Court rules on at-will employment contracts

By Julia Cheever, Bay City News Service

August 3, 2006

SAN FRANCISCO (BCN) - The California Supreme Court made it easier today for employers to fire workers when their contracts say their jobs can be terminated "at will" and "at any time."

The court, in a ruling issued in San Francisco, upheld the right of an advertising agency, Arnold Worldwide Inc., to fire a supervisor in its Los Angeles office without giving a reason.

The employee, Brook Dore, had moved from Colorado to take a management supervisor job on an automobile account in 1999 and was fired in 2001.

The company's contract letter to Dore, which Dore had signed, stated his employment was "at will" and could be terminated at any time.

Dore unsuccessfully argued in a lawsuit that the agreement was ambiguous and that the company couldn't fire him without cause, or a good reason.

He contended that ambiguity was created by other language in the letter and by earlier statements in which officials said the company was looking for a long-term solution and treated its employees like a family.

But the state high court said the letter was unambiguous.

Justice Kathryn Werdegar wrote, "The language of the parties' written agreement is unambiguous. AWI's letter plainly states that Dore's employment with AWI was at will.''

The decision resolves a conflict among intermediate appeals courts in the state.

Some appeals courts, including one in Los Angeles that ruled in Dore's case, have said that the phrase "at any time" can sometimes be ambiguous and that other evidence can be considered. Other courts have disagreed.

Mark Waterman, a lawyer for Arnold Worldwide, said, "This decision strengthens the concept of at-will employment. The court is saying here that if you use the words 'at will' and 'can be terminated at any time,' that's clear.''

Clay Robbins, a lawyer for Dore, "It's a truly unfortunate decision. I fear it gives employers the right to bait and switch when hiring employees.''

Robbins said Dore relied on the statements made by company officials during the month before he accepted the job and was given the contract letter.

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