SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-3062-94T2
KATHLEEN FALCO and
JOSEPH FALCO
Plaintiffs-Appellants,
v.
COMMUNITY MEDICAL CENTER, PHILLIP
BARRECA,See footnote 1 DR. MICHAEL BAGEAC, JOHN
MARKEL,See footnote 2 JAN CROSBY, and DR. JAMES
PASQUARIELLO,
Defendants-Respondents.
_________________________________________________________________
Argued September 25, 1996 - Decided January
13, 1997
Before Judges Muir, Jr., Kleiner, and Coburn.
On appeal from the Superior Court of
New Jersey, Law Division, Ocean County.
Linda B. Kenney argued the cause for
appellants.
Kathleen M. Connelly argued the cause for
defendants-respondents Community Medical
Center, John Markle, and Jan Crosby (Genova,
Burns, Trimboli & Vernoia, attorneys; Ms.
Connelly, on the joint brief).
John H. Schmidt, Jr., argued the cause for
defendant-respondent Philip Barreca
(Lindabury, McCormick & Estabrook, attorneys;
Mr. Schmidt, on the joint brief).
Keith A. Krauss argued the cause for
defendant-respondent Dr. James Pasquariello
(Connell, Foley & Geiser, attorneys; Mr.
Krauss, on the joint brief).
Kenneth I. Nowak argued the cause for
defendant-respondent Dr. Michael Bageac
(Zazzali, Zazzali, Fagella & Nowak,
attorneys; Mr. Nowak, on the brief).
The opinion of the court was delivered by
KLEINER, J.A.D.
Plaintiffs Kathleen Falco and Joseph Falco appeal from the
dismissal of their complaint. Plaintiffs were seeking damages
based on Kathleen Falco's termination as a nurse in the Cardiac
Catheterization Laboratory of defendant Community Medical
Center.See footnote 3
Kathleen Falco, a registered nurse, was hired by defendant
Community Medical Center, located in Toms River, on October 4,
1989. She was assigned to the Cardiac Catheterization Lab on
September 4, 1991. Plaintiff's employment was terminated on
September 18, 1992.
Plaintiff's complaint, filed on March 30, 1993, alleged that
her employment was terminated in retaliation for "whistleblowing
activities," in violation of the Conscientious Employee
Protection Act (CEPA), N.J.S.A. 34:19-1 to -8, (count one). The
remaining counts of plaintiff's complaint asserted: a common law
claim of retaliatory discharge and intentional infliction of
emotional distress (count two); a constitutional tort (count
three); negligent infliction of emotional distress (count six);
intentional infliction of emotional distress (count seven); a
discharge in violation of public policy (count eight); and Joseph
Falco's per quod claim (count nine). In counts four and five,
plaintiff alleged that her termination violated her contractual
rights.
Pursuant to a motion to dismiss filed by all defendants, the
motion judge dismissed counts two, three, six, seven, and eight.
The judge concluded that each of those claims was barred under
the CEPA waiver provision as set out in N.J.S.A. 34:19-8. The
motion judge also dismissed count nine, Joseph Falco's per quod
claim, relying on our decision in Catalane v. Gilian Instrument
Corp.,
271 N.J. Super. 476, 493 (App. Div.), certif. denied,
136 N.J. 298 (1994).
The only counts then remaining were count one, the CEPA
claim, and counts four and five, alleging breach of contract.
Thereafter, on a motion for summary judgment filed by all
defendants except Dr. Michael Bageac, those counts were
dismissed. Plaintiff then filed a motion to amend her complaint
to assert a claim for tortious interference with a contractual
relationship and prospective economic advantage. In a separate
ruling, the motion judge denied plaintiff's motion.
On appeal, plaintiff challenges each of the pre-trial
rulings. After our careful review of the record and our analysis
of precedent, we conclude that the motion judge properly
dismissed each count of plaintiff's complaint, either
procedurally or summarily, and did not abuse her discretion in
refusing to grant plaintiff leave to file an amended complaint.
Each of the motion judge's rulings requires some discussion
with the exception of the dismissal of count nine, Joseph Falco's
per quod claim. R. 2:11-3(e)(1)(E). We affirm.
were assigned to that unit during plaintiff's tenure: two
cardiovascular technicians, Helen Clanton and Lorraine Camper; a
radiology technician, Michael Siemers; and two registered nurses,
Barbara Lechner and plaintiff. Vince Joseph is the executive
vice president and chief operating officer of CMC. John Markle
is the vice president of human resources.
Cardiologists with privileges at CMC perform cardiac
catheterizations at the Cath Lab. These cardiologists include
defendants Dr. Pasquariello and Dr. Bageac. Although Dr.
