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[T] Lord v. Souder3/24/2000
Submitted: December 14, 1999
Appeal from Superior Court. Affirmed in Part. Reversed and Remanded in Part.
This is an appeal from the Superior Court's dismissal of Plaintiff's complaint pursuant to Superior Court Rule 12(b)(6) for failure to state a claim. The complaint sought damages for termination of employment on separate claims of promissory estoppel, wrongful discharge, fraud and prima facie tort. We conclude that the Superior Court's dismissal of Plaintiff's promissory estoppel and fraud claims was in error. Accordingly, we affirm in part, reverse in part and remand for further proceedings.
I.
In conformity with Superior Court Civil Rule 12(b)(6), the facts set forth herein have been drawn from the face of the complaint. Prior to March 6, 1997, Plaintiff, Deborah L. Lord ("Lord"), was employed by the Methodist Manor House ("Manor House") as an administrative secretary. Manor House, a retirement-nursing facility, is owned and operated by Peninsula United Methodist Homes, Inc. ("Peninsula"), a Delaware corporation.
At some point, Lord became aware that Linda R. Souder ("Souder"), the Executive Director of Manor House, had been engaging in various illegal and/or improper practices. Specifically, Lord claims to have learned that Souder misappropriated the property of deceased residents, stole funds from the Manor House petty cash drawer, charged personal long-distance telephone calls to Manor House and utilized other Manor House resources, including an automobile and food service, for personal benefit.
Subsequently, Phillip D. Hagermann ("Hagermann"), Peninsula's Vice-President of Human Resources, encouraged Lord to explain to him what she knew about improper conduct by Souder. Hagermann also requested that Lord provide him with the names of any other employees who might have information regarding Souder's conduct. After seeking and obtaining assurances that if she disclosed information relating to Souder's improper practices she would be protected from any reprisals, Lord disclosed to Hagermann the information she had learned, as well as the names of co-workers who were also aware of Souder's alleged misconduct. Lord contends that, despite these assurances, neither Hagermann nor anyone else acting on behalf of Peninsula had a policy or practice of protecting an informant such as Lord from reprisals and that Hagermann's assurances, thus, recklessly placed her in jeopardy.
In response to Lord's information, Richard C. Stazesky, Peninsula's Chief Executive Officer, personally interviewed the other employees named by Lord as having knowledge of Souder's improper practices. Peninsula eventually determined that Souder had, in fact, engaged in improper conduct. As a result, Souder was reprimanded and directed to cease such practices.
Lord alleges that Souder soon learned, or began to suspect, that Lord had provided information regarding Souder's improper practices to upper management. Souder's knowledge of Lord's role, Lord contends, resulted from Peninsula's reckless dissemination of the information provided to Hagermann. As a result, Lord claims, Souder became very critical of Lord's work. Soon thereafter, Peninsula terminated Lord's employment with Manor House at the behest of Souder.
Lord was informed that she was being discharged because her position was being eliminated. Lord, however, disputes this explanation and contends that she was discharged for providing information to Peninsula regarding Souder's misconduct despite Hagermann's assurances that there would be no reprisals. Although Lord does not dispute the fact that the terms of her original employment render her an employee at-will,
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