Entries in misrepresentation (1)

Monday
Dec092013

First Circuit Upholds Dismissal of Attack on Employment Termination of Sales Employee

On the day before Thanksgiving, the First Circuit Court of Appeals affirmed a lower court's summary judgment against a plaintiff sales employee who believed that his employment termination denied him the rightful fruits of his labors.  In an absurd twist on employee rights and showing some serious chutzpah, the employee sued his printing company employer for terminating his employment, claiming tortious interference, unjust enrichment, breach of contract, breach of an implied covenant of good faith and fair dealing, and misrepresentation (and the kitchen sink).  In fact, the employer had terminated his employment because his biggest client, CVS, decided it refused to deal with him after it learned that, while at his prior employer, he had acted unethically in his relationship with one of CVS's employees.  The First Circuit gave his employer much to be thankful for.

In Bisbano v. Strine Printing Co., the First Circuit batted down the plaintiffs attempt to blame his employer for his downfall and upheld the dismissal of the suit on summary judgment. The court pointed out that because the client ended the relationship with the plaintiff, the plaintiff could not claim any future relationship with which the employer could have interfered.  Further, the Court found that reliance on oral promises of continued employment that were contrary to a written at-will employment statement in the handbook was unreasonable. Finally, the First Circuit rejected the claims of misrepresentation because it could find no misrepresentation when he remained employed for the duration of his ability to work with CVS.

While there still is nothing keeping employees from suing employers for terminating their employment, even when there is no question that the employee was to blame, the Court's willingness to uphold the defeat of a frivolous claim before trial is a win not only for employers, but for tax payers as well.  And employers would be wise to take this as a reminder of the importance of the at-will statement in employee handbooks as well as in all written communications with employees regarding terms of employment.