Lingard v. Carolina By-Products

• Decision Date: 25 October 2004
• Docket Number: No. 3880.,3880.
• Citation: 605 S.E.2d 545,361 S.C. 442
• Parties: Herman LINGARD, Plaintiff, v. CAROLINA BY-PRODUCTS and Valley Proteins Company, Defendants, Randell Williams, Plaintiff, v. Carolina By-Products and Valley Proteins Company, Defendants, Of Whom Herman Lingard and Randell Williams are, Appellants, and Carolina By-Products is, Respondent.
• Court: South Carolina Court of Appeals

361 S.C. 442

605 S.E.2d 545

Herman LINGARD, Plaintiff, v. CAROLINA BY-PRODUCTS and Valley Proteins Company, Defendants, Randell Williams, Plaintiff, v. Carolina By-Products and Valley Proteins Company, Defendants, Of Whom Herman Lingard and Randell Williams are, Appellants, and Carolina By-Products is, Respondent.

No. 3880.

Court of Appeals of South Carolina.

Heard October 13, 2004.

Decided October 25, 2004.

Rehearing Denied December 16, 2004.

Chalmers C. Johnson, of Charleston, for Appellants.

G. Dana Sinkler, of Charleston, for Respondent.

ANDERSON, J.:

Two truck drivers, Herman Lingard and Randell Williams, were terminated after they were discovered at home rather than on their routes. Lingard and Williams brought suit against their employer on the basis of the progressive disciplinary policy found in their employee handbook. The circuit court determined the handbook did not constitute a contract, and even if it did, the employer fulfilled its obligations to the employees. We affirm.

FACTUAL/PROCEDURAL BACKGROUND

Herman Lingard and Randell Williams worked as truck drivers at the Branchville facility of Carolina By-Products, which is a division of Valley Proteins Company.

During their employment, Lingard and Williams received an employee handbook. They signed a written "Receipt of `Employee Handbook,'" which stated:

I ... understand that I may terminate my employment at any time, with or without cause, and that the Company may terminate me at any time, with or without cause and without liability. I know my employment here does not constitute a contract of employment between the Company and myself and that this manual is not a contract of employment.

The handbook addressed company rules and created a progressive disciplinary procedure. Different classes of behavior would result in different responses from management. The most serious, Group I, could result in immediate discharge.

Lingard and Williams drove grease trap trucks that went to various restaurant locations in the lowcountry and off-loaded the used grease. This was a difficult and dirty position that frequently required fifteen-hour workdays. At the start of the day, the drivers were required to go to the Branchville facility where their trucks were located. Once there, they clocked in. Next, if the grease on their truck had not been off-loaded the night before, they had to off-load the grease. Then, the drivers performed a pre-trip procedure. This involved checking the truck to see if it was in good mechanical condition and inspecting the hoses on the truck. Finally, they scaled out, or weighed their truck, and left to begin their route. When the drivers scaled out, a ticket with a scale out time was generated. When the drivers returned after a day of work, they weighed their truck, which again generated a ticket with a time of weighing.

During the course of the day, Lingard and Williams were allowed a total of one hour in breaks — designed to be taken as a thirty minute lunch break and two fifteen minute breaks. However, the drivers were not required to clock-out during these breaks or otherwise keep a record of the breaks taken.

Carolina By-Products was purchased by Valley Proteins. Subsequent to this sale, Richard Frank Miller became the general plant manager of the facility where Lingard and Williams worked. Melvin Mitchell served under Miller as Lingard and Williams' route supervisor. Because of a lack of productivity, a series of changes was made. These changes, including some impacting the drivers, did not lead to the desired increase in productivity.

Acting on a workplace rumor, Mitchell drove to the houses of Lingard and Williams during the morning on July 6, 2000. At approximately 6:45 a.m., the work trucks of both Lingard and Williams were parked in front of their houses. On this day, Lingard and Williams had weighed their trucks and left the Branchville location at 4:04 a.m. and 3:57 a.m., respectively. Mitchell did not immediately take action as he determined "[a]nything can happen once," and he wanted to give Lingard and Williams the benefit of the doubt.

On July 12, 2000, Mitchell and Miller drove to the houses of Lingard and Williams and again witnessed the work trucks parked at the employees' homes. Lingard and Williams had both clocked into work at 3:42 a.m. and weighed their trucks before leaving at 3:53 a.m. and 3:52 a.m., respectively. Mitchell and Miller photographed the trucks located in front of the houses of Lingard and Williams at 6:57 a.m. and 6:51 a.m., respectively. Mitchell testified he felt the power steering fluid reservoir on Williams' truck to determine how long it had been sitting there and, based on his experience with diesel trucks, determined because the reservoir was cool to the touch the truck had not been driven in an hour and forty minutes. He did not perform the same test on Lingard's truck because it was parked on Lingard's property and inaccessible.

