Huyett v. Idaho State University, 30119.

• Decision Date: 07 December 2004
• Docket Number: No. 30119.,30119.
• Citation: 104 P.3d 946,140 Idaho 904
• Parties: Shirley HUYETT and Ernie Huyett, Plaintiffs-Appellants, v. IDAHO STATE UNIVERSITY, Idaho State Board of Education, and Howard Gauthier, acting in his official capacity, Defendants-Respondents.
• Court: Idaho Supreme Court

104 P.3d 946

140 Idaho 904

Shirley HUYETT and Ernie Huyett, Plaintiffs-Appellants, v. IDAHO STATE UNIVERSITY, Idaho State Board of Education, and Howard Gauthier, acting in his official capacity, Defendants-Respondents.

No. 30119.

Supreme Court of Idaho, Idaho Falls, September 2004 Term.

December 7, 2004.

Steven V. Richert, Pocatello, for appellant.

Racine, Olson, Nye, Budge & Bailey, Chtd., Boise, for respondents. David E. Alexander argued.

SCHROEDER, Chief Justice.

Shirley Huyett was employed as a coach at Idaho State University. She claims that the University breached a three year employment contract. The University denies that a contract existed. The district court granted summary judgment in favor of ISU. Huyett appeals. The decision of the district court is affirmed.

I. BACKGROUND AND PRIOR PROCEEDINGS

Shirley Huyett (Huyett), was hired by Idaho State University acting through Howard Gauthier (ISU) to serve as head coach of the women's basketball team on June 29, 2001. On this day, Gauthier sent Huyett a letter setting forth terms relating to her one-year employment as head coach. Huyett returned a copy of this letter with her signed assent to the terms indicated in this letter. In a telephone call between Huyett and Gauthier later that day Huyett expressed her desire for a multi-year employment contract. Gauthier made vague references to the possibility of such a contract after Huyett had begun work at the university. Huyett began as head coach of the ISU women's basketball team in July of 2001. Shortly following her employment she was asked to sign a number of forms to complete her payroll paperwork with the university. One of these forms was listed as an "Employment Contract" and contained language indicating that Huyett's employment was subject to the terms and conditions of the Rules and Governing Policies of the Idaho State Board of Education. This document noted that Huyett's duties were subject to reassignment by the university at any time.

During Huyett's one-year employment term, negotiations for a multi-year contract took place between Huyett and ISU. ISU prepared a draft three-year employment contract in October of 2001. Prior to either party signing the contract, ISU rescinded the draft and placed Huyett on administrative leave. Huyett filed suit in district court alleging, among other things, breach of an express or implied contract for multi-year employment and a procedural due process violation based on deprivation of her liberty and property interests associated with continued employment. The district court granted ISU's motion for summary judgment, holding that the creation of a multi-year employment contract required prior approval by the Board of Education (Board) and that no such approval was given. The district court also determined that absent a multi-year contract for employment, Huyett did not have a protected liberty or property interest.

Huyett appealed, arguing that the district court erred in applying IDAPA Personnel Rule 08.01.02.103.02.c rather than a Board of Education policy provision to determine whether prior approval by the Board of Education was required to create a multi-year employment contract. She asserts this error led the court to improperly conclude no multi-year contract existed between the parties and that she did not have a liberty or property interest from which to assert due process claims.

II. STANDARD OF REVIEW

Review by the Supreme Court of an entry of summary judgment is the same as that required by the district court when ruling on the motion. Friel v. Boise City Hous. Auth., 126 Idaho 484, 485, 887 P.2d 29, 30 (1994). A district court determines a motion for summary judgment based on whether there are any genuine issues of material fact such that the moving party is entitled to judgment as a matter of law. I.R.C.P. 56(c)(2004). Id. In determining whether there are genuine issues of material fact the court reviews all evidence in the light most favorable to the non-moving party. I.R.C.P. 56(c); Smith v. Idaho State Univ. Fed. Credit Union, 114 Idaho 680, 684, 760 P.2d 19, 23 (1988). If the evidence shows no disputed issues of material fact, what remains is a question of law over which the appellate court exercises free review. Sacred Heart Med. Ctr. v. Boundary County, 138 Idaho 534, 535, 66 P.3d 238, 239 (2003). Summary judgment should be denied if the record contains conflicting inferences or where reasonable minds might reach different conclusions. Olson v. Idaho State Univ., 125 Idaho 177, 179, 868 P.2d 505, 507 (Ct.App.1994).

