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Conner v. City of Forest Acres

Supreme Court of South Carolina
2002 S.C. LEXIS 13, 560 S.E.2d 606, 348 S.C. 454 (2002)
ELI5:

Rule of Law:

An employee handbook containing both a conspicuous disclaimer of its contractual nature and mandatory language regarding disciplinary procedures creates a genuine issue of material fact as to whether the at-will employment relationship has been altered, thus precluding summary judgment.


Facts:

  • Evelyn Conner was hired by the City of Forest Acres ('the City') as a police dispatcher in July 1984.
  • During her employment, Conner received employee handbooks and signed acknowledgment forms stating that the handbook did not create a contract and that she was an at-will employee.
  • The handbook contained prominent disclaimers on the first and last pages, as well as in the signed acknowledgment form, asserting the at-will employment relationship.
  • The same handbook also detailed a 'Code of Conduct' and a 'Disciplinary Procedures' section using mandatory language, stating that discipline 'shall be of an increasingly progressive nature' and that violations 'will be disciplined.'
  • Beginning in November 1992, Conner received a series of reprimands for issues such as tardiness and poor performance, culminating in an unsatisfactory evaluation and placement on probation in July 1993.
  • The City terminated Conner's employment on October 7, 1993, citing only slight improvement in her performance.
  • Following her termination, Conner filed a grievance, and an internal grievance committee voted 2-1 to reinstate her.
  • The City Council rejected the grievance committee's recommendation and voted to uphold Conner's termination.

Procedural Posture:

  • Evelyn Conner filed suit against the City of Forest Acres, J.C. Rowe, and Lewis Langley in state trial court for wrongful discharge and other claims.
  • The case was removed to federal court and subsequently remanded back to the state trial court.
  • The trial court granted the defendants' motion for summary judgment on all of Conner's remaining claims.
  • Conner (appellant) appealed to the South Carolina Court of Appeals.
  • The Court of Appeals reversed the trial court's grant of summary judgment, finding that genuine issues of material fact existed.
  • The City of Forest Acres, Rowe, and Langley (petitioners) were granted a writ of certiorari by the Supreme Court of South Carolina.

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Issue:

Does an employee handbook that includes both prominent at-will employment disclaimers and mandatory, progressive disciplinary procedures create a genuine issue of material fact as to whether an employment contract was formed, thereby making summary judgment for the employer improper?


Opinions:

Majority - Waller, J.

Yes. When an employee handbook contains both a disclaimer of contract formation and mandatory promises regarding disciplinary procedures, it creates a genuine issue of material fact as to whether the employee's at-will status was modified, making summary judgment inappropriate. Citing Fleming v. Borden, the court reasoned that a disclaimer is merely one factor to consider in determining whether the handbook as a whole conveys credible, enforceable promises. The mandatory language in the City's handbook—stating discipline 'shall be' progressive and violations 'will be disciplined'—conflicts with the at-will disclaimers. This conflict creates a question for the jury to decide whether a contract was formed. Furthermore, if a contract is found to exist, the jury must then determine whether the employer had a 'reasonable good faith belief that sufficient cause existed for termination,' not whether the employee actually committed the misconduct. Given that Conner disputed the reprimands and the grievance committee voted to reinstate her, a factual issue exists regarding the City's good faith belief.



Analysis:

This decision reinforces the principle from Fleming v. Borden, solidifying that a disclaimer in an employee handbook is not an absolute bar to the formation of an employment contract in South Carolina. It signals that courts must conduct a holistic review of the document, and the presence of mandatory-sounding, promissory language can override a disclaimer, creating a jury question. This makes it more difficult for employers to obtain summary judgment in wrongful termination cases based solely on the existence of a disclaimer. The case emphasizes that employers cannot simultaneously promise job security through specific procedures and retain absolute discretion to terminate at will.

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