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Dymock v. Norwest Safety Protective Equipment for Oregon Industry, Inc.
Citations: 45 P.3d 114; 334 Or. 55; 2002 Ore. LEXIS 293Docket: CC 16-98-18369; CA A105112; SC S48333
Court: Oregon Supreme Court; April 25, 2002; Oregon; State Supreme Court
Original Court Document: View Document
The Supreme Court of Oregon reviewed a case involving Frederick C. Dymock, Jr. and Norwest Safety Protective Equipment for Oregon Industry, Inc., concerning Dymock's wrongful discharge claim after his termination for refusing to sign a 'Restrictive Agreement' that included a nonsolicitation provision. The trial court had dismissed Dymock's complaint, arguing that the agreement was not a noncompetition agreement as defined by ORS 653.295. The Court of Appeals reversed this decision, determining that the agreement constituted a noncompetition agreement and that Dymock was wrongfully discharged for exercising his statutory rights by refusing to sign it. The Supreme Court reversed the Court of Appeals' decision, affirming the circuit court's dismissal of the case. The court noted that the facts were taken from Dymock's complaint since the case was evaluated on a motion to dismiss. Dymock had worked for the defendant since 1981 and was ordered to sign the agreement in 1998, which included clauses restricting solicitation of clients and employment offers to company employees. The court examined whether the agreement the defendant allegedly required the plaintiff to sign qualifies as a noncompetition agreement under ORS 653.295(6)(c). Following the precedent set in PGE v. Bureau of Labor and Industries, the Court of Appeals determined that the term 'noncompetition agreement' includes nonsolicitation agreements similar to the one in question. The defendant failed to provide compelling reasons to challenge this interpretation. The court then addressed whether the plaintiff had a valid wrongful discharge claim based on his termination for refusing to sign a noncompetition agreement. The plaintiff argued that his discharge violated a public interest, as outlined in Delaney v. Taco Time Int'l, which identifies scenarios where an employer may be liable for wrongful discharge. Specifically, an employer cannot terminate an employee for asserting an employment-related right of significant public interest. However, the defendant contended that ORS 653.295 does not grant a right to refuse signing such agreements and that even if it did, the court should not recognize it as implicating wrongful discharge, as it is a private interest. The court clarified that ORS 653.295 indicates that noncompetition agreements are void if presented outside specified circumstances but does not provide a right to refuse them. Consequently, the plaintiff's assertion of an employment-related right to refuse signing the agreement was incorrect. Since the statute does not confer such a right and the plaintiff provided no alternative basis for his claim, the court concluded that he failed to state a claim for wrongful discharge. The Court of Appeals' decision was reversed, and the circuit court's judgment was affirmed.