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Southwest Gas v. Vargas8/24/1995 onspicuous absence of substantial evidence in support of a reasonable belief in the presence of good cause, or a demonstrably capricious "cause" for termination, a genuine and material issue for trial remains.
In the present case, Southwest conducted extensive interviews and acquired written statements from those who incriminated Vargas, which ultimately culminated in the advice by in-house and independent counsel to terminate Vargas. Southwest took manifestly sufficient measures to form a reasonable and enlightened belief concerning the accuracy of the complaints against Vargas and the need to terminate his services. Moreover, Vargas offered insufficient evidence to create a genuine issue of material fact as to the reasonableness of Southwest's belief in the accusations against
[111 Nev. 1064, Page 1079]
him or as to any possible pretextual motive for his discharge. The only testimony relating to that category established that two other employees had been demoted to a "nonfunctional department," the clear implication being that Vargas was being discriminated against in some way. That evidence, however, sheds no probative light on Southwest's motives with respect to Vargas. In short, Vargas presented no evidence from which the jury could reasonably infer that Southwest's decision to terminate him was not made in good faith, and Southwest presented substantial evidence of the bona fides of its decision. 5
Finally, Vargas contends that even if good cause existed for his termination, his discharge violated the terms of his employment contract, as defined by company policy. Specifically, Vargas contends that Southwest's failure to apply a progressive disciplinary policy in his case constituted a breach of contract. We disagree. According to Southwest's policy as expressed within its employee manuals, the propriety of an immediate termination depends on the seriousness of the conduct. Moreover, sexual harassment was acknowledged by Olsen as an offense that could result in immediate termination, and Maffie expressed his opinion that Vargas's conduct fell within two of the categories outlining grounds for immediate termination. Vargas presented evidence that immediate termination did not result in five other cases of sexual harassment at Southwest, but, as Southwest notes, the district court excluded foundational facts from the other cases, including the specific allegations of misconduct and the strength and credibility of the witnesses. Southwest contends that without the foundational facts, the admitted
[111 Nev. 1064, Page 1080]
testimony was irrelevant, confusing and unduly prejudicial. It is arguable that if Vargas had presented evidence demonstrating that each of the other five cases were qualitatively and quantitatively indistinguishable from his case, such evidence may have supplied the jury with a basis for inferring that his termination was not made in good faith, and that Southwest's motives were pretextual. Such, however, was not the case. The only evidence offered to support such an inference was the fact that Southwest treated Vargas differently than past employees accused of sexual harassment. That evidence, however, without foundational support, was irrelevant and highly prejudicial. 6 Southwest has plainly reserved the right of immediate termination in serious cases of misconduct and has not ceded to a jury the authority to define the term "serious misconduct." Condoning the jury's implicit determination that a progressive discipline policy, as a matter of contract, is guaranteed to all Southwest employees would ignore the plain language of Southwest's policy statements, as well as the lack of evidence suggesting disparate treatmen
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