Anderson v. Douglas & Lomason Co.

Brief Fact Summary.

Anderson sued Douglas &Lomason Company after they fired her against the policy outlined in the employee handbook.

Synopsis of Rule of Law.

Neither the employee or employer can terminate at-will employment if an employee handbook serves as a unilateral contract.

Facts.

Terry Anderson (Anderson) worked for Douglas &Lomason Company (DLC). The employee handbook that the first time an employee steals, that employee will receive a written warning. The handbook also stipulated that the handbook does not serve as an employment contract, despite Anderson not reading the handbook. Anderson stole a box of pencils and sued DLC for not honoring the terms of the employee handbook. The district court held that the employee handbook does not serve as a contract and Anderson appealed.

Issue.

Whether the employee or employer can terminate at-will employment if an employee handbook serves as a unilateral contract?

Held.

No. The DLC explicitly stated that the employee handbook does not bind their ability to terminated employment; therefore no contract existed between DLC and Anderson. The decision of the trial court is affirmed.

Discussion.

A disclaimer prevents the formation of a contract by showing the parties’ intention not to make an offer. DLC did not make an offer because they issued a disclaimer that they did not intent to create any contractual rights or to follow the provisional guidelines of the employee handbook.