*1 615). Although the mort- Ala. 125 So. the in-
gage specifically did not describe amount, in terms of a dollar
debtedness indebtedness
mortgage was to secure "all hereaf-
already owing ... all indebtedness
ter created and all other indebtedness ... may ... reason of the mort- acerue becoming surety
gagors, or either of them person." It is endorser for other language from this that Commercial
clear mortgage Rockovits intended the
and the $9,000 the Rocko-
to secure the loaned to mortgage was created and
vits when $11,200 indebtedness that was subse- the Rockovits be-
quently created when for Lion Construction Com-
came sureties therefore erred in
pany. The trial court
dismissing complaint to fore- Commercial's mortgage.
close the pro- remand for further
We reverse and
ceedings which are consistent with
opinion.
CONOVER, MILLER, J., con- P.J.
cur. ROMACK, Appellant
Jay H.
(Plaintiff Below), COMPANY OF
PUBLIC SERVICE
INDIANA, INC., Appellee Below).
(Defendant
No. 4-985 A 251 Indiana, Appeals
Court
Fourth District. 10, 1986.
Nov.
Rehearing Denied Jan. *3 5) Material issues fact existed precluded entry of summary
judgment on his various claims. We affirm. Romack applied for Corporate SecurityManager at PSI but
did not position. However, receive the two years later, PSI contacted Romack concern- ing an position. available time, At that Captain was a of the Indiana State Police twenty-five years of service to his credit. Romack informed PSI that he "permanent had employment" with the State Police and would not consider leaving *4 position his there unless the job new of- William H. Sparrenberger, Indianapolis, fered the same "permanency" of employ- appellant. for ment, advancement and benefits. An em- Maine, Michael R. Gayle Skolnik, L. Indi- ployee of PSI told Romack that if he came anapolis, Jacobs, Cox, Curtis M. Cooper, PSI, to work for he would have "such Jacobs, Barlow, Reed Madison, & appel- permanent employment." (R. 296-297) lee. assurances, With these Romack terminated his employment with the Indiana State Po- YOUNG, Judge. lice began working on Septem- Jay H. appeals Romack the trial ber Operations court's 1979 as an Security Su- entry summary of judgment pervisor in at the favor of Marble Hill Nuclear Gener- Public ating Service Company Indiana, of construction site. (PSI) on Romack's fraud, claims of con- As a result employment PSI, of his with fraud, structive negligent misrepresents purchased Romack a house trailer and rent- tion, retaliatory discharge and denial of due ed a tract of place land near employ-
process. Romack makes the following ar- Later, ment. purchased Romack a home in guments on appeal: that locality and family moved his 1) The trial court erred when it re- requested area. PSI that Romack take this fused to supplemental consider his affi- action so he family and his would "become ruling
davit in on his motion to correct part a community.'" Romack was errors; reimbursed relocation costs occa- 2) His sioned discharge the first in pursuant was unlawful move because policy. it violated an to PSI January enforceable oral Romack contract of employment which could not sought be terminat- reimbursement the relocation ed "at will" costs PSI. associated moving family the area. expenses These 3) were reimbursed Summary judgment inappropri- in February of paid 1981 and PSI also ate wrongful on the discharge claim be- having cost of moving company transport cause his discharge was in retaliation for Romack's goods household to the new performance of a statutory right or duty; home. paid The total amount or reim- bursed PSI was approximately 4) The trial court erred in granting $4,694.72. PSI's motion for summary judgment be- cause pleadings sup- July On Romack was dis- ported a cause of action under charged by PSI. requested theories fraud, given fraud, negligent he be in constructive elsewhere misrepresentation and denial pro- of due company years because he was 52 old and cess; and suffering from a injury. work-related back request His was denied because PSI supplemental rect errors affidavit. thought it would be better if a "clean presented supplemental The evidence (R. 300) break" was made. newly Romack sub- affidavit was not discovered and sequently asserting presented filed this action that he could have been to the trial court attempts prior ruling was terminated because his to its on PSI's motion for sum- deal threats with bomb and alcohol and mary judgment. Under these circumstance es, trial court had drug problems no basis the construction site properly it could have sup- slowing progress considered the down work costing money PSI additional plemental because affidavit and necessarily refused delays. Romack also asserted that he was ruling to consider it in on Romaeck'smotion not an at will and had been un- Likewise, to correct errors. we cannot con- lawfully discharged. PSI moved for sum- provided sider the facts supplemen- mary judgment on all of claims tal reviewing affidavit when the trial granted and the trial court the motion. court's action since the prop- affidavit was appeals. erly excluded from consideration at the tri- al court level. With restriction in reviewing summary judg When mind, we examine the remainder Ro- accept ment we must as true the facts arguments. mack's alleged by non-moving party. Eby Romack asserts that his York-Division, Borg-Warner Ind.