Pasquariello serves as the medical director of the Cath Lab,
neither he, nor Bageac, are employees of CMC, and neither had
authority to hire, fire, or otherwise discipline hospital
employees.
performed by Dr. Bageac. As Dr. Bageac described it, "[o]n this
occasion, the patient was undergoing a diagnostic procedure
performed on an urgent basis because an immediate diagnosis of
the patient's cardiac condition was necessary." Dr. Bageac
certified:
[B]ased upon my initial observations and
calculations of the patient's cardiac
condition, I made an initial recommendation
that the patient immediately undergo open
heart surgery, which required that the
patient immediately be transferred to another
hospital which had the appropriate facilities
for that operation. However, I noted that the
hemodynamic flow sheet [i.e., Quinton report]
prepared by [plaintiff] contained numerous
calculation errors, resulting in
physiological data that did not comport with
my initial observations and calculations. I
also noticed that [plaintiff] did not prepare
the final computer report that day. As
[plaintiff] had left work by that time, I had
to wait until first thing in the morning on
the next day to tell her.
The next morning I brought these errors to [plaintiff's] attention. I requested that
she immediately prepare a corrected flow
sheet and final report because the patient
was being transferred to Hackensack Medical
Center, for emergency coronary and valvula
surgery, at noon of that day, but [plaintiff]
indicated that she could not correct the
errors immediately. She stated that she
could not generate a corrected report until
all of the cardiac catheterizations scheduled
for that day were completed. I attempted to
correct the errors on the flow sheet by
performing the essential calculations by
hand.
As a result, Dr. Bageac had to transfer his patient to
another hospital with an initial recommendation that the patient
immediately undergo cardiac surgery, although he "was unable to
transport the computer generated physiological data to support
that initial recommendation."
Dr. Bageac also certified that plaintiff did not disclose
that she was unauthorized to operate the Quinton during a right
and left catheterization. Dr. Bageac reported the incident to
Barreca, who certified that plaintiff had never been authorized
to operate the Quinton during a right and left heart
catheterization. Barreca declared:
Although fully trained to operate the Quinton
computer during left heart catheterization
procedures, she had not been fully trained
and was never told (explicitly nor
implicitly) that she could operate that
computer during left and right heart
catheterization procedures. In fact, before
I left the Medical Center for a one week
vacation in August, 1992, I left specific
directions with the laboratory staff that
only Barbara Lechner was to operate the
Quinton computer during any left and right
heart catheterization procedures while I was
on vacation.
On September 17, 1992, plaintiff attended a meeting with
Barreca, Crosby, and Markle. The agenda for that meeting
included three items pertinent to plaintiff's employment
performance: (1) plaintiff's alleged unauthorized operation of
the Quinton; (2) an alleged breach of patient confidentiality;
and (3) an allegation that plaintiff had made a disparaging
remark about Dr. Bageac to other hospital personnel. At the
meeting, according to plaintiff, it was disclosed that Dr. Bageac
had threatened the hospital with legal action unless it
terminated plaintiff's employment.
Plaintiff testified in a discovery deposition that at the
September 17, 1992, meeting the three items on the agenda were
discussed. According to plaintiff, "I was told by John Markle
that I was a menace to the hospital and I was no longer wanted to
work there." Plaintiff claims she was given the option of
resigning or being terminated. The following morning plaintiff
arrived and handed Crosby a typed letter refusing resignation.
Plaintiff was immediately terminated.
Plaintiff's claim of retaliation focuses on two of her
activities as an employee: (a) plaintiff's affiliation with one
of two cardiologist factions vying to have one of their members
named department chief at CMC; and (b) the fact that she voiced
concerns about the "management style" of her direct supervisor,
defendant Barreca.
On April 21, 1992, during an informal discussion, laboratory
employees discussed varied complaints about Barreca's management
techniques. The employees concluded that they, as a group, would
voice these complaints to Kathy Collins, vice president of
administration at CMC, on May 14, 1992, at a meeting that was
specifically scheduled for that purpose. Plaintiff would later
testify that sixteen complaints were discussed at that meeting
and that she and the other staff members were promised that no
retaliatory action would be taken against any employee for
expressing concerns.
In her deposition testimony, plaintiff acknowledged that
after Collins told Barreca about the employees' complaints,
Barreca's management style improved. Plaintiff also admitted
that, with the exception of her termination, she was not targeted
for retaliation by Barreca during the remainder of her employment
at CMC.
In response to defendant's motion for summary judgment,
plaintiff focused on three specific complaints that were made
about Barreca's management style in an attempt to demonstrate
that her termination was a direct retaliatory response to
plaintiff's activities. The three complaints were that: (a)
Barreca had administered nitroglycerin to patients, in compliance
with doctors' orders, yet, allegedly, contrary to the Nurse
Practice Act, N.J.S.A. 45:11-23 to -44; (b) Barreca directed
plaintiff to stop administering protamineSee footnote 5 to a patient, after
she had administered ten milligrams, which contradicted a
physician's order, directing plaintiff to administer fifteen
milligrams; and (c) Barreca interfered with plaintiff's nursing
judgment when he instructed plaintiff that patients experiencing
an irregular heart rhythm, ventricular fibrillation, should not
be "shocked" at anything less than 360 joules, contrary to a
standard set forth in an Advanced Cardiac Life Support Protocol.
testimony offered in support of defendants' motion demonstrated
that there were no genuine issues of material fact.
