Flowers v. Diamond Shamrock Corp.
Citation
693 F.2d 1146 (5th Cir., 1982)
Facts
An employee was promised by Diamond Shamrock that he would have continued employment and benefits if he stayed with the company following a corporate reorganization. In reliance on this promise, the employee remained rather than seeking other employment. The company later terminated him, and he sued for breach of that promise.
Issue
Whether a promise of continued employment in an at-will employment relationship is enforceable under promissory estoppel when the employee detrimentally relied on it.
Holding
The court held that the employee’s promissory estoppel claim could proceed because there was a clear promise, reasonable reliance, and detrimental reliance in remaining with the company.
Rule
A promise of continued employment may be enforceable under promissory estoppel if the employee reasonably relied on it to his detriment, even in an at-will employment relationship.