Sheets v. Teddy's Frosted Foods Inc.

179 Conn. 471, 427 A.2d 385 (Conn. 1980)

  • Sheets worked for Teddy's Frosted Foods.  He began to notice that the company was producing substandard foods and violated labeling laws.  They fired him.  He felt that he was wrongfully discharged, and sued.
    • Sheets felt there was an implied contract, there was a violation of public policy, and it was a malicious discharge.
    • Sheets did not argue that he couldn't be terminated at-will, but that he couldn't be fired for something that violates public policy.  To do so is a tort.
  • Teddy's filed a motion to strike the complaint as legally insufficient (a demure).  The Trial Court struck the complaint based on the fact that no one argued that Sheets couldn't be fired at-will.  Sheets appealed.
  • The Connecticut Supreme Court remanded the case for further proceeding.
    • The Court only considered the case from the breach of contract perspective.
    • The Court felt that the tort claim was sufficient to remand the case for trial.
    • The Court had to consider whether to recognize an exception to the traditional rules governing employment-at-will so as to permit cause of action for wrongful discharge where the discharge contravenes a clear mandate of public policy.
      • Claims involving mandates of public policy are actionable, ordinary disputes between employees and employers are not.
      • Sheets' job as quality control supervisor exposed him to possible liability and criminal prosecution if he helped cover up the violations.
      • Since Sheets was forced to chose between prosecution and continued employment, he had a case, and should get a trial.
    • There was a dissent who felt that this case gave the employees the ability to coerce employers into not firing them.
      • The dissent felt that this decision invited the unrestricted use of an allegation of almost any statutory or even regulatory violation by an employer as the basis for cause of action by a discharged employee.
      • The dissent claimed that the Connecticut Legislature had considered Whistleblower laws, but had not enacted any (as of the date of this trial).  Therefore, who were the Courts to create laws that the legislature had failed to enact?
  • There are plenty of statutory categories (race, age, gender) that would override an employment at-will contract.  Sheets didn't have a particular statute he could point to that put him in a protected category.  However, the fact that protected categories existed makes it possible to accept Sheets' argument.
  • In theory, if this case had gone the other way, other people in Sheets' position would not report violations of health codes, and the State has an interest in wanting people to report health violations.