The mere fact that plaintiff, in her certification, denied
committing the acts that constituted defendant's reasons for
plaintiff's termination does not raise a genuine issue of
material fact. The dispositive issue is whether defendants had a
good faith belief that plaintiff committed these acts and
considered those acts in reaching their decision to terminate
plaintiff. In other words, were the three acts that were
attributed to plaintiff a legitimate rational basis to terminate
her employment?
CEPA was enacted to protect employees from retaliatory
discharge. See Young v. Schering Corp.,
141 N.J. 16, 26 (1995);
Flaherty v. The Enclave,
255 N.J. Super. 407, 412 (Law Div.
1992). CEPA represents a codification of the common law rule
announced in Pierce v. Ortho Pharmaceutical Corp.,
84 N.J. 58
(1980), that an employee at-will may have a cause of action for
wrongful discharge in violation of a clear mandate of public
policy. Potter v. Village Bank of New Jersey,
225 N.J. Super. 547, 560 (App. Div.), certif. denied,
113 N.J. 352 (1988).
Towards that end, CEPA provides, in part:
An employer shall not take any
retaliatory action against an employee
because the employee does any of the
following:
a. Discloses, or threatens to disclose to a supervisor or to a public body an activity, policy or practice of the employer . . . that the employee reasonably believes
is in violation of a law, or a rule or
regulation promulgated pursuant to law;
. . . .
c. Objects to, or refuses to
participate in any activity, policy or
practice which the employee reasonably
believes:
(1) is in violation of a law, or a rule
or regulation promulgated pursuant to law;
(2) is fraudulent or criminal; or
(3) is incompatible with a clear
mandate of public policy concerning the
public health, safety or welfare . . . .
[N.J.S.A. 34:19-3.]
We have concluded that a court examining a CEPA claim "must
first find and enunciate the specific terms of a statute or
regulation, or the clear expression of public policy, which would
be violated if the facts as alleged are true." Fineman v. New
Jersey Department of Human Services,
272 N.J. Super. 606, 620
(App. Div.), certif. denied,
138 N.J. 267 (1994). Such a finding
is a finding of law. Ibid.
At argument on defendants' motion for summary judgment,
plaintiff contended that Barreca had violated the Nurse Practice
Act, as well as a public policy aimed at protecting patients. In
her brief in opposition to defendants' motion, plaintiff also
alleged that Barreca violated N.J.A.C. 13:37-1 and N.J.A.C. 8:65-7.7. Plaintiff argued that Barreca violated the Act and related
Administrative Code provisions by administering nitroglycerin to
a patient without a license. It should be noted that Barreca
certified that he had never given nitroglycerin to a patient.
Whether Barreca ever administered the drug is of no concern, as
we can find no clear mandate of public policy that would prevent
Mr. Barreca from so doing.
Plaintiff also argued that Barreca violated public policy by
"interfering in [plaintiff's] judgment in shocking patients and
interfering with her judgment in giving IVs to patients and
Barreca's interference with whether EKG reports should be affixed
to records." Lastly, plaintiff argued that Barreca violated the
Law Against Discrimination (LAD), N.J.S.A. 10:5-1, by giving
preferential treatment to Mike Siemers, the only male employee of
the Cath Lab.
In her brief in opposition to defendants' motion as well as
at oral argument, plaintiff failed to specify any particular
provision of the above laws and codes that Barreca violated.
Plaintiff's brief on appeal and her oral argument on this appeal
suffer from the same insufficiency. Plaintiff simply fails to
comply with the specific mandate in Fineman, supra, 272 N.J.
Super. at 620.
The Nursing Practice Act primarily sets forth qualifications
for nurses and nursing schools. Nothing in the language of the
Act expressly prohibits a non-nurse from administering
medication. N.J.S.A. 45:11-37(a), however, does prohibit the
practice of nursing without a license. Although plaintiff does
not specify the particular provision of the Act that Barreca
allegedly violated, this prohibition supposedly is the provision
on which she relies, as it is the only provision in the Act that
is relevant to her allegations.
N.J.S.A. 45:11-23(b) provides that the practice of nursing
shall not "be construed to include services performed by . . .
technicians . . . and such duties performed by said persons
aforementioned shall not be subject to rules or regulations which
the board may prescribe concerning nursing."
Without considering whether the Act proscribed Barreca's
conduct, the motion judge addressed the restriction on the scope
of the Act to determine whether the Act applied to Barreca, a
cardiovascular technician. The motion judge found as a fact that
Barreca was a cardiovascular technician. That finding is
supported in the record, and plaintiff herself acknowledged in
her deposition that Barreca was a cardiovascular technician.
