LARAINE B. RUSH v. LIVING CENTERS-SOUTHEAST, INC., d/b/a BRIAN
CENTER HEALTH & REHABILITATION/HENDERSONVILLE and WILLIAM T. HALL
1. Employer and Employee--wrongful discharge--employee's refusal to testify--no
public policy violation--matters concerning job duties
The trial court did not err in granting defendant-employer's summary judgment motion
on plaintiff-bookkeeper's claim that she was wrongfully discharged in violation of public policy
for refusing to testify in defendant's dispute with a deceased patient's spouse over an unpaid
account because an employer may reasonably expect that its employees will voluntarily appear
on its behalf to testify about matters associated with their job duties.
2. Employer and Employee--wrongful discharge--employee's refusal to testify--no risk
of perjured testimony--no public policy violation
The trial court did not err in granting defendant-employer's summary judgment motion
on plaintiff-bookkeeper's claim that she was wrongfully discharged for refusing to testify in
defendant's dispute with a deceased patient's spouse over an unpaid account, even in light of her
contention that her participation might have caused her to perjure herself, since: (1) plaintiff
admitted that she was neither asked to lie nor given any direction by defendant's lawyers on the
content or manner of her testimony; (2) defendant's insistence that plaintiff appear in court
without more preparation is not enough to find a public policy violation; and (3) plaintiff needs
more evidence than just her subjective feelings that she was being directed to testify untruthfully
in order to state a valid claim for wrongful discharge.
Appeal by plaintiff from a judgment entered 26 August 1998
by Judge Ronald K. Payne in Henderson County Superior Court.
Heard in the Court of Appeals 23 September 1999.
On 5 October 1989 Laraine Rush (plaintiff) began her
employment with Brian Center (defendant) as a bookkeeper. Her
duties included making entries of payments, keeping track of
monies owed, and making occasional phone calls in attempts to
collect those sums. During her tenure, a dispute arose between
defendant and Mr. Sidney Murphy regarding the amount, if any,
owed on the bill of his late wife. Defendant filed suit against
Mr. Murphy in Henderson County Superior Court. Arbitration was
ordered, and plaintiff appeared on behalf of Brian Center in her
capacity as bookkeeper and custodian of records and testified
concerning the Murphy account. The arbitrator found in favor of
Mr. Murphy and Brian Center appealed to the Henderson County
Superior Court.
Nearly a year passed during which time plaintiff heard
nothing more concerning the Murphy case. On 11 March 1996, Ms.
Rush received a phone call late in the afternoon informing her
that she was required to appear in court the next day at 9:00
a.m. in order to testify on behalf of defendant in the trial of
the case against Mr. Murphy. Plaintiff refused to testify
because she did not feel she had adequate time to prepare totestify in an involved matter. When again requested by her
immediate supervisor to appear in court the following day,
plaintiff again refused, maintaining that there was difficulty in
establishing payment dates and any amount owed on such short
notice. In her deposition plaintiff stated:
I told him I didn't wanna do it; I wasn't
gonna do it and that I was not going to go in
there unprepared and not be able to answer
the questions and he told me that I knew that
he knew, I knew what he meant when he said
that I was gonna go to court and that I was
to cooperate. And by him telling me that, you
know what I mean, I know that he meant for me
to do it, no matter what it took it, [sic]
how I was to get there.
Ultimately, plaintiff was told to leave whatever documentation
she had in a box for her supervisor to retrieve. Plaintiff did
not appear in court the next day, nor did she appear later in the
week when the Murphy case was tried. Judgment was entered in
favor of Mr. Murphy. Plaintiff was suspended during a two-day
investigation into her actions. She was then informed that her
employment with Brian Center was terminated on grounds of
insubordination.
Plaintiff subsequently filed suit against defendant alleging
claims for wrongful discharge, corporate negligence and civil
rights violations. Defendant moved for summary judgment and the
trial court, finding that no genuine issue of material factexisted as to any of plaintiff's claims, found in favor of
defendant. From the orders granting summary judgment, plaintiff
now appeals.
