SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-3085-96T3
JOHN C. McGARRY,
Plaintiff-Appellant,
v.
SAINT ANTHONY OF PADUA ROMAN
CATHOLIC CHURCH,
Defendant-Respondent.
___________________________________________
Argued January 22, 1998 - Decided February 11, 1998
Before Judges Shebell, D'Annunzio and Coburn.
On appeal from the Superior Court of New
Jersey, Law Division, Monmouth County.
Brian M. Cige, argued the cause for appellant.
John S. Favate argued the cause for respondent
(Bumgardner, Hardin & Ellis, attorneys; Mr. Favate,
of counsel; Steven Yarusinsky, on the brief).
The opinion of the court was delivered by
SHEBELL, P.J.A.D.
Plaintiff, John C. McGarry, appeals from the December 20,
1996 order granting summary judgment to defendant, Saint Anthony
of Padua Roman Catholic Church (St. Anthony's). We affirm.
On March 30, 1995, plaintiff filed a complaint in the Law
Division against Saint Anthony's alleging breach of employment
contract, wrongful discharge, defamation and interference with a
prospective economic advantage. Thereafter, counts two and
three, which alleged emotional and/or physical injury and
defamation, were voluntarily dismissed by plaintiff. Plaintiff's
claims for wrongful discharge and breach of contract contained in
count one, and tortious interference with a prospective economic
advantage found in count four remained.
Defendant moved for summary judgment. On December 20, 1996,
an order was executed dismissing with prejudice plaintiff's
remaining claims.
The facts are as follows. On September 27, 1994, plaintiff
entered into a one-year employment contract with Saint Anthony's
and began serving as its Music Minister/Director of Music in
October 1993. St. Anthony's Pastor, Father Robert Lynam, who was
authorized to hire and fire employees, signed the contract. The
contract contained the following provision for termination:
The parties involved shall give notice of
termination of employment at least thirty
days in advance of the termination. The
termination time must be completed by the
employee or if the employer does not wish the
termination to be completed the employer
shall fulfill all contractual financial
agreements.
This litigation arose out of the fact that plaintiff had
been receiving shipments of illegal anabolic steroids at St.
Anthony's. He was arrested on February 1, 1995 in the parking
lot of St. Anthony's for possession of anabolic steroids in
violation of N.J.S.A. 2C:35-10(a)(1). He admitted he was
expecting the package and that he knew it contained anabolic
steroids. He accompanied the officers into St. Anthony's to
retrieve the package. The package was found to contain 290
tablets of methandrostenolone, 240 tablets of oxandrolone, and 9
vials of deca durabolin. Plaintiff stated he had been taking
steroids to assist him with bodybuilding even though he knew they
were illegal. He admitted he had the steroids delivered to him
at St. Anthony's on three prior occasions and that he injected
himself with the deca durabolin approximately once a week.
On February 2, 1995, Father Lynam received word of a
newspaper article which reported plaintiff's arrest at St.
Anthony's for receiving anabolic steroids. That same day,
plaintiff met with Father Lynam and, according to the Pastor,
agreed to resign and turn in his keys. The following morning,
plaintiff called Father Lynam's secretary to arrange removal of
his belongings. He arrived at approximately 10 a.m. with a van
and two friends, who helped clean out his office.
On February 4, 1995, the pastor sent a letter to plaintiff
purporting to memorialize the agreement. The letter states:
Because of this unfortunate incident I
believed it absolutely necessary that you and
I meet as soon as possible to discuss a
resolution to this matter vis-a-vis your
continued employment by St. Anthony's Church
in the position of Music Director. As you
recall, during that meeting I solicited your
thoughts on how we might resolve the matter.
However, you told me that you were unable to
offer any resolution. Because I had all day
to reflect on the matter, and because of the
gravity of the situation caused by you never
informing me of the arrest on Church
property, as well as your use of the Church's
address to receive these illegal substances,
I had arrived at what I considered to be the
best solution possible for all involved.
As I told you during that meeting, I think it is essential, and so I strongly urge
you, to seek professional counseling to
address your current problems. I also
believed that because of the serious nature
of the matter, as described above, that it
would be best for you to resign immediately
from your position here at St. Anthony's. At
the conclusion of our meeting you indicated
acceptance of my proposal and you kindly
returned to me your Church keys that evening.
