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Tripoli v. Marwick8/31/1998
Source of Appeal: Appeal from Superior Court of King County Docket No: 94-2-13833-2 Judgement or order under review Date filed: 02/05/97 judge signing: Hon. Robert J. Wesley
UNPUBLISHED
KPMG Peat Marwick appeals from the trial court's conclusion that KPMG terminated Andrew Tripoli's employment without "just cause." Notwithstanding the evidence presented at trial that Tripoli had sexually harassed another employee, the critical issue is whether the employer had just cause based on the information it possessed about the alleged incident at the time of the firing. Because the employer's decision to terminate was impulsive and made without investigation, we affirm the trial court's Conclusion that the employer acted without just cause.
In October 1991, KPMG Peat Marwick employed Andrew Tripoli for a claims reparation project in Kuwait. Tripoli signed a contract with KPMG providing that he would work for KPMG for 16 weeks and would be paid a fixed amount, plus living expenses. The contract also provided that Tripoli would work to the "highest professional and personal standards".
Soon after Tripoli began work in Kuwait, Patricia Lott, another KPMG employee working in Kuwait, made a report of sexual harassment and inappropriate conduct by Tripoli to Gary Grant, a supervisor at KPMG. Grant and Lott immediately reported the allegations of harassment to Bob Smith, a supervisor with firing ability. Specifically, Grant said he heard Lott say to Smith "something to the effect of being cornered downstairs, and crude jokes." Grant testified that a staff member named Gina told him that she was concerned about Lott's "physical safety". But no testimony was presented at trial that Gina's concerns were relayed to Smith. After listening to Grant and Lott briefly, Smith decided to fire Tripoli.
In June 1994, Tripoli filed suit against KPMG. After a bench trial, the court concluded that KPMG did not have "just cause" to terminate Tripoli's employment:
With respect to Lott's allegations of sexual harassment there is strong evidence that such occurred, and that the court finds Ms. Lott to be credible in the important respects of the allegations that were made, nonetheless the termination process was not in good faith and therefore the termination was made without just cause as defined by law.
KPMG appeals from this Conclusion. As KPMG has not assigned error to any of the trial court's findings of fact, we treat them as verities on appeal.
If an employment relationship is not at-will and is for a specific or fixed term, as here, the trial court applies a "just cause" standard to determine whether an employer terminated an employee on valid grounds.
The "just cause" standard is defined in Baldwin v. Sisters of Providence in Washington., Inc. Plaintiff Baldwin, hired by a hospital, was bound to an employee manual provision that he could be discharged for "a gross violation of conduct". A female patient reported that she had been molested by an assailant matching Baldwin's description. The supervisor reported this allegation to other administrators and an investigative team was organized. During the investigation, many hospital records were reviewed and hospital personnel were interviewed. A few weeks later, Baldwin was fired. A jury, given an instruction allowing it to make an independent assessment of "just cause", found the hospital had no just cause to terminate.
The Supreme Court reversed, adopting as a correct statement of law the following definition: "Just cause' is a fair and honest cause or reason, regulated by good faith on the part of the party exercising the power. We further hold a discharge
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