Johnson v. Kreiser's, Inc., 15908
| Court | Supreme Court of South Dakota |
| Citation | 433 N.W.2d 225,3 Indiv.Empl.Rts.Cas. 1767 |
| Docket Number | No. 15908,15908 |
| Parties | Philip L. JOHNSON, Plaintiff and Appellant, v. KREISER'S, INC., Keith Brown and Harold Larson, Defendants and Appellees. . Considered on Briefs |
| Decision Date | 25 March 1988 |
Page 225
v.
KREISER'S, INC., Keith Brown and Harold Larson, Defendants
and Appellees.
Decided Dec. 7, 1988.
John E. Burke, Sioux Falls, for plaintiff and appellant.
Thomas K. Wilka, Sioux Falls, for defendants and appellees; Rita D. Haverly, Sioux Falls, on brief.
HENDERSON, Justice.
Philip L. Johnson appeals from a judgment dismissing his complaint for failure to state a claim upon which relief can be granted. We reverse.
In his complaint, Johnson alleged the following facts: Johnson began working for Kreiser's, Inc. (Kreiser's) in 1979 as the company accountant. Along with his normal accounting duties, Johnson was responsible for properly charging to the corporate officers any personal bills paid by the corporation; these bills included personal expenses charged on the corporation credit card or at country clubs. According to Johnson, Harold Larson, the president and chairman of the board at Kreiser's, regularly converted corporation property to his own personal use. For years Larson picked up the corporation's mail at the post office on Saturdays and extracted checks sent by customers; Larson then cashed the checks for his own use and destroyed the customers' invoices. On one occasion Larson withdrew $1200 from a corporation savings account for his personal use, and he also told Johnson to transfer the titles of vehicles from the corporation to Larson. Beginning in 1986, Larson became critical of Johnson's actions in charging these and other expenses against Larson's personal account. On March 2, 1987, Keith Brown, the general manager at Kreiser's, terminated Johnson's employment with the consent and approval of Larson.
Johnson filed suit against Kreiser's, Larson, and Brown for wrongful termination. In his complaint, Johnson claimed he was discharged solely because he refused to allow Larson to convert corporation property to his own personal use. Johnson alleged that termination of his employment for this reason violates public policy and is contrary to law. Johnson did not allege the existence of any type of employment contract or any promise of employment for a specified term.
The defendants filed a motion to dismiss Johnson's complaint pursuant to SDCL 15-6-12(b)(5) (failure to state a claim upon which relief can be granted). They argued that under SDCL 60-4-4, Johnson's employment could be lawfully terminated at-will, thereby precluding a cause of action for wrongful termination. The trial court agreed and dismissed the complaint.
Did the trial court err in dismissing Johnson's complaint on the grounds that he failed to state a claim for wrongful termination?
For purposes of a motion pursuant to SDCL 15-6-12(b)(5), the complaint is to be construed in the light most favorable to the pleading party, facts "well pled" may be accepted as true, and doubts are resolved in favor of the pleader. Pleadings should not be dismissed merely because the court entertains doubts as to whether the pleader will prevail in the action, as this is a matter of proof, not pleadings. The rules of procedure favor the resolution of cases upon the merits by trial or summary judgment rather than on failed or inartful accusations. Janklow v. Viking Press, 378 N.W.2d 875 (S.D.1985).
Johnson concedes that he was an at-will employee. However, he argues that an at-will employee should have a remedy when he is discharged for refusal to participate in a corporate officer's fraudulent schemes. We agree.
Page 227
The employment at-will doctrine is clearly defined in South Dakota. "An employment having no specified term may be terminated at the will of either party ..." SDCL 60-4-4. In Osterkamp v. Alkota...
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Wholey v. Sears, 105
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Wholey v. Sears, 105
...180 (1974); Ludwick v. This Minute of Carolina, 803 A.2d 489 Inc., 287 S.C. 219, 337 S.E.2d 213, 216 (1985); Johnson v. Kreiser's, Inc., 433 N.W.2d 225, 227 (S.D.1988); Bowman v. State Bank of Keysville, 229 Va. 534, 331 S.E.2d 797, 801 (1985); Payne v. Rozendaal, 147 Vt. 488, 520 A.2d 586,......
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Martin Marietta Corp. v. Lorenz, 90SC583
...of cause of action); Ludwick v. This Minute of Carolina, Inc., 287 S.C. 219, 337 S.E.2d 213 (1985); Johnson v. Kreiser's, Inc., 433 N.W.2d 225 (S.D.1988); Sabine Pilot Service, Inc. v. Hauck, 687 S.W.2d 733 (Tex.1985); University Computing Co. v. Olsen, 677 S.W.2d 445 (Tenn.1984); Bowman v.......
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Tiernan v. Charleston Area Medical Center, 24434.
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