[Emphasis added.]
On February 5, 1995, Father Lynam found that a microphone
was missing and faxed a note to plaintiff asking him to look for
it. On February 7, 1995, plaintiff wrote back that he intended
to continue his duties at the church unless he was fired. He
also wrote that if he was not fired, he would show up for choir
rehearsal the next day. Father Lynam immediately replied by fax
that it was clear that plaintiff had resigned on February 2, 1995
by virtue of his returning his keys and equipment and not
appearing for mass after his resignation.
Plaintiff responded by fax that he did not resign and
intended to continue unless fired. Father Lynam then sent the
following fax: "Let me make it perfectly clear that you are not
to come on Church property, and you are not to cause any
disruption with choir or Masses." Plaintiff faxed back a message
questioning whether he had been fired.
On or prior to February 6, 1995, plaintiff applied to
another parish for similar employment, but was rejected when
inquiry was made to Father Lynam regarding plaintiff's employment
at St. Anthony's and Father Lynam informed the prospective
employer of the incident which had occurred. After he was
indicted on two counts of possession of controlled dangerous
substances, plaintiff entered into Pre-Trial Intervention.
The motion judge dismissed plaintiff's fourth count alleging
interference with a prospective economic advantage finding that
plaintiff could not show that "there was an intentional, without
justification, interference" with his economic advantage. He
reasoned that Father Lynam supplied the information only after it
was requested, and the information supplied was of criminal
conduct admitted by plaintiff and covered in the newspaper.
Additionally, Father Lynam was protected by a qualified privilege
for employment references. Plaintiff has not briefed this issue
on appeal and we, therefore, deem it abandoned. R. 2:6-2; River
Vale Planning Board v. E & R Office Interiors, Inc.,
241 N.J.
Super. 391, 402 (App. Div. 1990).
The judge also dismissed the wrongful discharge portion of
count one, finding that there was not a factual dispute. The
judge noted:
[W]hen you are talking about wrongful
discharge, certainly there is no factual
dispute that under the facts and
circumstances of this case, receiving
packages of contraband from Greece addressed
to the church, being found on the church
property with two such packages of contraband
steroids. The subsequent indictment for two
counts possession of controlled dangerous
substances.
The entry of the plaintiff into the
pretrial intervention program whether or not
he technically plead guilty is certainly good
cause, which would preclude the wrongful
discharge claim. The wrongful discharge
claim is dismissed.
The judge, however, perceived that there was a factual
dispute concerning whether there was a resignation or a firing,
and if there was a resignation, whether it was voluntary. He
requested that the parties address the issue of whether there
could still be a technical breach of contract, since the
discharge and firing were for cause.
After receiving briefs, the judge ruled on December 20,
1996, that the breach of contract count could not survive the
dismissal of the wrongful termination count. The court found:
[Plaintiff] used, actually the church
address in a scheme to obtain steroids. They
were actually mailed to the church and he was
arrested at the church.
How a fact finder could view that as not
being in bad faith, is beyond me. And I
think I am comfortable finding as a matter of
law, that plaintiff breached an inherent
constructive condition to comport his conduct
to moral norms and standards.
And bottom line, I am finding that the
breach of contract and wrongful termination
are identical issues. And once the wrongful
termination is dismissed, and findings made
with respect to the termination, the breach
of contract should also fall, and I find
under Brill that no reasonable fact finder
could find otherwise.
The only issue plaintiff briefed on appeal is whether the motion judge erred by granting defendant's motion for summary judgment on the breach of contract portion of count one. Plaintiff argues that a factual dispute exists over whether he resigned or was terminated, and also that the judge erred by ruling that even if plaintiff was terminated, he was not entitled to enforcement of the 30 day notice/liquidated damages clause, because he breached an implied covenant of good faith and fair
dealing.
The standard for summary judgment is set forth in Rule 4:46-2(c). Rule 4:46-2(c) provides that summary judgment should be
granted:
if the pleadings, depositions, answers to
interrogatories and admissions on file,
together with the affidavits, if any, show
that there is no genuine issue as to any
material fact challenged and that the moving
party is entitled to a judgment or order as a
matter of law. An issue of fact is genuine
only if, considering the burden of persuasion
at trial, the evidence submitted by the
parties on the motion, together with all
legitimate inferences therefrom favoring the
non-moving party, would require submission of
the issue to the trier of fact.
