Gatto v. St. Richard School, Inc.

• Decision Date: 19 August 2002
• Docket Number: No. 49A05-0201-CV-014.,49A05-0201-CV-014.
• Citation: 774 N.E.2d 914
• Parties: Cynthia GATTO, Appellant-Plaintiff, v. ST. RICHARD SCHOOL, INC., d/b/a St. Richard's School, St. Richard's School Foundation Board of Directors, David Peerless, Larry Wechter, Jan Wechter, Robert Greising, and Midge Greising, Appellees-Defendants.
• Court: Indiana Appellate Court

774 N.E.2d 914

Cynthia GATTO, Appellant-Plaintiff, v. ST. RICHARD SCHOOL, INC., d/b/a St. Richard's School, St. Richard's School Foundation Board of Directors, David Peerless, Larry Wechter, Jan Wechter, Robert Greising, and Midge Greising, Appellees-Defendants.

No. 49A05-0201-CV-014.

Court of Appeals of Indiana.

August 19, 2002.

Publication Ordered August 27, 2002.

Alan M. Hux, Kristina Keener Yeager, Kortepeter McPherson Hux Freihofer & Minton, Indianapolis, IN, Attorneys for Appellant.

Thomas E. Wheeler, II, Locke Reynolds LLP, Indianapolis, IN, Attorney for Appellees.

OPINION

BAKER, Judge.

Appellant-plaintiff Cynthia Gatto appeals the trial court's grant of summary judgment in favor of appellees-defendants St. Richard's School, Inc., d/b/a St. Richard's School, St. Richard's School Foundation Board of Directors, David Peerless, Larry Wechter, Jan Wechter, Robert Greising, and Midge Greising (collectively, St. Richard's). Determining that the trial court properly granted summary judgment and denied Gatto's claims of breach of contract, tortious interference with contract, and defamation, we affirm.¹

FACTS

The facts viewed in a light most favorable to Gatto indicate that St. Richard's is a private Episcopal school with students in grades kindergarten through eight. Peerless, Headmaster of St. Richard's, hired Gatto for the position of Middle School Head. At the time of her hiring on July 31, 1998, she signed a one-year contract for the 1998-99 school year. Gatto's responsibilities included disciplining students, insuring that the curriculum was administered properly, and attending after-school student events.

According to Gatto, in early October 1998, Peerless informed her that she was "brusque" with people. Appellant's App. p. 118. His comment was part of a brief discussion² about her job performance in which he also compared her to another St. Richard's employee who had a reputation for being "very brusque, very short, and very intimidating." Appellant's App. p. 118. A month after this brief discussion, Peerless received a letter from a parent complaining about Gatto's treatment of her son. She accused Gatto of being "arbitrary, self-righteous and willing to be untruthful to protect" herself. Appellees' App. p. 72. Gatto admitted having several altercations with this parent that seemed to "snowball," including a verbal confrontation in Gatto's office and hanging up on the parent during a phone conversation. Moreover, there was undisputed evidence of conflicts between Gatto and other parents and staff.

In March 1999, Peerless conducted a formal evaluation of Gatto's job performance. Along with reviewing her positive contributions to the school, Peerless cited job responsibilities in which Gatto needed to show improvement:

There have been a number of times when details have not been followed up on, or communicated by you, when necessary. Covering a detention supervision, telling me that you wanted me in a Student Council meeting, realizing the conflict between the NCAA and Kathleen's rehearsal are all examples. There are a great number of different events and issues that are interweaving or occurring at the same time. It is important that you find a way to manage all these. Perhaps noting them in an expanded schedule, referring regularly to a list are possible helps.

....

The two major growth areas that I want you to focus on are:

a. Keeping open to other people so that communication can be positive. You need to avoid conveying negative emotions or defensiveness that close[s] communication or escalate[s] a conflict. Be careful of the words that you use. Don't be too blunt.

b. Make sure that details don't get overlooked and all information and decisions are shared as needed in as timely a way as possible.

Appellees' App. p. 76-77. Two weeks after presenting Gatto with her evaluation, Peerless offered her a contract for the 1999-2000 school year, which she signed.

However, Gatto's handling of an extra-curricular activity in April 1999 spawned additional criticism of her job performance. It is undisputed that Gatto was responsible for insuring that an annual spring dance would be adequately chaperoned. Her task was made more difficult by the scheduling of a surprise party for Peerless on the same night. The dance included students from St. Richard's and other area middle school students. She arranged for her nineteen-year-old son, his girlfriend (18), a student's older sister (17), and the sister's boyfriend (18) to chaperone a dance where roughly eighty students from the sixth, seventh, and eighth grades were expected to attend.

