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Chapter 3 Case Studies

3.1 Grounds for Termination

James Eales, a physician’s assistant at a medical group, was fired from his job after six years of employment. He sued the clinic for wrongful discharge. During litigation, the clinic conceded that Eales had been offered a job that would last until he reached retirement age and that he was fired without cause. In addition, Eales testified that he would not have given up his previous job if the clinic’s offer had not been for permanent employment. The trial court held that the contract created was for an indefinite term, terminable at the will of either party. On appeal, how should the court rule? Should the employee be terminated only for good cause, even if the contract was at will because it was for an indefinite period?

        The appeal should go in Eales favor. As stated above Eales was hired until he reached retirement age. An employee who has been hired for some definite period of time is not an employee at will. (Rooney v. Tyson 1998) Eales' retirement age as an employee of the clinic is capable of being determined. So, the contract should be considered to be one for a definite period of time. As employment contracts for a definite period can be terminated early only for good cause a remand is necessary.

3.2 Handbook Liability

Anthony Nicosia was hired by Wakefern Food Corporation and terminated after 18 years of service. Wakefern claimed that Nicosia had stolen merchandise from the company. Nicosia contends that he was terminated without receiving the benefit of the progressive discipline steps outlined in an 11-page section of the employee manual distributed to all employees. The 11-page section did not contain a disclaimer that immediate termination could occur in the event of serious offenses. Nicosia claimed that the manual created an implied employment contract and that Wakefern breached it by terminating him without following the manual’s procedural protections. How should the court rule on Nicosia’s claim?

        The ruling should be in Nicosia’s favor. There was no disclaimer contained in the manual given to Nicosia. The 11-page section, the progressive-discipline procedure, received by Nicosia created an implied contract of employment that was breached by Wakefern when they immediately fired him.

3.3 Termination Torts

The employer’s supervisors personally delivered a notice of termination and a final paycheck to the 22-year company employee while he lay in bed recuperating from a heart condition in his mother-in-law’s home. The supervisors barged into the room and fired him for alleged misconduct. Archer was on indefinite sick leave because of his heart condition when he was terminated. What tort theories of recovery should Archer pursue? What damages, if any, would you award in such a case?

        Archer was on indefinite sick leave as a result of his heart condition when he was fired. As stated above he became an at will employee when he was put on indefinite sick leave. As far as the information given is concerned as long as the heart attack did not occur while performing duties for his job he is taking time off and recovering via his own insurance and not workers compensation. The only thing he could sue Farmer Bros. for is intentional infliction of emotional distress.

3.4 Covenant not to Compete