Cunningham v. Anderson Cnty.

Citation741 S.E.2d 545,402 S.C. 434
Decision Date18 April 2013
Docket NumberNo. 5072.,5072.
PartiesMichael CUNNINGHAM, Appellant, v. ANDERSON COUNTY, Respondent. Appellate Case No. 2011–194209.
CourtCourt of Appeals of South Carolina

OPINION TEXT STARTS HERE

John S. Nichols, of Bluestein, Nichols, Thompson & Delgado, LLC, of Columbia, and Brian P. Murphy, of Brian Murphy Law Firm, PC, of Greenville, for Appellant.

William W. Wilkins and Kirsten E. Small, of Nexsen Pruet, LLC, of Greenville, and Tanya A. Gee, of Nexsen Pruet, LLC, of Columbia, for Respondent.

Michael E. Kozlarek and Ray E. Jones, of Parker Poe Adams & Bernstein, LLP, of Columbia, for Amicus Curiae South Carolina City and County Management Association.

GEATHERS, J.

In this breach of contract case, Appellant Michael Cunningham seeks review of the circuit court's order granting summary judgment to Respondent Anderson County (the County) on all of Cunningham's causes of action. Cunningham challenges the circuit court's conclusion that his employment contract with the County was void. Cunningham also challenges the circuit court's conclusions that (1) he could not avail himself of the public policy exception to the at-will employment doctrine, and (2) his accrued sick leave did not constitute “wages” under the South Carolina Payment of Wages Act. 1 We affirm in part, reverse in part, and remand.

FACTS/PROCEDURAL HISTORY

The County operates under a Council–Administrator form of government, in which the Council employs an administrator to serve as the administrative head of the County's government. The administrator is responsible for the administration of all departments over which the Council has control.2 The Council's members are elected for two-year, non-staggered terms.3 Three of the Council's seven members were not reelected in the November 4, 2008 general election.4

During its November 18, 2008 meeting, the lame-duck Council (the 2008 Council) amended the previously-noticed agenda to vote on a severance contract with the then-current administrator, Joey Preston. This contract was drafted in anticipation of the termination of his employment. The 2008 Council voted 5–2 in favor of the contract.5 During the same meeting, the 2008 Council voted 5–2 in favor of a “Master Employment Agreement” appointing Cunningham, then the assistant administrator, as the new administrator for a three-year term.6 On November 19, 2008, Cunningham signed the contract, which provided for a severance package in the event he was later terminated “without cause.”

On January 6, 2009, the new Council (2009 Council) met and passed a resolution condemning the 2008 Council's actions in entering into the severance contract with Joey Preston and entering into the employment contract with Cunningham.7 Subsequently, the 2009 Council's ad hoc personnel committee presented Cunningham with a written at-will employment contract based on the position of the 2009 Council that Cunningham's November 19, 2008 employment contract was no longer valid.8 After reviewing the new contract, Cunningham wrote a letter to the members of the 2009 Council, dated January 27, 2009, stating that he saw no need to sign a contract for at-will employment as the 2009 Council already viewed his employment as at-will.

At its February 3, 2009 meeting, the 2009 Council voted to terminate Cunningham's employment, stating that he had rejected the 2009 Council's two separate proposals for an at-will employment contract.9 On February 9, the ad hoc personnel committee met with Cunningham in executive session to discuss his employment. Cunningham offered to “enter into an agreement through the end of the term of the [2009] [C]ouncil.” At Cunningham's request, the 2009 Council conducted a public hearing on March 2, 2009 concerning his termination. At the conclusion of the hearing, the 2009 Council once again voted to remove Cunningham from his position as Administrator.

Cunningham filed this action on April 22, 2009, asserting causes of action for Breach of Contract, Wrongful Discharge, and violation of the Payment of Wages Act. The parties engaged in discovery on the breach of contract claim but agreed to postpone discovery on the wrongful discharge claim until after the contract claim had been resolved. Subsequently, Cunningham filed a motion for summary judgment as to the breach of contract claim. The County filed a cross-motion for summary judgment as to all three causes of action in Cunningham's complaint. Cunningham then filed a second motion for summary judgment as to his claim under the Payment of Wages Act. The circuit court denied Cunningham's summary judgment motions and granted the County's summary judgment motion.

In granting the County's summary judgment motion, the circuit court concluded that Cunningham's 2008 contract was void and could not bind the 2009 Council. The circuit court also concluded that Cunningham's claim for accrued sick leave was not compensable under the Payment of Wages Act because (1) the County did not have a policy of compensating its at-will employees for accrued sick leave upon their termination; (2) the provision for sick leave in Cunningham's contract was part of a void contract; and (3) the sick leave provision was part of the severance package set forth in the contract, and the Payment of Wages Act excludes severance from the definition of “wages.” Finally, the circuit court concluded Cunningham could not avail himself of the public policy exception to the at-will employment doctrine in support of his wrongful discharge claim because he did not claim that he was an at-will employee. This appeal followed.

