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Smart Summary

Factual and Procedural Background

Plaintiff Kaminski was hired on August 18, 1980, by United Parcel Service (UPS) as a driver and later promoted to supervisor of operations at the UPS downtown Manhattan branch. His employment was indefinite and without a formal written contract. On June 16, 1983, Kaminski was accused by UPS management of theft related to a cash payment for a package. He was subjected to a three-hour interrogation involving threats of criminal prosecution, prison time, and coercion to resign and waive benefits. Despite denying the accusations, Kaminski signed resignation papers under duress. Subsequently, affidavits from eyewitnesses exonerated Kaminski, identifying another driver as the culprit. Kaminski requested reinstatement but received no response. In August 1983, Kaminski filed suit alleging multiple causes of action including unlawful imprisonment, intentional infliction of emotional distress, tortious interference with business relations, wrongful discharge, and others. The defendants moved to dismiss several claims, resulting in partial dismissals and orders to replead. Kaminski withdrew certain claims, leaving the issues of intentional infliction of emotional distress and tortious interference with contract for appeal.

Legal Issues Presented

  1. Whether the plaintiff states a valid cause of action for intentional infliction of emotional distress based on the alleged conduct of the defendants.
  2. Whether the plaintiff states a valid cause of action for tortious interference with contract given the at-will nature of his employment and the defendants' conduct.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Fischer v Maloney, 43 N.Y.2d 553, 557 Defines the standard for intentional infliction of emotional distress as conduct exceeding all bounds tolerated by decent society, requiring outrageous and extreme behavior. The court applied this standard to find that the plaintiff’s allegations, if true, could meet the threshold for intentional infliction of emotional distress.
Murphy v American Home Prods. Corp., 58 N.Y.2d 293 Confirms that New York does not recognize wrongful discharge claims in at-will employment and outlines the limits on employer termination rights. The court relied on this precedent to reject the wrongful discharge claim and to clarify that termination of at-will employment does not breach a contract.
Israel v Wood Dolson Co., 1 N.Y.2d 116, 120 Enumerates elements required to prove tortious interference with contract. The court used this case to analyze whether the plaintiff’s claim met the elements, concluding it did not due to the at-will employment status.
Citera v Chemical Bank, 105 A.D.2d 636, 638 Supports the position that termination of at-will employment does not constitute breach of contract. Reinforced the court’s conclusion that the tortious interference claim based on termination was not actionable.

Court's Reasoning and Analysis

The court first examined the claim for intentional infliction of emotional distress, applying the standard that such conduct must be outrageous and intolerable in a civilized community. Accepting the plaintiff's allegations as true, the court agreed that the defendants' conduct—threats, coercion, and aggressive behavior over several hours—could satisfy this standard and thus stated a viable claim.

Regarding the tortious interference with contract claim, the court identified the essential elements of the tort, including the existence of a valid contract and breach thereof. Since the plaintiff was employed at-will without a formal contract, New York law permits termination at any time absent unlawful purpose. The court found no evidence of improper motive by the defendants beyond protecting UPS from theft. Therefore, the termination did not constitute a breach of contract, and the tortious interference claim failed as a matter of law.

Consequently, the court held that the trial court erred in denying dismissal of the tortious interference claim but correctly allowed the intentional infliction of emotional distress claim to proceed.

Holding and Implications

The court REVERSED the trial court's denial of dismissal as to the third cause of action for tortious interference with contract against the individual defendants and DISMISSED that claim for failure to state a cause of action. The plaintiff’s demand for attorney’s fees related to this cause of action was also stricken.

The court AFFIRMED the trial court’s denial of dismissal of the second cause of action for intentional infliction of emotional distress, allowing that claim to proceed.

This decision clarifies that under New York law, at-will employment termination does not support a tortious interference claim absent exceptional circumstances, but conduct amounting to extreme and outrageous behavior can sustain a claim for intentional infliction of emotional distress. No new precedent was established beyond the application of existing law to the facts.

WILLIAM F. KAMINSKI, Respondent, v. UNITED PARCEL SERVICE et al., Appellants.

On August 18, 1980, plaintiff Kaminski was hired as a driver for United Parcel Service (UPS) and was subsequently elevated to the position of supervisor of operations for the UPS downtown Manhattan branch, where he also substituted for absent drivers. Plaintiff's employment was for an indefinite period of time and he had no formal written contract. His personnel file included the information that he had previously been employed as a prison guard at Rikers Island, where he had received a commendation for heroism for his conduct during a prison riot.

On June 16, 1983, defendant Gary Wright, plaintiff's division manager, ordered plaintiff to report to the office of defendant Brendan Byrne at the UPS midtown facility. At 9:30 A.M. plaintiff met with Byrne who told plaintiff to go to the office of Daniel Senkiewicz. Plaintiff entered that office and met with defendants Daniel Gigliobianco and Michael Pastoriza who were later joined by Senkiewicz. The defendants accused plaintiff of not having reported the receipt of a cash payment for a package. Plaintiff denied the charge. The defendants told plaintiff he had been identified as the thief by two eyewitnesses. They then allegedly began to threaten him with a criminal prosecution and a prison term at Rikers Island if plaintiff did not admit stealing the money, agree to return the money, resign, and waive his rights to all health, hospital and pension benefits. Plaintiff alleges that for three hours he was subjected to these threats which were accompanied by loud, aggressive, profane and obscene language and gestures. At all times one or another of the defendants was blocking the door to the office. Finally, at 12:30 P.M. and allegedly under duress and still denying the accusation, plaintiff signed resignation papers and documents relinquishing his pension plan and health and hospital benefits and statements admitting his guilt.