Given that the school's neighborhood had been repeatedly vandalized over the years and the school itself had been broken into the day before, there were increased concerns about security for the dance. Although the sponsoring church of St. Richard's employs a security guard, the guard is stationed in the south parking lot and does not monitor the school or gym area unless asked to do so. According to Gatto, "I did not ask if there was a parent going to the dance. Nor did I check to see if there was security scheduled for the dance." Appellees' App. p. 84.

When parents arrived to bring their children to the dance, some became upset that no security was present and that no parents were acting as chaperones. Because of concerns about inadequate supervision, three parents decided to remain at the dance. When Gatto eventually arrived at the dance after the conclusion of the surprise party, an angry parent confronted her. Another parent who had remained at the dance later said that Gatto should be fired for the lack of supervision at the dance. Referring to the parent's wish that she be fired, Gatto admitted, "This was a good way to jump on the bandwagon. This was the only thing that I had done that would merit criticism like that." Appellees' App. p. 60.

On May 21, 1999, Peerless and St. Richard's Personnel Policy Committee met to discuss Gatto's job performance. Peerless had already decided that Gatto's employment should be terminated, and the committee concurred with his decision. A few days later Peerless met with Gatto to notify her of the termination, explaining that she was not a good fit for the school. In a letter dated May 26, Gatto challenged the decision and argued that she was not given any reasons for her termination.

To inform parents of five personnel changes for the upcoming school year— including Gatto's—Peerless and the president of the Board of Directors sent a two-page letter dated June 4. The only portion addressing Gatto's employment status read:

Mr. Peerless and the Personnel Policy Committee of the Board have decided that in the best interest of the Middle School program, Dr. Gatto should not return next year. This decision was the conclusion of a normal personnel process for these matters. The School's policy in evaluating any employee is to treat the details of such discussions in confidence.

Appellees' App. p. 120.

Within seven months of the letter, Gatto filed a three-count complaint alleging, in part, that St. Richard's breached her employment contract when it terminated her employment. Gatto also brought a claim for tortious interference with contract against Larry and Jan Wechter and against Robert and Midge Greising, parents of students who attended St. Richard's. Her third and final count alleged that the Board of Directors and the school defamed her by sending the June 4 letter to the school's parents. St. Richards responded by filing a motion for summary judgment, which the trial court ultimately granted on all counts. Gatto now appeals.

DISCUSSION AND DECISION

I. Standard of Review

The party appealing from a summary judgment decision has the burden of persuading the court that the grant or denial of summary judgment was erroneous. Owens Corning Fiberglass Corp. v. Cobb, 754 N.E.2d 905, 908 (Ind.2001). Summary judgment is appropriate only if the pleadings and evidence sanctioned by the trial court show that "there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Ind. Trial Rule 56(C). The review of a summary judgment motion is limited to those materials designated to the trial court. Ind. Trial Rule 56(H); Rosi v. Business Furniture Corp., 615 N.E.2d 431, 434 (Ind.1993). On a motion for summary judgment, all doubts as to the existence of material issues of fact must be resolved against the moving party. Owens Corning, 754 N.E.2d at 909.

II. Gatto's Claims

A. Breach of Contract

The essential elements of a breach of contract action are the existence of a contract, the defendant's breach thereof, and damages. Shumate v. Lycan, 675 N.E.2d 749, 753 (Ind.Ct.App.1997), trans. denied. Gatto argues that genuine issues of material fact exist regarding whether St. Richard's breached her employment contract by failing to comply with the process for termination. In Gatto's employment contract, the termination clause reads as follows:

RIGHT TO TERMINATE: This contract may be terminated by the School upon a determination by the School, in its sole discretion that a reasonable cause exists to terminate the contract. The Faculty Member will receive written notice of termination. Employee shall be paid through the effective date of termination.

Appellant's App. p. 20.

1. "Identity of the School"

She first contends that there is a genuine issue of material fact regarding the "identity of the `School'" within the meaning of the contract. Appellant's Br. p. 13. The contract specifically defines the "School" as St. Richard's School Foundation, Inc. Appellant's App. p. 20. According to Gatto, Peerless and the School are not "interchangeable," and, therefore, Peerless had no contractual authority to determine whether reasonable cause existed to terminate her. Appellant's Br. p. 14.

The undisputed facts, however, show that the school delegated to Peerless the authority to hire...