Canfield v. Layton City (2024)

¶ 3 Canfield worked for Layton City as a police dispatcher for over thirteen years. Approximately six months prior to her alleged wrongful termination, Canfield was assigned a new supervisor. Her new supervisor often questioned her use of sick leave, which ultimately led to Canfield's resignation.

¶ 4 After her resignation, Canfield filed suit against her former employer in state court. Layton City removed the case to federal court on the assumption that Canfield was asserting an equal protection claim. The federal court ordered Canfield to file a second amended complaint to specifically identify any federal cause of action she was asserting. Canfield declined to amend, and her case was dismissed.

¶ 5 Canfield immediately refiled the same complaint in state court. The complaint states, in relevant part:

5. [The new supervisor] unfairly and unjustly scrutinized the work performance of Plaintiff.

. . . .

13. Plaintiff is informed and believes, and thereupon alleges, that numerous employees of [Layton] City have used sick leave in the same manner as Plaintiff but have not been subject to any disciplinary proceeding whatsoever. Accordingly, Plaintiff has been treated differently from and more severely than other employees of Defendant, all in contravention of Defendant's specific written policy.

14. Officers, employees, agents or servants of Defendant confronted Plaintiff with the allegation that Plaintiff misused sick leave and gave her an ultimatum that she resign from the City or face termination.

. . . .

16. Plaintiff is informed and believes and thereupon alleges that said individuals have not been punished as severely as she has, have not been terminated, or not given an ultimatum, but instead, were given employee warnings, probation, and other punishment.

17. Defendant's personnel policy specifically require[s] that Plaintiff be treated fairly and that any punishments or discipline given to her be proportionate to the offense alleged. Defendant's punishment of Plaintiff, including its termination of her, was disproportionate to the acts alleged, even if the acts were taken as true.

¶ 6 Upon commencement of the second action, Layton City filed a motion to dismiss pursuant to rule 12(b)(1) of the Utah Rules of Civil Procedure on the basis that Canfield failed to adhere to the notice requirement of the GIA, id. § 63-30d-401, citing our case law for the proposition that "[c]ompliance with the [GIA] is a prerequisite to vesting a district court with subject matter jurisdiction over claims against governmental entities," Wheeler v. McPherson, 2002 UT 16, ¶ 9, 40 P.3d 632.1

¶ 7 In opposition to Layton City's motion to dismiss, Canfield contended that her "complaint alleges a constructive termination and a violation of Layton City's written employment rules including rules regarding the proportionality of employee discipline, rules relating to consistency among termination, and related matters." Canfield further noted that because her complaint "sounds in contract," her claim is not subject to the GIA's notice requirement. See Utah Code Ann. § 63-30d-301.2

¶ 8 Rejecting Canfield's argument, the district court granted Layton City's motion to dismiss based on lack of subject matter jurisdiction. The court of appeals affirmed, concluding that "[e]ven a liberal reading [did] not permit [it] to view the complaint as alleging a claim based on implied contract, given the backdrop of case law suggesting that `public employees' employment rights generally spring not from contract, but from legislative policy.'" Canfield, 2004 UT App 228U at ¶ 3.

¶ 9 On certiorari, Canfield argues that her complaint sufficiently asserted a claim for breach of an implied employment contract and that she was therefore not subject to the notice requirement of the GIA.

¶ 10 On certiorari, "we review the court of appeals' decision for correctness." State v. Finlayson, 2004 UT 10, ¶ 5, 84 P.3d 1193. We must determine whether the court of appeals accurately reviewed the decision of the district court "under the appropriate standard of review." State v. Visser, 2000 UT 88, ¶ 9, 22 P.3d 1242. Jurisdictional questions, such as subject matter jurisdiction, are reviewed for correctness. Finlayson, 2004 UT 10 at ¶ 5, 84 P.3d 1193.

¶ 11 The issue before this court is whether Canfield's complaint stated a claim for breach of an implied employment contract sufficient to avoid the notice requirement of the GIA.

¶ 12 The GIA requires notice of a claim to be given to governmental entities within one year of the claim arising. Utah Code Ann. §§ 63-30d-401(2), -402. It is well established that failure to comply precisely with the notice requirement, where it applies, deprives the court of subject matter jurisdiction. Greene v. Utah Transit Auth., 2001 UT 109, ¶ 16, 37 P.3d 1156. However, "[a]ctions arising out of contractual rights or obligations are not subject to the requirements of [the GIA]." Utah Code Ann. § 63-30d-301(1)(b). Therefore, a plaintiff who asserts a contract claim against a governmental entity need not file a notice of claim in order to vest a court with subject matter jurisdiction.

¶ 13 Here, Layton City contends that the notice requirement is applicable because Canfield did not assert a valid contract claim in her complaint. The City argues Canfield's complaint fails on its face to identify any contract or contractual obligation with Layton City and, further, that Canfield's claims cannot be contractual because her employment relationship with Layton City was, as a matter of law, governed by statute rather than contract.3 We disagree on both points.

¶ 14 A plaintiff is required, under our liberal standard of notice pleading, to submit a "short and plain statement . . . showing that the pleader is entitled to relief" and "a demand for judgment for the relief." Utah R. Civ. P. 8(a)(1)-(2). The plaintiff must only give the defendant "fair notice of the nature and basis or grounds of the claim and a general indication of the type of litigation involved." Williams v. State Farm Ins. Co., 656 P.2d 966, 971 (Utah 1982) (internal quotation omitted). Furthermore, "when a complaint states a claim in general language but the factual allegations are so vague and ambiguous that the defendant cannot draft an answer, the proper course of action is to move for a more definite statement under rule 12(e), not to move for dismissal." Whipple v. Am. Fork Irrigation Co., 910 P.2d 1218, 1222 n. 3 (Utah 1996). Motions for a more definite statement, however, are not generally favored, and should only be granted when the complaint is so "indefinite, ambiguous, or vague in either [its] factual allegations or [its] legal theory. . . that the moving party cannot reasonably be required to frame his responsive pleading." Liquor Control Comm'n v. Athas, 121 Utah 457, 243 P.2d 441, 443 (1952).

¶ 15 Here, we conclude that, while Canfield's complaint is sufficiently vague that an order to amend is warranted, it does outline a breach of contract claim. We disagree with the court of appeals' conclusion that because employment rights for public employees generally spring from legislative policy, not contract, it is impossible to discern a breach of implied contract claim in Canfield's complaint.

¶ 16 It is true that, generally, employment of public employees is "governed by statute, not contract." Buckner v. Kennard, 2004 UT 78, ¶ 32, 99 P.3d 842 (citing Knight v. Salt Lake County, 2002 UT App 100, ¶ 9, 46 P.3d 247; Hom v. Utah Dep't of Pub. Safety, 962 P.2d 95, 101 (Utah Ct.App.1998)). However, this court has recognized that circ*mstances may exist where "the government voluntarily undertakes an additional duty" beyond its normal obligation to the employee, "in which case an implied contract arises." Id. (citing Piacitelli v. S. Utah State Coll., 636 P.2d 1063, 1066 (Utah 1981)).

¶ 17 We have previously observed that an implied contract may "arise from a variety of sources, including the conduct of the parties, announced personnel policies, practices of that particular trade or industry, or other circ*mstances." Berube v. Fashion Centre, Ltd., 771 P.2d 1033, 1044 (Utah 1989) (emphasis added). Additionally, other jurisdictions have found that employee manuals may create contractual obligations not subject to the governmental...