CHARLES YEAGER, APPELLANT, v. HARRAH‘S CLUB, INC., AND HOLIDAY CORP., RESPONDENTS.
No. 23595
Supreme Court of Nevada
June 27, 1995
897 P.2d 1093
. . . [Pеnny argues] that Cassie will remain in some kind of a figurative “ball mill” if she is required to remain here in Reno, where she would be ground back and forth between her mother‘s goals, aspirations and fears and those of her father. In fact, this kind of unusual antipathy does exist between the parents of this unfortunate six year old.
By making unsubstantiated reports to the police and social services, Robert seems more concerned about building a case of abuse against his former wife than an honest effort to look to the welfare of his daughter.
For her part, Penny Green seems bent upon minimizing Mr. Cook‘s importance to his daughter as a shaping force in her life, showing very little sensitivity or insight into the true source of his daughtеr‘s distress before, during and after exchanges—a child struggling to please two people who, as Stephanie Dillon testified, is 50% her mother and 50% her father. The mother instead points to some nameless dysfunction in the Cook household as the culprit.
These are two people who have an abnormal hostility toward each other—abnormal, as Dr. Nielsen testified, even for divorced parents in a custody battle. “Pathological” would not be too strong a word to describe the vested disrespect there [sic] two people have for each other. Cassie has two parents who can‘t agree on much of anything.
. . . .
The Court was startled to find that emerging from the ashes of this relationship between her parents is a pretty, precocious, and most of all, a reasonably stable and healthy phoenix of a girl.
Not always that way, she was clinically depressed (a rarity for a (then) five year old) until she figured out that she could program herself one way to please her mom and another way to please her dad and, for the most part, remove herself from the center of the storm.
Hamilton & Lynch, Reno, for Appellant.
Vargas & Bartlett and Debra B. Robinson, Reno, for Respondents.
OPINION
By the Court,
This action commenced in the district court after appellant Charles Yeager (Yeager) was terminated from his employment by respondent Hаrrah‘s Club (Harrah‘s). The district court granted summary judgment in favor of Harrah‘s against all of Yeager‘s claims because Yeager failed to overcome the presumption that he was employed at-will. For reasons discussed hereafter, we conclude that Yeager has failed to raise genuine issues of material fact concerning his status as an at-will employee; therefore, we affirm the lower court‘s order of summary judgment.
FACTS
Yeager began working for Harrah‘s as a cashier during the summer of 1965. During the next twenty-one years, Yeager progressed through the ranks, ultimately becoming the assistant general manager of operatiоns. Sometime in early 1986, Holiday Corp.1 began a restructuring of the organization. As a result, Yeager‘s position and nine other key casino executive positions were eliminated. Consequently, Yeager and the nine other executives were terminated on July 29, 1986.
Almost two years later, Yeager filed a complaint in the district court in which he joined Harrah‘s and Holiday Corp. as defendants. Yeager‘s complaint set forth nine causes of action: (1) breach of an employment contract; (2) tortious breach of the covenant of good faith and fair dealing; (3) slander; (4) negligence; (5) conspiracy; (6) intentional infliction of еmotional distress; (7) negligent infliction of emotional distress; (8) invasion of privacy—public disclosure of private facts; and (9) invasion of privacy—false light.
Yeager alleged that he had an implied contract for continued employment arising from: (1) verbal promises made at the outset of his employment relationship and continuously thereafter for twenty-one years; (2) written promises contained in the employee handbook that Yeager was required to read and acknowledge at the outset of his employment relationship; and (3) Harrah‘s demonstrated policy of not terminating employees, including supervisory рersonnel, except for cause, which policy Yeager himself was required to follow as a supervisor. To buttress these assertions, Yeager provided the district court with the sworn affidavits of former co-workers James Caselli and Barney Mozingo. Mr. Caselli was employed at Harrah‘s Reno from 1958 until 1986. Mr. Mozingo was employed at Harrah‘s Reno for many years commencing in 1973. Both affiants’ employment careers overlapped with the career of Charles Yeager.2
In response to Yeager‘s complaint, the respondents filed a joint answer denying all of the claims made by Yeager. Additionally, the respondents moved the district court for summary judgment pursuant to
Following a hearing on the summary judgment motion, the district court concluded that Yeager failed to overcome the presumption that he was employed at-will, and granted summary judgment in favor of the respondents. The district court further concluded that since Yeager‘s tortious claims were dependent upon the existence of a contract for continued employment, summary judgment should be granted on them as well. This appeal followed.
