1404, 1405 (1967).) In addition, unchecked employer power, like unchecked employee power, has been seen to present a distinct threat to the public policy carefully considered and adopted by society as a whole. As a result, it is now recognized that a proper balance must be maintained among the employer’s interest in operating a business efficiently and profitably, the employee’s interest in earning a livelihood, and society’s interest in seeing its public policies carried out.
By recognizing the tort of retaliatory discharge, Kelsay acknowledged the common law principle that parties to a contract may not incorporate in it rights and obligations which are clearly injurious to the public. (See People ex rel. Peabody v. Chicago Gas Trust Co. (1889),
There is no precise definition of the term. In general, it can be said that public policy concerns what is right and just and what affects the citizens of the State collectively. It is to be found in the State’s constitution and statutes and, when they are silent, in its judicial decisions. (Smith v. Board of Education (1950),
The action has not been allowed where the worker was discharged in a dispute over a company’s internal management system (Keneally v. Orgain (1980), —— Mont. ---,
The cause of action is allowed where the public policy is clear, but is denied where it is equally clear that only private interests are at stake. Where the nature of the interest at stake is muddled, the courts have given conflicting answers as to whether the protection of the tort action is available. Compare the inconsistent results where the discharge was for opposition to sexual discrimination or harassment (McCluney v. Jos. Schlitz Brewing Co. (E.D. Wis. 1980),
It is clear that Palmateer has here alleged that he was fired in violation of an established public policy. The claim is that he was discharged for supplying information to a local law-enforcement agency that an IH employee might be violating the Criminal Code, for agreeing to gather further evidence implicating the employee, and for intending to testify at the employee’s trial, if it came to that. Because of the procedural posture of the case, these allegations must be accepted as true. (Fitzgerald v. Chicago Title & Trust Co. (1978),
No specific constitutional or statutory provision requires a citizen to take an active part in the ferreting out and prosecution of crime, but public policy nevertheless favors citizen crime-fighters. “Public policy favors the exposure of crime, and the cooperation of citizens possessing knowledge thereof is essential to effective implementation of that policy. Persons acting in good faith who have probable cause to believe crimes have been committed should not be deterred from reporting them by the fear of unfounded suits by those accused.” (Joiner v. Benton Community Bank (1980),
The foundation of the tort of retaliatory discharge lies in the protection of public policy, and there is a clear public policy favoring investigation and prosecution of criminal offenses. Palmateer hаs stated a cause of action for retaliatory discharge.
IH contends that even if there is a public policy discouraging violations of the Criminal Code, that public policy has too wide a sweep. IH points out that the crime here might be nothing more than the theft of a $2 screwdriver. It feels that in the exercise of its sound business judgment it ought to be able to properly fire a managerial employee who recklessly and precipitously resorts to the criminal justice system to handle such a personnel problem. But this response misses the point. The magnitude of the crime is not the issue here. It was the General Assembly, the People’s representatives, who dеcided that the theft of a $2 screwdriver was a problem that should be resolved by resort to the criminal justice system. IH’s business judgment, no matter how sound, cannot override that decision. “[T]he employer is not so absolute a sovereign of the job that there are not limits to his prerogative.” (Tameny v. Atlantic Richfield Co. (1980),
IH also decries the lack of specificity of Palmateer’s complaint. Because the precise crime suspected was not set forth, no one beyond Palmateer, the unnamed employeе, and the local law-enforcement agency yet knows the particulars of the investigation. It is understandable that, in view of the novelty of the type of complaint that was filed, Palmateer refrained from identifying his fellow employee through the complaint. IH did not move for a more definite statement, as was its right under section 45 of the Civil Practice Act (Ill. Rev. Stat. 1979, ch. 110, par. 45(1)). Instead it merely moved to dismiss the complaint for failing to state a cause of action. “No pleading is bad in substance which contains such information as reasonably informs the opposite party of the nature of the claim or defense which he is called upon to meet.” (Ill. Rev. Stat. 1979, ch. 110, рar. 42(2).) This complaint is less specific than it could be, but it informed IH of the crux of the claim and stated a cause of action. If IH desires, on remand there are ample procedures under the Civil Practice Act and the rules of this court to put any needed meat on the bones of the complaint.
Finally, IH contends that Kelsay requires there be an adversarial relationship before the cause of action for retaliatory discharge is allowed. Even under this theory, it seems that whenever a claim is filed by a former employee, the former employment relationship has already degenerated into an adversarial relationship, at least in thе broad sense of the term. But more importantly, Kelsay put no such requirement on the cause of action, and we see no rationale for such a limitation. All that is required is that the employer discharge the employee in retaliation for the employee’s activities, and that the discharge be in contravention of a clearly mandated public policy.