Waymon L. Morris, P.A., by Waymon L. Morris, for plaintiff
appellant.
Ball, Barden & Bell, P.A., by Ervin L. Ball, for defendant
appellee.
HORTON, Judge.
[1]/A HREF>The issue before this Court is whether or not the trial
court erred in granting summary judgment in favor of defendant on
plaintiff's claim that she was wrongfully discharged.
Summary judgment is proper when the moving party establishes
that no "triable issue" exists "by showing that no genuine issue
of material fact exists and that the moving party is entitled to
judgment as a matter of law." Branks v. Kern, 320 N.C. 621, 623,
359 S.E.2d 780, 782 (1987). Furthermore, "[a]ll inferences are
to be drawn against the moving party and in favor of the opposing
party." Id. at 624, 359 S.E.2d at 782. The trial court must view
the evidence presented in the light most favorable to the
nonmoving party. McMurry v. Cochrane Furniture Co., 109 N.C. App.
52, 54, 425 S.E.2d 735, 736 (1993). Thus, we must decide whether
the evidence, when viewed in the light most favorable to
plaintiff, was sufficient to establish a genuine issue ofmaterial fact. We hold that it was not, and affirm the judgment
of the trial court.
Defendant argues that plaintiff was an employee-at-will and
thus could be fired for an arbitrary or irrational reason, or for
no reason at all. Plaintiff contends that, although her
employment was at-will, her employment contract was terminated in
violation of public policy.
It is well settled in this state that the "common law
rule . . . is that when a contract of employment does not fix a
definite term the employment is terminable without cause at the
will of either party." Sides v. Duke University, 74 N.C. App.
331, 336, 328 S.E.2d 818, 822-23, disc. reviews denied, 314 N.C.
331, 333 S.E.2d 490 (1985). Recognizing the changing nature of
employee-employer relationships, the courts of this state have
carved out an exception to this rule. The public policy
exception acknowledges that "while there may be a right to
terminate a contract at will for no reason, or for an arbitrary
or irrational reason, there can be no right to terminate such a
contract for an unlawful reason or purpose that contravenes
public policy." Id. at 342, 328 S.E.2d at 826; Coman v. Thomas
Mfg. Co., 325 N.C. 172, 175, 381 S.E.2d 445, 447 (1989).
Sides and Coman were similar in that they both involved
allegations that the employer affirmatively instructed theemployees in those cases to violate the law. In Sides, the
plaintiff alleged that her employer pressured her not to testify
truthfully in a malpractice case, and discharged her because she
refused to commit perjury and testified truthfully in the case.
Similarly, the plaintiff in Coman alleged that he was fired when
he refused to falsify federally required documents in violation
of federal law. However, the case before us is distinguishable
from these two cases.
When viewed in the light most favorable to plaintiff, the
evidence tends to show that plaintiff's employer was involved in
a dispute over an unpaid account with the spouse of a deceased
patient; that plaintiff had previously participated in an ordered
arbitration of the dispute in her capacity as bookkeeper for
defendant; that this involvement left plaintiff hesitant to
participate in such events in the future; that defendant appealed
the decision of the arbitrator to the superior court; that
plaintiff was unaware of the appeal and assumed the case was
over; that almost one year later, defendant contacted plaintiff
late one afternoon and instructed her to appear in court the
next morning to testify in the pending case against Mr. Murphy;
that plaintiff refused that request more than once, stating that
it was a complex matter, and she did not have adequate time to
prepare her testimony; that the case was tried without herparticipation; that plaintiff was then suspended pending an
investigation and was ultimately terminated on grounds of
insubordination.
Plaintiff argues that her termination violated the public
policy exception to at-will employment because she was not
subpoenaed and therefore was not required to appear in court;
furthermore, that insistence that she testify without more time
to prepare would have prevented her from giving "full, fair, and
accurate" testimony. We are not persuaded by these arguments.
