Prescott v. Farmers Telephone Co-op., Inc.

Citation328 S.C. 379,491 S.E.2d 698
Decision Date03 June 1997
Docket NumberNo. 2714,2714
PartiesDavid M. PRESCOTT, Appellant, v. FARMERS TELEPHONE COOPERATIVE, INC., Respondent. . Heard
CourtCourt of Appeals of South Carolina

J. Edward Bell, III, of Bell & Moore, Sumter, for appellant.

William E. DuRant, Jr., and Michael M. Jordan, both of Schwartz, McLeod, DuRant & Burchstead, Sumter, for respondent.

CURETON, Judge:

In this action, Prescott sued his former employer, Farmer's Telephone Cooperative, Inc. (FTC), for unlawful termination. Prescott appeals from the grant of summary judgment to FTC on five of his six causes of action. We affirm in part, reverse in part and remand.

I. FACTS

Prescott began working for FTC in 1972 as an inexperienced lineman. Over the years, Prescott was promoted through a number of different jobs until he became a splicer. Prescott testified without contradiction that three supervisors repeatedly told him during the period of his employment that "[a]s long as you did your job [and] kept your nose clean, you'd have a job right on." Prescott also believed the employee handbooks contained this promise as well. 1 Prescott testified he interpreted "keeping your nose clean" to mean "don't go out there and get into trouble and do things you're not supposed to be doing," both at and outside of work.

In 1992, Prescott was assigned to work on a project near Bishopville in Lee County. After the Bishopville job was completed, Prescott was temporarily transferred to work under supervisor Ronnie Joye at the "Cain's Mill" or Pocalla jobsite. During the job, some of Prescott's co-workers reported that a section of spare cable was missing from where they had left it. A company official named Joe McCants then contacted Prescott and asked him to put his spare cable into the company's scrap bin. Prescott testified he did so, and also threw away a quantity of insulating sheath that had come off some of the cable.

A few days later, FTC officials commenced an investigation due to missing cable from both the Bishopville and Pocalla job sites. The officials evidently used "sequency markers" printed on the side of the cable to determine that some of Prescott's spare cable was missing from the scrap bin. District Manager Dent Adams then questioned Prescott, and suspended him pending an investigation. A week later, company officials called Prescott to a meeting and informed him they were terminating him for "lying." Pursuant to instruction, Prescott appealed the decision progressively through company officials until the General Manager affirmed the decision.

Prescott denied taking any cable, and testified that the cable was in the scrap bin for at least a week before Adams questioned him about it. He stated that it was common practice for splicers who needed odd pieces of cable to get them from the scrap bin. Further, while three of Prescott's co-workers did admit to stealing cable from the Bishopville jobsite, they did not implicate Prescott. Finally, Prescott also testified that a contractor refused to hire him after FTC told the contractor that it would rather Prescott not be hired for any jobs involving FTC.

Prescott filed suit, alleging breach of employment agreement, breach of the implied duty of good faith and fair dealing, defamation, intentional interference with economic relationship, promissory estoppel, and sought specific performance of his employment contract. On a motion for reconsideration, the trial court granted summary judgment to FTC on all claims except the defamation claim. Prescott appeals.

II. SUMMARY JUDGMENT

Summary judgment is appropriate if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Cafe Assocs., Ltd. v. Gerngross, 305 S.C. 6, 406 S.E.2d 162 (1991). In ruling on a motion for summary judgment, the evidence and the inferences should be viewed in the light most favorable to the nonmoving party. Id.

III. BREACH OF CONTRACT

Prescott first contends the trial court erred in granting summary judgment because material questions of fact exist as to whether FTC breached an employment contract. Prescott points to both the provisions in the employee handbook and the oral representations from his supervisors as altering at-will employment status. The trial judge ruled that the provisions in the handbook did not create an employment contract because they neither addressed duration of employment nor termination. The trial judge further ruled the oral assurances did not set a definite duration for employment so as to alter Prescott's indefinite at-will employment.

We affirm the trial court's ruling as to the handbook because we can discern no evidence that FTC breached any of its provisions, even assuming the handbook altered at-will status and created an employment contract. We reverse the grant of summary judgment on breach of contract, however, because a genuine issue of material fact exists as to whether FTC's oral statements altered Prescott's at-will status to employment that could only be terminated for cause.

