Warrington v. Great Falls Clinic, LLP

Decision Date14 May 2019
Docket NumberDA 18-0120
Citation443 P.3d 369,2019 MT 111,395 Mont. 432
CourtMontana Supreme Court
Parties Lisa WARRINGTON, Plaintiff and Appellant, v. GREAT FALLS CLINIC, LLP, Defendant, Appellee and Cross-Appellant.

For Appellant: Timothy McKittrick, McKittrick Law Firm, Great Falls, Montana

For Appellee: Adam Warren, Gerry Fagan, Moulton Bellingham PC, Billings, Montana

Justice Jim Rice delivered the Opinion of the Court.

¶1 Lisa Warrington (Warrington) appeals an order granting partial summary judgment to Great Falls Clinic, LLP (the Clinic), and challenges jury instructions given by the District Court at trial. The Clinic cross-appeals the District Court’s denial of its trial motion for judgment as a matter of law, the $ 220,000 in damages awarded by the jury on Warrington’s breach of contract claims, and asserted trial evidentiary errors. We affirm the appeal and cross appeal, and restate the parties’ issues as follows:

1. Did the District Court err by granting partial summary judgment to the Clinic on Warrington’s tort claim for breach of the covenant of good faith and fair dealing, and by denying Warrington’s proposed instructions on her other tort claims?
2. Did the District Court err by admitting evidence of the Clinic’s liability and Warrington’s emotional distress?
3. Did the District Court err by denying the Clinic’s motion for judgment as a matter of law regarding Warrington’s damages?
4. Did the District Court err by failing to rule and instruct the jury that the contract was for a one-year term pursuant to § 39-2-602(1), MCA ?
FACTUAL AND PROCEDURAL BACKGROUND

¶2 In 2014, after working at Benefis Hospital in Great Falls for approximately 22 years, Warrington applied for a job with the Clinic as a clinical manager. This position paid a higher annual salary than her job at Benefis, in addition to benefits. The Clinic offered the job to Warrington on October 7, and she accepted the next day. Warrington then notified Benefis that her last day of work would be Friday, October 24. On October 10, Warrington signed a written employment contract for an indefinite term with the Clinic, and the parties agreed that Warrington would begin work there on October 27.

¶3 On October 24, Warrington’s last day at Benefis, the Clinic called Warrington and advised it would not be employing her after all. The Clinic would not provide a reason for withdrawing its offer of employment. Later, the Clinic indicated that Benefis officials had informed the Clinic that Warrington would not be a good fit for the Clinic. In actuality, a Clinic employee who formerly worked at Benefis had opined to the Clinic that Warrington would not be a good fit there. Warrington tried to return to her former job at Benefis, but Benefis would not re-hire her. Ultimately, Warrington moved to Helena to take fulltime employment there.

¶4 Warrington brought this action against the Clinic for breach of contract, breach of the covenant of good faith and fair dealing, and promissory estoppel. After discovery, the District Court entered partial summary judgment against the Clinic, holding it had breached the employment contract with Warrington and that the Wrongful Discharge from Employment Act (WDEA) did not apply, because the case involved an executory contract. The Clinic petitioned this Court for supervisory control, arguing the District Court was proceeding under a mistake of law. This Court affirmed the District Court’s summary rulings that the WDEA did not apply and the Clinic had breached the contract, and remanded the matter "for further proceedings consistent with" our order. Great Falls Clinic LLP v. Mont. Eighth Judicial Dist. Ct. , 2016 MT 245, ¶¶ 4, 13-15, 17, 385 Mont. 95, 381 P.3d 550.

¶5 On remand, Warrington moved for partial summary judgment on her tort claim for breach of the covenant of good faith and fair dealing to establish as a matter of law that the requisite "special relationship" existed to support the claim, see Story v. Bozeman , 242 Mont. 436, 791 P.2d 767 (1990) ( Story I ), for which she sought damages for emotional distress, loss of enjoyment of life, embarrassment, anxiety, and punitive damages. The District Court concluded Warrington could not satisfy the elements of a special relationship, and granted summary judgment in favor of the Clinic on the issue, ruling that "if the jury does conclude that the Clinic breached the implied covenant, Ms. Warrington can recover her contract expectancy damages but not tort damages." The District Court denied Warrington’s request to amend her complaint to add additional tort claims, including negligence, negligent and intentional infliction of emotional distress, and wrongful failure to employ, and, accordingly, did not instruct the jury on any of Warrington’s tort claims or on punitive damages.

¶6 During trial, the District Court admitted evidence offered by Warrington to which the Clinic objected as beyond the issues to be tried under the court’s rulings. The court also denied the Clinic’s motion for judgment as a matter of law on Warrington’s damages and rejected the Clinic’s proposed jury instruction regarding the term of employment contract. The jury awarded Warrington $ 220,000 in contract damages.

¶7 Warrington appeals the District Court’s grant of summary judgment in favor of the Clinic on her claim for breach of the covenant of good faith and fair dealing, and the denial of her instructions regarding her other tort claims. The Clinic cross-appeals the evidentiary rulings made by the District Court, including admission of evidence that went beyond the court’s pre-trial rulings, the court’s denial of its motion for judgment as a matter of law, and the court’s denial of its proposed instruction regarding the contract term.

STANDARD OF REVIEW

¶8 "We review a district court’s ruling on summary judgment de novo, to determine whether it is correct, using the same standards as the district court under M. R. Civ. P. 56." Great Falls Clinic LLP , ¶ 7. "Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with any affidavits demonstrate that no genuine issue exists as to any material fact and that the party moving for summary judgment is entitled to judgment as a matter of law. We view the evidence in the light most favorable to the party opposing summary judgment, and we draw all reasonable inferences in favor of the party opposing summary judgment." Modroo v. Nationwide Mut. Fire Ins. Co. , 2008 MT 275, ¶ 19, 345 Mont. 262, 191 P.3d 389 (internal citations and quotations omitted).

