Southwest Gas Corp. v. Ahmad

668 P.2d 261, 99 Nev. 594, 1983 Nev. LEXIS 505, 114 L.R.R.M. (BNA) 2633

• Court: Nevada Supreme Court
• Decided: August 31, 1983
• Docket: 13891
• Status: Published

Opinions

OPINION

By the Court

Springer, J.:

Ahmad recovered a judgment against Southwest for breach of her oral employment contract. The issue in this case is whether or not the parties are bound by a termination clause appearing in the Employee Information and Benefits Handbook provided to Ahmad by Southwest. The district court found that the handbook created employment and contractual rights between the parties and that Southwest violated the contract.

There is testimony by Ahmad that she had knowledge of the termination section of the handbook “throughout the length of [her] employment.” The fact that the company issued such handbooks to its employees and that Ahmad had knowledge of the pertinent provisions therein supports an inference that the handbook formed part of the employment contract of the parties.

There is also evidence of formal delivery of the handbook after the commencement of employment. Her continued employment after formal delivery of the handbook provides sufficient consideration for modifying the employment agreement by inclusion of the handbook provisions. See Yartzoff v. Democrat-Herald Publishing Co., Inc., 576 P.2d 356 (Or. 1978); 1A A. Corbin, Corbin on Contracts 122, § 175 (1963).

Yartzoff is similar to the instant case. There, summary judgment was entered in favor of the employer. The judgment was reversed on the ground that material issues of fact existed as to whether an employment handbook issued by the employer was part of the employment contract. A handbook was delivered by the employer to the employee several days after commencement of employment. The court held that even under such circumstances a fact finder could find that the handbook was intended by the parties to be part of the original contract of employment. The court went on to hold that even if the book were not part of the original contract, it could be considered as a subsequent modification of the contract. The court reasoned that since the employee was free to leave her employment, her continued employment after receiving the handbook provided sufficient consideration for the modifications. We agree with this reasoning and hold that the district court’s action is supportable on the ground that the handbook could be found to be part of the original contract or to be a modification supported by sufficient consideration. Either way the district court’s judgment should be affirmed. See Hotel Riviera, Inc. v. Torres, 97 Nev. 399, 632 P.2d 1155 (1981). It is so ordered.

Mowbray and Gunderson, JJ., concur.