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787 S.E.2d 103
Va.
2016
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Background

  • Brenda Johnston was an at-will employee of William E. Wood & Associates, Inc. for 17 years and was terminated without advance notice.
  • Johnston sued for wrongful discharge and breach of an implied term of her employment contract, alleging her employer should have given "reasonable" advance notice.
  • The employer demurred, arguing Virginia law does not recognize these claims for at-will employees.
  • The circuit court sustained the demurrer; the Supreme Court reviewed the decision de novo.
  • The central legal question was the meaning of "reasonable notice" in the at-will employment context — whether it requires advance notice or merely effective notice of termination.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Meaning of "reasonable notice" for at-will employment "Reasonable notice" includes a temporal component—some advance notice before termination "Reasonable notice" means effectual notice that the employment has ended; no advance notice required "Reasonable notice" means effective notice that the relationship has ended; advance notice not required
Viability of wrongful discharge / implied-contract claims for at-will employee terminated without advance notice Termination without reasonable (advance) notice supports wrongful discharge / implied-contract claims Virginia law recognizes at-will employment and does not impose advance-notice obligation; claims fail as a matter of law Demurrer properly sustained; no wrongful discharge or implied-term breach as a matter of law

Key Cases Cited

  • Stonega Coal & Coke Co. v. Louisville & Nashville R.R. Co., 106 Va. 223, 55 S.E. 551 (1906) (formative statement that when duration is unspecified, either party may terminate upon giving "reasonable notice")
  • Miller v. SEVAMP, Inc., 234 Va. 462, 362 S.E.2d 915 (1987) (restating at-will rule requiring "reasonable notice" when duration is indeterminate)
  • Hoffman Specialty Co. v. Pelouze, 158 Va. 586, 164 S.E. 397 (1932) (emphasizing employer may terminate at-will "at any time without more ado")
  • Bowman v. State Bank of Keysville, 229 Va. 534, 331 S.E.2d 797 (1985) (recognizing narrow public-policy exception to at-will doctrine)
  • Dreher v. Budget Rent-A-Car Sys., Inc., 272 Va. 390, 634 S.E.2d 324 (2006) (standard of review for demurrer: legal questions reviewed de novo)
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Case Details

Case Name: Johnston v. William E. Wood & Assocs., Inc.
Court Name: Supreme Court of Virginia
Date Published: Jun 2, 2016
Citations: 787 S.E.2d 103; 2016 Va. LEXIS 67; 41 I.E.R. Cas. (BNA) 752; 292 Va. 222; Record 151160
Docket Number: Record 151160
Court Abbreviation: Va.
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    Johnston v. William E. Wood & Assocs., Inc., 787 S.E.2d 103