Dillon vs Champion Jogbra

Legal issue in the case

In the case of Dillon v Champion Jogbra, the Vermont Supreme Court held that the terms of an employee handbook could create an implied contract even though the handbook contained a disclaimer stating that it did not create a contract. This disclaimer was in large, all capital letters on the first page. Linda Dillon filed a lawsuit against her former employer, Champion Jogbra, Inc., alleging they wrongfully terminated her employment when they breached an implied contract. Champion clearly stated in their employee manual that workers could be fired at will. Dillon maintains that Champion’s employment practice and adoption of a progressive discipline system, changed the terms of her employment. The progressive discipline system, according to Dillon, requires cause for discharge. Dillon alleged she was fired without the benefit of the progressive disciplinary system. She believed the company breached the implied contract stated on the first page of the employee manual by doing this.

In August of 1998, Dillon accepted a new position at the recommendation of Champion management. During the interview, she was told she would receive extensive training by her predecessor. Even though her predecessor had to report to her new assignment earlier than planned, Dillon’s supervisor assured her that she would be brought back periodically to provide additional training. It was also stated that it would take four to six months for her to feel comfortable with the position and they were not concerned about it (Walsh, 2010). At the end of one month, Dillon was notified by her supervisor that things were not working out and she would be reassigned to a temporary position. Dillon left Champion when her temporary position expired. Champion argued that she was an at-will employee, as based on policy outlined in the employee handbook, could be terminated at any given time.

Dillon also testified in her disposition to conversations with the human...