Spero v. Lockwood, Inc. , 111 Idaho 74 ( 1986 )

SHEPARD, Justice.

This is an appeal from a judgment entered by the district court in favor of defendant-respondent-employer Lockwood following a six-day bench trial. Plaintiff-employee Spero had brought the action against Lockwood for wrongful discharge. We affirm.

Spero was hired by Lockwood as a salesman in August 1969, and due to economic cutbacks was laid off in December 1969. Spero was rehired by Lockwood in 1974, and in 1977 was transferred to a district which included Idaho. Spero was paid a fixed salary plus a commission on all parts and machinery purchased in his district from Lockwood. In 1983 Lockwood fired Spero, and despite repeated requests, Spero was never given a reason for the termination.

The district court, following trial, made meticulous and detailed findings of fact. He found that Spero had been fired by Lockwood without just or good cause and held that the burden to establish just or good cause was on the employer. In making such findings the district court noted the conflict between the testimony of two of Lockwood’s supervisors, and specifically held that the testimony of the supervisor favoring Spero’s position was more credible on the issue of lack of good or just cause. Although the court found that Spero had been critical of his superiors, the court found that Spero had “ceased his criticism within reasonably acceptable bounds,” and that based “only upon rumor and hearsay” Spero had been accused of slandering one of his superiors. The court found, “In a nutshell it was an arbitrary and capricious discharge within the rubric of ‘just’ or ‘good cause.’ ”

The principal issue before the trial court was whether Spero’s admittedly employment-at-will for no fixed duration or term, had been converted into a job security contract by the adoption of a personnel policy manual by Lockwood in 1977. The trial court made specific and detailed findings regarding the manual. The court found that the manual was not communicated to plaintiff and that Spero’s obtaining a copy “appears to have been little more than a fortuity; and not the stuff of contractual understandings or formation.” He did not receive or request a copy in relation to his job security, nor was there sufficient evidence that Spero ever read or relied upon the manual or continued his employment in reliance on its terms. Lockwood was free to change the manual at any time and a certain level of executives could disregard or modify the manual at their pleasure. The court noted, “Even Mr. Spero never testified that he thought the manual was a contract.” Hence, the district court concluded that the employment-at-will relationship which began in 1974 was not modified by the policy manual.

Unless an employee is hired pursuant to a contract which specifies the duration of the employment or limits the reasons for which an employee may be discharged, the employment is at the will of either party and the employer may terminate the relationship at any time for any reason without incurring liability. MacNeil v. Minidoka Memorial Hospital, 108 Idaho 588, 701 P.2d 208 (1985); Jackson v. Minidoka Irrigation Dist., 98 Idaho 330, 563 P.2d 54 (1977).

The findings of the district court in the instant case are supported by substantial competent, although conflicting, evidence, and will not be disturbed upon appeal. I.R.C.P. 52(a); Circle C Ranch Co. v. Jayo, 104 Idaho 353, 659 P.2d 107 (1983); Reuth v. State, 103 Idaho 74, 644 P.2d 1333, 1336 (1982). Although the trial court found that Spero had prevailed on the issue of a lack of just or good cause for his termination, and upon the issue of damages, the trial court found against Spero on the issue of whether the initial at-will employment had, by the personnel policy manual, been converted into a contract of employment from which Spero could only be terminated for just or good cause. We find no error.

The decision of the district court is affirmed. Costs to respondent.

DONALDSON, C.J., and BAKES, J., concur.