In the non-precedential decision of Haun v. Community Health Systems, Inc., et al., No.: 2350 EDA 2009 (PA Super. 12/20/2010), the Pennsylvania Superior Court affirmed a ruling by the trial court, which dismissed an at-will employee's claims for intentional interference with contractual relations. The dissenting opinion, however, shows that this area of Pennsylvania law is still arguably unsettled.
By way of backgroun, Richard Haun served as the Chief Financial Officer at Phoenixville Hospital from June, 2007 until November 12, 2008. Haun was an at-will employee in his position as CFO.
On August 23, 2007, Haun's wife gave birth to premature twins at Phoenixville Hospital. The twins were taken to the Neonatal Intensive Care Unit at Phoenixville Hospital, and while in the Unit, one of the twins became disconnected from an IV line. This caused extensive blood loss to the baby, which in turn, resulted in severe and irreversible injury to the baby's central nervous system.
Shortly thereafter, Haun and his wife filed a medical malpractice suit against Phoenixville Hospital, its corporate parents and a number of the doctors and nurses of Phoenixville Hospital.
Five days after being served with the suit, the Interim President for the corporate hospital defendants sent an email to the CEO of Phoenixville Hospital, instructing the CEO to have a discussion with the Chief Counsel for the corporate hospital defendants about the possibility of terminating Haun's employment. On November 12, 2008, the CEO of Phoenixville Hospital and the Phoenixville Hospital Human Resources Director met with Haun and informed him that he was being fired from the hospital because he was "an adversary of the company and it's too much risk." Haun was then immediately escorted from the building and was denied the opportunity to collect his personal effects.
After being fired from Phoenixville Hospital, Haun filed a second suit against the Hospital and its corporate parents, alleging, among other claims, wrongful termination in violation of public policy and intentional inference with contractual relations. The corporate defendants filed objections seeking dismissal of his intentional interference claim, arguing that Pennsylvania law does not recognize such a cause of action for a current at-will employee. (The defendants also filed an objection seeking to dismiss Haun's wrongful termination claim, which was denied by the trial court and affirmed on appeal. For a full discussion of this claim, see my previous post).
The trial court dismissed Haun's claim, and on appeal, this decision was affirmed by the Superior Court.
Specifically, the Superior Court looked to its previous panel decision in Hennessy v. Santiago, 708 A.2d 1269 (Pa. Super. 1998), which held that an at-will employee may not sue a third-party for intentional interference with an existing at-will employment contract. Rather, the Hennessy Court held that a cause of action for intentional interfence exists only with respect to prospective at-will employment relationships, not with presently existing at-will employment relationships. Therefore, relying upon the Hennessy decision, the Superior Court in this case upheld the dismissal of Haun's claim, noting that he was clearly a current at-will employee at the time of his termination.
The dissenting opinion, however, raises a compelling argument that the Hennessy decision was wrongly decided, as being in conflict with previous Superior Court decision. First, the dissent noted that in the prior case of Curran v. Children's Service Center, 578 A.2d 8 (Pa. Super. 1990), another panel of the Superior Court unequivocally held that "a cause of action for intentional interference with a contractual relationship may be sustained even though the employment relationship is at-will." And, having been decided before Hennessy, the dissent reasoned that Curran was the correct statement of the law and should be followed.
Additionally, the dissent notes that the decision in Curran relied upon Comment g of Section 766 of the Restatement (Second) of Torts, which explicitly addresses contracts that are terminable at-will. Moreover, the Pennsylvania Supreme Court expressly adopted Section 766 in Thompson Coal Co. v. Pike Coal Co., 412 A.2d 466 (Pa. 1979). Comment g states that an at-will employee has an interest in future relations between the employee and the employer, but has no legal assurance of them. For that reason, an interference in that interest would be closely analogous to interference with prospective contractual relations - a cause of action that has already been recognized and sanctioned for at-will employment in Pennsylvania. The dissent noted that the Hennessy Court failed to address either Section 766, Comment g, or the Curran decision, and as such, its reasoning should be viewed circumspectly.
