Swihart v. Country Home Bakers, Inc., No. Cv97 060945 (Dec. 3, 1998)
Opinion of the Court
First and Second Counts
The first count alleges the defendant offered the plaintiff the job of Manager of Marketing and agreed to pay her "a salary and bonus, and to provide insurance, pension and profit sharing retirement benefits." The plaintiff accepted the job in June 1995 and "faithfully performed all of her duties." The first count goes on to allege that unlawfully and in bad faith the defendant discharged the plaintiff from her position on October 7, 1997 and since then has prevented her from performing her duties. Paragraph 5 goes on to state that the defendant unlawfully discharged her "in order to avoid paying her bonus and other fringe benefits, in violation of the public policy" of our state.As a result of this it is further alleged that the plaintiff has and continues to suffer lost wages and benefits, has been humiliated and embarrassed and has had to accept a lower paying job. The plaintiff has requested reinstatement or a comparable job with the defendant but the defendant has refused to do so.
The second count repeats all the factual allegations of the first count and based on those allegations the plaintiff claims that her discharge was a violation of §
Sheets v. Teddy's Frosted Foods Inc.,
In Sheets itself the plaintiff said he was fired because he called to his boss's attention repeated violations of the state Uniform Food, Drug and Cosmetics Act; the court noted the plaintiff's position and said that if he had permitted such violations to occur it would have exposed the plaintiff to the possibility of criminal prosecution under the act, id p. 478. In fact in its actual holding the court did not rule that discharge for refusal to go along with violation of a state statute, without more, would constitute a grounds for a wrongful termination action. At page 480 it said: "For today it is enough to decide that an employee should not be put to an election whether to risk criminal sanction or to jeopardize . . . continued employment." In Faulkner v. United Technology,
But our court has not limited the public policy exception ofSheets to situations where a discharged worker had to risk complying with an employer's order or exposing him or herself to incarceration for violation of a state or federal statute. The holdings and dicta in several case indicate this. As noted,Sheets itself also cited cases in other jurisdictions with approval where wrongful termination actions were found viable when a worker was fired for filing a worker compensation claim or engaging in union activity — none of these activities, although statutorily protected, put the worker in a dilemma of facing incarceration if he or she did not exercise certain rights pursuant to the statutory mandate. In these cases the court seemed to be saying that the discharge of a worker for the CT Page 14648 exercise of rights granted by statute or for attempting to take advantage of ameliorative work related legislation would also permit a wrongful termination action. To hold otherwise would subvert the legislative intention to give the worker the very rights and protections, exercise of which led to his or her discharge. The recent case of Parsons v. United Technology,
The Sheets' court also said that it was not deciding whether discharge for reasons other than violation of a state statute might also permit a wrongful termination claim.
"We need not decide whether violation of a state statute is invariably a prerequisite to the conclusion that a challenged discharge violates public policy. Certainly when there is a relevant state statute we should not ignore the statement of public policy that it represents." id p. 481.
In fact one of the cases cited by the Sheets' court as "useful to compare" with the one before it was Pierce v. OrthoPharmaceutical Corp.
In Morris v. Hartford Courant Co.,
However the court may be reluctant to encourage the trial courts to create judicially conceived notions of public policy — that is, not statutorily based — which could be used to provide exceptions to the termination at will doctrine. In Parsons v. United Technology, supra the court held that there was a viable action for wrongful termination and in reversing the trial court's contrary conclusion on this point felt obliged to find that specific state statutes guaranteeing workplace safety, §§
The prospect of dozens of superior court judges fashioning non-statute based judicially conceived notions of public policy exceptions to the termination at will doctrine where months might elapse before appellate review could be had, does not seem compatible with the requirements of predictability which are crucial in labor-management relations as in all areas of economic activity where companies and workers have to be able to make rational plans for their future activity.
Such judicial creativity should be reserved for the most extreme cases — for example, as noted the dicta in Morris v.Hartford Courant suggests but does not decide that a situation giving rise to a wrongful termination action might present itself where a worker was intentionally and falsely accused of a crime by his or her boss as a pretext for dismissal.
Here the plaintiff apparently asks the court to create some judicially conceived notion of a public policy violation that CT Page 14650 would permit a wrongful termination action but there is no clear articulation of the important public policy issue that is claimed to be the basis for a wrongful termination action. Paragraph 5 of the first count alleges the plaintiff was wrongfully discharged by the defendant ". . .in order to avoid paying her bonus and other fringe benefits, in violation of the public policy" of the state. The first paragraph merely states that when the plaintiff was offered the job the defendant agreed to pay her a salary, a bonus and to provide insurance, pension and profit-sharing retirement benefits.
A motion to strike like the old common law demurrer only admits "well pleaded" facts; it does not admit opinions or mere legal conclusions or conclusory statements, Elliot's Appeal,
On the basis of the broad allegations made here the court cannot find that a nonstatutory violation of public policy has been established of such seriousness that a wrongful termination action should be permitted. It is not even clear from the allegations that the "bonus" and "fringe benefits" referred to in paragraph 5 had already accrued under the terms of original offer to hire at the time of dismissal. The "fringe benefits" are not described and certainly the mere offering of some benefits to employees does not mean an employment relationship is no longer at will or that the loss of such benefits, even a bonus, can be considered a violation of public policy. The reductio ad absurdum of such a position would mean that whenever an employer offers a worker a job for an indefinite term at a set weekly rate of pay — a classic at will situation — the employee when discharged could claim a dismissal in violation of public policy because he or she lost the right to earn future wages.