Despite plaintiff's counsel's assertion to the contrary, counsel
cannot demonstrate that the motion judge erred in reaching this
conclusion. As a cardiovascular technician, Barreca is,
according to the plain language of the statute, exempt from the
statute's mandates. A review of the regulations for the New
Jersey Board of Nursing, cited by plaintiff, N.J.A.C. 13:37-1.1
to -14.14, fails to reveal that Barreca violated any regulation.
Plaintiff also relied on N.J.A.C. 8:65-7.7, entitled
administering or dispensing of narcotic drugs, a section of the
regulations governing the Department of Health. Subsection (a)
provides in part:
The administering or dispensing directly (but
not prescribing) of narcotic drugs listed in
any schedule to a narcotic drug dependent
person for `detoxification treatment' or
`maintenance treatment' as defined in
N.J.A.C. 8:65-11.1 shall be deemed to be
within the meaning of the term `in the course
of professional practice or research' . . . .
[Ibid.]
The terms of the provision clearly indicate that it does not
to apply to Barreca. Plaintiff has not alleged that Barreca
administered the nitroglycerin to a drug dependent person for
detoxification treatment or maintenance treatment. Furthermore,
nitroglycerin is not included in the Department of Health's
schedules of controlled dangerous substances. Lastly, subsection
(c) of the regulation provides:
This section is not intended to impose any
limitations on a physician or authorized
hospital staff to administer or dispense
narcotic drugs in a hospital to maintain or
detoxify a person as an incidental adjunct to
medical or surgical treatment of conditions
other than addiction . . . .
[Ibid.]
This section does not apply to Barreca's administering
nitroglycerin to a heart patient. Nowhere can we find any law,
regulation, or other expression of public policy that can be read
to imply that technicians are not allowed to administer
nitroglycerin to heart patients. In any case, there is certainly
no clear mandate of public policy that supports such a
conclusion.
Plaintiff also alleged that Barreca violated public policy
by interfering with her nursing judgment. Plaintiff's brief in
opposition to defendants' motion offers:
[I]t is certainly the public policy of the
State of New Jersey that people who are
neither trained doctors nor trained nurses,
should not try to control and direct a
trained nurse's medical actions. Trying to
stop a trained nurse from administering a
dosage of medication proscribed by a trained
doctor, or telling a trained nurse what
amount of electricity should be used to shock
a patient experiencing irregular heart
rhythms, is certainly a matter of public
concern.
At oral argument before the motion judge, plaintiff's counsel
made the same argument:
[Plaintiff's] beliefs were that by
interfering with her judgment the conduct of
Mr. Barreca violated the public policy of
this state which was for her to be able to
render appropriate care to her patients as
she is licensed to do as a practicing nurse.
That, your Honor, is the source of the public
policy and the source for her reasonable
belief that her claims, that her complaints
were of something that was being done that
was improper by Mr. Barreca.
Again, plaintiff has not provided this court with any
specific sources from which we can infer a clear mandate of
public policy.
certitude, the precise contours and components of the public
policy." Id. at 122. We conclude, however, that plaintiff's
belief that a violation of public policy had occurred was not, as
a matter of law, reasonable.
Plaintiff did not establish that she had a reasonable belief
that Barreca was violating a clear mandate of public policy, as
required under CEPA. See, e.g., Abbamont v. Piscataway Township
Bd. of Educ.,
269 N.J. Super. 11, 24 (App. Div. 1993), aff'd,
138 N.J. 405 (1994). In Abbamont, we found a clear mandate of public
policy in the "New Jersey Industrial Arts Education Safety Guide"
pertaining to outdoor air supply and ventilation requirements for
industrial arts classrooms. Ibid. We held that Abbamont's
reliance on the Safety Guide was sufficiently specific to support
his CEPA claim. Id. at 23. We came to this conclusion despite
the fact that Abbamont did not know to a legal certainty at the
time that he made his complaint that his employers were violating
that specific policy.
In Mehlman, supra, we emphasized that "[t]he statute
requires the employee to have reasonably believed that the
employer's conduct had either violated a law, rule or regulation,
or had been incompatible with a clear mandate of public policy."
Id. at 123. Furthermore, "[t]he sine qua non of a CEPA claim is
not the actual occurrence of a violation of promulgated authority
or public policy, but rather the existence of a reasonable belief
to the effect that such authority or policy has been breached."
Ibid. (emphasis added).
Mehlman involved Mobil Oil's discharge of Mehlman, Mobil's
director of toxicology and manager of the environmental health
and science laboratory. Mehlman's duties included "representing
Mobil on toxicology matters and providing `toxicologic[al] and
regulatory advice for prudent business decisions.'" Id. at 106.
Upon learning that there were high concentrations of benzene in
Mobil gasoline sold in Japan, Mehlman told Mobil officials that
the "concentrations are too high." At the time, Mehlman did not
know of any specific Japanese regulation that prohibited high
concentrations of benzene. We found that:
The clear mandate of public policy derived
from federal regulations and New Jersey
product liability law was effective in Japan
through the operation of the Japanese
Petroleum Association guideline and the
Japanese Environmental Agency Notification.