App., 626. This leads to an with PSI was not "at will" because PSI had promised "permanent him employment," placed examination what facts were be capable fore the trial court and of consider ie., for the remainder of his *5 working days. if employment Even the argues ation in this action. Romack that pleadings, will, the his first set of initially argues affidavits was at Romack that he supplemental his gave affidavit which was beyond PSI additional consideration his services which modified the nature of presented errors, with his motion to correct proper Therefore, are all for consideration. We dis the Romack ar- employment. agree. gues discharge that his from PSI was wrongful. PSI counters that Romaeck'sdis- normally Error cannot be based charge wrongful was not because he was upon evidence that not was before the trial employee at all times an at will who could court at the time it rules on a motion for discharged any be or without at with cause summary judgment. Rutoskey Johnson v. time. (1984), 620, Ind.App., 472 N.E.2d 623. Indiana, employee However, an not, at will new that evidence could diligence, reasonable may discharged any have been discovered be reason or no produced may presented earlier Danners, reason at all. Hamblen v. Inc. (1985), 926, affidavit with a motion to correct Ind.App., errors. 478 N.E.2d 928. The Procedure, Ind.Rules of Trial Rules employment relation is at unless will there 59(A)(6) 59(H)(1). Johnson, promise See also is a employment for a fixed employee given duration or the supra 59(H)(1) has inde at 628. Trial Rule affida vits cannot present pendent be used to evidence beyond consideration his services party neglected present during that a exchange employment. for the Ham- summary judgment blen, proceeding. supra. employment Mid- An at will rela Engines, Co., States tionship may Inc. v. Mize requiring be converted to one Aircraft (1984), Ind.App., 467 N.E.2d good cause before termination if the em given ample opportuni 1245. Romack ployee, exchange was permanent employ ty ment, additional 'provides independent evidence both at consideration summary judgment hearing and after that results in a detriment to him and a corresponding employer. hearing. benefit oppor Romack refused these tunities. After the court summary entered Co-op, Gardenside Streckfus Inc. Terrace judgment, Romack filed his motion to cor- 425; Hamblen, supra 928; at Ohio employment Table Pad permanent on a basis and to Indiana, Co. Hogan Inc. v. Ind. discharge him only Thus, for cause. App., 424 N.E.2d Therefore, 144. in order moves were not consideration prevail in an action wrongful dis- promise asserted permanent em- charge, employee must show either ployment. addition, we that while note that he has an employment contract which moving one's household to a new location provides for employment of specific a dura- will constitute consideration for sufficient tion or that his at employment will was agreement provide moving expenses, converted to required one which good "it support will not permanent contract of cause before employment could be ter- so as impose require- Ewing minated. v. Board Trustees good ment of upon cause right to termi- Pulaski Hosp. Mem. Ind.App., 486 nate the employee." Co., Ohio Table Pad N.E.2d supra at 146. The evidence is undisputed that Romack received reimbursement for present case, In the Romack ar his moving expenses. The clearly that, gues gave because PSI him oral as reveals that Romack was an at surances permanent employment, he will who could be discharged by PSI for not an at will. prom Such a any reason or for no reason at all. Sum- ise is insufficient to establish a contract for mary judgment on the wrongful discharge permanent employment since period claim was appropriate since the undisputed employment is not for a definite or fixed evidence shows that Romack was an em- duration. Romack was under obligation no ployee will, at discharge and his was not to continue with PSI and unlawful. could have quit retired or time. Although argues he told next PSI that he that the "would con trial court