To determine whether an issue of fact is genuine, the judge must
decide whether:
the competent evidential materials presented,
when viewed in the light most favorable to
the non-moving party, are sufficient to
permit a rational factfinder to resolve the
alleged disputed issue in favor of the non-moving party....If there exists a single,
unavoidable resolution of the alleged
disputed issue of fact, that issue should be
considered insufficient to constitute a
`genuine' issue of material fact for purposes
of Rule 4:46-2.
[Brill v. Guardian Life Ins. Co.,
142 N.J. 520, 540 (1995).]
Thus, "when the evidence `is so one-sided that one party must
prevail as a matter of law,'...the trial court should not
hesitate to grant summary judgment." Ibid. In ruling on the
motion, the non-moving party must receive all favorable
inferences. Judson v. Peoples Bank and Trust Co. of Westfield,
17 N.J. 67, 75 (1954).
We first consider the wrongful termination issue. Terms
will be implied into a contract where the parties intended them
and the terms are necessary to give business efficacy to the
contract as written. Onderdonk v. Presbyterian Homes of New
Jersey,
85 N.J. 171, 182 (1981). In every contract, there is an
implied covenant of good faith and fair dealing. Ibid.; Bak-A-Lum v. Alcoa Building Products, Inc.,
69 N.J. 123, 129-30 (1976);
Palisades Properties, Inc. v. Brunetti,
44 N.J. 117, 130 (1965).
In other words, there is an implied covenant that "neither party
shall do anything which will have the effect of destroying or
injuring the right of the other party to receive the fruits of
the contract[.]" Association Group Life, Inc. v. Catholic War
Veterans,
61 N.J. 150, 153 (1972).
Even where, as here, the employee performs the duties
contracted for satisfactorily, criminal activity by the employee
can justify his discharge for breach of an employment contract.
30 Corpus Juris Secondum, Employer-Employee, Section 64, provides
that "[m]isconduct of an employee which is inconsistent with the
relation of employer and employee justifies discharge."
Furthermore, as 30 Corpus Juris Secondum, Section 160, states,
"[a]n employee's recovery of wages under the contract may be
prevented by his misconduct, fraud, or disloyalty in a manner
substantially affecting his employment contract."
It is clear that plaintiff intentionally ordered the
anabolic steroids for his personal use and had them shipped to
St. Anthony's address. This constituted a breach of the implied
conditions of plaintiff's contract of employment. The receipt of
anabolic steroids at work indirectly involved St. Anthony's in
the commission of a criminal offense and constituted gross
misconduct. The criminal offense while not immediately injurious
to St. Anthony's, eventually resulted in his arrest on church
property and a newspaper report naming St. Anthony's as
plaintiff's employer.
As the Restatement (Second) of Agency provides:
Unless otherwise agreed, an agent is subject
to a duty not to conduct himself with such
impropriety that he brings disrepute upon the
principal or upon the business in which he is
engaged. If the service involves personal
relations, he has a duty not to act in such a
way as to make continued friendly relations
with the principal impossible.
[Restatement (Second) of Agency, § 380
(1957).]
Comment a. to Section 380 expounds upon the duty of good conduct:
Normally, the success of a business is
to a considerable extent dependent upon the
reputation of the persons connected with it.
An agent who acquires a reputation for
qualities which are inconsistent with the
satisfactory performance of his business is
unable to serve the principal to the best
advantage. It is therefore, the ordinary
understanding that he will use care so to
conduct himself that his usefulness in this
respect will not be impaired.
The nature of the business and the position of the agent determine what reputation the agent has agreed to maintain and what conduct can be expected from him.... [A]lthough the employer has no control over the conduct of such persons when they are not engaged in his work, he has such interest in the general integrity of his business household that it may be a breach of duty for one of them to acquire a deserved reputation
for loose living, or to commit a serious
crime.
[Restatement (Second) of Agency, § 380,
comment a. (1957).]
When the duty of good conduct is violated by an employee,
the employer has good cause to terminate a contract and the
termination will not support a cause of action for breach of
contract. See Kippen v. American Automatic Typewriter Co.,
324 F.2d 742 (9th Cir. 1963) (noting that an employer may, without
breach of contract, terminate an arrangement with his agent
because of excessive drink habits that reflect poorly upon the
business).
