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Southwest Gas v. Vargas8/24/1995
Per Curiam: This is an appeal from a jury verdict awarding respondent Faustos Vargas $365,236.00 in damages for breach of an implied contract of continuing employment by appellant Southwest Gas Corporation (Southwest). After investigating complaints of sexual harassment directed against Vargas, Southwest subsequently terminated him. The primary issues on appeal address questions concerning whether there was an implied contract of continuing employment and if so, whether Southwest breached the contract in terminating Vargas. For reasons hereinafter expressed, we conclude that Southwest is entitled to relief, and therefore reverse.
FACTS
Southwest hired Vargas in 1962 to work in its accounting department. In March 1988, Tina Levell, an employee supervised by Vargas, complained that Vargas was sexually harassing her. In particular, Levell was offended by Vargas touching her whenever she was called into his office: "If I was sitting it was on my legs. If standing he would get a little closer and put his arm around my waist." She also testified that whenever Vargas came near her and no one else was around, he would put his arm around her waist and drop it to her buttocks. On other occasions, Vargas would come into her cubical, put his arms on her shoulders, kiss her on the cheek and say, "You're so beautiful I want to whisper sweet things in your ear." On one occasion Vargas invited Levell for lunch at the top of the Dunes Hotel because he "wanted to spend some time alone" with her. Levell asked Joy Ray, Southwest's vice president in charge of accounting, to speak with Vargas about his behavior. Ray referred the matter to Tom Olsen, vice president in charge of human resources, who, after interviewing Levell, determined that a complete investigation was warranted. In accordance with Southwest's standard procedures, Vargas was suspended with pay during the investigative period. Olsen began the investigation by directing Ray and Jo Ann Thaxton, director of benefits and
[111 Nev. 1064, Page 1067]
compensation in the human resources department, to interview all of the women who worked under Vargas's supervision. It was Southwest's stated intent to make the investigation as objective and confidential as possible, and a standard questionnaire was therefore used to ensure that all interviewees were asked the same questions. A total of nineteen women, who either worked under Vargas or were referenced during other interviews, were interviewed over a period of two days in April 1988. Some women spoke favorably of Vargas, but others claimed that he had touched, hugged, and kissed them, and had invited them to go away with him, or had otherwise invaded their privacy. Following the series of interviews, Ray requested written statements from the women who made the most serious accusations against Vargas. The following is a brief summary of some of those accusations. Laurie Clemmons stated that on her twenty-first birthday, Vargas insisted throughout the day on giving her a birthday hug. When an opportunity arose, he attempted to grab her at which time she told him to leave her alone. Vargas allegedly became angry and told Clemmons not to become defensive. Furthermore, as recounted in Clemmons's own words,
Vargas always made comments to me such as "you are so good looking[,]" "Hey sweet, let's run off together to Mexico," "When you're thirty, you'll be so sexy, I'll have to take you out[.]" If I was wearing a dress, he would make a point of saying "You look sooo good today" (always in a suggestive tone).
Clemmons also recounted that on occasion, "Vargas would come up behind me and squeeze my waist." Loretta Bivins stated that Vargas would touch her on the arm
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