In order to treat like situations alike, we believe it is fair to dispose of the prayer for punitive damages in this case in the same manner as punitive damages were treated in Kelsay. As already noted, this court set aside the punitive damage award, directing that, in cases involving the tort of retaliatory discharge, punitive damages would be allowed only in future cases. The plaintiff was discharged 14 months before the filing of this court’s opinion in Kelsay. Therefore, to be consistent with the holding in Kelsay, punitive damages should not be awarded here.
The cause of action expressed in count II of Palmateer’s complaint was improperly dismissed, and the cause should be returned to the circuit court for further proceedings. Because it is not certain that a trial will ensue, we decline IH’s invitation to express our opinion on the instructions to be given at a retaliatory-discharge trial. That should, if necessary, await another case which has generated a fuller record. (Compare Pierce v. Ortho Pharmaceutical Corp. (1979),
Appellate court affirmed in part and reversed in part; circuit court affirmed in part and reversеd in part; cause remanded, with directions.
Dissenting Opinion
dissenting:
For the reasons stated in my dissent in Kelsay v. Motorola, Inc. (1978),
Dissenting Opinion
also dissenting:
Although I authored the opinion in Kelsay v. Motorola, Inc. (1978),
Kelsay relied on the fact that the legislature had clearly established the public policy that injured workers had a right to file claims for compensation with the Industrial Commission. We there held that discharging the employee for filing such a claim violated that public policy. Here the public policy supporting the cause of action cannot be found in any expression of the legislature, but only in the vague belief that public policy requires that we all become “citizen crime-fighters” (
Many of our cases state that public policy is to be found in the constitution and the statutes of this State and, when these are silent, in the decisions of the courts. (People ex rel. Nelson v. Wiersema State Bank (1935),
In Petermann v. International Brotherhood of Teamsters, Local 396 (1959),
In Geary v. United States Steel Corp. (1974),
In Abrisz v. Pulley Freight Lines, Inc. (Iowa 1978),
In Scroghan v. Kraftco Corp. (Ky. App. 1977),
“The legislature has not seen fit to establish any policy in this area, and we are not convinced that this is a proper area for the exercise of judicial activism.” Scroghan v. Kraftco Corp. (Ky. App. 1977),551 S.W.2d 811 , 812.
In Geary, Abrisz, and Scroghan the employees’ conduct can be said to have a tendency to be beneficial to the public welfare or to be for the public good, but the courts refused to declare, by judicial fiat, that discharging employees for such conduct contravened public policy. The citing of these three cases is not intended to be an exhaustive examination of the subject. They are cited to demonstrate that the courts are not willing to create a cause of action for a discharged employee simply because his conduct was prаiseworthy or because the public may have derived some benefit from it.
Because of the vagueness of the concept of public policy, most of the jurisdictions that have allowed a discharged employee to maintain a cause of action for retaliatory discharge have required that the public policy against such discharge be clear and well-defined, that the mandate of public policy be clear and compelling, and that there be strong public policy against such discharge. Percival v. General Motors Corp. (E.D. Mo. 1975),
In Becket v. Welton Becket & Associates (1974),
In Tameny v. Atlantic Richfield Co. (1980),
In two cases usually discussed by courts considering retaliatory discharge, recovery was permitted in actions for retaliatory discharge based on “bad faith.” In Monge v. Beebe Rubber Co. (1974),
It is indeed praiseworthy that the plaintiff in our case is interested in ferreting out crime. His complaint, however, does not allege conduct on his part that will bring it within the area of any public policy that has been articulated by the legislature. The plaintiff was not discharged for failing to violate or for complying with the requirements of our obstruction-of-justice statute (Ill. Rev. Stat. 1979, ch. 38, par. 31 — 4), or of the section of our statute concerning refusing to aid an officer (Ill. Rev. Stat. 1979, ch. 38, par. 31 — 8). These sections were referred to in the majority opinion. If the plaintiff would have been discharged for such a reason, strong, clear, fundamental articulated public policy would have been contravened and an action in tort would then be appropriate. The complaint, however, does not even allege that a crime had been committed or that the plaintiff reported to the law-enforcement agency that a crime had been committed. It only alleges that plaintiff was discharged because he reported to a law-enforcement agency that an employee of the defendant might be involved in a violation of the criminal code and that he had agreed to assist the law-enforcement agency in gathering further information. It should be remembered that the plaintiff was not a unionized employee, but held a position in management. By assuming the role of a “citizen crime-fighter” undertaking to ferret out crime for the police the plaintiff, through his spying, could seriously affect labor relations of his employer. Also, his conduct, without consulting with the proper management personnel, could impair the company’s internal security program. In other words, the plaintiff here had taken it upon himself to become involved in crime fighting when it was neither required by law, nor by his employment, and obviously was against the wishes of his employer.
