Arnold v. B.J. Titan Services Co.

• Decision Date: 09 November 1989
• Docket Number: No. 880117,880117
• Citation: 783 P.2d 541
• Parties: 113 Lab.Cas. P 56,142, 4 IER Cases 1694 Raymond K. ARNOLD, Plaintiff and Appellant, v. B.J. TITAN SERVICES COMPANY, and Hughes Tool Company, Defendant and Appellee.
• Court: Utah Supreme Court

Page 541

783 P.2d 541

113 Lab.Cas. P 56,142, 4 IER Cases 1694

Raymond K. ARNOLD, Plaintiff and Appellant, v. B.J. TITAN SERVICES COMPANY, and Hughes Tool Company,

Defendant and Appellee.

No. 880117.

Supreme Court of Utah.

Nov. 9, 1989.

Roland Uresk, Machelle Fitzgerald, Roosevelt, for plaintiff and appellant.

Clark Allred, Vernal, for defendant and appellee.

PER CURIAM:

Plaintiff Raymond K. Arnold sued B.J. Titan Services, his former employer, after he was terminated from his employment without prior written warning. Plaintiff pleaded in the alternative that he was discharged without cause and was therefore entitled to severance pay or, if he was discharged for cause, that his employer had failed to comply with its own operating manual which defined procedures to be followed in disciplining and terminating employees.

After trial to the bench, the trial court found in pertinent part that Arnold was terminated for cause; that the operating manual which defined the procedures mentioned was in effect at the time Arnold was terminated; that in terminating Arnold, B.J. Titan failed to follow those procedures and there was no justification for its noncompliance with the operating manual; but that there was no mutual assent or additional requisite consideration between Arnold and B.J. Titan regarding the procedures set forth in the operating manual. Based upon those findings, the trial court concluded that Arnold was an employee-at-will; that there was no employment contract between him and B.J. Titan regarding length of employment; that there was no mutual assent or additional consideration to make the operating manual a part of the contract, and that Arnold was therefore not protected by its provisions. The trial court further concluded that under present Utah law, an employee-at-will may be terminated at the will of the employer. The trial court entered its order dismissing Arnold's complaint for no cause of action.

Arnold appeals, stating that the trial court's findings and conclusions are in conflict with this Court's decision in Berube v. Fashion Centre, Ltd., 771 P.2d 1033 (Utah 1989). ¹ We agree. Berube, Caldwell v. Ford, Bacon & Davis Utah, 777 P.2d 483 (Utah 1989), and Lowe v. Sorenson Research Co., Inc., 779 P.2d 668 (Utah 1989), are dispositive on the issue before us, and we therefore reverse the trial court's ruling. Because our reversal is bottomed on the law, we sketch the facts from the evidence supporting the trial court's findings.

Arnold was employed in 1975 and was promoted to production manager of B.J. Titan's Roosevelt bulk plant in 1980, a position he held until he was terminated in 1986. During those years, B.J. Titan was formed after several mergers out of Hughes Tool Co. and Byron Jackson, Inc. B.J. Titan continued in effect the operating manual which spelled out procedures for disciplining and terminating employees and which had been promulgated by one of its predecessors in interest. Arnold himself followed those same procedures with people under his supervision. B.J. Titan experienced economic setbacks and substantially reduced its work force in 1985 and 1986. Arnold's last annual evaluation about a year before his termination praised his good record on equipment failures and low maintenance costs. It also suggested continuation of shop and yard appearance cleanup.

At trial, Arnold's supervisor read from the manual on problem solving and discipline procedures, which the trial court found in full force and effect at Arnold's termination. The relevant sections provide as follows:

Oral Reprimand

When correction or instruction has failed, and a well-known rule has been violated, or any other situation has developed that necessitates stringent disciplinary action, the supervisor will then take the proper steps to initiate the oral reprimand. In taking this reprimand action, the supervisor will, after obtaining all the facts of the case, talk privately with the employee and indicate the seriousness of the situation. He will be firm and positive as to further possible action in the event of recurrence. The supervisor will be constructive and show the employee how to improve. Depending on the seriousness of the situation, the supervisor will determine the number of oral reprimands necessary and may, if in his opinion the circumstances warrant forward to the Personnel Department a written statement of the facts of the meeting(s) for inclusion in the employee's personnel file.

Written Reprimand

When one or more oral reprimands have failed to correct the situation, or when the initial action of the employee is of such serious consequence, the supervisor will then initiate the written reprimand.

This written document will be prepared by the immediate supervisor and will be discussed with his superior, prior to discussing it with the employee. It will contain a complete summary of the entire situation, showing all the facts related to the case and previous supervisory actions taken in the matter.

The supervisor will then privately discuss the written reprimand with the employee. He will point out to the employee the extreme seriousness of the situation and, at the same time, make every effort to assist the employee at the conclusion of the interview.

The reprimand will be forwarded to the Personnel Department where it will be included in the employee's personnel file.

Discharge

When the offense warrants immediate severe disciplinary action or the progressive disciplinary steps outlined above have failed to correct the situation the employee is subject to discharge. Prior to discharging an employee the immediate supervisor must discuss the matter fully with his superior and...