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Keywords

lawsuitstatuteappealverdictregulation
plaintiffstatuteverdictmotionsummary judgment

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Sears, Roebuck and Co. v. Wholey, 139 Md.App. 642, 779 A.2d 408, 17 IER Cases 1624

Facts

Wholey was employed by Sears for 24 years, during which he held various security positions. He suspected his store manager of stealing merchandise and reported his concerns to Paul Eiseman, a regional manager. Wholey conducted surveillance and attempted to install cameras to gather evidence but was instructed to disable them. After being terminated for allegedly mishandling security issues, Wholey filed a lawsuit against Sears and Eiseman, claiming wrongful discharge and defamation.

Wholey was employed by Sears in its Glen Burnie store for 24 years. He began as a security officer in 1972, and within a year was promoted to Assistant Security Manager. In 1980, Wholey again was promoted, to Security Manager. Finally, in 1994, he became a Security Supervisor. From 1980 until Sears terminated his employment in 1996, Wholey's work involved investigating employee theft.

Issue

Did Wholey's termination from Sears violate a clear mandate of public policy?

Whether, on the facts most favorable to Wholey, his termination violated a clear mandate of public policy.

Rule

A wrongful discharge claim requires that the employee was terminated in violation of a clear mandate of public policy, which must be established through legislative enactments, judicial decisions, or administrative regulations.

A public policy must be clearly mandated to serve as a basis for a wrongful discharge action because that 'limits judicial forays into the wilderness of discerning ‘public policy’ without clear direction from a legislature or regulatory source.'

Analysis

The court analyzed whether Wholey's termination was in violation of a clear public policy. It concluded that while Wholey was investigating suspected theft, the general theft statute did not impose a duty on him to report such activity, and thus did not provide a clear mandate of public policy that would support his wrongful discharge claim.

In the case at bar, Wholey, like the plaintiff in Palmateer, points to the general theft statute, at Md.Code (1957, 1996 Repl.Vol., 2000 Supp.), art. 27 § 342, as the source of the 'clear mandate of public policy' supporting his wrongful discharge action. That statute makes theft a crime, but does not impose on citizens a duty to investigate or report theft.

Conclusion

The court reversed the jury's verdict, holding that Wholey's termination did not violate a clear mandate of public policy.

For the following reasons, we answer that question in the negative, and reverse the judgment.

Who won?

Sears prevailed in the appeal, as the court found that Wholey's wrongful discharge claim lacked a clear basis in public policy.

Sears contends that with respect to Wholey's wrongful discharge claim, the circuit court erred in denying its motions to dismiss, for summary judgment, for judgment, and for judgment notwithstanding the verdict, and in instructing the jury, because on the version of the facts most favorable to Wholey, his termination from employment did not violate a clear mandate of public policy, as a matter of law.

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