LEGAL DISCUSSION
This court‘s review of a summary judgment order is de novo. Tore, Ltd. v. Church, 105 Nev. 183, 185, 772 P.2d 1281, 1282 (1989). Where a motion for summary judgment under
provided the district court with sufficient evidence to overcome the presumption that he was employed at-will. The at-will presumption is not enumerated under
This court has consistently applied an employment at-will presumption in wrongful termination disputes. Vancheri v. GNLV Corp., 105 Nev. 417, 420, 777 P.2d 366, 368 (1989); see also Smith v. Cladianos, 104 Nev. 67, 68, 752 P.2d 233, 234 (1988); K Mart Corp. v. Ponsock, 103 Nev. 39, 42, 732 P.2d 1364, 1366 (1987). A presumption not only fixes the burden of going forward with evidence, but it also shifts the burden of proof.
Oral Promises of Continued Employment
Yeager maintains that he has presented evidence to the district court that supports the existence of an implied contract and rebuts the at-will presumption. In support of this proposition, Yeager posits two arguments. First, Yeager claims that he was repeatedly promised that his employment would continue until retirement unless he was terminated for cause.4 Secondly, he asserts that
written promises of continued employment were made in the employee handbook.
Yeager‘s assertion that oral promises were made to him are uncorroborated,5 but must be accepted as true in resolving a motion for summary judgment against him. Thus, we must resolve whether an employee‘s uncorroborated assertions that oral promises were made assuring his continued employment are enough to overcome the presumption of at-will employment.
This is a matter of first impression in Nevada. However, other jurisdictions have addressed the conflict between oral representations of long-term employment and the employment at-will presumption. In Virginia, “mere oral promises or assurances of job security are insufficient to rebut an at will presumption.” Sullivan v. Snap-On Tools Corp., 708 F. Supp. 750, 751 (E.D. Va. 1989) (citing Addison v. Amalgamated Clothing and Textile Workers, 372 S.E.2d 403, 405 (Va. 1988)), aff‘d, 896 F.2d 547 (4th Cir. 1990). In Utah, “general assurances of an ongoing working relationship are not sufficiently definite so as to rebut the at-will presumption.” Evans v. GTE Health Systems, Inc., 857 P.2d 974, 977 (Utah Ct. App. 1993), aff‘d, 878 P.2d 1153 (Utah 1994). In Washington, an employee remained an at-will employee despite repeated oral promises that he would retain a supervisory position as long as job performance met a certain level; such promises were “not sufficient to create an issue of material fact as to the existence of an enforceable promise of continued employment in a specific job.” Lawson v. Boeing Co., 792 P.2d 545, 548 (Wash. Ct. App. 1990), review denied, 811 P.2d 219 (Wash. 1991); see also Smoot v. Boise Cascade Corp., 942 F.2d 1408, 1410-11 (9th Cir. 1991).
Other courts examine whether the alleged oral contract was supported by consideration. Maietta v. United Parcel Service, Inc., 749 F. Supp. 1344 (D.N.J. 1990),
aff‘d, 932 F.2d 960 (3d Cir. 1991) (oral representation made to employee that he would not be fired except for cause did not convert his at-will employment into an employment contract providing for termination only for just cause, absent evidence that the alleged representation was made to induce employee to reject a specific job offer); Alter v. Resorts Int‘l, Inc., 560 A.2d 1290 (N.J. Super. Ct. Ch. Div. 1989) (alleged lifetime contract between casino operator and former employee lacked consideration additional to services incident to employment, and thus was not enforceable). Another court examined whether the oral representation was specific enough to constitute an offer. Goodkind v. University of Minnesota, 417 N.W.2d 636 (Minn. 1988) (an employer‘s general statements of policy do not meet the contractual requirements for an offer).
