Bates v. Jim Walter Resources, Inc.

• Decision Date: 27 August 1982
• Citation: 418 So.2d 903
• Parties: 115 L.R.R.M. (BNA) 4027 Joann BATES v. JIM WALTER RESOURCES, INC. 81-586.
• Court: Alabama Supreme Court

Page 903

418 So.2d 903

115 L.R.R.M. (BNA) 4027

Joann BATES v. JIM WALTER RESOURCES, INC.

81-586.

Supreme Court of Alabama.

Aug. 27, 1982.

Jack Drake of Drake, Knowles & Pierce, Tuscaloosa, for appellant.

Stephen E. Brown of Bradley, Arant, Rose & White, Birmingham, for appellee.

FAULKNER, Justice.

Plaintiff, Joann Bates, appeals from a summary judgment granted in favor of defendant, Jim Walter Resources, Inc. (JWR), for breach of an oral employment contract. As found by the trial court, the substantive and material facts in the present case are entirely undisputed. Bates was offered and accepted a job with JWR in January, 1981. The alleged employment contract between Bates and JWR was oral and specified no particular term, period, or duration of employment. Bates quit her job as a dental hygienist following her acceptance of the job with JWR, but before February 2, 1981, her scheduled employment date with JWR. Prior to February 2, 1981, Bates, along with other new hirees, was informed that her scheduled employment date with JWR would be delayed until February 9, 1981, due to the fact that the required mine training class had not been filled.

On February 4, 1981, between the time that Bates quit her job as a dental hygienist and her newly scheduled date of employment with JWR, economic conditions caused JWR to institute an austerity program, which included a hiring freeze. Prior to her scheduled date of employment with JWR, Bates, along with other new hirees, was notified of the hiring freeze and of the fact that her scheduled employment with JWR was being terminated as a result thereof.

On September 23, 1981, in the Circuit Court of Tuscaloosa County, Bates filed her complaint against JWR, seeking monetary damages for breach of contract. In its answer, JWR, among other defenses, denied that any binding contract existed between Bates and JWR, and in the alternative, affirmatively stated that to the extent any employment contract existed between Bates and JWR, that contract was terminable at the will of either party.

Following the taking of depositions, both parties moved for summary judgment, alleging that no dispute existed as to the material facts in this cause and that a judgment was appropriate as a matter of law. The Circuit Court of Tuscaloosa County granted JWR's motion for summary judgment. We affirm.

Two issues are raised on appeal:

(1) Whether the principle of promissory or equitable estoppel creates a contract between Bates and JWR, which JWR breached by terminating or delaying Bates's employment prior to her scheduled employment date;

(2) Whether the employment at will doctrine applies to the present cause.

We will address the issue of promissory estoppel first. Bates contends that the principle of promissory or equitable estoppel creates a binding contract between Bates and JWR which JWR breached by terminating Bates's employment. In this cause, it is undisputed that no representations and/or promises whatsoever were made to Bates regarding the term, duration or length of employment. Thus, although equitable estoppel might transform an otherwise non-binding agreement into a legally binding contract, this Court has held that the principle of promissory or equitable estoppel cannot be utilized to create primary contractual liability where none would otherwise exist. Equitable Life Assur. Soc. v. Langford, 234 Ala. 681, 176 So. 609 (1937); Home Ins. Co. of N.Y. v. Campbell Motor Co., 227 Ala. 499, 150 So. 486 (1933); Gordon v. Old Republic Life Ins. Co., 354 So.2d 13 (Ala.Civ.App.1977). Likewise, in Ivey v. Dixon Investment Co., 283 Ala. 590, 219 So.2d 639 (1969), this Court stated, "[A]n estoppel cannot operate to create binding effect against a party under circumstances which would not sustain a contract if one had been made" (283 Ala. at 594, 219 So.2d 639). If there was no contract out of which a cause of action could arise, one may not by the theory of waiver or estoppel be prevented from so pleading. St. Paul Fire and Marine Ins. Co. v. Air Comfort Engineers, Inc., 47 Ala.App. 301, 253 So.2d 525 (1971). Therefore, the trial court was clearly correct in holding that the principle of equitable estoppel could not be utilized in the present case to create a term, period, or duration in the alleged employment contract between Bates and JWR where it was undisputed that the alleged agreement between the parties contained no such term, period, or duration.

The second issue on appeal concerns whether the employment at will doctrine is applicable to this case. An oral employment contract that neither includes, nor specifies, any particular term, length, or duration of employment is considered an employment at will contract. Scott v. Lane, 409 So.2d 791 (Ala.1982). This Court has consistently held that employment contracts without a fixed term of employment are terminable at the will of either party and may be terminated for good cause, bad cause, or no cause at all. See, e.g., Hinrichs v. Tranquilaire Hospital, 352 So.2d 1130 (Ala.1977); Martin v. Tapley, 360 So.2d 708 (Ala.1978); Bender Ship...