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Wood v. Utah Farm Bureau Insurance Company2/8/2001
-fact contract terms after they signed their Contracts. See Ryan v. Dan's Food Stores, Inc., 972 P.2d 395, 401 (Utah 1998) (ruling implied-in-fact contract terms superseded by later received employee handbook).
The existence of an implied-in-fact agreement is normally a question of fact left to the jury, but "if the evidence presented is such that no reasonable jury could conclude that the parties agreed to limit the employer's right to terminate the employee, it is appropriate for a court to decide the issue as a matter of law." Johnson v. Morton Thiokol, Inc., 818 P.2d 997, 1001 (Utah 1991) (footnote omitted). A review of the evidence leads us to conclude that the trial court was correct in granting summary judgment in favor of Farm Bureau in regard to the termination of Wood and Tanner, but erred in granting summary judgment on Stokes's termination.
Plaintiffs have "the burden of establishing the existence of an implied-in-fact contract provision." Id. Satisfaction of this burden requires Plaintiffs to show that Farm Bureau made a unilateral contract offer. See id. at 1002. Specifically, Plaintiffs must show:
"a manifestation of the employer's intent that is communicated to the employee and sufficiently definite to operate as a contract provision. Furthermore, the manifestation of the employer's intent must be of such a nature that the employee can reasonably believe that the employer is making an offer of employment other than employment at will." Kirberg v. West One Bank, 872 P.2d 39, 41 (Utah Ct. App. 1994) (citation omitted).
Oral statements and course of conduct may be used as evidence of Farm Bureau's intent to modify the at-will provision. See Hodgson v. Bunzl Utah, Inc., 844 P.2d 331, 334 (Utah 1992). "In order for conduct and oral statements to establish an implied-in-fact contract, such evidence must be strong enough to overcome . . . any inconsistent written policies and disclaimers." Id.
After the Contracts were signed, Wood, Tanner, and Stokes argue that Farm Bureau reaffirmed the earlier letters in weekly meetings. In support, they point to their affidavits. Based upon the weekly meetings, all three stated in their affidavits, "I believed that I could not be terminated even after signing the 1994 Career Agent Contract unless I failed to meet the stated minimums in the October 15, 1993 letter." In addition, Tanner states that in his weekly meetings, "I was given reports indicating whether I was meeting the goals set forth in the letter he gave me dated October 15, 1993." Wood states that he also attended weekly meetings and, "I was under the impression that the October 15 letter continued to govern our relationship."
Taken as true, these affidavit statements do not satisfy the requirements of a unilateral contract offer. Specifically, they fail to allege Farm Bureau communicated any affirmative manifestation of intent, whether oral, course of conduct, or otherwise, that would reasonably justify Wood's and Tanner's beliefs that they were anything other than at-will agents. Neither Wood nor Tanner allege the Farm Bureau manager orally indicated that they would not be terminated. Neither do they allege the Farm Bureau manager made any oral statements that the letters governed the relationship. Although Wood states he was under the impression that the letters governed, he fails to identify an affirmative manifestation communicated by Farm Bureau that can stand as a contract offer and support his impression.
Furthermore, in regards to course of conduct, neither Wood nor Tanner allege the Farm Bureau manager referred to the provision in the letters about retention and termination. Although Tanner was given r
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