Essentially, Yeager wants this court to find that a contract for long-term employment existed based merely on his uncorroborated assertions that oral promises were made to him. However, if an employee could overcome the presumption of at-will employment merely by asserting that uncorroborated promises were made, then obituaries for the presumption should be written. Other than Yeager‘s self-serving assertions, the record is bereft of any evidence that Harrah‘s entered into a long-term employment contract with Yeager.
The dissent claims that we are imposing special restrictions on an employee who is making a wrongful termination claim. In a sense we are, and it is because we must define the quantum of evidence necessary to overcome the presumption of at-will employment. In doing this, we must balance conflicting principles, the unfettered right to sue against the continued viability of the employment at-will presumption, and the special interests of both employer and employee. We are not dealing just with a contractual cause of action but with one that squarely clashes with the employee at-will presumption that is part of Nevada law. Our responsibility is to state, in a case-by-case basis, what evidence is sufficient to overcome the presumption. This supporting evidence to overcome the employment at-will presumption cаn take a variety of forms, the employer‘s handbook or correspondence, the employer‘s personnel practices or witnesses to the specific employment contract. None of these types of evidence supports the employee‘s claim in this case as we explain.
This case is not the first time we have denied a worker‘s claim that he was a for cause employee because he did not produce corroborating evidence. In Vancheri v. GNLV Corp., 105 Nev. 417, 777 P.2d 366 (1989), we stated:
Vancheri testified that it was his “understanding” that the
employment was for a fixed period. He failed, however, to offer any independent evidence indicating the terms of an employment contract.
Id. at 421, 777 P.2d at 369. The dissent‘s claim that we are establishing a corroboration requirement for the first time is simply in error.
In short, an employee alleging the existence of a long-term employment contract must supply some corroboration that a contract has been formed specifically with that employee. Uncorroborated assertions, alone, do not overcome the presumption of at-will employment.
Written Promises of Continued Employment
Next, Yeager argues that written promises in the employee handbook converted his employment status into termination only for cause.6 The employee handboоk lists some general guidelines of personnel policy7 and twenty-three modes of conduct that will absolutely result in dismissal. Among the prohibited behaviors listed are drunkenness, lewdness, fighting, and theft. From this, Yeager concludes that he could not be terminated unless he performed one of these proscribed modes of conduct. We disagree.
Nothing in the handbook states that the twenty-three listed infractions are the exclusive causes for termination, nor does the handbook say that an employee will not be terminated on other grounds or for no reason at all. For example, why would Harrah‘s foreclose on its ability to hire and fire employees as the gaming markets expand and contract? Yeager‘s conclusion sug-
gests that when market forces contract, Harrah‘s has to remain at full employment because market contraction is not among the listed causes for termination. It is doubtful that Harrah‘s would intend this result by listing certain proscribed conduct in an employee handbook. It is more plausible that Harrah‘s merely intended the handbook to be a guideline for employees to measure their conduct against.
In support of his argument, Yeager relies on this court‘s holding in D‘Angelo v. Gardner, 107 Nev. 704, 819 P.2d 206 (1991). In D‘Angelo, the defendant, GEMCO, terminated D‘Angelo for selling outdated film at a discount pricе without permission. The GEMCO employees’ handbook contained a rule prohibiting unauthorized discounts to anyone without permission. The handbook also included a clause providing that any discharge for failing to do work as required had to be preceded by a written notice to the employee. D‘Angelo was dismissed without notice. In a letter to the labor commissioner, GEMCO stated, “As noted in the Handbook, which Mr. D‘Angelo has read and acknowledged understanding of, deviation from this rule is considered most serious by the company and proper cause for discharge.” Id. at 709, 819 P.2d at 210. This court held that there was a triable issue of fact beсause:
GEMCO‘s reference to the handbook, the proclaimed “understanding” of the parties relative to the handbook, and GEMCO‘s reference to a rule violation taken from the handbook as being the cause of D‘Angelo‘s dismissal, all tend to lead to the conclusion that the employment relationship was defined by the handbook and that both parties considered themselves bound by the handbook with reference to termination rights and processes.
While D‘Angelo stands for the proposition that, under certain circumstances, an employee handbook can be incorporated into the employment agreement, it is not dispositive of the instant case. Unlike D‘Angelo, Harrah‘s did not terminate Yeager for any of the twenty-three proscribed modes of conduct listed in the employee handbook. Instead, Yeager was dismissed because of corporate restructuring and because his duties duplicated those of another employee.
