Nature of the Case
To access this section all you need to do is click here and register.
Facts
P worked for D as an international sales manager from 1998 until he resigned in 2009. In May 2007, D announced that it expected to move many of its managerial positions to a facility in Plymouth in the fall of 2007. The move did not occur as soon as expected. It was not until July 2008 that P met with D's CEO, Chris Twomey, and vice-president of human resources, Terry Blount, about his options in connection with the anticipated move. Twomey and Blount orally gave P three options: move from his current position to Plymouth and receive a $10,000 increase in salary; (2) look for a different position at the Thief River Falls facility; (3) resign and receive a severance package equivalent to one week's pay for every year of service. P asked that the offer be put in writing. On July 30, 2008, D sent him a letter setting out the terms of employment if the position moved to Plymouth and stating that '[i]f you choose not to transfer to the Plymouth location, you have the opportunity to investigate internal openings or be provided with a severance package in the amount of one week for each year of service.' The letter requested a response to the offers by August 8, 2008. On August 8, 2008, P sent a letter to Blount and Twomey stating that the salary offer was lower than other companies were paying and asking them to reconsider the salary offer. Blount responded by asking P if he was accepting any of the offers and requesting that P respond 'ASAP.' P responded that he was asking Arctic Cat to review the compensation package offered. On August 12, 2008, P responded that D would not be increasing the compensation offered for the move to Plymouth and again requested a response 'ASAP.' P then requested that his annual performance be reviewed. P and Twomey met on January 8, 2009, at which time Twomey orally gave P two options: (1) move to Plymouth and receive a salary of $90,000 or (2) stay in Thief River Falls and continue working in his present position and salary. Twomey told Bjorkman that if he stayed in Thief River Falls, he would receive a 3% raise retroactive to July 2008 (the anniversary of his hiring date). Resignation with a severance package was not discussed at this meeting. On January 9, 2009, P met with Kennedy to discuss how he could 'get the most bang for his buck' if he resigned. P asked about severance, and Kennedy responded that P was probably not eligible for a severance package. Kennedy stated that she was not privy to the previous discussions and correspondence among P Twomey, and Blount, but that P should talk to Blount (whose office was nearby) about any severance option he was given in July. P submitted his resignation letter on January 12, 2009, stating that he would take the severance package. On January 16, 2009, Blount informed P that no severance option was available to him. P sued D for breach of contract and promissory estoppel. The district court dismissed P's claims based on its findings that the offer for the severance package had been revoked or lapsed before P's acceptance and that P's reliance on the offer in January 2009 was not reasonable. P appealed.
Support@ bsmsphd.com
Casebriefs Co