[Id. at 122.]
The inferences made by Mehlman that led him to believe that there
was a violation of public policy were reasonable. Thus, Mehlman
does not modify Abbamont or Fineman. Mehlman reiterates that an
employee's belief that public policy is being violated by his
employer must be reasonable.
Plaintiff, however, has not demonstrated that her belief
that Barreca had violated public policy was reasonable. See
Mehlman, supra, 291 N.J. Super. at 123; see also Chelly v. Knoll
Pharmaceuticals, ___ N.J. Super. ___ (App. Div. 1996) (slip op.
at 3) (affirming a trial court's determination that plaintiff's
belief that his employer had violated a clear mandate of public
policy was not reasonable).
Here, plaintiff has not shown us a clear mandate of public
policy that would prohibit any of the actions that she alleges
that Mr. Barreca performed. Plaintiff presents no guide,
administrative code, judicial authority, legislation, etc., to
support her claim that defendants violated a clear mandate of
public policy. See, e.g., Chelly, supra, (slip op. at 12-13)
("[t]he sources of such `specific expressions' or `clear
mandates' are statutes, regulations and judicial decisions, and
may 'in certain instances,' include a professional code of
ethics").
As noted, a judge considering a CEPA claim must first, as a
matter of law, "find and enunciate the specific terms of a
statute or regulation, or the clear expression of public policy,
which would be violated if the facts as alleged are true."
Fineman, supra, 272 N.J. Super. at 620. The motion judge
announced her conclusion at oral argument: "I am finding that
plaintiff has failed to identify a specific public policy or
statute which was violated by Mr. Barreca." Based on the record,
we agree with that conclusion.See footnote 6
In Abbamont, we concluded that a CEPA claimant "need only
have a reasonable, objective belief that there was a specific
violation." 269 N.J. Super. at 23. See also Young v. Schering
Corp.,
275 N.J. Super. 221, 233 (App. Div. 1994) (holding that a
CEPA plaintiff "must show that his belief that illegal conduct
was occurring had an objectively reasonable basis in fact--in
other words that, given the circumstantial evidence, a reasonable
lay person would conclude that illegal activity was going on.").
(quoting Littman v. Firestone Tire & Rubber Co.,
709 F. Supp. 461, 470 (S.D.N.Y. 1989)), aff'd,
141 N.J. 16 (1995). Fineman
and Abbamont, however, instruct that the court must first
determine whether there exists a clear expression of law or
public policy, and only then will the factfinder consider whether
the plaintiff reasonably believed that a violation of that law or
policy has occurred. In each of those cases, we identified the
law or policy at issue and then considered whether the
plaintiff's belief that a violation had occurred was reasonable.
Fineman, supra, 272 N.J. Super. at 623-34; Abbamont, supra, 269
N.J. Super. at 24-25.
Plaintiff's reliance on Mehlman, supra, is misplaced. The
court in Mehlman found a "clear mandate of public policy" derived
from federal regulations and New Jersey product liability law.
This clear mandate was applicable in Japan through "the operation
of the Japanese Petroleum Association guideline and the Japanese
Environmental Agency Notification." 291 N.J. Super. at 122.
Here, plaintiff cannot point to a clear mandate of public policy
that was being broken by defendants. In the absence of such a
public policy, plaintiff's claim that she reasonably believed
that such a violation had occurred must fall on deaf ears.
discussion that they had. I will
specifically point to the two inappropriate
statements that she made and the operation of
the Quinton without supervision or
authorization.
I am finding under the facts of this
case, and I am balancing the facts of this
case, that I think the case is ripe for
summary judgment, that there are no material
issues of fact to be presented to a jury for
a determination.
Since we have concluded that the motion judge correctly
determined that plaintiff was not a whistleblower under CEPA,
any additional evaluation of plaintiff's CEPA claim and the
motion judge's conclusions in reference thereto, particularly the
judge's conclusion that there was no nexus between the alleged
whistleblower activity and the ultimate termination, is
unnecessary.
"The causes of action that fall within this waiver provision
are those causes of action that are directly related to the
employee's termination due to disclosure of the employer's
wrongdoing." Young, supra, 275 N.J. Super. at 238 (citing Casper
v. Paine Webber Group, Inc.,
787 F. Supp. 1480, 1509 (D.N.J.
1992), and Catalane v. Gilian Instrument Corp.,
271 N.J. Super. 476, 493 (App. Div.), certif. denied,
136 N.J. 298 (1994)).
Claims that involve collateral issues and "require different
proofs than those needed to substantiate" a CEPA claim, however,
"are not within the category of actions that are deemed to be
waived." Young, supra, 275 N.J. Super. at 238 (citing Flaherty
v. The Enclave,
255 N.J. Super. 407, 413-14 (Law Div. 1992)). A
claim must have a basis independent of the CEPA claim in order to
be exempt from the waiver provision. See Young, supra, 275 N.J.
