QUESTION
Do we have a claim for Detrimental Reliance or Unemployment for company rescinding job offer?
Asked on Jun 28th, 2012 on Employment Contracts - Pennsylvania
More details to this question:
My husband signed his offer letter on 5/31 to be a West Coast Sales rep for a Philadelphia company. He was required to fly to PA for 2 days the next week (6/7-6/8). He quit his current job the next day on 6/1/12. His current company told him that he didn''t give sufficient notice to take those days off and if he didn''t show up for work on 6/7, he would be fired for insubordination. So he was was then fired.
After his trip to PA, my husband was reimbursed for the trip and given a start date of 7/1/12. The CEO of his new company called on 6/28/12 and told him that they couldn''t hire him at this time because the Venture Capitalist group that is investing with them requires a hiring freeze. Obviously the CEO considers him to have not been hired yet.
Are we entitled to lost pay from his past job due to Detrimental Reliance? Is my husband eligible for Unemployment?
1 ANSWER
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Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.That being said, Pennsylvania is a state that follows the rule of at-will employment. This means that one can be terminated by their employer for any reason or no reason at all. While this is the general situation, there are ways to overcome at-will employment, including additional consideration provided by the employee in accepting the position. While that may not be the case here, Pennsylvania’s Superior Court has held, with regards to detrimental reliance/promissory estoppel, that “A promise which the promissor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promissee and which does induce such action or forbearance is binding if injustice can be avoided only by the enforcement of the promise.” Robert Mallery Lumber Corp. v. B & F. Associates, Inc. 294 Pa. Super. 504, 511. However, without review all the facts and documents of your husband’s situation, I cannot provide a conclusion, just a response based on the information provided.If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.Robert H. GraffThe Ezold Law Firm, P.C.One Belmont Avenue,Suite 501Bala Cynwyd, PA 19004(610) 660-5585rgraff@ezoldlaw.comwww.ezoldlaw.com
Answered on Jul 10th, 2012 at 4:42 PM