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Raymond v. Pacific Chemical

12/13/1999

t Terry's termination violated the provisions governing probation and termination in the Pace International handbook notwithstanding the terms of his employment agreement, which provided that his employment was terminable at will. They first contend that the defendants improperly submitted a copy of the agreement to the trial court and failed to establish the document's authenticity. In support of their argument, the Raymonds note that the defendant's copy of the agreement is dated May 11, 1992, but Terry's terms of employment for that year refer to an agreement completed on April 28, 1992.


We find that these contentions are without merit. In a deposition, Terry testified that he recognized the document and confirmed that he signed it when he was rehired by Pacific Chemical in 1992. Terry identified the document as "a Pacific Chemical salesman's agreement" and verified his signature at the end of the agreement. He testified that he did not remember when he executed the agreement, but acknowledged that he signed it after he was rehired from Wesmar.


Q. {Y}ou described the circumstances under which you were persuaded to return to Pacific Chemical by Brooke Van Wyk when you were working at Wesmar. Do you remember that?


A. I do.


Q. Do you recall any discussions with anyone at Pacific Chemical regarding the execution of this Pacific Chemical salesman agreement as part of the deal you cut at that point?


A. Yes, I do.


The Raymonds also contend that the terms of the agreement applied only to Terry's first year of employment. The agreement states:


If I am employed, in consideration of said employment, I agree to these terms:


2. That the following compensation, in addition to the commissions earned by me, shall be paid only for the period hereinafter set forth and provided further that I am employed by the Company during the period indicated:


5-11-92 to 5-10-93


Guarantee as per Terms of Employment -


If Terry remained employed during the first year of employment, this provision guaranteed him a minimum salary in addition to his commissions. The remaining terms in the agreement, however, are not similarly limited. The agreement refers broadly to Terry's "terms of employment." The other provisions in the document set forth the company's policies on the compensation for sales employees, the basis upon which commissions are paid, record keeping, the authorization of sales and credit transactions, and the employee's obligations. These provisions set forth the employment relationship between the parties, and it is clear from the language of the agreement that the parties intended these provisions to apply throughout their employment relationship.


The Raymonds next contend that the Pace International employee handbook contained promises of specific treatment that modified the employment relationship, relying on an equitable theory of recovery that was first recognized by our Supreme Court in Thompson v. St. Regis Paper Co., 102 Wn.2d 219, 685 P.2d 1081 (1984). In Thompson, the court held that promises of specific treatment in specific situations, contained in employee handbooks, may limit an employer's right to discharge an at-will employee:


Independent of this contractual analysis, however, we hold that employers may be obligated to act in accordance with policies as announced in handbooks issued to their employees. When the employment relationship is not evidenced by a written contract and is indefinite in duration, the parties have entered into a contract whereby the employer is essentially obligated to only pay the employee for any work performed. In

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