Here the letter attached to the complaint which offered the job to the plaintiff merely states that there would be a fixed bi-weekly starting salary and "full bonus potential will be 20% of annual salary and could reach 30% if full bonus objectives are exceeded." A series of "fringe benefits" are then referred to as being an entitlement of the job. Courts should tread very delicately in this area — under the guise of ruling in favor of an individual plaintiff to give what is conceived to be a fair result, workers in general could be harmed if the court's views were to be adopted. In other words, if the loss of discretionary bonuses or even year end bonuses and certain types of fringe CT Page 14651 benefits provide the basis for making a claim that some judicially created notion of public policy has been violated, thereby permitting a wrongful termination action, employers might be reluctant to offer such packages to at will employees — employees who probably are the most vulnerable in the labor market, non-unionized and/or unable to acquire anything more than at will employment. These are the type of issues that must be addressed before any judicially conceived public policy exceptions to termination at will are created.
Furthermore even aside from the foregoing considerations our state already has a statutory scheme in place providing remedies for workers who have had their "wages" improperly withheld, see §
Where the legislature has already provided remedial relief as to certain types of claims common law courts should not develop judicially conceived public policy exceptions to at will termination randomly going beyond the relief provided by statute. If there is a statutory remedy already provided it cannot be said "that permitting the discharge to go unredressed would leave a valuable social policy . . . unvindicated", Wehr v. Burroughs Corp. ,
For example, turning to the claims made here, if a judicially created public policy exception were created to at will termination because of claims of unpaid bonuses and fringe benefits that have not yet accrued would this in effect create a definition of "wages" conflicting with that definition provided in our statute, §
For all these reasons the motion to strike the first count is granted.
The problem the court has with these allegations is that as noted in the prior discussion there is no indication by way of factual allegation that, at the time of termination, the bonus and fringe benefits referred to had already vested under theterms of the employment offer when made.
The plaintiff cites several cases that apparently support the proposition that a Sheets public policy argument for wrongful discharge based on a §
The allegations made in paragraph 5 of the Second Count claiming the discharge was done to avoid payment of bonuses and fringe benefits all in violation of a state statute appears to be conclusory, merely state opinion and do not adequately present or define the issues in dispute. The court will strike the second count based on the motion to strike and also pursuant to the authority granted the court under P.B. §
The plaintiff characterizes the defendant's position as being based on a failure to exhaust administrative remedies argument. In other words §§
Our Court has "grudgingly" carved out several exceptions to CT Page 14654 the exhaustion requirement — a party does not have to exhaust administrative remedies when such a remedy would be "futile" or "inadequate".
It is clear, says the plaintiff, that under FEPA the CHRO cannot award attorney's fees or compensatory damages such as for emotional distress, see §
In the court's opinion the defendant's argument for striking this third count at least in the first instance does not implicate the doctrine of failure to exhaust administrative remedies but makes a broader claim.
Relying on Bridgeport Hospital v. CHRO, supra, what the defendant really appears to argue is that in light of the fact that the statutory scheme does not allow the CHRO to award attorney's fees and emotional distress damages no common law action can be brought for them. In a letter directed to the court as part of its final submission the defendant sums up its argument as follows:
"Plaintiff seeks to gain common law tort damages which are unavailable under the gender discrimination statute by alleging wrongful termination. However, she should not be permitted to circumvent the legislature's carefully crafted scheme to handle gender discrimination lawsuits or to circumvent the limited public policy exception to the employment at will rule."
In fact the federal district courts interpreting the ambit of FEPA have held that the administrative procedure under FEPA with its provision for appellate review "is the sole remedy" for a violation of the act, Town of West Hartford v. Operation Rescue,
Although the Richter v. Hoffman, supra, line of cases use the rubric of inadequacy of remedies to excuse exhaustion of administrative remedies as a reason to bar a suit for wrongful termination under §
§ 874A. Tort Liability for Violation of Legislative Provision
When a legislative provision protects a class of persons by proscribing or requiring certain conduct but does not provide a civil remedy for the violation, the court may, if it determines that the remedy is appropriate in furtherance of the purpose of the legislation and needed to assure the effectiveness of the provision, accord to an injured member of the class a right of action, using suitable existing tort action or a new cause of action analogous to an existing tort action.