tinue erred in working granting permanently summary my judgment for PSI as be- 'second cause career' for discharged my remainder of for exercis- ing (R. conferred him 299), work life" statute statement creates obligation protected no for him to do so statute. The and does trial court clarify or set found that pleaded no facts duration of employment. sup- ported application See Co., Ohio Table public Pad Hogan, policy Inc. v. *6 exception to the doctrine employment supra 145; at Streckfus, supra. Consider ing only agree. the will. We evidence most favorable to Romack, the employment contract must be Normally, employee an at will treated as one for an indefinite term. may discharged without cause. How ever, exception an exists employ when the argues, however, Romack that gave he ee discharged solely exercising additional valuable consideration to exchange promise perma statutorily right. conferred Morgan Drive employment. nent The Away, Ind., consideration con Inc. v. Brant 933, 935; sisted N.E.2d purchasing Campbell a trailer v. Eli moving Lilly & (1980), App., to an Co. area closer to Ind. the work N.E.2d site. Later exception This PSI, has narrowly insistence of been purchased con strued Supreme Indiana home, Court. another assumed mortgage another Morgan Inc., and relocated Drive family. Away, supra, Romack our su asserts preme that these court public actions were refused to extend additional consider policy exception ation which altered the to a nature of situation in which origi an employee discharged was bringing after nal contract. concedes, however, small these claims payment actions action for the were taken of ser after his initial vices rendered. The court stated: provides PSI. He us no evidence that at the time he took The employment at will doctrine has these actions he steadfastly recognized exchange been did so in and enforced for an promise additional by PSI to continue his public as policy of this State.... rejection or of the doctrine is
Revision
Prior to his termination there
numer
were
legislature.
left to
there-
better
We
threats,
drug
ous instances of bomb
on-site
opportunity
fore decline this
to extend
use, on-site alcohol use and on-site theft.
statutory
right
exception]
problems
Efforts to handle these
resulted
[the
facts of the instant case.
personnel being impeded
in the
in their
Subsequently,
at 984.
the United
activity.
supervisor
Id.
acknowledge
Circuit,
"refused
importance
Appeals,
to
Court of
Seventh
States
law,
applying Indiana
determined that an
prevented
such occurrences and
[Romack]
co-pilot
fly
refused
airline
who
to
an unsafe
taking necessary
from
steps
clarify
to
airplane did not fall within the
ambit
rectify
existing
(R. 298)
situation."
"statutory right" exception. The court ac-
reporting
As
result of Romack
these
knowledged
required
that the Indiana Code
problems
superior,
to his
friction arose
operate
aircraft
to
within federal standards
ultimately
led to Romack's termi
However,
of airworthiness.
the statute did
nation. Romack also states that
these
right
part
pilots
not create a
on the
or
problems
safety
affected the health and
other crew
fly
members
refuse to
an
employees in
surrounding
area.
they
airworthy.
aircraft
believed was not
any
does not favor us with
de-
The court stated:
problems
tails as to the
until his second
wrongful
The Indiana tort of
termination
affidavit,
previously
which as
discussed
protect
blowing"
does
"whistle
as
untimely
may
and therefore
not be
such,
right
... unless a statute creates a
considered.
left
We
therefore
with the
whistle,
particular
to blow a
facts stated above. Romack also cites sev-
Indiana's aviation statute does not.
Energy
eral sections of the Atomic
Act of
Airlines,
Buethe v. Britt
7th
support
statutory right argu-
1954 in
of his
Cir.,
787 F.2d
citing Campbell
An
ment.
examination of these sections
Lilly
v. Eli
& Co.
any duty
fails to disclose
on which
N.E.2d
1059-62.
rely.
speak
Romack can
The sections
Campbell, supra,
merely
general policy goals
in terms of
discharged
reporting purported
viola-
rights
Similarly,
confer no
on individuals.