The Pennsylvania Supreme Court has not yet rendered a decision addressing whether an at-will employee may maintain a claim for intentional interference with contractual relations against a third-party. But, the dissent in Haun sets forth a compelling argument that emphasizes the apparent lack of decisional consistency and clarity from the Superior Court on this issue. In such cases, it is usually only a matter of time before the Supreme Court recognizes the need to step in and settle the law. Hopefully, we will see a decision by the Supreme Court on this issue sooner rather than later.
Showing posts with label At-Will Employment. Show all posts
Showing posts with label At-Will Employment. Show all posts
Tuesday, January 25, 2011
Superior Court Allows Claim For Wrongful Discharge By Former Hospital Executive
In the non-precedential decision of Haun v. Community Health Systems, Inc., et al., No.: 2350 EDA 2009 (PA Super. 12/20/2010), the Pennsylvania Superior Court affirmed and adopted the decision of the trial court, which refused to dismiss a wrongful discharge claim filed by a former hospital executive.
Richard Haun served as the Chief Financial Officer at Phoenixville Hospital from June, 2007 until November 12, 2008. Haun was an at-will employee in his position as CFO.
On August 23, 2007, Haun's wife gave birth to premature twins at Phoenixville Hospital. The twins were taken to the Neonatal Intensive Care Unit at Phoenixville Hospital, and while in the Unit, one of the twins became disconnected from an IV line. This caused extensive blood loss to the baby, which in turn, resulted in severe and irreversible injury to the baby's central nervous system.
Shortly thereafter, Haun and his wife filed a medical malpractice suit against Phoenixville Hospital, its corporate parents and a number of the doctors and nurses at Phoenixville Hospital.
Five days after being served with the suit, the Interim President for the corporate hospital defendants sent an email to the CEO of Phoenixville Hospital, instructing him to have a discussion with the Chief Counsel for the corporate hospital defendants about the possibility of terminating Haun's employment. On November 12, 2008, the CEO of Phoenixville Hospital and the Phoenixville Hospital Human Resources Director met with Haun and informed him that he was being fired from the hospital because he was "an adversary of the company and it's too much risk." Haun was then immediately escorted from the building and was denied the opportunity to collect his personal effects.
After being fired from Phoenixville Hospital, Haun filed a second suit against the Hospital and its corporate parents, alleging, among other claims, wrongful termination in violation of public policy. The corporate defendants filed objections seeking dismissal of this claim, arguing that Haun had failed to plead any recognized public policy exception to Pennsylvania's employee at-will doctrine.
The trial court overruled this objection, holding that Haun had established a good-faith argument that his dismissal violated public policy. Specifically, the trial court found that the public policy of Pennsylvania favors allowing the victims of medical malpractice to seek adequate compensation and also favors parents asserting legal claims on behalf of their children. The trial court held that these precepts supported Haun's allegations that his termination for assisting his child in seeking compensation for alleged medical malpractice violated a clear mandate of public policy.
On appeal, the Superior Court agreed with the reasoning and analysis of the trial court, and adopted the trial court's discussion of this issue as its own.
Richard Haun served as the Chief Financial Officer at Phoenixville Hospital from June, 2007 until November 12, 2008. Haun was an at-will employee in his position as CFO.
On August 23, 2007, Haun's wife gave birth to premature twins at Phoenixville Hospital. The twins were taken to the Neonatal Intensive Care Unit at Phoenixville Hospital, and while in the Unit, one of the twins became disconnected from an IV line. This caused extensive blood loss to the baby, which in turn, resulted in severe and irreversible injury to the baby's central nervous system.
Shortly thereafter, Haun and his wife filed a medical malpractice suit against Phoenixville Hospital, its corporate parents and a number of the doctors and nurses at Phoenixville Hospital.
Five days after being served with the suit, the Interim President for the corporate hospital defendants sent an email to the CEO of Phoenixville Hospital, instructing him to have a discussion with the Chief Counsel for the corporate hospital defendants about the possibility of terminating Haun's employment. On November 12, 2008, the CEO of Phoenixville Hospital and the Phoenixville Hospital Human Resources Director met with Haun and informed him that he was being fired from the hospital because he was "an adversary of the company and it's too much risk." Haun was then immediately escorted from the building and was denied the opportunity to collect his personal effects.