On June 30, 1983, the two witnesses who identified plaintiff from a photograph as the person who had misappropriated the money executed affidavits swearing that the funds were paid to another UPS driver who bore a striking resemblance to plaintiff. That driver's employment was terminated in July of 1983. When plaintiff learned of this he wrote to the chairman of the board of directors of UPS, described the events of his termination and requested reinstatement. He received no response.

Kaminski commenced an action in August of 1983 alleging eight causes of action and making a demand for the award of attorney's fees. The first cause of action, not challenged by UPS or the individual defendants, seeks $1 million in damages for unlawful and malicious imprisonment and threats which subjected plaintiff to humiliation and caused him mental and physical distress. The second cause of action alleges that the acts of harassment and intimidation were committed maliciously with the intent of causing, and with knowledge that they would cause, severe mental and emotional distress. The third cause of action alleges tortious interference with plaintiff's business relationship with UPS. The fourth cause of action alleges wrongful discharge. The fifth cause of action alleges that the defendants had an obligation to adequately investigate the charges and failed to provide Kaminski with an opportunity to defend himself. The sixth cause of action alleges that the defendants acted negligently in taking all the actions of which plaintiff previously complained. The seventh cause of action alleges prima facie tort. The eighth cause of action alleges punitive damages.

Defendants moved for an order dismissing the second through eighth causes of action for failure to state a claim and striking plaintiff's demand for attorney's fees. Special Term dismissed the fourth, fifth, sixth and eighth causes of action and denied the motion to dismiss the third cause of action, except as it related to UPS. The court also struck the demand for attorney's fees except for the third and seventh causes of action. The court also directed plaintiff to replead his seventh cause of action for prima facie tort.

At the oral argument of this case, plaintiff submitted a stipulation agreeing to withdraw with prejudice his seventh cause of action and his demand for attorney's fees with respect thereto. The only issues before us, therefore, are the trial court's failure to dismiss plaintiff's second and third causes of action for intentional infliction of emotional distress and tortious interference with contract, respectively. While New York does not recognize a cause of action for wrongful discharge in an "at-will" employment relation, it does permit a claim for intentional infliction of emotional distress "`for conduct exceeding all bounds usually tolerated by decent society'" (Fischer v Maloney, 43 N.Y.2d 553, 557, quoting Prosser, Torts § 12, at 56 [4th ed].) The conduct must, however, "`[have] been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community'". (Supra, p 557, quoting Restatement [Second] of Torts § 46 [1] comment d; see also, Murphy v American Home Prods. Corp., 58 N.Y.2d 293.) We agree with Special Term that, assuming the truth of the facts pleaded, the acts complained of could be found by a trier of fact to amount to extreme and outrageous conduct which cannot be tolerated in a civilized community and that they, therefore, adequately state a cause of action for intentional infliction of emotional distress.

However, Special Term erred in denying the motion to dismiss the third cause of action for tortious interfence with a contract. Among the elements of the tort of intentional interference with a contract are the existence of a valid contract, the defendant's knowledge of that contract, the defendant's intentional procuring of a breach of that contract, an actual breach of the contract and damages. (Israel v Wood Dolson Co., 1 N.Y.2d 116, 120.) Under New York law "absent a constitutionally impermissible purpose, a statutory proscription, or an express limitation in the individual contract of employment," none of which is applicable here, "an employer's right at any time to terminate an employment at will remains unimpaired." (Murphy v American Home Prods. Corp., supra, at p 305.) Accordingly, the termination of an "at-will" employment relationship does not constitute a breach of contract. (See also, Citera v Chemical Bank, 105 A.D.2d 636, 638.)

Plaintiff Kaminski was an "at-will" employee, having been hired for an indefinite period of time without benefit of a formal contract. His termination from that employment did not constitute a breach upon which an action for wrongful discharge or intentional interference with a contract would lie. Additionally, there is nothing to suggest that the individual defendants were motivated by any personal desire to injure plaintiff. Rather, the facts alleged demonstrate that as employees of UPS and having been informed of the accusations by the two witnesses, their subsequent conduct was motivated by a desire to protect UPS from employee thefts. That their methods in procuring plaintiff's resignation may have been improper is a matter more properly dealt with in the first and second causes of action against both UPS and the individual defendants.

Accordingly, the third cause of action should be dismissed against the individual defendants for failure to state a cause of action, and plaintiff's demand for an award of attorney's fees on this cause of action is stricken.

Concur — Sullivan, J.P., Carro, Kassal, Rosenberger and Ellerin, JJ.

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KAMINSKI v. UNITED PARCEL SERVICE
(May 15, 1986)