Lawson v. Haven Hubbard Homes, Inc.

• Decision Date: 19 March 1990
• Docket Number: No. 71A04-8811-CV-393,71A04-8811-CV-393
• Citation: 551 N.E.2d 855
• Parties: 5 IER Cases 285 Linda K. LAWSON, Appellant, v. HAVEN HUBBARD HOMES, INC., d/b/a Hamilton Grove, Appellee.
• Court: Indiana Appellate Court

Page 855

551 N.E.2d 855

5 IER Cases 285

Linda K. LAWSON, Appellant, v. HAVEN HUBBARD HOMES, INC., d/b/a Hamilton Grove, Appellee.

No. 71A04-8811-CV-393.

Court of Appeals of Indiana Fourth District.

March 19, 1990.

Stephen L. Eslinger, South Bend, for appellant.

Kathleen K. Brickley, Lynn C. Tyler, Barnes & Thornburg, South Bend, for appellee.

MILLER, Judge.

On January 2, 1985, plaintiff-appellant Linda Lawson sued her former employer, defendant-appellee Haven Hubbard Homes, Inc., d/b/a Hamilton Grove (Employer) for actual and punitive damages, claiming that, while she was still employed but on medical leave status, Employer terminated her employment in retaliation for her having filed for unemployment compensation benefits. Employer responded on March 1, 1985 by denying the material allegations of the complaint and requesting dismissal for failure to state a claim upon which relief could be granted. It was Employer's position that Frampton v. Central Indiana Gas Company (1973), 260 Ind. 249, 297 N.E.2d 425, which permitted an action for retaliatory discharge, was limited to a discharge following an employee's workmen's compensation claim, and, therefore, did not apply when, as here, a claim for unemployment compensation is filed. On March 14, 1986, Lawson filed a motion for partial summary judgment requesting that the court determine whether an employer is liable for retaliatory discharge when it fires an employee because she has filed a claim for unemployment compensation benefits. ¹ On April 1, 1986, Employer filed a cross-motion for summary judgment asserting that Indiana law does not recognize a cause of action in favor of a discharged at-will employee when the employee claims to have been discharged in retaliation for filing a claim for unemployment compensation benefits. After a hearing, the trial court denied Lawson's motion and granted summary judgment in favor of Employer. Lawson appeals this ruling raising the following issue for review:

Whether a discharged at-will employee has a cause of action for retaliatory discharge when the employee is terminated from her employment in retaliation for filing an unemployment compensation claim.

FACTS

On October 15, 1981, Lawson started working as a qualified medical assistant for Employer. On May 23, 1982, she was injured at work when she fell down a flight of steps in a poorly lit stairwell and, as a result of this injury, she was unable to work for several months and received workmen's compensation benefits through Employer. On August 2, 1982, a doctor hired by Employer's workmen's compensation insurance carrier released Lawson to return to work without any work restrictions. However, when Lawson attempted to return to work she was advised by her supervisor she could not do so until she secured a release from Dr. Carr, a chiropractor who had treated Linda. The record reveals Dr. Carr wrote a letter to Employer on June 21, 1982, indicating Lawson should not lift objects weighing more than twenty-five pounds for twelve to sixteen weeks, i.e., until the middle of October. Lawson contacted Employer several times during the next few months in an attempt to return to work but was consistently advised that she could not. It appears that during this time period Employer kept Lawson's employment on a medical leave status. When Lawson filed for unemployment compensation benefits Employer terminated her employment. On January 2, 1985, Lawson initiated this lawsuit alleging she had been discharged "in retaliation for having filed for unemployment compensation benefits, which is the exercise of a statutory right." (R. 10). After a year of discovery, Lawson filed a motion for partial summary judgment and Employer filed a cross-motion for summary judgment. It is important to note that at the summary judgment hearing on April 22, 1986, Employer admitted, for purposes of its cross-motion for summary judgment only, that it terminated Lawson's employment in retaliation for her having filed for unemployment compensation benefits. Employer argued that, even under these circumstances, Lawson did not have a cause of action for retaliatory discharge under Indiana law. After the hearing, the trial court denied Lawson's motion for partial summary judgment and granted Employer's motion for summary judgment issuing the following order:

[Lawson] by motion for summary judgment says that [Lawson], a former at will employee of [Employer], was discharged by [Employer] for seeking unemployment compensation.

[Employer] Hamilton Grove seeks summary judgment asserting that Indiana does not recognize a cause of action in an at will employee for retaliatory discharge for having claimed unemployment compensation and that, therefore, [Employer] is entitled to a judgment as a matter of law.