Yeager also relies on American Bank Stationery v. Farmer, 106 Nev. 698, 799 P.2d 1100 (1990). In Farmer, this court concluded that an employee handbook rebutted the presumption that Farmer was an at-will employee because the handbook specifically said that an employee could only be terminated for cause. Id. at 702, 799 P.2d at 1102. The instant case is easily distinguishable from
that an employee can only be terminated for cause. Moreover, in Farmer this court also stated: “We emphasize that this opinion does not stand for the proposition that an employee handbook explaining a company‘s policies regarding termination automatically transforms an at-will employee into an employee who may only be fired for cause. Such a holding could discourage companies from publishing such handbooks.” Id. at 703, 799 P.2d at 1102.
Finally, in D‘Angelo this court declared: “Just as there are cases in which handbooks and employment practices can be found to support an express or implied obligation of continued employment, so are there cases in which such an obligation is absent as a matter of law.” D‘Angelo, 107 Nev. at 710, 819 P.2d at 210. The instant case falls among the latter.
CONCLUSION
We conclude that nothing in the record, other than Yeager‘s own statements, substantiates the allegation that Yeager had a contract for continued employment. Likewise, Yeager‘s tort claims fail for lack of a contract for continued employment and because Harrah‘s did not commit any acts that offend Nevada‘s public policy. Accordingly, we affirm the district court‘s order of summary judgment.
STEFFEN, C. J., YOUNG and SHEARING, JJ., concur.
SPRINGER, J., dissenting:
It is the established employment law in this state that the at-will presumption may be rebutted by an employee‘s showing that “there wаs an express or implied contract between his employer and himself that his employer would fire him only for cause.” American Bank Stationery v. Farmer, 106 Nev. 698, 701, 799 P.2d 1100, 1102 (1990). Today this court places an unprecedented and unwarranted impediment in the way of wrongfully discharged employees who seek to enforce their contractual rights to continued employment. Employees who set out to prove the existence of express or implied contracts with their employers in the future will henceforth be put to an added burden of proof and must “supply some corroboration that a contract has been formed.”
The majority opinion places employment contracts into a category of their own and imposes special, added restrictions and requirements of proof upon workers. The majority does not, and cannot, give a reason why employment contracts should not be treated like any other contracts or why workers should have the added burden of furnishing corroboration in order to establish their contractual rights.
“[A]n employer may expressly or impliedly agree with an employee that employment is to be for an indefinite term and may be terminated only for cause . . . .” D‘Angelo v. Gardner, 107 Nev. 704, 712, 819 P.2d 206, 211 (1991). “We have called this a contract of ‘continued employment,’ a сontract which an employee can enforce in accordance with its terms.” Id. It used to be, before the filing of this opinion, that an employee, like any other contract litigant, could prove a case in contract simply by testifying under oath that a certain agreement had been entered into. Before this case was decided, workers were competent to take the witness stand and establish, on their own, without corroboration, their contractual rights, by testifying under oath that their employer had contracted with them that they would not be dismissed unless they failed in some way to perform the duties of employment. The trier of fact was free to accept or reject a worker‘s testimony on face value. Now things are different. Workers now go into a contract action against their employers at a considerable disadvantage—they must, unlike all other plaintiffs in contract actions, furnish corroboration of their own sworn testimony.
“The testimony of a witness is said to be corroborated when it is shown to correspond with the representation of some other witnesses, or to comport with some facts otherwise known or established.”1 Now, in order for a worker to prevail in an employment
Yeager was hired by Harrah‘s Club, Inc. almost thirty years
ago. He testified under oath that representations were made to him by corporation executives, at the time of his hiring, that his “employment would only be terminated for cause.”2 He also testified that at the time he was employed, it was the policy of Harrah‘s, instituted by then president of Harrah‘s, William Harrah, not to hire people on an “at-will” basis but, rather, as employees who would “only be terminated for cause.” He further testified that Harrah‘s had “agreed” and that it was “understood by the employees and by the management” that he was a “part of Harrah‘s that, unlike other casinos in town” had a “policy” which “provided that people who were hired at Harrah‘s casino were hired as career employees who would be retained and who would not be terminated except for specifically enumerated cause, pursuant to the policies set forth in Harrah‘s handbook.”