While the statutory law provides a mechanism whereby
litigants may compel attendance of witnesses who might not
otherwise voluntarily appear, it does not require that every
prospective witness be subpoenaed. See N.C. Gen. Stat. § 1A-1,
Rule 45 (1990). Thus, an employer may reasonably expect that its
employees will voluntarily appear on its behalf to testify about
matters associated with their job duties. However, as discussed
above, an employer may not insist that an employee appear and
testify untruthfully.
[2]Second, plaintiff's contention that defendant's
insistence upon her participation might have caused her to
perjure herself is not supported by the record. In her
deposition, plaintiff admitted that she was neither asked to lie
nor given any direction by defendant's lawyers on the content ormanner of her testimony. We find the following excerpt from her
deposition particularly telling:
Q. Alright. Did anybody from Brian Center
tell you to go to testify, that you had
to lie?
A. Uh, it was inferred, go and do what you
have to do. Go to court.
Q. Okay. What did they say to infer that?
A. Well, Mr. Hall said just answer the
questions and even when I told him, I
couldn't.
Q. Just answer the questions. That's what
he said that you inferred that he wanted
you to lie from?
A. Well, I don't know if he wanted to say,
he didn't say the word lie, but it was
sort of go and answer.
When plaintiff was given the opportunity to explain her
understanding she further stated:
A. When he called me, okay, he called me
and I told him, you know, what I was
gonna testify; I told him about the, you
know, about my having everything at
hand, how long it was gonna take me; I
told him I couldn't give fair testimony;
I told him I didn't wanna do it; I
wasn't gonna do it and that I was not
going to go in there unprepared and not
be able to answer the questions and he
told me that I knew that he knew, I knew
what he meant when he said that I was
gonna go to court and that I was to
cooperate. And by him telling me that,
you know what I mean, I know that he
meant for me to do it, no matter what ittook it, [sic] how I was to get there.
Defendant's insistence that plaintiff appear in court
without more preparation is not enough for this Court to find a
public policy violation. Without some evidence which would cause
a reasonable employee to have a like understanding, we cannot
hold that plaintiff states a valid claim against defendant for
wrongful discharge based on her subjective "feelings" that she
was being directed to testify untruthfully. In Daniel v.
Carolina Sunrock Corp., 110 N.C. App. 376, 430 S.E.2d 306, rev'd
in part, 335 N.C. 233, 436 S.E.2d 835 (1993), we held in a
divided decision that the plaintiff stated a claim for wrongful
discharge where she was instructed by her employer not to "say
anymore than she had to" when testifying in a case involving the
employer, and to "'remember that you work for me and represent me
and my company.'" Id. at 380, 430 S.E.2d at 309. The plaintiff
in Daniel considered the statements by her employer to be both
threats and pressure to alter her testimony, if necessary. Id.
In a dissent, Judge Lewis reasoned that
if such innocuous statements as this are sufficient to
support a claim for wrongful discharge, then employers
will have to stand mute when faced with a similar
situation for fear that no matter what they say their
employees may perceive it as a threat. Surely an
eggshell sensitivity of perception should not override
the rule of reasonable application. Such a result would
take the public policy exception too far . . . .
Id. at 385, 430 S.E.2d at 312. The dissent also pointed out that
more than a year lapsed before Ms. Daniel was discharged from her
employment with defendant. Our Supreme Court reversed the
majority decision and adopted the reasoning set out in the
dissent. Daniel v. Carolina Sunrock Corp., 335 N.C. 233, 436
S.E.2d 835 (1993).
The language of Daniel seems particularly appropriate for
application to the case before us. We are persuaded that, even
if the testimony of plaintiff is taken as entirely true, a
reasonable employee would not have understood the employer's
statements to plaintiff to be directives that she testify
untruthfully in the case against Mr. Murphy. Therefore,
plaintiff's perceptions, being unsupported by evidence of record,
are insufficient for us to find that her discharge contravened
the public policies of this state. The judgment of the trial
court is
Affirmed.
Judges WYNN and EDMUNDS concur.
*** Converted from WordPerfect ***