Hart v. Seven Resorts Inc.
947 P.2d 846, 190 Ariz. 272 (1997)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
Arizona's constitutional right to privacy restricts only state action and therefore does not establish a public policy basis for wrongful termination claims against private employers; an employee handbook with clear disclaimers of at-will employment does not alter the at-will relationship or create contractual testing rights, and neither a demand for drug testing nor community rumors of drug use are sufficient for invasion of privacy claims (intrusion upon seclusion or false light), nor does conditional transportation constitute false imprisonment if consent is not clearly withdrawn.
Facts:
- Jeff Ernst, Dale Hart, and Dora Hart (appellants) were at-will employees of Temple Bar resort, a remote company where employees lived in company-provided housing.
- Temple Bar provided a Personnel Policy Manual stating that employment was at-will, terminable by either party with or without cause, and prohibited illegal drug use on company property, outlining conditions for drug testing (pre-employment, reasonable suspicion, post-mishap).
- Appellants signed forms acknowledging receipt and understanding of the Personnel Policy Manual.
- In March 1993, Temple Bar issued a "Drug Free Workplace Policy Statement and Employee Agreement" allowing general managers to request drug tests "at any time," which appellants also signed.
- On February 24, 1994, Robert Clark, Temple Bar’s Vice President of Operations, received a report that an employee (B.K.) and the appellants had recently used drugs at Jeff Ernst's residence and discussed ways to defeat drug tests.
- The next morning, Clark instructed general manager Eddie Tomba to take the four named employees for drug testing in Las Vegas.
- On February 25, 1994, Tomba picked up Dale Hart at work, Dora Hart at her company-owned residence, and Ernst at a company restaurant in a company van; appellants admit voluntarily entering the van but deny Tomba told them they were going for drug tests until approximately ten minutes into the trip.
- While on the main road to Las Vegas, approximately 30 miles from the test site, appellants informed Tomba they refused to submit to drug testing and asked to be let out at the Gold Strike Casino, which Tomba complied with after advising them refusal would result in termination; appellants were subsequently terminated.
Procedural Posture:
- Appellants (three former employees) filed a complaint against Temple Bar (their former employer) in the state trial court (court of first instance), asserting causes of action for wrongful termination, breach of contract, promissory estoppel, breach of the covenant of good faith and fair dealing, intentional infliction of emotional distress, invasion of privacy, and false imprisonment.
- After discovery, Temple Bar filed a motion for summary judgment on all counts.
- The trial court granted summary judgment in favor of Temple Bar on all counts.
- The trial court denied Temple Bar’s motion for attorneys’ fees under A.R.S. § 12-341.01(A).
- Appellants appealed the summary judgment to the Arizona Court of Appeals, as the appellants.
- Temple Bar cross-appealed the denial of its attorneys' fees to the Arizona Court of Appeals, as the appellee and cross-appellant.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
1. Does Arizona's constitutional right to privacy (Article 2, Section 8) establish a public policy that can support a wrongful termination claim against a private employer for mandating drug tests? 2. Can an employee handbook, despite containing a clear disclaimer of at-will employment and specific drug testing policies, modify an at-will employment relationship into a definite-term contract or otherwise create contractual rights regarding drug testing? 3. Did Temple Bar's demand for drug testing and the circumstances surrounding it constitute the tort of intrusion upon seclusion? 4. Did Temple Bar engage in "publicity" that placed the former employees in a false light by terminating them for refusing a drug test, thereby supporting a false light invasion of privacy claim? 5. Were the employees falsely imprisoned when they were driven by their manager in a company van towards a drug testing facility after initially consenting to the ride?
Opinions:
Majority - Thompson, Presiding Judge
1. No, Arizona's constitutional right to privacy (Article 2, Section 8) does not establish a public policy that can support a wrongful termination claim against a private employer. The court found that this constitutional provision, like the Fourth Amendment of the U.S. Constitution, was intended as a prohibition on the State and applies only against governmental acts or where state action exists, not against actions of private individuals or entities. The court distinguished cases like In re Rasmussen and Weller v. Arizona Dep’t of Econ. Sec. by emphasizing that those cases involved state action or state benefits, and Weller explicitly warned against extending its reasoning to at-will employment terminations by private employers. The history of Arizona's Article 2, Section 8, derived verbatim from the Washington constitution, shows no similar intent to protect citizens from private actors, unlike California's explicitly amended privacy right. 2. No, an employee handbook containing a clear and conspicuous disclaimer of at-will employment does not modify the at-will relationship into a definite-term contract or create contractual rights regarding drug testing. The Personnel Policy Manual in this case explicitly stated that employment was terminable "with or without cause or advance notice, at any time" and that no one other than the President (under specific written conditions) could alter the at-will nature. Such language prevents the manual from becoming part of an employment contract for a definite term, consistent with Leikvold v. Valley View Community Hosp. Appellants themselves did not claim the manual provided job security or a definite employment term, only that it described drug testing conditions. Without a contract for a definite term, at-will employees cannot sue for breach of contract based on termination. 3. No, Temple Bar's demand for drug testing did not constitute the tort of intrusion upon seclusion. The tort requires an intentional intrusion into a private place or private affairs that would be highly offensive to a reasonable person, such as physical intrusion or covert investigation. The inconveniences described by the appellants, such as disrupted errands or lack of time to dress, do not meet this standard of intrusion into a secluded place or private concerns as defined by Restatement (Second) of Torts § 652B. 4. No, Temple Bar did not place the former employees in a false light because the employees failed to provide evidence of "publicity" by the employer. "Publicity" requires communication to the public at large, or to so many persons that the matter is substantially certain to become public knowledge, by the defendant. The court found that rumors circulating in the community, based solely on the appellants' interrogatory answers, did not meet this standard. Merely firing an employee under circumstances that lead to gossip, without the employer actively communicating the reasons for termination to the public, is insufficient for a false light claim, consistent with Stewart v. Pantry, Inc. and Moore v. Big Picture Co. 5. No, the employees were not falsely imprisoned. False imprisonment requires direct restraint of personal liberty against the person's will, with intent to confine. The appellants admittedly entered the van voluntarily. While consent can be revoked, a mere unexpressed change of mind or subjective feeling of restraint is insufficient; the revocation must be communicated or manifested, and an attempt to leave must be made or actual restraint demonstrated. The threat of job loss is not considered sufficient to negate voluntariness for false imprisonment purposes. Once appellants communicated their refusal to test and asked to be let out at the casino, Tomba complied. Their unexpressed revocation of consent prior to this communication did not convert them into unwilling passengers.
Analysis:
This case significantly reinforces the at-will employment doctrine in Arizona by limiting the public policy exception to areas clearly defined by constitutional, statutory, or common law, specifically excluding the Arizona constitutional right to privacy from applying against private employers. It clarifies that broad disclaimers in employee handbooks effectively preserve at-will status, even if other sections detail employment procedures. Furthermore, the decision sets a high bar for proving invasion of privacy claims (both intrusion and false light) and false imprisonment, requiring concrete evidence of employer action (publicity) or actual restraint, rather than mere inference or subjective feelings. This will make it more challenging for employees in Arizona to bring similar tort claims against private employers in at-will employment termination scenarios.
