Fitzgerald v. Salsbury Chemical, Inc.
613 N.W.2d 275, 16 I.E.R. Cas. (BNA) 994, 2000 Iowa Sup. LEXIS 118 (2000)
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Rule of Law:
An employer violates public policy by terminating an at-will employee because the employer believes the employee intends to provide truthful testimony in a potential legal proceeding. This public policy in favor of truthful testimony is derived from statutes prohibiting perjury and witness tampering.
Facts:
- On August 15, 1995, Salsbury Chemical employee Richard Koresh gave deposition testimony in a lawsuit against the company that contradicted previous testimony from Salsbury management.
- Following his deposition, Koresh felt shunned by management and was told the company was going to find a way to fire him.
- On August 30, 1995, Koresh made an error while monitoring a chemical tank, creating a potentially dangerous condition.
- Salsbury suspended Koresh, who then told a company official he had hired an attorney and was not going to be 'another John Kelly,' referencing a previous employee who sued for wrongful discharge.
- On September 19, 1995, an operations manager asked Tom Fitzgerald, Koresh's supervisor, what discipline Koresh should receive.
- Fitzgerald responded that it would not be fair to fire Koresh over a single mistake, given his long service with the company.
- The manager told Fitzgerald he needed to 'think like a foreman,' 'find out which side he was on,' and that the matter might result in a lawsuit.
- A few hours later on the same day, Salsbury terminated Koresh and then terminated Fitzgerald.
Procedural Posture:
- Tom Fitzgerald sued Salsbury Chemical, Inc. in an Iowa trial court for wrongful discharge in violation of public policy.
- Salsbury filed a motion for summary judgment, arguing Fitzgerald's termination did not violate any clear public policy.
- The trial court granted summary judgment in favor of Salsbury, dismissing Fitzgerald's lawsuit.
- Fitzgerald, as appellant, appealed the trial court's grant of summary judgment to the Supreme Court of Iowa.
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Issue:
Does terminating an at-will employee because the employer fears the employee intends to provide truthful, but unfavorable, testimony in a coworker's potential lawsuit violate a clear public policy of the state, thereby creating a cause of action for wrongful discharge?
Opinions:
Majority - Cady, Justice
Yes. Terminating an employee because the employer fears the employee will provide truthful testimony in a future lawsuit violates the state's public policy in favor of truthful testimony. The court found a clear public policy protecting truthful testimony, derived from criminal statutes against perjury and witness tampering. An employee’s intent to testify truthfully can be inferred from the circumstances, even if not explicitly stated. In this case, the manager's statements about 'choosing sides' in a potential lawsuit transformed an internal disciplinary discussion into one about future litigation, permitting a reasonable inference that Fitzgerald intended to testify truthfully for Koresh. Firing an employee based on this feared testimony has a chilling effect on other potential witnesses, thereby jeopardizing the public policy, regardless of whether the employer ever explicitly asked the employee to lie.
Analysis:
This decision expands the public policy exception to at-will employment by establishing that an employee's inferred intent to engage in a protected activity is sufficient to support a wrongful discharge claim. By not requiring an explicit statement of intent to testify or a direct request from the employer to lie, the court lowers the evidentiary burden for plaintiffs. This precedent shifts the focus from the employee's explicit actions to the employer's motive for termination, making it easier for such cases to survive summary judgment and reach a jury, thereby strengthening protections for potential witnesses in the workplace.
