Habighurst v. Edlong Corp.

568 N.E.2d 226, 209 Ill. App. 3d 426, 154 Ill. Dec. 226, 6 I.E.R. Cas. (BNA) 332, 1991 Ill. App. LEXIS 106
CourtAppellate Court of Illinois
DecidedJanuary 28, 1991
Docket1-89-0398
StatusPublished
Cited by18 cases

This text of 568 N.E.2d 226 (Habighurst v. Edlong Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Habighurst v. Edlong Corp., 568 N.E.2d 226, 209 Ill. App. 3d 426, 154 Ill. Dec. 226, 6 I.E.R. Cas. (BNA) 332, 1991 Ill. App. LEXIS 106 (Ill. Ct. App. 1991).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Plaintiff, A.B. Habighurst, appeals an order of the circuit court of Cook County dismissing his claim against defendant Edlong for breach of contract.

Plaintiff was hired as an employee of defendant in 1979. In the course of his employment, plaintiff received an employee handbook. The record indicates that the handbook contains the following statements:

“This handbook does not guarantee employment security or benefits.
* * *
We realize that situations arise which may compel separation of employment; and we want you to realize that the employment relationship may be terminated at-will by yourself or the Company, typically as follows ***.”

The final page of the handbook, which is detachable, so that it may be signed by an employee and returned to defendant, provides:

“I have received an employee handbook and understand the personnel policies of The Edlong Corporation. I further acknowledge that this information is not to be regarded as a contract and does not guarantee specific benefits because Company policies and benefits may change.”

On January 15, 1986, plaintiff read the handbook and signed the final page of the manual. Plaintiff then continued to work for defendant until he was discharged in June 1986.

On February 6, 1987, plaintiff filed a five-count complaint against defendant in the circuit court of Cook County, alleging: (I) wrongful discharge from an oral employment contract; (II) interference with contractual relations; (III) libel; (IV) slander; and (V) intentional infliction of emotional distress. The court granted defendant’s motion to dismiss counts I, II and V. Plaintiff was granted leave to amend counts II and V, but moved instead for a rehearing on the motion to dismiss the wrongful discharge claim and to amend count I of his complaint. The trial court denied plaintiff leave to file his proposed amended complaint of wrongful discharge, but allowed plaintiff to file a second amended complaint on count I.

The trial court granted defendant’s motion to dismiss count I of the second amended complaint, which alleged wrongful discharge, on October 19, 1988. Counts III and IV of the complaint, which alleged libel and slander, were dismissed on January 4, 1989; plaintiff’s timely appeal followed.

Initially, we note that plaintiff’s notice of appeal purports to seek review of the dismissal of the counts alleging wrongful discharge, libel and slander. However, plaintiff did not raise any issues as to Counts III and IV in his brief, thus waiving the libel and slander claims on appeal. E.g., Batteast v. Argonaut Insurance Co. (1983), 118 Ill. App. 3d 4, 454 N.E.2d 706.

Thus, the sole issue on appeal is whether the trial court erred in dismissing plaintiff’s claim of wrongful discharge. Plaintiff contends that he may maintain a claim of wrongful discharge because a reasonable person could believe that the employee handbook constituted a contractual offer. On appeal, this court may affirm the dismissal of the claim on any legally valid basis which appears in the record. Natural Gas Pipeline Co. of America v. Phillips Petroleum Co. (1987), 163 Ill. App. 3d 136, 142, 516 N.E.2d 527, 531.

Generally, an employment relationship of indefinite duration is terminable “at will” by either party with or without cause. (Duldulao v. Saint Mary of Nazareth Hospital Center (1987), 115 Ill. 2d 482, 489, 505 N.E.2d 314, 317; Palmateer v. International Harvester Co. (1981), 85 Ill. 2d 124, 128, 421 N.E.2d 876, 878.) This rule, however, merely creates a presumption which can be overcome by demonstrating that the parties contracted to the contrary. (Duldulao, 115 Ill. 2d at 489, 505 N.E.2d at 318.) In Duldulao, our supreme court recognized:

“[A]n employee handbook or other policy statement creates enforceable contractual rights if the traditional requirements for contract formation are present. First, the language of the policy statement must contain a promise clear enough that an employee would reasonably believe that an offer has been made. Second, the statement must be disseminated to the employee in such a manner that the employee is aware of its contents and reasonably believes it to be an offer. Third, the employee must accept the offer by commencing or continuing to work after learning of the policy statement. When these conditions are present, then the employee’s continued work constitutes consideration for the promises contained in the statement, and under traditional principles a valid contract is formed.” Duldulao, 115 Ill. 2d at 490, 505 N.E.2d at 318.

The handbook at issue in Duldulao contained no disclaimer; indeed, the court noted:

“[T]he handbook contains no disclaimers to negate the promises made. In fact, the introduction to the handbook states just the opposite, that the policies in the handbook ‘are designed to clarify your rights and duties as employees.’ ” (Emphasis added in opinion.) (Duldulao, 115 Ill. 2d at 491, 505 N.E.2d at 319.)

The three-pronged test for contract formation set forth in Duldulao is equally applicable where disclaiming language is at issue. Anders v. Mobil Chemical Co. (1990), 201 Ill. App. 3d 1088, 1095, 559 N.E.2d 1119, 1122.

The weight of authority in this State has held the existence of disclaiming language in an employee handbook to preclude the formation of a contract. (See Anders, 201 Ill. App. 3d 1088, 559 N.E.2d 1119; Hogge v. Champion Laboratories, Inc. (1989), 190 Ill. App. 3d 620, 546 N.E.2d 1025; Bennett v. Evanston Hospital (1989), 184 Ill. App. 3d 1030, 540 N.E.2d 979; Moore v. Illinois Bell Telephone Co. (1987), 155 Ill. App. 3d 781, 508 N.E.2d 519, appeal denied (1987), 116 Ill. 2d 562, 515 N.E.2d 112.) For example, in Anders, this court refused to hold the employee manual to be a contract where a disclaimer appeared in the front of the manual, even though the manual provided for general disciplinary procedures and listed specific acts of punishable misconduct. See Anders, 201 Ill. App. 3d at 1091, 559 N.E.2d at 1123.

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Bluebook (online)
568 N.E.2d 226, 209 Ill. App. 3d 426, 154 Ill. Dec. 226, 6 I.E.R. Cas. (BNA) 332, 1991 Ill. App. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/habighurst-v-edlong-corp-illappct-1991.