¶9 We review a district court’s grant or denial of a motion for judgment as a matter of law de novo. Patch v. Hillerich & Bradsby Co. , 2011 MT 175, ¶ 11, 361 Mont. 241, 257 P.3d 383. "Judgment as a matter of law is appropriate only when, considering all evidence and any legitimate inferences that might be drawn from the evidence in a light most favorable to the non-moving party, there is a complete lack of evidence that would justify submitting an issue to the jury." Patch , ¶ 24.

¶10 We review jury instructions for an abuse of discretion. Cechovic v. Hardin & Assocs. , 273 Mont. 104, 116, 902 P.2d 520, 527 (1995). When reviewing a trial court’s decision regarding jury instructions, we consider the "instructions in their entirety and in connection with other instructions given and the evidence introduced at trial." Story v. City of Bozeman , 259 Mont. 207, 222, 856 P.2d 202, 211 (1993) ( Story II ) (overruled in part by Arrowhead Sch. Dist. No. 75 v. Klyap , 2003 MT 294, ¶ 54, 318 Mont. 103, 79 P.3d 250 ). A trial court’s refusal to give an offered instruction only constitutes reversible error when "such refusal affects the substantial rights of the party proposing the instruction, thereby prejudicing him."

Busta v. Columbus Hosp. , 276 Mont. 342, 360, 916 P.2d 122, 132 (1996). The party assigning error must show prejudice. Tarlton v. Kaufman , 2008 MT 462, ¶ 19, 348 Mont. 178, 199 P.3d 263. If "the jury instructions in their entirety state the applicable law of the case," we will not find prejudice. Peterson v. St. Paul Fire & Marine Ins. Co. , 2010 MT 187, ¶ 22, 357 Mont. 293, 239 P.3d 904.

¶11 "We review evidentiary rulings for abuse of discretion." State v. Bonamarte , 2009 MT 243, ¶ 13, 351 Mont. 419, 213 P.3d 457 (citations omitted).

DISCUSSION

¶12 1. Did the District Court err by granting partial summary judgment to the Clinic on Warrington’s tort claim for breach of the covenant of good faith and fair dealing, and denying Warrington’s proposed instructions on her other tort claims?

¶13 Warrington argues the District Court erred by concluding she did not establish a requisite "special relationship," Story I , 242 Mont. at 451, 791 P.2d at 776, to support a tort claim for breach of the covenant of good faith and fair dealing.

¶14 Generally, a breach of contract claim gives rise only to expectancy damages. Section 27-1-311, MCA; see also Arrowhead Sch. Dist. No. 75 , ¶ 20 ; Riverview Homes II, Ltd. v. Canton , 2001 MT 309, ¶ 24, 307 Mont. 517, 38 P.3d 848 ; Conagra, Inc. v. Nierenberg , 2000 MT 213, ¶ 69, 301 Mont. 55, 7 P.3d 369 ; Textana, Inc. v. Klabzuba Oil & Gas , 2009 MT 401, ¶ 52, 353 Mont. 442, 222 P.3d 580 ; McEwen v. MCR, LLC , 2012 MT 319, ¶ 65, 368 Mont. 38, 291 P.3d 1253 ; Story I , 242 Mont. at 450, 791 P.2d at 776. Although "every contract, regardless of type, contains an implied covenant of good faith and fair dealing," a breach of that covenant is generally only "a breach of the contract." Story I , 242 Mont. at 450, 791 P.2d at 775. Accordingly, in ordinary contract cases, only contract damages are recoverable. Story I , 242 Mont. at 450, 791 P.2d at 775. However, we have previously recognized an "exceptional circumstance[ ]" when tort damages can be recovered "in contracts involving special relationships which are not otherwise controlled by specific statutory provisions." Story I , 242...

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4 cases
  • Warrington v. Great Falls Clinic, LLP
    • United States
    • Montana Supreme Court
    • July 7, 2020
    ...eliminating her related claim for tortious breach of the implied covenant of good faith and fair dealing. Warrington v. Great Falls Clinic, LLP (Warrington II) , 2019 MT 111, ¶¶ 4-5, 395 Mont. 432, 443 P.3d 369. On February 2, 2018, the jury returned a verdict awarding Warrington $220,000 i......
  • Depositors Ins. Co. v. Sandidge
    • United States
    • Montana Supreme Court
    • February 15, 2022
    ...using the same standards as the district court under M. R. Civ. P. 56." Warrington v. Great Falls Clinic, LLP, 2019 MT 111, ¶ 8, 395 Mont. 432, 443 P.3d 369 Great Falls Clinic, LLP v. Mont. Eighth Judicial Dist. Court, 2016 MT 245, ¶ 7, 385 Mont. 95, 381 P.3d 550). "We review a district cou......
  • Morris v. Walmart Inc.
    • United States
    • U.S. District Court — District of Montana
    • January 23, 2023
    ... ... entire claim.” Warrington v. Great Falls Clinic, ... LLP , 443 P.3d 369, 374 (Mont. 2019) ... ...
  • Apex Abrasives, Inc. v. WGI Heavy Minerals, Inc.
    • United States
    • U.S. District Court — District of Montana
    • July 24, 2019
    ...in support of each and all of the essential elements, the court shall direct there is no special relationship." See Warrington v. Great Falls Clinic, LLP, 443 P.3d 369, ¶¶ 15, 19 (Mont. 2019) ("The five elements are conjunctive, and thus the failure to prove one defeats the entire claim.").......

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