III. NO BINDING MULTI-YEAR CONTRACT WAS FORMED

A. Statute of Frauds

No written multi-year contract was signed by the parties. Idaho Code § 9-505 prevents the enforcement of a contract that cannot be performed in less than a year unless the contract is evidenced by a signed writing of the parties or there is an existing circumstance that removes the case from the application of the Statute of Frauds. I.C. § 9-505 (2004). ISU argues on appeal that a three-year contract cannot be performed within one year, and, as a consequence, any agreement for a three year contract is unenforceable. On its face that would appear to be the case. However, ISU did not plead the Statute of Frauds in the district court. Consequently, Huyett was not given the opportunity to present any facts or arguments that might avoid the effect of the Statute of Frauds, and the district court was not called upon to rule on this issue. Therefore, it is necessary to address the issues as presented to the district court.

B. ISU's Authority

For an agent to bind a principal to a third party in contract the agent must have actual or apparent authority. Podolan v. Idaho Legal Aid Servs., Inc., 123 Idaho 937, 944, 854 P.2d 280, 287 (Ct.App.1993). Actual authority may be either express or implied. Landvik by Landvik v. Herbert, 130 Idaho 54, 58, 936 P.2d 697, 701 (Ct.App.1997)

. Express authority occurs when a principal explicitly authorizes an agent to act on the principal's behalf. Implied authority derives from those actions necessary to accomplish an act expressly authorized. Id. Apparent authority occurs when a principal by words or actions voluntarily places an agent in such a position that an ordinary person of business prudence would believe the agent is acting pursuant to existing authority. Id. at 59, 936 P.2d 697. A court may make a finding of apparent authority to protect third parties but only where the third party was not on notice of the scope of the agent's actual authority. Thomson v. Sunny Ridge Vill. P'ship, 118 Idaho 330, 332, 796 P.2d 539, 541 (Ct.App.1990).

Idaho State Board of Education, Governing Policy and Procedures, section II, subsection H governs execution of multi-year employment contracts between universities and head coaches. The policy provides that:

The chief executive officer of an institution is authorized to enter into a contract for the services of a head coach or athletic director with that institution for a term of more than one (1) year, but not more than five (5) years, subject to the approval by the Board of the terms, conditions, and compensation thereunder....

Idaho State Board of Education, Governing Policy and Procedures, section II, subsection H, IDAPA Personnel Rule 08.01.02.103.02.c (repealed effective July 1, 2001)(emphasis added). IDAPA governed execution of multi-year employment contracts with non-classified employees of a university prior to its repeal. IDAPA Personnel Rule 08.01.02.103.02.c states that, "[n]o contract of employment with [non-tenured or non-classified employees] may exceed one (1) year without prior approval of the Board. Employment beyond the contract period may not be legally presumed." IDAPA.

IDAPA rules and regulations are traditionally afforded the same effect of law as statutes. Roeder Holdings, L.L.C. v. Bd. of Equalization of Ada County, 136 Idaho 809, 813, 41 P.3d 237, 241 (2001). The legal weight attributed to Board of Education policies has never been fully articulated. Statutory language is to be given its plain, obvious and rational meaning. Grand Canyon Dories v. Idaho State Tax Comm'n, 124 Idaho 1, 3, 855 P.2d 462, 463 (1993). Where two statutes apply to the same subject matter they are to be construed consistent with one another where possible, otherwise the more specific statute will govern. Id. at 3, 855 P.2d at 463; State v. Barnes, 133 Idaho 378, 382, 987 P.2d 290, 292 (1999).

Based on IDAPA and the Board Policy, the Board of Education is the principal in this case. The Board carries all the authority to authorize funding and approve all contracts for employment. Likewise, the university itself and its employees are agents of the Board.

At the time of Huyett's initial hire in June of 2001, IDAPA was the more specific and controlling rule over Huyett's contract. Based on the plain meaning of this rule, prior Board approval was required for ISU to have authority to enter into a multi-year employment contract with Huyett. In Leon v. Boise State Univ., 125 Idaho 365, 870 P.2d 1324 (1994), the Court held that an BSU professor's negotiations for tenure were controlled by IDAPA regulations. Leon, 125 Idaho at 369,870 P.2d at 1328. These regulations required prior Board approval for the professor's tenure contract to become effective. The Court of Appeals further held in Totman v. E. Idaho Technical Coll., 129 Idaho 714, 931 P.2d 1232 (Ct.App.1997), that a supervisor's representations to a teacher that she could not be terminated other than for cause, contrary to IDAPA regulations, was an unenforceable promise. Totman, 129 Idaho at 717-18,931 P.2d at 1235-36. Both Leon and Totman indicate that university employees are deemed to know IDAPA and its effect on their employment contracts. Similar to Leon and Totman, Huyett was deemed to know the law and effect of IDAPA over her negotiations for a multi-year employment contract with ISU. Because she is deemed to...