Julian Harris Shelton,           Petitioner,

v.

Oscar Mayer Foods Corp.,
d/b/a Louis Rich, a wholly
owned subsidiary of Phillip
Morris Companies, Inc.,             Respondent.

Appeal From Newberry County
James W. Johnson, Jr., Judge
T.L. Hughston, Jr., Judge

Opinion No. 24580
Heard December 5, 1996 - Filed February 18, 1997

AFFIRMED

C. Richard Kelly, of Columbia; And Samuel M. Price, Jr. of Newberry, for petitioner.

Thomas A. Bright, of Haynesworth, Baldwin, Johnson and Greaves, P.A., of Greenville, for respondent.

Harold W. Funderburk, Jr., of Columbia, for Amicus Curiae SC Employment Security Commission.

Burnett, A.J.: Shelton claims the trial court and the Court of Appeals erred in holding the factual issues determined during a contested hearing conducted by the South Carolina Employment Security Commission (ESC) did not preclude relitigation of those issues in a subsequent wrongful discharge suit. We affirm.

FACTS

Shelton was employed at the Louis Rich processing plant in Newberry, South Carolina. In 1987, William Brown, a security guard, told Louis Rich management he had observed Shelton and a co-worker smoking marijuana in the co-worker's van in the Louis Rich parking lot. Allegedly, Louis Rich discharged Shelton without further investigation.

p. 17

SHELTON v. OSCAR MAYER FOODS, etc., et al.

After termination, Shelton sought unemployment benefits from the ESC. At the ESC hearing, testimony about the incident was presented by Shelton, the co-worker, and the security guard. The hearing officer found Shelton was discharged without cause and entitled to benefits. Louis Rich did not appeal this decision.

Subsequently, Shelton brought a wrongful termination of employment suit. Shelton claimed Louis Rich failed to ensure, as its handbook provided, that its rules governing employee conduct would be enforced fairly and equally with regard to all employees. Shelton alleged several causes of action against Louis Rich including breach of contract, breach of contract accompanied by a fraudulent act, fraudulent misrepresentation, and breach of covenant of good faith and fair dealing. Shelton moved for partial summary judgment on the ground Louis Rich was collaterally estopped from lit