On the afternoon of July 12, 2000, Lingard and Williams completed their routes and returned their trucks to the facility. Miller met with each separately and presented them with a notice of discharge. The notices were virtually identical, stating: "You are hereby discharged from Carolina By Products due to not following company rules Group I." The notices further explain, "[o]ur investigation showed the following: on two occassion [sic] Carolinas By Product Truck ... was sitting at your home. Not being at prescribe[d] location at time of incident. Giving false information." Neither Lingard nor Williams attempted to explain why they were at their houses rather than on their routes.

After their termination, both Lingard and Williams brought suit against Carolina By-Products and Valley Proteins Company for wrongful termination. The theory of the action was that the employee handbook created an employment contract, the employment contract included a progressive disciplinary policy, and their terminations violated that progressive disciplinary policy. The case went to trial. At the close of evidence, the circuit court granted a directed verdict. The directed verdict was based on the court's determination there was no employment contract, and even if a contract existed, the employer made a good faith decision it had grounds for termination.

STANDARD OF REVIEW

"In ruling on motions for directed verdict and JNOV, the trial court is required to view the evidence and the inferences that reasonably can be drawn therefrom in the light most favorable to the party opposing the motions and to deny the motions where either the evidence yields more than one inference or its inference is in doubt." Jinks v. Richland County, 355 S.C. 341, 345, 585 S.E.2d 281, 283 (2003). "The trial court can only be reversed by this Court when there is no evidence to support the ruling below." Id.

LAW/ANALYSIS

Lingard and Williams present two arguments on appeal. First, the circuit court erred in concluding the employee handbook did not represent an employment contract. Second, the circuit court erred in concluding their termination did not violate the promises of a progressive disciplinary policy. We agree enough evidence was presented to normally require the existence of a contract to be a jury question. However, in this case, the circuit court correctly determined there was a reasonable good faith belief that sufficient cause existed for termination. South Carolina recognizes the doctrine of at-will employment. Baril v. Aiken Reg'l Med. Ctrs., 352 S.C. 271, 573 S.E.2d 830 (Ct.App.2002). This doctrine provides that a contract for permanent employment is terminable at the pleasure of either party when unsupported by consideration other than the employer's duty to provide compensation in exchange for the employee's duty to perform a service or obligation. Id. However, in Small v. Springs Indus., Inc., 292 S.C. 481, 357 S.E.2d 452 (1987), our supreme court recognized that statements in employee handbooks could be strictly enforced against employers as contractual obligations. Id. at 485, 357 S.E.2d at 454-55. A contract of employment created by an employee handbook is a unilateral contract. See generally Miller v. Schmid Lab., Inc., 307 S.C. 140, 414 S.E.2d 126 (1992)

.

The Small decision seemed to suggest that a conspicuous disclaimer would prevent an alteration of the at-will employment status. Small, 292 S.C. at 485, 357 S.E.2d at 455. Yet, Fleming v. Borden, Inc., 316 S.C. 452, 450 S.E.2d 589 (1994), involved a handbook that contained a disclaimer and a claim that it was inconspicuous. Id. at 460, 450 S.E.2d at 594. In Fleming, the supreme court did not simply determine the conspicuousness of the disclaimer, but stated:

"[T]he disclaimer is merely one factor to consider in ascertaining whether the handbook as a whole conveys credible promises that should be enforced.... [T]he entire handbook, including any disclaimer, should be considered in determining whether the handbook gives rise to a promise, an expectation and a benefit."

Id. at 463-64, 450 S.E.2d at 596 (quoting Stephen F. Befort, Employee Handbooks and the Legal Effect of Disclaimers, 13 Industrial Relations L.J. 326, 375-76 (1991-92)).

When looking at the handbook to determine to what degree it gives rise to a promise, an expectation, and a benefit, the court must focus on the actual language of the employee handbook. The court should consider whether the promises are couched in permissive or mandatory language. See Conner v. City of Forest Acres, 348 S.C. 454, 560 S.E.2d 606 (2002)

; see also Jones v. General Elec. Co., 331 S.C. 351, 503 S.E.2d 173 (Ct.App.1998) (concerning a handbook containing both mandatory and permissive language, thus creating a jury issue); see generally Note, Conner v. City of Forest Acres: The End of the At-will Employment Era?, 54 S.C. L.Rev. 1113, 1128 (2003).

Examples of mandatory language from Conner include: "(1) violations of the Code of Conduct 'will be disciplined,' ...