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Contracts Keyed to Fuller
Anderson v. Douglas & Lomason Company
Citation:
Supreme Court of Iowa, 1995. 540 N.W.2d 277.Facts
Terry Anderson (Plaintiff) was employed by Douglas & Lomason Company (Defendant). At the start of plaintiff’s employment with the company, he was provided with a 53 page employee handbook which outlined defendant’s progressive discipline policy. Regarding theft of company property, the policy required a written warning for the first offense, a three-day suspension without pay for the second, and termination for the third offense. The last page of the handbook stated that it was not intended to create any contractual rights. Plaintiff did not read the handbook in full. Three years into his employment, plaintiff was fired for stealing a box of pencils from defendant. Plaintiff gave permission to defendant to search his home and garage after the incident, and the search revealed no other company property. Plaintiff sued defendant for breach of contract, arguing that DLC failed to follow the progressive discipline policy outlined in the employee handbook.
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