Clark v. STATE, DEPT. OF HEALTH & WELFARE

• Decision Date: 21 July 2000
• Docket Number: No. 24928.,24928.
• Citation: 5 P.3d 988,134 Idaho 527
• Parties: Robin CLARK, Robert Bruce Doss and Bryan M. Johnson, Plaintiffs-Appellants, v. The STATE of Idaho, DEPARTMENT OF HEALTH AND WELFARE, Defendant-Respondent, and Daniel S. Dike aka Daniel Scott Bohdan Omelan Dytchkowskyj, in his individual capacity; and Dia Gainor, in her individual capacity; and Richard H. Schulz, in his individual capacity; and Linda L. Caballero, in her representative capacity as Director of Idaho Department of Health and Welfare and her successors, Defendants.
• Court: Idaho Supreme Court

5 P.3d 988

134 Idaho 527

Robin CLARK, Robert Bruce Doss and Bryan M. Johnson, Plaintiffs-Appellants, v. The STATE of Idaho, DEPARTMENT OF HEALTH AND WELFARE, Defendant-Respondent, and Daniel S. Dike aka Daniel Scott Bohdan Omelan Dytchkowskyj, in his individual capacity; and Dia Gainor, in her individual capacity; and Richard H. Schulz, in his individual capacity; and Linda L. Caballero, in her representative capacity as Director of Idaho Department of Health and Welfare and her successors, Defendants.

No. 24928.

Supreme Court of Idaho, Boise, January 2000 Term.

July 21, 2000.

Rehearing Denied July 21, 2000.

Garry L. Gilman, Boise, and William B. Latta, Boise, for appellants.

Hon. Alan G. Lance, Attorney General, Boise, for respondents. Ronald D. Christian argued.

SUBSTITUTE OPINION THE COURT'S PRIOR OPINION DATED APRIL 11, 2000 IS HEREBY WITHDRAWN

KIDWELL, Justice.

This appeal results from the district court's determination that even if the State of Idaho breached an employment understanding with the plaintiffs, the plaintiffs have no legal recourse because they were probationary state employees. We affirm the district court on different grounds.

I. FACTS AND PROCEDURAL HISTORY

Robin Clark, Robert Bruce Doss and Bryan M. Johnson (appellants) were all employed by the Idaho Statewide EMS Communications and Poison Control Center at St. Alphonsus Regional Medical Center. In 1994, the Center was taken over by the Idaho Department of Health and Welfare, Emergency Services Bureau. Prior to the transfer of the Center, Dia Gainor, Chief of the Emergency Services Bureau, contacted appellants with an offer to transfer their positions to state employment.

Appellants accepted the offer and began working for the State as full-time employees on July 1, 1994. With the benefit of only draft copies of their job descriptions, appellants accepted employment as classified probationary employees on July 29, 1994. Seven days later, on August 5, 1994, appellants were called to their supervisor's office where they were met by a uniformed police officer.

The officer escorted them to State Communications Manager Dan Dike's office, where they were met by Gainor and Dike. There, appellants were told their employment would be terminated if they did not exercise their right to resign. Afterwards, each appellant was put on administrative leave with pay. Because the appellants were deemed probationary employees, they were not given the reason for their terminations. After the police officer had escorted appellants to the parking lot, Communications Center management placed a notice on the bulletin board that appellants were not to be allowed on the premises and that the police should be called in the event appellants were seen on the premises.

In response to these actions, appellants filed grievances on August 19, 1994. They claimed that the State had failed to provide them with evaluations of their work performance and failed to provide them with an opportunity to respond to the evaluations. The State countered that appellants did not have the right to grieve their terminations because they were probationary employees.

Appellants did not resign and were terminated from state employment on August 22, 1994. The termination letters stated that "unsatisfactory performance" was the reason for the terminations. On August 23, 1994, the State filled out evaluations for each of the appellants. Appellants appealed to the Personnel Commission, where the hearing officer ultimately decided that because appellants were terminated during the probationary period they had no right to appeal their terminations.

On August 2, 1996, appellants brought suit against the State in district court. Relevant to this appeal, the complaint alleged that the State had breached the appellants' employment agreement by not providing job descriptions or evaluations prior to their terminations. Following the disposition of other claims, this issue came before the district court on cross-motions for summary judgment.

The district court released its decision and order on July 2, 1998. In granting the State's motion for summary judgment the district court held that appellants were not entitled to recover because they had failed to prove they were entitled to damages. The court also held that appellants could not maintain a breach of contract claim by arguing that they were fired without good cause because probationary employees "are basically terminable-at-will."