A. General Law

A contract for permanent employment of indefinite duration, which is unsupported by any other consideration than the respective obligations to perform services and pay wages, is terminable at the will of either party. Satterfield v. Lockheed Missiles and Space Co., 617 F.Supp. 1359 (D.S.C.1985) (citing various South Carolina cases). Employment at will results from agreements which have "no additional expression of duration." Id. (citing Orsini v. Trojan Steel Corp., 219 S.C. 272, 64 S.E.2d 878 (1951)). Of course, at-will employment may be terminated at any time, for any reason, or for no reason at all. Satterfield, 617 F.Supp. at 1361 (citing various South Carolina cases).

However, an employer may modify its workers' at-will status through written handbooks and oral assurances. See, e.g. Small v. Springs Indus., Inc., 292 S.C. 481, 357 S.E.2d 452 (1987) (Small I). While an employer may insert a conspicuous disclaimer into a handbook which states that the policies contained within will not alter at-will status, an employer may not publish a policy with mandatory language, orally assure the employees that the policy will be followed, and then treat the promise as illusory. Id. See also Kumpf v. United Tel. Co., 311 S.C. 533, 429 S.E.2d 869 (Ct.App.1993). The question is for the fact finder if a handbook and other evidence creates conflicting inferences as to whether the employer altered the employee's at-will status. Small I, 292 S.C. at 483, 357 S.E.2d at 454; Kumpf, 311 S.C. at 536, 429 S.E.2d at 871.

B. Employee Handbook

In most of the South Carolina cases that have dealt with issues similar to those before us, our appellate courts have been faced with handbooks creating a multi-step termination procedure, coupled with mandatory written language and oral assurances that the policy would be followed. For example, in King v. PYA/Monarch, Inc., 317 S.C. 385, 453 S.E.2d 885 (1995), the court affirmed a master's finding that the employer breached an employment contract by failing to follow the handbook's procedure that one serious violation or three reprimands would result in termination. The court stated it was inconsequential that the handbook had not been distributed to employees because the plaintiff had been orally informed of the policy. Id. In Fleming v. Borden, Inc., 316 S.C. 452, 460, 450 S.E.2d 589, 594 (1994), the court affirmed the submission to the jury of the existence of an employment contract from a handbook which contained termination provisions. In Leahy v. Starflo Corp., 314 S.C. 546, 431 S.E.2d 567 (1993), the court held that a four-step disciplinary procedure, posted on bulletin boards accessible to employees, created a contractual obligation which altered the at-will status. In Small I, the court affirmed a jury verdict that the employer created an employment contract with a handbook, and then breached it by failing to follow the four-step termination procedure. 292 S.C. 481, 357 S.E.2d 452. Finally, the court held in Bookman v. Shakespeare Co., 314 S.C. 146, 442 S.E.2d 183 (Ct.App.1994), cert. denied, (S.C. July 14, 1994), that a "Sexual Harassment Policy" document limited the employee's at-will status only to the extent the employer could not fire in retaliation for filing a sexual harassment claim.

In the present case, the relevant policy provisions in the 1979 handbook read as follows:

COMPANY RULES AND REGULATIONS

It is the policy of this company to enforce and establish from time to time reasonable rules that are necessary to facilitate efficient operation and to protect company employees and company property. Violation of the rules listed will subject an employee to reprimand and/or discharge. The rules listed do not restrict disciplinary action from being taken on other matters not specifically covered in formal policy.

* * * * * *

3. Stealing private or company property

* * * * * *

EMPLOYEE RELATIONS (Grievances)

All employees have the right to receive a reasonable answer to any problem, misunderstanding or complaint that he or she may have. Any question should first be discussed with the employee's immediate supervisor. If the problem cannot be resolved at the immediate supervisory level, both employees (subordinate or supervisor), within a reasonable length of time will arrange a meeting with the department head to obtain a solution to the problem. The department head will have the opportunity to involve our Personnel Manager in trying to arrive at a satisfactory solution.

If all avenues are exhausted, the employee has a right to present his problem to the General Manager without any fear of reprisal. A final decision will be made by the General Manager after consultation with all involved employees. The General Manager's decision will be final unless the employee seeks an audience with the ...

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