Indiana generally permits termination of at will employment at any time at the election of either party. The exception to this is the rule established by Frampton v. Central Indiana Gas Company, 297 N.E.2d 425 (Ind.1973) which has been specifically limited to discharge of at will workmen's compensation claimants exercising this statutory right. See Morgan Drive Away, Inc. v. Brant [ (1985) Ind.App.], 479 N.E.2d 1336, [ (1986), Ind.] 489 N.E.2d 933.

Collateral estoppel is not available to [Lawson] for the Indiana Employment Security Division did not specifically conclude that [Lawson's] discharge was due to [Lawson's] seeking unemployment compensation benefits. This Court under the collateral estoppel doctrine cannot speculate as to the reasons the first tribunal found as it did, (assuming that this is an administrative determination which is entitled to be considered in collateral estoppel matters).

There is no genuine issue of material fact in this case and [Employer] is entitled to judgment as a matter of law.

IT IS ORDERED:

1. [Lawson's] motion for partial summary judgment is denied.

2. [Employer's] motion for summary judgment is granted.

IT IS FURTHER ORDERED:

3. [Lawson] take nothing on her complaint herein.

October 13, 1986.

DECISION

As this appeal arises from the granting of a motion for summary judgment, our task is to determine whether there is a genuine issue of material fact and whether the law was correctly applied. McClanahan v. Remington Freight Lines (1988), Ind., 517 N.E.2d 390; Wilmington v. Harvest Ins. Companies (1988), Ind.App., 521 N.E.2d 953. In the case before us, the essential facts are not in dispute. Therefore, we must determine whether the law was correctly applied.

Generally, an employer may discharge an at will employee for any cause or no cause without incurring liability. Wilmington, supra. However, an exception to this doctrine was created in Frampton v. Central Indiana Gas Company (1973), 260 Ind. 249, 297 N.E.2d 425. In Frampton, our supreme court held that when an employee is discharged in retaliation for filing a workmen's compensation claim--a statutorily created right--an exception to the general rule is recognized and the employee has a cause of action for retaliatory discharge against the employer. Relying on Frampton, supra, Lawson claims she has a cause of action for retaliatory discharge because she was fired for exercising a statutory right, i.e., filing an unemployment compensation claim.

In Frampton, an employee brought an action against her former employer seeking actual and punitive damages for retaliatory discharge. The employee claimed her employer had fired her in retaliation for filing a workmen's compensation claim. The trial court dismissed the complaint for failing to state a claim upon which relief could be granted, pursuant to Ind.Trial Rule 12(B)(6), and the employee appealed. On appeal, our supreme court reversed holding that an employee who alleges he or she has been discharged in retaliation for filing a claim pursuant to the Indiana Workmen's Compensation Act or the Indiana Workmen's Occupational Diseases Act has stated a claim upon which relief can be granted. The court noted that under ordinary circumstances, an employee at will may be discharged without cause, "[h]owever, when employee is discharged solely for exercising a statutorily conferred right an exception to the general rule must be recognized." Id. 297 N.E.2d at 428. In reaching this conclusion the court noted:

The Act creates a duty in the employer to compensate employees for work-related injuries (through insurance) and a right in the employee to receive such compensation. But in order for the goals of the Act to be realized and for public policy to be effectuated, the employee must be able to exercise his right in an unfettered fashion without being subject to reprisal. If employers are permitted to penalize employees for filing workmen's compensation claims, a most important public policy will be undermined. The fear of being discharged would have a deleterious effect on the exercise of a statutory right. Employees will not file claims for justly deserved compensation--opting, instead, to continue their employment without incident. The end result, of course, is that the employer is effectively relieved of his obligation.

Id. (emphasis in original).

The court also noted that the Indiana Workmen's Compensation Act, IND.CODE Sec. 22-3-2-15, provides: "No contract or agreement, written or implied, no rule, regulation or other device shall, in any manner, operate to relieve any employer in whole or in part of any obligation created by this Act." Id. at 427-28. (Emphasis in original). The court held the threat of discharge to be a prohibited "device" within the meaning of I.C. Sec. 22-3-2-15.

Lawson contends the "statutory right exception" announced in Frampton, supra, should be applied in the present case. She claims she had the right to file for unemployment benefits when Employer refused to allow her to return to work and, when she exercised this statutory right, Employer terminated her employment. She notes the stated policy of the unemployment compensation system is...