Summary 2010 WY 69

Summary of Decision issued May 27, 2010

Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court.

Case Name: Reynolds v. West Park Hospital District

Citation: 2010 WY 69

Docket Number: S-09-0201

Appeal from the District Court of Park County, the Honorable Steven R. Cranfill, Judge.

Representing Reynolds: G. Mark Garrison of Garrison & Krisjansons, PC, Cody, Wyoming.

Representing Hospital: Chris Edwards of Simpson, Kepler & Edwards, LLC, The Cody, Wyoming division of Burg Simpson Eldredge Hersh & Jardine, PC.

Facts/Discussion: Reynolds appealed the Hospital District’s decision to terminate her employment. Reynolds began working for the Hospital in 1984. In 2003, she voluntarily resigned and entered into a Separation and Non-Disclosure Agreement. In consideration for Reynolds’ resignation and waiver of potential claims, the Hospital District paid her twelve weeks pay and continued providing health coverage. At about the same time, a different position was found and she returned to work for the Hospital District. In 2002, the Hospital District adopted a new employee handbook which generally provided that employees hired after January 1, 2002 would be “at-will” employees and could be terminated for any or no reason.

Termination based upon wrong personnel handbook: Reynolds argued that her employment was governed by the 1984 employee handbook because she received no consideration to modify her employment contract. By signing the Agreement in 2003 and accepting the terms, she waived any rights she may have had under the 1984 handbook. The Court noted that Reynolds did not present a copy of the alleged 1984 handbook and failed to demonstrate that had the handbook been in effect, the outcome would have differed.
Procedure for discipline not in handbook: At the time of her termination, Reynolds was an at-will employee and the Hospital District could terminate her for any reason or no reason.
Breach: Reynolds argued that because she was provided discipline short of termination on prior occasions, she had a reasonable expectation that the Hospital District would continue to treat her in the same manner. In Scherer Constr., LLC the Court held that the existence of a contractual implied covenant of good faith and fair dealing is obviously incompatible with the at-will presumption.

Conclusion: Reynolds’ resignation and release of claims in 2003 terminated any rights she may have had under whatever employee handbook may have been in effect before that date. Reynolds’ 2003 employment was at-will, under the applicable 2002 employee handbook, and her rights thereunder were not violated when she was terminated in 2007. Reynolds did not show that the conduct of the Hospital District was arbitrary, capricious, or contrary to law and she has not shown such conduct to have violated a covenant of good faith and fair dealing.

Affirmed.

C.J. Voigt delivered the decision.

Link: http://tinyurl.com/2vt5t9f .

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