Yeager advances a very strong and coherent case for the existence of a contract of continued employment. In accordance with Harrah‘s employment policies at the time Yeager was employed, there was an exchange of promises between Harrah‘s management and Yeager that could be accepted by a fact finder as creating a contract of continued employment, a contract that protected Yeager from arbitrary dismissal and required that Harrah‘s dismiss him only if he “did something wrong to jeopardize” his job. (See footnote 2.)
I strongly disagree with the harsh and discriminatory “corroboration” rule that this court now imposes on workers who sue their employers in contract actions. Further, it is clear to me that, irrespective of the corroboration rule, Mr. Yeager has made out a prima facie case and is entitled to his day in court. I would reverse the summary judgment.
Given the wording of the employees’ handbook and the nature of Harrah‘s Club employment policies that were in place some thirty years ago, I consider it quite probable that a fact finder wоuld conclude that Yeager, and other employees hired at the time he was, were in fact hired under a contract of continued
employment under which they must be retained until they retired or violated their employment contract by misconduct or failure to perform their duties. Yeager categorically testified that, at the time he was hired, management promised him and continued to assure him that he was entitled to “lifetime employment.” Harrah‘s promised him that he would be employed until he retired or “unless [he] did something wrong
Nevada now becomes the only state in the nation that puts this burden on its employees. The majority concedes that this court is indeed “imposing special restrictions on an employee” who is asserting contractual rights against an employer but maintains that such “restrictions” are necessary in order to limit the employee‘s “unfettered right to sue.” Under today‘s ruling workers’ rights to sue are very much fettered by a newly-invented “restriction” that is not imposed on other contract claimants in civil contract suits. Workers have a new burden that other litigants do not have to carry. Workers who sue their employers in job-related matters are faced with a new “restriction” on their right to sue. Workers must bring with them to court something that other claimants need not bring; they must come equipped with some additional proof to show that they are not lying. If they do not or cannot provide this additiоnal proof, they are thrown out of court, as is Mr. Yeager today.3
Naturally, the majority provides us with no case authority4 for the proposition that employees should have a restricted or “fettered” right to sue on their employment contracts.
Notes
Q You didn‘t have an employment contract, did you?
A No. A written contract, no.
Q Did anyone promise you that you would have a job for a certain number of years?
A Rome Andriotti said several times to me that I‘d be at Harrah‘s until I retired . . . .
Q Other than saying that you had an opportunity to advance, did anyone tell you that you had lifetime employment?
A He did, Bill Harrah did, Bob Contois, Mert Smith, unless I did something wrong to jeopardize that, where I would be terminated if I stole, or something like that.
Q But did anyone promise that you would be there permanently?
The majority cites no case in which an employee‘s sworn narration of circumstances evidencing an employment contract must be rejected unless the employee can furnish corroboration to support his or her sworn testimony. The majority cites only casеs in which indefinite oral statements by employers were properly held to be insufficient to support the formation of a contract which would overcome the at-will presumption. For example, I have no quarrel with the proposition that “general assurances of an ongoing working relationship are not sufficiently definite so as to rebut the at-will presumption.” Evans v. GTE Health Systems, Inc., 857 P.2d 974, 977 (Utah Ct. App. 1993), aff‘d, 878 P.2d 1153 (Utah 1994). As I have stated in the previous note, I have no quarrel with Vancheri-type rulings in which it is held that mere, unilateral assurance will not support a contract of continued employment. These kinds of cases are far removed from the case at hand. Here the only thing that prevents Mr. Yeager from prevailing in his contract action is his innocent failure to present corroborative evidence during the summary judgment proceedings.A I considered that a promise, when—if you didn‘t get out of line and did your job.
Q Are there any documents that you rely on that you believe promised you lifetime employment?
A Possibly when I first came to work there in the original handbook, because it stаted that you had to do certain things to be terminated or you would have a lifetime career there and possibility of advancement.
PERSONNEL POLICY
All of us here [at Harrah‘s] are pledged to the following personnel program:
. . . .
2. Fair treatment for each member of the organization from his supervisors and his fellow workers.
3. Maximum security of employment for everyone whose work is satisfactory.