After being fired from Phoenixville Hospital, Haun filed a second suit against the Hospital and its corporate parents, alleging, among other claims, wrongful termination in violation of public policy. The corporate defendants filed objections seeking dismissal of this claim, arguing that Haun had failed to plead any recognized public policy exception to Pennsylvania's employee at-will doctrine.
The trial court overruled this objection, holding that Haun had established a good-faith argument that his dismissal violated public policy. Specifically, the trial court found that the public policy of Pennsylvania favors allowing the victims of medical malpractice to seek adequate compensation and also favors parents asserting legal claims on behalf of their children. The trial court held that these precepts supported Haun's allegations that his termination for assisting his child in seeking compensation for alleged medical malpractice violated a clear mandate of public policy.
On appeal, the Superior Court agreed with the reasoning and analysis of the trial court, and adopted the trial court's discussion of this issue as its own.
Monday, March 8, 2010
At-Will Employee May Sue For Wrongful Termination When Fired In Retaliation For Complaining About Drug-Testing Violations
The U.S. District Court for the Middle District of Pennsylvania has ruled that an at-will employee may sue his/her former employer for wrongful termination where the employee is terminated in retaliation for making complaints about his/her employer's or supervisor's failure to comply with Federal and State mandatory drug-testing requirements, where such requirements have been adopted for the protection of the safety of the public at large.
In Oliveri v. U.S. Food Service d/b/a North Star Foodservice, District Judge James M. Munley dismissed Defendant/employer's Motion to Dismiss plaintiff's complaint where plaintiff, at-will employee, alleged that his termination by employer was unlawful in violation of the public policy of Pennsylvania. Defendant/employer was a commercial trucking company, which was required by federal regulations to perform random drug-testing on its commercial truck drivers. Defendant had employed plaintiff as a manager of transportation, an "at-will" position. During the course of his employment, plaintiff discovered that his immediate supervisor was delaying or excusing testing on several drivers, all in violation of federal regulations. Plaintiff complained to other supervisors in the company, but to no avail. Finally, plaintiff contacted an anonymous hotline that Defendant/employer maintained to allow employees to make complaints, reciting his supervisor's violations of the federal drug-testing requirements. The next day, plaintiff's supervisor told plaintiff that he knew plaintiff had complained to the hotline and terminated his employment.
Plaintiff sued Defendant/employer, alleging that despite his status as an "at-will" employee, his termination was in violation of the public policy of Pennsylvania. The Court agreed, holding that Pennsylvania courts have recognized that highway safety and the regulation of commerical trucks are significant matters of public policy, and that Pennsylvania has specifically adopted by reference the federal drug-testing regulations for commerical truck drivers that plaintiff claimed were violated by his supervisor. Therefore, the Court allowed plaintiff's claim of wrongful termination to proceed.
In Oliveri v. U.S. Food Service d/b/a North Star Foodservice, District Judge James M. Munley dismissed Defendant/employer's Motion to Dismiss plaintiff's complaint where plaintiff, at-will employee, alleged that his termination by employer was unlawful in violation of the public policy of Pennsylvania. Defendant/employer was a commercial trucking company, which was required by federal regulations to perform random drug-testing on its commercial truck drivers. Defendant had employed plaintiff as a manager of transportation, an "at-will" position. During the course of his employment, plaintiff discovered that his immediate supervisor was delaying or excusing testing on several drivers, all in violation of federal regulations. Plaintiff complained to other supervisors in the company, but to no avail. Finally, plaintiff contacted an anonymous hotline that Defendant/employer maintained to allow employees to make complaints, reciting his supervisor's violations of the federal drug-testing requirements. The next day, plaintiff's supervisor told plaintiff that he knew plaintiff had complained to the hotline and terminated his employment.
Plaintiff sued Defendant/employer, alleging that despite his status as an "at-will" employee, his termination was in violation of the public policy of Pennsylvania. The Court agreed, holding that Pennsylvania courts have recognized that highway safety and the regulation of commerical trucks are significant matters of public policy, and that Pennsylvania has specifically adopted by reference the federal drug-testing regulations for commerical truck drivers that plaintiff claimed were violated by his supervisor. Therefore, the Court allowed plaintiff's claim of wrongful termination to proceed.
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