Appellants appealed the grant of summary judgment on the issues relating to their breach of contract claim.

II. STANDARD OF REVIEW

On appeal from the grant of a motion for summary judgment, this Court employs the same standard as used by the district court originally ruling on the motion. Scona Inc. v. Green Willow Trust, 133 Idaho 283, 286, 985 P.2d 1145, 1148 (1999). Summary judgment is proper "if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." I.R.C.P. 56(c). When both parties file motions for summary judgment relying on the same facts, issues, and theories, essentially the parties stipulate that there is no genuine issue of material fact that would preclude the entering of summary judgment by the Court. Lowder v. Minidoka Co. Joint Sch. Dist. No. 331, 132 Idaho 834, 837, 979 P.2d 1192, 1195 (1999). This Court exercises free review over the entire record which was before the district court to determine whether either side is entitled to judgment as a matter of law. Id.

III. ANALYSIS

A. The State Was Not Required To Provide Appellants With Performance Evaluations Prior To Terminating Their Employment.

Appellants claim that the district court erred in following the rule from Brigham v. Department of Health and Welfare, 106 Idaho 347, 679 P.2d 147 (1984), that even though the State breached employment contracts with appellants, that appellants have no remedy. The State claims that the holding of Brigham is erroneous because state employees are governed by the Personnel System Act, not by common law contract principles.¹

In order to resolve the issue, an examination of the Brigham decision is appropriate. Brigham was hired by State Hospital South as the director of maintenance and operations, even though he was not familiar with the type of boilers used at the hospital. Brigham, 106 Idaho at 349,679 P.2d at 149. During the hiring interview, Brigham was told that he would be "expected to operate in a different fashion than the former maintenance director." Id. at 350, 679 P.2d at 150. Brigham was told more than once that his job performance was not adequate, although he was never given a job description or a formal evaluation. Id. at 349, 679 P.2d at 149. After only four months on the job, Brigham was fired because his job performance was unsatisfactory. Id. After Brigham left state employment, his supervisor prepared an evaluation. Id.

When his administrative grievances through the Personnel Commission were denied, Brigham appealed to the district court. Following the district court's affirmance of the Personnel Commission's decision, Brigham appealed to this Court. Id.

After reviewing the statutory requirements of the Personnel System Act, the Court held that the State had breached its contract with Brigham by failing to provide him with a job description and an evaluation prior to his termination.² However, even though the Court found that the employment contract had been breached, it ruled that Brigham had no meaningful remedy. This determination was based on the fact that if Brigham was to be reinstated it would be as a probationary employee and he could again be fired on short notice. Id. at 351, 679 P.2d at 149. Furthermore, the Court ruled that Brigham was not entitled to damages or any other relief, beyond the one month's pay which he had already been awarded. Id.

In the present case, the State points out that since the time Brigham was released, the statutes relied upon by the Court in that case to determine probationary employee rights, have been amended.

When Brigham was decided, section 67-5309(i) of the Idaho Code provided for:

[A] rule establishing a probation period not to exceed a stipulated period of time, and for the appointing authority to notify the commission and the employee in writing prior to the expiration of the probationary period concerning satisfactory or unsatisfactory performance. Employees who during the probationary period are performing in an unsatisfactory manner my be asked to resign and, upon failure to submit such resignation, may be discharged without the right of appeal. The appointing authority must notify the commission and the employee in writing in order for the probationer to become a permanent employee.

I.C. § 67-5309(i) (1981) (superseded) (emphasis added).

The version of I.C. § 67-5309(i) in effect at the time this case arose provided in pertinent part:

[A]nd for the appointing authority to provide the employee and the commission a performance evaluation indicating satisfactory or unsatisfactory performance not later than thirty (30) days after the expiration of the probationary period. The rule shall provide that if the appointing authority fails to provide a performance evaluation within thirty (30) days after the expiration of the probationary period, the employee shall be deemed to have satisfactorily completed the probation.

(1993 Idaho Sess. Laws ch. 104 § 1) (emphasis added).

Thus, the statute relied upon by the Court in Brigham has been amended to allow a state employer to provide an employment evaluation after the probationary period has ended. This Court has ruled that "[w]hen a statute is amended it is presumed that the legislature intended the statute to have a meaning different from the meaning accorded the statute before amendment." Miller v. State (...