By virtue of his arrest, plaintiff brought negative
publicity to St. Anthony's. Moreover, steroid use, especially
through intravenous injection, carries various health and
behavioral risks to others. Injecting steroids creates an
increased risk of contracting any number of infectious diseases.
George Fan, Anabolic Steroid and Human Growth Hormone Abuse:
Creating an Effective and Equitable Ergogenic Drug Policy, 1994
U. Chi. Legal Forum 439, 463 (1994). Further, steroids have been
known to cause "roid rages" where the slightest provocation "can
cause an exaggerated, violent and often uncontrolled response."
Id. at 451. Plaintiff served in a position where he would come
into contact with many members of the parish. St. Anthony's
could not have been expected to tolerate the risk that plaintiff
might contract a communicable disease or attack a member of the
parish. As a result, defendant had good cause to terminate the
employment contract by virtue of plaintiff's breach of the
implied covenant of good faith and fair dealing and because of
the risks created by his illicit steroid use.
Additionally, in Custom Communications Eng'g, Inc. v. E.F.
Johnson Co.,
269 N.J. Super. 531 (App. Div. 1993), we considered
the same employment arrangement and held that a wrongful
discharge claim could not be sustained, since by the contract's
terms, the employer could terminate it without cause upon thirty-days' notice. Id. at 542. We concluded: "Where, as here, the
right to `terminate a contract is absolute under the wording in
an agreement, the motive of a party in terminating such an
agreement is irrelevant to the question of whether the
termination is effective.'" Ibid. (quoting Karl's Sales and
Service, Inc. v. Gimbel Brothers, Inc.,
249 N.J. Super. 487, 495
(App. Div.), certif. denied,
127 N.J. 548 (1991)). The only
exception to the rule that an at-will employee may be terminated
without cause is that the termination cannot violate public
policy. Pierce v. Ortho Pharmaceutical Corp.,
84 N.J. 58, 74
(1980). "[U]nless an employee at will identifies a specific
expression of public policy, he may be discharged with or without
cause." Id. at 72. As defendant aptly argues, plaintiff does
not and cannot cite any violation of public policy.
Since defendant had an absolute right to terminate
plaintiff's employment at-will, the motion judge was justified in
dismissing the wrongful termination count even if the thesis that
plaintiff was terminated is accepted. Therefore, we affirm the
dismissal of the wrongful discharge claim.
We now consider the breach of contract claim. It appears
that defendant, through its pastor, chose not to fire plaintiff.
Instead, the pastor requested and allegedly obtained plaintiff's
immediate resignation. Plaintiff thereafter denied he resigned
and expressed a willingness to return to his parish duties. The
pastor refused even to permit him to return to the church
premises. Plaintiff, therefore, seeks to invoke his contract
rights under its termination provisions which he argues requires
no less than 30 days of compensation.
We conclude that the termination clause did no more than
create an at-will employment relationship between the parties,
providing for the rights and duties of each party in the event
the contract was to be terminated without cause. These
provisions did not alter the right of the employer to discharge
the employee for cause, including, as here, the right to
terminate for breach of an implied condition of the contract. H.
Vincent Allen & Assoc., Inc. v. Weis,
379 N.E.2d 765, 772 (Ill.
App. 1978) (citing Corman Aircraft Corp. v. Weihmiller,
78 F.2d 241, 243 (7th Cir. 1935)).
We are convinced that plaintiff, having breached the
employment contract, and having been rightfully discharged for
cause, should not be allowed to recover termination pay under the
termination clause of the breached contract. H. Vincent Allen &
Assoc., Inc., supra, 379 N.E.
2d at 772 (citing Hosking v.
Hollaender Mfg. Co.,
175 N.E.2d 201, 203 (Ohio 1961)). This is
particularly so where it would have been so strikingly
improvident for the pastor to have permitted plaintiff to
continue for the thirty day period referred to in the termination
clause.
We, therefore, affirm the dismissal of count one as it
relates to both the wrongful discharge and breach of contract
claims. We also affirm as to the dismissal of count four which
was not briefed on appeal and was thereby abandoned.
Affirmed.