ISSUES ON APPEAL

1. Did the circuit court err in granting summary judgment to the County as to the breach of contract cause of action on the ground that Cunningham's employment contract was void?

2. Did the circuit court err in granting summary judgment to the County as to Cunningham's cause of action for violation of the South Carolina Payment of Wages Act on the ground that Cunningham's accrued sick leave did not constitute “wages” under the Act?

3. Did the circuit court err in granting summary judgment to the County as to Cunningham's wrongful discharge cause of action on the ground that Cunningham did not claim he was an at-will employee?

STANDARD OF REVIEW

This court reviews the grant of a summary judgment motion under the same standard applied by the trial court pursuant to Rule 56(c), SCRCP. Jackson v. Bermuda Sands, Inc., 383 S.C. 11, 14 n. 2, 677 S.E.2d 612, 614 n. 2 (Ct.App.2009). Rule 56(c), SCRCP, provides that summary judgment shall be granted when “the pleadings, depositions, answers to interrogatories, 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.” “At the summary judgment stage of litigation, the court does not weigh conflicting evidence with respect to a disputed material fact.” S.C. Prop. & Cas. Guar. Ass'n v. Yensen, 345 S.C. 512, 518, 548 S.E.2d 880, 883 (Ct.App.2001). Rather, [t]he purpose of summary judgment is to expedite the disposition of cases not requiring the services of a fact finder.” Matsell v. Crowfield Plantation Comm. Servs. Ass'n, Inc., 393 S.C. 65, 70, 710 S.E.2d 90, 93 (Ct.App.2011) (citing George v. Fabri, 345 S.C. 440, 452, 548 S.E.2d 868, 874 (2001)).

An adverse party may not rely on the mere allegations in his pleadings to withstand a summary judgment motion, but must set forth specific facts showing there is a genuine issue for trial. Strickland v. Madden, 323 S.C. 63, 68, 448 S.E.2d 581, 584 (Ct.App.1994). Nonetheless, “in cases applying the preponderance of the evidence burden of proof, the non-moving party is only required to submit a mere scintilla of evidence in order to withstand a motion for summary judgment.” Hancock v. Mid–S. Mgmt. Co., 381 S.C. 326, 330, 673 S.E.2d 801, 803 (2009). “In determining whether any triable issues of fact exist, the evidence and all inferences which can be reasonably drawn from the evidence must be viewed in the light most favorable to the nonmoving party.” Id. at 329–30, 673 S.E.2d at 802.

LAW/ANALYSIS
I. Breach of Contract

Cunningham asserts the circuit court erred in concluding that his employment contract was void. We disagree.

In Piedmont Public Service District v. Cowart, this court considered a twenty-year employment contract between a special purpose district and its administrator that required five years' severance pay. 319 S.C. 124, 459 S.E.2d 876 (Ct.App.1995)( Cowart I ),aff'd,324 S.C. 239, 478 S.E.2d 836 (1996)( Cowart II ). Relying on Newman v. McCullough, 212 S.C. 17, 46 S.E.2d 252 (1948), which involved an employment contract with the City of Greenville, the court held that the contract involved the “governmental or legislative powers” of the District, and, therefore, could not be binding on successor boards.10Id. at 133, 459 S.E.2d at 881. In applying the law of municipalities to the District, the court acknowledged that public service or special purpose districts are “not necessarily equivalent to municipalities or municipal corporations for all purposes.” Id. at 131 n. 2, 459 S.E.2d at 880 n. 2 (citation omitted). However, the court noted “for the purpose of determining the scope of the District's power to enter into contracts, the law governing municipal corporations is applicable.” Id. (citations omitted); see also City of Beaufort v. Beaufort–Jasper Cnty. Water & Sewer Auth., 325 S.C. 174, 178–79, 480 S.E.2d 728, 731 (1997) (applying Cowart I to Beaufort–Jasper County Water and Sewer Authority, a special purpose district).

In discussing contracts involving governmental or legislative powers, the opinions in Cowart I and Cowart II referenced not only municipalities but also “each governing body” and “the local governing body.” Cowart II, 324 S.C. at...

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2 cases
  • W. Anderson Water Dist. v. City of Anderson
    • United States
    • South Carolina Court of Appeals
    • June 15, 2016
    ... ... We disagree. In Cunningham v. Anderson County , this court discussed the test for determining the validity of long-term governmental contracts: If the term of the contract in ... ...
  • Cunningham v. Anderson Cnty.
    • United States
    • South Carolina Supreme Court
    • September 2, 2015

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