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  1. #1
    Join Date
    Oct 2009
    Location
    Nome, Alaska
    Posts
    2

    Default Promissory Estoppel or No

    My question involves employment and labor law for the state of: Illinois.

    Here is the hypothetical situation.

    An employee works for a large firm and s/he has good appraisals of the work performed. In fact, by all accounts the firm loves the employee.

    A few years go by and the employer mentions "you would go much farther at this firm if you'd get a Master's degree, why don't you get one?".

    The employee searches the options and finds a masters program that requires a $100,000 commitment, time away from work two fridays a month at employer's expense and significant time on weekends and using paid time off at employees expense.

    Employer writes a letter that says the key points of the following:

    We looked at the program details and we support your enrollment. We're going to give you the days off at our expense that are listed on the brochure from dates 1/1/1901-1/1/1903. We're going to give you some tuition reimbursement within company policies. (at that time it was $30k) We recognize the mutual committment that the employer and employee make and the mutual benefits we receive through this program. You're great, you rock, etc. Please show this letter to the admissions people at the school if it helps you get in.

    Employee spends hundreds of hours doing the test prep and admissions stuff. Employee makes initial payment for school. Employee is now thoroughly invested in the school program. Current policy at that date states the company will reimburse $30k of tuition. Program begins. Committment is made to pay school $100k over 2 years by employee. No refunds.

    And then...

    The management chain at employer leaves.
    Policy changes to reimburse less than anticipated in subsequent year
    New management hates that they signed on for this program
    New management stalls reimbursements/delays/is unresponsive
    New management makes employee sign an agreement after enrolled in program stating that employee must pay back all tuition reimbursement if employee quits firm.
    Employer demands letter of resignation from the employee, puts employee in storage area of office, gives no work for months, makes employee live in hell, changes performance ratings from A+ to D- effectively.

    Results:

    Employee is unable to get executive leadership role for over a year because no employer is interested in hiring someone "part time" while they finish masters degree program that eats into work-week.

    Employee is subsequently sued for tuition reimbursement under the auspices that a resignation letter means voluntary termination. (even though in the letter the employee says "I don't want to leave this company")


    Does the employee not only have a defense against the tuition reimbursement suit, but also a promissory estoppel claim? That claim being that s/he acted in good faith to enter a two year program and believed they had an employment contract (recommendation letter forecasting future days off of work for the program) by the sheer fact that they stipulated "you will get the time off on these days going out two years"?

    Would the damages be the lack of full reimbursement in the original amount?
    Plus the year's salary they were unable to seek employment while finishing the program?
    Plus punitive damages, pain/suffering, etc?

    Regards,

    rookhawk

  2. #2
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Promissory Estoppel or No

    And why exactly should we spend our time reading your long post and researching anything when this is a hypothetical situation?

  3. #3
    Join Date
    Sep 2005
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    98,846

    Default Re: Promissory Estoppel or No

    If $100,000+ is truly at stake, and the employee is embroiled in a lawsuit, the employee needs to be working with a lawyer. (Whether that's a lawyer to defend the employee against the lawsuit or, if the circumstances warrant, a bankruptcy lawyer.)

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Promissory Estoppel or No

    Assuming this occurred, as they could affect the outcome, the various contracts, letters, etc., involved in the case should be reviewed by a lawyer.

  5. #5
    Join Date
    Dec 2007
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    Default Re: Promissory Estoppel or No

    You guys are nice than I am.

  6. #6
    Join Date
    Sep 2005
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    Default Re: Promissory Estoppel or No

    I doubt that.

  7. #7
    Join Date
    Oct 2009
    Location
    Nome, Alaska
    Posts
    2

    Default Re: Promissory Estoppel or No

    I'm surprised at how un-helpful the responses have been. Anyone can say "get a lawyer" but that wasn't the question. It was requesting an opinion "is this promissory estoppel" and "would these be qualified damages"?

    And of course its hypothetical. Only a fool would publish a real case currently under litigation to the forum... it would provide the premise of a case to the opposition.

    The idea about bankruptcy is equally out of scope. Nobody stated the net-worth of the parties so considering their personal financial circumstances wasn't part of the question.

    Please focus on the germane points of the initial scenario.

  8. #8
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Promissory Estoppel or No

    You don't get to tell us what to "focus" on. We're here to help real people with real situations. Not hypotheticals. Besides, this is a general information site. It is not meant to, nor can it, replace an attorney who knows the entire story.

    Bye (waving).

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