Drug
tions of the Food and
Administration
regulations
require
the OSHA
relied on
(FDA) regulations. The employee argued
employer
provide
work,
place
a safe
that since the manufacturer was under a
from
likely
free
hazards
to cause death or
duty
report
required
relevant
data to the
harm. Romack's affidavit fails to
FDA,
necessarily
it
duty
became a
of the
disagree-
factual evidence as to the
employees
carry
out that
mandate.
supervisors.
ments between himself and his
employees
concluded that if
There is
discharged
reporting
no evidence that PSI refused to
violations which
integrity
supplied
affected the
provide
place.
data
a safe
work
*7
FDA,
important public policy
an
and reasonable inferences lead to but one
Campbell,
supro
would be thwarted.
supervisors
conclusion: Romack and his
court, however,
1059-60. The
determined
disagreed in
prob-
the manner which the
duty
that the statute created no
or
impor-
lems were to
dealt
and the
be
Campbell
report
alleged
to
viola-
severity
problems. Thus,
tance and
of the
Thus,
tions.
the court concluded that
although
argument
Romack's
that Indiana
statutory right exception
apply.
did not
public policy
has stated a
in the area of
safety and
worker
that workers cannot be
present
closely
case is
analo
discharged
reporting
plau-
violations is
gous to
and Campbell.
both Buethe
Ro-
sible,
present any
Romack fails to
factual
presented
following
mack
to
taking
Opera
place
court. He
evidence of what was
or occur-
the trial
was hired as an
ring
Security Supervisor
giv
tions
and later
at the construction site or that he was
responsibility
en
security.
discharged
for construction
indeed
of
because
his efforts to
problems.1
deal with these
areWe
there
he
left his
with the State Po
compelled
fore
to find that
the facts
lice in
accept
order to
employment with
presented by
support
Romack did not
Leaving
PSI.
job
one
to accept another did
application
public policy exception
of the
to
not constitute a sufficient independent det
the at
will
doctrine.
support
riment
a constructive fraud
claim since Romack would had to have left
Romack asserts
that he had a
position
State Police
in order
accept
valid action
fraud,
under the theories of
employment with
PSI under
negligent
employ
constructive fraud and
misrepre
sentation.
ment
Summary judgment
conditions.
proper
Co.,
See Okio Table Pad
ly entered on these
supra
theories. A fraud
at 146.
ac
other "detriments"
requires
tion
misrepresentation
past
relied on
moving
consisted of
existing
facts.
It cannot be based on
expenses
costs incurred in establishing
promises
performance.
of future
Eby, su-
residence,
a new
including additional mort
pro
promises
at 628. The
and statements
gages. The evidence before the trial court
made
past
were not statements of
indicated that
the moving expenses had
facts,
or existing
They
promises
been reimbursed. The costs incurred in
do or not to do some act in the future and
purchasing a new home are not considered
do
support
an action
on
based
fraud.2 a
sufficient
detriment to the
employee because these
merely
actions
also has no action for
constructive fraud3
Constructive
place
fraud
in a
being
may
accept
be based on promissory misrepresen
perform
able to
job by
living
However,
tations.
it must
place
be shown that
near his
of work. See Ohio Table
promisee
suffered a detriment
and the
Co.,
supra
Pad
at 146. PSI was therefore
promisor obtained
advantage.
some
Eby,
summary judgment
entitled to
on this
supra at 628. Although
special
count.
qualifications may have
been
benefit to
employer,
presents
no
regard
evidence of a
With
negli
the claim for
to himself. Romack
gent
shows that
misrepresentation,
the basic issue is
detriment
1. We note that Romack's second affidavit dis-
During
on various loans from 1975-81.
cussed the facts that
poli-
Romack followed the
period the bank had extended these loans sever-
cy
giving
option
workers
leaving
al times. Thus the bank's statement that it
assisting
work site or
in a search whenever a
would
with the borrower
for six more
work
However,
bomb threat
superi-
was received.
months could be construed as more than a
ignore
ors wanted to
the bomb threats in order
promise
light
parties
past dealings.
stop
facts,
interruptions.
the work
These
if
case,
past dealings
there are no
timely presented, would have bolstered Ro-
may
interpreted.
which PSI's statement
argument
mack's
discharged
that he was
They
simply promises
are
to do a future act and
i.e.,
fulfilling
statutory duty,
providing for and
factually
promise
disimilar
from the
assuring
safety
required by
worker
as
OSHA
events in Acra.
However,
regulations.
we do not address that
situation since we are limited to a review of the
3. The trial court determined that Romack had
evidence before the trial court at the time of the
no action for constructive
fraud because he
summary judgment.
mistake,
presented no facts of mutual
undue
2. Romack's reliance on First Nat. Bank
New
influence or duress. This conclusion
is based
Castle v. Acra
reading
on
Blaising
an erroneous
v. Mills
Acra,
misplaced.
the court held that an
Ind.App.