Super. at 239.
We find that the motion judge correctly determined that the
causes of action embodied in counts two, three, six, seven, and
eight were waived under the CEPA waiver provision.
Absent an employment contract, an employee is terminable at the
will of her employer. See Witkowski v. Thomas J. Lipton, Inc.,
136 N.J. 385, 397 (1994). There exists a presumption that
employees are at-will. Id. at 398. An employer may discharge an
at-will employee "for good reason, bad reason, or no reason at
all." Id. at 397.
The Supreme Court has announced that, "[a]n employment
manual providing terms and conditions of employment that include
grounds and procedures for dismissal can create an employment
contract." Id. at 392. Yet, a clear and straightforward
disclaimer may "overcome the implication that [an] employment
manual constitutes an enforceable contract of employment."
Nicosia v. Wakefern Food Corp.,
136 N.J. 401, 412 (1994)(citing
Woolley v. Hoffman-La Roche, Inc.,
99 N.J. 284, 309, modified,
101 N.J. 10 (1985)). The employee manual must "prominently and
unmistakably" disclaim promises regarding terms of employment.
Nicosia, supra, 136 N.J. at 412-13 (citing Woolley, supra, 99
N.J. at 307). A disclaimer must be enunciated "in accordance
with the reasonable expectations of the employees" and, hence,
must "be expressed in language `such that no one could reasonably
have thought [the manual] was intended to create legally binding
obligations.'" Nicosia, supra, 136 N.J. at 413 (quoting Woolley,
supra, 99 N.J. at 307). A disclaimer must also be prominently
displayed. It must be sufficiently conspicuous that a reasonable
person ought to have noticed it. Id. at 415. As we most
recently noted in Jackson v. Georgia-Pacific Corp., N.J.
Super. (App. Div. 1996) (slip op. at 12):
The disclaimer must, then, be both "clear"
and "prominent" so that the employee
"unmistakably" understands that the manual
provisions will not bind the company.
Although the Supreme Court in Nicosia noted
that to make such a determination
consideration should be made of the physical
appearance of the disclaimer, such as its
typeface, point size, heading, and the degree
to which it is "separated from or set off in
a way to attract attention," 136 N.J. at 415,
we do not read anything in Nicosia, and
certainly nothing in Woolley, that requires
some particular bold type, set-off, or symbol
to alert the employee. See Nicosia, supra,
136 N.J. at 416 ("the requirement of
prominence can be satisfied in a variety of
settings, and . . . no single distinctive
feature is essential per se to make a
disclaimer conspicuous. . . .").
Here, no such bold type, set-off or
separate highlighting symbol appears in
version nine. But, to us, just as effective
is the placement of the disclaimer.
[Id. (slip opinion at 12).]
Woolley made clear that, regarding termination, a disclaimer
must specify that "the employer continues to have the absolute
power to fire anyone with or without good cause." 99 N.J. at
309. See also Nicosia, supra, 136 N.J. at 413. This requires an
employer to apprise its employees expressly that they may be
terminated at will. Preston v. Claridge Hotel & Casino,
231 N.J.
Super. 81, 85 (App. Div. 1989); Nicosia, supra, 136 N.J. at 413.
CMC's employee handbook provides on the first page:
This employee handbook is for informational
purposes. It does not either directly or
indirectly constitute an employment contract
between the hospital and the employee. The
contents of this handbook are not hospital
personnel policies themselves, but an
explanation of our personnel policies. If
you desire to see the policies, please
contact your immediate supervisor. The
contents of this handbook are subject to
change at any time at the discretion of
hospital administration.
Defendants contend that this statement, in conjunction with
the statement in the disciplinary guidelines section that an
employee may still be terminated with or without cause at CMC's
discretion, constitutes a disclaimer of any implied promises
regarding termination.
CMC's employee handbook covers several diverse areas
including benefits, selection of employees, attendance, wages,
hours worked, leaves of absence, and discipline. CMC's
disciplinary guidelines include a comprehensive expression of
termination practices. The first paragraph of the guidelines
reads, "[t]he employment of all employees is for no stated term
and every employee is subject to termination at the will of the
hospital. However, the hospital will attempt, where practicable,
to follow the below mentioned disciplinary guidelines."
(emphasis added).
The guidelines provide five disciplinary actions: verbal
reprimand, which is not part of the formal disciplinary process;
written reprimand, the initial step of the formal disciplinary
process; suspension; suspension pending termination; and
termination. Suspension is warranted if an employee has failed
to correct behavior after a written reprimand. Indefinite
suspension pending termination is an option if there is cause for
immediate termination but the employee's supervisor wants to
investigate the matter further.