Bridgeport Hospital v. CHRO, supra, only says that the agency cannot award certain types of damages and is limited to the authorized to grant? In fact the language of Osborn v. RocklenAutomotive Parts Service,
But, the court does not have to resolve the issue of whether after Bridgeport Hospital v. Hydraulic, supra, an action for wrongful termination under §
The point really is that even if such an action is permissible, must a plaintiff exhaust his or her administrative remedies before bringing it? The answer to that would appear to be yes and it is in that sense that this court disagrees with theRichter v. Hoffman line of cases. Atkins and Osborn appear to dictate such a result and the comprehensive remedial nature of the act would seem to make it desirable. Section
The state has an important interest in encouraging people with grievances under the act to initially file a complaint with the commission, the act provides comprehensive remedial powers to the CHRO and there is even a mechanism allowing the commission to authorize a civil action by way of a release. The court concludes the plaintiff failed to exhaust her administrative remedies therefore in light of Concerned Citizens of Sterling v. Sterling,supra, it concludes that it has no subject matter jurisdiction CT Page 14657 over the claim made under §
The plaintiff contends the question of whether there is a contract is one for the jury. This may be generally true. But if there is specific or definitive language in a document that purports to be a contract the cases indicate that whether there was a contract and its scope are questions of law, Skolnick Sons v. Heyman,
"The modern rule is that in the absence of facts and circumstances which indicate that the agreement is for a specific term, an employment contract which provides for an annual rate of compensation, but makes no provision for the duration of employment, is not a contract for one year, but is terminable at will be either party."
The Henkel court went on to say:
"It is our conclusion having reviewed all the evidence in this record that the employment agreement between the appellee (employee) and the Research Council (employer) did not specify a period of time, but rather a rate of salary, and as such was terminable at will by either party", id.
Also see Sullivan v. Heritage Foundation, 398 A.2d 856, 860 (Ca., 1979), In re Tyson, 487 N.Y.S. 2d 206, 208 (1985), Freeman v.Hardee's Food System. Inc.,
There is nothing alleged in the fourth count or in the letter offering the plaintiff her job that takes this case our of the employee at-will doctrine. There is no offer of a definite term of employment; the letter merely states the terms of compensation and bonuses and fringe benefits that may be earned during the course of employment. Even if somehow the positive language of CT Page 14659 the letter is viewed as an offer of permanent employment the rule in Connecticut is that "an agreement for a permanent employment is no more than an indefinite general hiring, terminable at the will of either party without liability to the other", Fisher v.Jackson,
Thus, giving the allegations here their most favorable reading, we have a general contract of employment for an indefinite term. None of the terms of the alleged express contact are such as would bar the termination of the plaintiff at-will and without just cause.
It would be incongruous to hold that although a breach of the alleged express contract does not give rise to an exception to the employment at-will doctrine due to the terms of such an agreement to hire, such an exception can be found by breach of any implied covenants of good faith and fair dealing hidden in the nooks and crannies of the very same agreement.
For this very reason perhaps the appellate courts have said:
". . . although we endorse the applicability of the good faith and fair dealing principle to employment contracts, its essence is the fulfillment of the reasonable expectations of the parties. Where employment is clearly terminable at will, a party cannot ordinarily be deemed to lack good faith in exercising this contractual right", Magnan v. Ananconda Industries Inc,
193 Conn. 558 ,572 (1984)
Building upon and adopting this position the court in Carbonev. Atlantic Richfield Inc.,
CT Page 14660
"Thus, absent a showing that the discharge involves an impropriety which intervenes some important public policy, an employee may not challenge a dismissal based upon an implied covenant of good faith and fair dealing."
In the employment contract area then the doctrine of the implied covenant of good faith and fair dealing seems to be limited to a Sheets public policy claim. It is therefore perhaps redundant to other public policy claims made in the complaint and in any event cannot be used for bootstrap purposes to find that a contract alleged which does not by its terms bar termination at will somehow supports an argument that its "implied" terms should lead to such a result.
The fourth count is stricken.
Apparently this is an alternative theory of recovery to any claim of an express contract in the fourth count. The defendant attacks the legal sufficiency of this count. In response the plaintiff refers to Torosyan v. Bochringer IngelhamPharmaceuticals Inc.,
The court in Torosyan went on to hold, that the trial court's finding that there was an implied contract providing that the employment of the plaintiff could be terminated only for cause CT Page 14661 was not clearly erroneous because of certain provisions in an employment manual given the plaintiff and oral representations made to him.
Here there are no factual allegations in the complaint that establish the nature of the implied contract or its terms that would in any way allow it to be used as a basis to claim that it precluded the termination at will of the plaintiff. We are a fact pleading state and the facts on which a legal theory is based must be set forth. This is not even a situation where the allegations are conclusory. The point is that merely because an implied contract of employment of some kind existed does not have any bearing, standing alone, on whether an employee can be terminated at will under the terms of that implied contract.
The fifth count is stricken.
But the court is obligated to give the complaint that reading which is most favorable in opposition to a motion to strike and there seems to be sufficient allegation of a promissory estoppel theory.
". . . under a promissory estoppel theory a party may maintain a claim for damages based upon a promise which induces the party's action or forebearance, if such action or forebearance is undertaken in reasonable reliance upon the promise," Finley v. Aetna Life Casualty Co.,
202 Conn. 190 ,205 (1987).
The count alleges the plaintiff accepted the offer of CT Page 14662 employment which included the "relocation package" and it can be reasonably inferred that part of the reason she did so was because of the offer made to her including the agreement to pay relocation expenses.
The motion to strike the sixth count is denied.
CORRADINO, J.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.