By departing from the general rule that an at-will employment is terminable at the discretion of the employer, the courts are attempting to give recognition to the desire and expectation of an employee in continued employment. In doing so, however, the courts should not concentrate solely on promoting the employee’s expectations. The courts must recognize that the allowance of a tort action for retaliatory discharge is a departure from, and an exception to, the general rule. The legitimate interest of the employer in guiding the policies and destiny of his operation cannot be ignored. The new tort for rеtaliatory discharge is in its infancy. In nurturing and shaping this remedy, courts must balance the interests of employee and employer with the hope of fashioning a remedy that will accommodate the legitimate expectations of both. In the process of emerging from the harshness of the former rule, we must guard against swinging the pendulum to the opposite extreme. In Percival v. General Motors Corp. (8th Cir. 1976),
“It should be kept in mind that as far as an employment relationship is concerned, an employer as well as an employee has rights; ***.”
The district court opinion in Percival stated:
“The courts which have recognized this non-statutory cause of action have done so cautiously, recognizing that a propеr balance must be maintained between the employee’s interest in earning his livelihood and the employer’s interest in operating his business efficiently and profitably.” (Emphasis added.) Percival v. General Motors Corp. (E.D. Mo. 1975),400 F. Supp. 1322 , 1323.
The deteriorating business climate in this State is a topic of substantial interest. A general discussion of that subject is not appropriate to this dissent. It must be acknowledged, however, that Illinois is not attracting a great amount of new industry and business and that industries are leaving the State at a troublesome rate. I do not believe that this court should further contribute to the declining business environment by creating a vague concept of public policy which will pеrmit an employer to discharge an unwanted employee, one who could be completely disruptive of labor-management relations through his police spying and citizen crime-fighter activities, only at the risk of being sued in tort not only for compensatory damages, but also for punitive damages.
I am not alone in my concern over the adverse effect that the loose application of the retaliatory-discharge remedy will have on business. I noted above the concern voiced by the Supreme Court of Pennsylvania in Geary and by the Supreme Court of Iowa in Abrisz. In Pierce v. Ortho Pharmaceutical Corp. (1979),
“[T]he employer’s legitimate interеsts in conducting his business and employing and retaining the best personnel available cannot be unjustifiably impaired.”
The court went on to state:
“In addition the exception [to the general rule] must guard against a potential flood of unwarranted disputes and litigation that might result from such a doctrine, based on vague notions of public policy. Hence, if there is to be such an exception to the at-will employment rule, it must be tightly circumscribed so as to apply only in cases involving truly significant matters of clear and well-defined public policy and substantial violations thereof.” (Emphasis added.) (Peirce v. Ortho Pharmaceutical Corp. (1979),166 N.J. Super. 335 , 342,399 A.2d 1023 , 1026.)
In Monge v. Beebe Rubber Co. the New Hampshire Supreme Court, while allowing recovery on a contract theory for a “bad faith” discharge, nonetheless acknowledged the necessity of balancing the interests of employer and employee. The court stated:
“Such a rule affords the employee certain stability of employment and does not interfere with the employer’s normal exercise of his right to discharge, which is necessary to permit him to operate his business efficiently and profitably.” Monge v. Beebe Rubber Co. (1974),114 N.H. 130 , 133,316 A.2d 549 , 551-52.
The majority opinion cites Blades, Employment At Will vs. Individual Freedom: On Limiting The Abusive Exercise Of Employer Power, 67 Colum. L. Rev. 1404 (1967). Professor Blades, while promoting an expansion of an employee’s right to sue his employer for wrongful discharge, recognizes the adverse effect of such litigation on the employer’s business:
“ [T] here is the danger that the average jury will identify with, and therefore believe, the employee. This possibility could give rise to vexatious lawsuits by disgruntled employees fabricating plausible tales of employer coercion. If the potential for vexatious suits by discharged employees is too great, employers will be inhibited in exercising their best judgment as to which employees should or should not be retained. *** [T]he employer’s prerogative to make independent, good faith judgments about employees is important in our free enterprise system.” 67 Colum. L. Rеv. 1404, 1428 (1967).
In order to establish the necessary balance between employer and employee interests, I would hold that the employee may maintain an action for retaliatory discharge only when the discharge has been violative of some strong public policy that has been clearly articulated. Usually, that clear articulation would be found in legislative enactment. I do not think that an employer should be compelled to defend a tort action and possibly be forced to pay a disgruntled discharged employee compensatory, and possibly substantial punitive, damages because of a violation of some vague concept of public policy that has never been articulated by anyone except four members of this court.
I therefore respectfully dissent.