374 N.E2d
action for fraud would lie where a bank stated
mistake,
Blaising
require proof
does not
un-
that it would work with a borrower on a loan
prove
due influence or duress in order to
con-
situation for an additional six months and that
merely
structive fraud. The case
states that
the borrower's account was fine when in fact
may
constructive fraud
be based on those theo-
*8
placed
the bank had
a hold on the account. The
also,
ries.
Id. at 1169. See
Brown v. Brown
promise
court
something
noted
a
that
to do
in
(1956),
563,
However,
235 Ind.
776
protected
show that
property
PSI,
through
agents,
interest
its
whether
made
representations
false
to Romack on which was involved. It is settled law that a dis-
he relied
supra
charged
to his detriment.
employee
deprived
discussed,
628. As previously
Romack constitutionally protected property interest
presents
no evidence of an
det-
Wood,
where
is an
at will.
noted,
riment. As the trial court
the facts
(1980),
supra; McQueeney v. Glenn
Ind.
support
moving expenses
would
a claim for
App.,
806,
previ-
400 N.E.2d
810-11. As
not a claim
discussed,
but
for the enforcement of a
ously
Romack was an
promise
permanent employment.
Under
at will and therefore
property
had no
inter-
employment.
est in his
presented,
PSI was entitled to
the circumstances
even a claim
moving expenses
would not be warrant-
summary judgment on this claim.
ed since the
foregoing
reasons,
For
the trial
expenses
already
had
been reimbursed.
court's decision is affirmed.
final claim is that
pro
violated
his 14th Amendment due
MILLER, J., concurs.
rights by discharging
pri-
cess
him without
CONOVER, P.J.,
separate
dissents with
hearing.
process
or notice or a
Due
claims
opinion.
in the realm of
are based on
the idea that
creates a
CONOVER, Presiding Judge, dissenting.
property
Bishop
interest.
v. Wood
opinions my
With due deference to the
341,
2074,
426 U.S.
96 S.Ct.
Courts are divided on such a
holding yes
some
and some no....
above,
espoused
I
For
the reasons
be-
considering
question,
After
we
had a
cause of action
lieve Romack
viable
think the
rule to be that an em-
better
fraud,
upon
in
based
constructive
addition
ployee
gives up
who
other
to others. He was lured from his former
accept
permanent job
an offer of a
of,
position by
permanent
assurances
em-
provides independent consideration-at
competently
He
ployment.
was fired for
least,
when as here the
sur-
performing
precise job
he was hired to
permanent
rendered was itself
and the
only
do. Such action
PSI is not
uncon-
(Ci-
employer
new
is aware of the facts.
scionable,
it also strikes at the heart of a
omitted).
tations
problem constructive fraud
meant to
agreed
college
The result is that the
Division,
In Eby
Borg
address.
v. York
employ
permanently
Collins
at
(1988),
623,
Ind.App., 455 N.E.2d
Warner
1971,
salary
promised
and increments
Judge
said:
Miller
provided
and that Collins
consideration
fraud
of most of
Constructive
consists
agreement
college.
elements
fraud: ma-
the same
as actual
analogous
inherently supplies, but also ultimately
deprives government of information
concerning goods or conduct potentially injurious to the public welfare. It
these dubious ramifications which should
not be countenanced,
as well as the cal-
BOARD OF
APPEALS,
ZONING
CITY
lous treatment which the
permits
rule
VALPARAISO,
OF
Indiana, Appellant
be foisted on the
who,
citizen
good
(Plaintiff Below),
faith, acts on the principle of civic duty
or the mandates of professional
ethical
code.
BETA TAU HOUSING CORPORATION,
(Defendant
Appellee
Below).
form of recourse to an employee who is
fired for refusing to turn his back on safe-
ty violations, we not only do a misdeed to
similarly situated employees, we also do a
horrendous disservice to the public.
Punitive Damages
If Romack's allegations of safety viola-
tions at the nuclear facility true, I believe this presents case a situation where
punitive damages may be legitimately
claimed. Punitive damages may be award-
ed where a serious wrong, tortious in na-
ture, has been committed in an instance in public interest would be served
by the deterrent punitive effect damages