The guidelines provide the following about termination:
a. First and foremost, termination denotes
a failure on the part of the employee to do
what is expected by the employer. In this
sense, it is the final step of the
disciplinary process resulting from the
employee not accepting the condition of
employment.
b. Secondly, certain actions which are by
their very nature hazardous to patients,
employees and other members of the hospital
family are recognized as grounds for
termination. These actions include, but are
not limited to:
- abandonment of job for three
consecutive work days
- intentionally fighting and/or
inflicting bodily harm
- indecent or immoral conduct (conduct
that is not supportive to the hospital's
goals and objectives)
- conviction of a felony
- falsification of an official hospital
document (by omission or commission)
- gross inefficiency
- possession of firearms or weapons on
hospital premises
Any disciplinary action taken by a supervisor
beyond a written reprimand will be done after
consulting with either the Vice President of
Human Resources or the Assistant Director of
Personnel.
If the offense is corrected and there is no
reoccurrence of the offense within a year of
the last disciplinary action, then all record
of the disciplinary action will be removed
from the employee's personnel file.
The guidelines also provide a chart of penalties for the
first, second, and third instances of numerous delinquencies.
For example, for the first instance of making false statements
which are slanderous or defamatory about other employees or the
hospital, an employee may be suspended or suspended pending
termination. For the second instance of such conduct, an
employee may be terminated. For the first instance of
unauthorized disclosure or use of official hospital or patient
information, an employee may be issued a written reprimand,
suspended or suspended pending termination. For a second offense
of this type, an employee can be suspended, suspended pending
termination or terminated. If an employee endangers the well-being of any person, the employee may be subjected to any of the
four formal disciplinary actions for the first offense. The same
is true of misuse of the computer system. Regarding this chart,
the guidelines offers, "[t]he foregoing listing of penalty
guidelines is not meant to be all inclusive and does not prohibit
the Hospital from terminating employees with or without cause in
its discretion." (emphasis added).
Although CMC's disciplinary guidelines appear to provide a
comprehensive pronouncement of its termination policy, it does
not appear to be sufficiently definitive to support the
proposition that CMC employees could reasonably expect it to
represent an employment contract. The handbook does not include
an express mandate as in Nicosia that all preliminary steps be
exhausted before an employee can be terminated for cause.
We also note that there exists no evidence in the record
concerning the preparation or distribution of the handbook. In
Woolley, supra, 99 N.J. at 297-301, the Supreme Court considered
whether and under what circumstances a company employee manual
will create certain employment protections even in the face of an
otherwise at-will employment relationship. Under Woolley, if a
discharged employee can demonstrate that a company manual was
widely distributed and contained job-security and disciplinary
procedures that an employee reasonably could consider as
establishing reciprocal rights and obligations, and the employee
in reliance thereof continues employment, the company manual may
be considered an implied contract of employment and the employee
entitled to rely upon the protections contained therein. Id. at
309. Although the Supreme Court also cautioned that the mere
distribution of a company manual governing terms and conditions
of employment does not ipso facto, create such a contract. Ibid.
Clearly, distribution of the manual is a prong which must be
considered in evaluating the effect and meaning of the employment
manual. Here, however, plaintiff has offered no evidence to
permit an evaluation of that prong of the equation.
The paramount factor in determining whether the manual does,
in fact, constitute an employment contract is the reasonable
expectations of the employees. Id. at 299. One consideration in
ascertaining these reasonable expectations is whether the manual
contains "an express or implied promise concerning the terms and
conditions of employment." Witkowski, supra, 136 N.J. at 393
(quoting Gilbert v. Durand Glass Mfg. Co., Inc.,
258 N.J. Super. 320, 330 (App. Div. 1992)). For instance, if an employment
manual makes references to "maximum job security," we will be
more inclined to find an employment contract. See id. at 395
(citing Preston, supra, 231 N.J. Super. at 87).
Such an implied promise may be found in the definiteness and
comprehensiveness of the employer's termination policy. Ibid.
In Nicosia, supra, the Supreme Court predicated a finding of an
employment contract on a mandate in the employer's disciplinary
procedure that all disciplinary steps must be taken before an
employee can be discharged for cause. 136 N.J. at 409. The
procedural safeguards did not apply to expressly enumerated
conduct that warranted immediate discharge, including theft of
company property, sexual harassment, gross insubordination and
breach of confidentiality. Ibid. An employee manual may be
deemed an employment contract even if its disciplinary procedures
do not set forth every "just cause" ground for discharge. See
Witkowski, supra, 136 N.J. at 394.
The motion judge did not address whether the disclaimer
clause negated any implied promise regarding employee
termination. She simply concluded that the disciplinary
guidelines of defendants' employment handbook were a sufficient
basis to terminate plaintiff. Additionally, the motion judge did
not render an opinion on whether the handbook disclaimer was
sufficient to constitute a disclaimer of any implied promise
regarding termination. The judge erred in not addressing those
issues; yet, she correctly concluded that plaintiff was rightly
terminated. We reach the same conclusion.
