The plaintiff was employed as risk manager for the City of Nashua. Following two years of increasing tension and conflict with her supervisor, the plaintiff submitted a letter of resignation on December 21, 2006, stating that she was retiring early, with an effective date of December 31, 2006. On December 29, 2009, three years and eight days after her letter of resignation, the plaintiff filed suit against the City, alleging constructive discharge. Constructive discharge arises when an employer renders an employee's working conditions "so difficult and intolerable that a reasonable person would feel forced to resign." The plaintiff also claimed that the constructive discharge was a breach of contract, based on the City employee handbook provision that termination shall be "for cause." The trial court granted the City's motion for summary judgment on the ground that suit was not filed within three years of the act or omission complained of, as required by the statute of limitations, RSA 508:4.
"A cause of action arises, thereby triggering the running of the three-year period, once all the elements necessary for the claim are present." Reasoning that the employer's actions that create intolerable conditions cannot occur any later than the date of resignation, the Supreme Court held that "an action for constructive discharge accrues when the employee tenders the resignation or retirement notice." The breach of contract claim was dismissed on the same basis.