The disclaimer, when read together with the disciplinary
procedure, clearly indicates that an employee's position is one
involving some risk. Maximum job security is not assured.
In reaching this conclusion, we note no evidence regarding
the preparation of, or the distribution of, the employee
handbook. Both are factors that we consider in determining the
reasonableness of an employee's belief that the handbook
represents a binding, legally enforceable commitment. Id. at
393. Wide distribution to many employees will support the
inference that the manual constitutes an employment contract.
Witkowski, supra, 136 N.J. at 395; Nicosia, supra, 136 N.J. at
408.
unnecessary to analyze the basis for CMC's contentions on the
second and third enumerated reasons for termination nor the
certifications of plaintiff referencing those allegations.
Likewise, plaintiff's contention that Bageac, a cardiologist
with admitting privileges at CMC, should be deemed an employer of
plaintiff and, as such, liable under CEPA is rendered moot by our
conclusion that plaintiff was an employee at-will and that her
termination was not in retaliation for whistleblowing activities,
as defined in N.J.S.A. 34:19-3.
advantage. Plaintiff's brief on appeal sets forth the elements
of the causes of action she sought to pursue: (1) existence of a
contract of protectable right; (2) intentional and malicious
interference; (3) causation; and (4) damages. Plaintiff argues
that allegations asserted in her original complaint would support
her action of tortious interference. We disagree. Plaintiff's
proposed action was dependent upon the same facts as her CEPA
claim. As such, had a count alleging interference with a
contract or prospective economic advantage been included in
plaintiff's original complaint, it would, like her other tort
claims, have been deemed waived under N.J.S.A. 34:19-8. See
section IV, supra. Accordingly, the motion judge properly denied
plaintiff's motion.
Affirmed.
Footnote: 1 Defendant Philip Barreca's first name was improperly
spelled "Phillip" in plaintiff's complaint.
Footnote: 2 Defendant John Markle was improperly identified in
plaintiff's complaint as "John Markel."
Footnote: 3 All references to "plaintiff" hereinafter specifically
refer to Kathleen Falco. All references to Joseph Falco's per
quod claim shall be separately designated.
Footnote: 4
The Quinton is a machine used during a catheterization
procedure to monitor and record a patient's internal cardiac
pressures as well as certain valve openings. During a
catheterization of the left chamber of a patient's heart, the
Quinton monitors the left ventricle pressure, aortic pressure,
and, on rare occasions, femoral artery pressure. The Quinton
records the pressures when the operator of the machine presses a
button corresponding to the particular pressure to be recorded.
The operator can generate a final report by pressing another
button at the end of the procedure. The operator is responsible
for performing manual calculations and for verifying the
machine's calculations after generating the final report.
Approximately seventy or eighty percent of the catheterizations
performed in the Cath Lab are left heart catheterizations.
Operation of the Quinton is more difficult if a right and left heart catheterization is being performed. There are more
heart pressures that need to be monitored and recorded during
such a procedure. During a right and left heart catheterization,
the Quinton may, depending on the patient, monitor and record
pressures in the interior vena cava, the right atrium, a high
right atrium, the mid right atrium, the right ventricle, the
pulmonary artery, the pulmonary wedge, the aorta, and the left
ventricle. Like a left heart catheterization, a right and left
heart catheterization requires the Quinton operator to perform
manual calculations and to verify the machine's calculations by
hand. Although a left heart catheterization takes only twenty-five minutes to complete, a full right and left heart
catheterization may take anywhere from an hour to four or five
hours, depending on the diagnosis.
The final report generated by the Quinton contains all of
the physiological data recorded during the catheterization and is
relied upon by the cardiologist when deciding whether the patient
should submit to heart surgery.
Footnote: 5 Protamine is a blood-thickening agent that must be
administered slowly because excessive dosages can precipitate
heart attacks.
Footnote: 6 The motion judge did not address plaintiff's allegations
that Barreca had violated the LAD. Plaintiff acknowledged in her
deposition, however, that she made no complaints concerning
Barreca's allegedly preferential treatment of Mike Siemers. Her
co-workers complained only that they needed to go through Siemers
if they wanted Barreca to accede to their requests. Based upon
the evidence in the record that plaintiff had no viable claim
predicated upon a LAD violation, the failure of the motion judge
to specifically refer to that component of plaintiff's complaint
was not error.
Footnote: 7 In Mehlman, the court specifically noted:
Furthermore, although "internal expressions
of disagreement with corporate policy" are
insufficient to establish a claim of wrongful
discharge under Pierce, House v. Carter-Wallace, Inc.,
232 N.J. Super. 42, 51 (App.
Div.) certif. denied,
117 N.J. 154 (1989), an
employee need not communicate his belief to
anyone outside of his company under either
N.J.S.A. 34:19-3a or 34:19-3c.
[Mehlman, supra, 291 N.J. Super. at 124 n. 12.]