Background

• Reyes-Silva and Drillchem entered an Employment Agreement on July 2, 2008 (effective July 7, 2008) for a Director of Business Development, with salary $200,000/year, bonuses, benefits, and an auto allowance.
• The Agreement contains termination provisions in paragraphs 11 and 12, specifying termination timing, notice, severance, and potential causes.
• Drillchem terminated Reyes-Silva in October 2008 and submitted multiple alternative termination letters through December 2008.
• Reyes-Silva alleged breach of the Agreement and sought unpaid salary, severance, and penalties; Drillchem sought summary judgment asserting at-will employment under Louisiana law.
• The trial court granted summary judgment, holding the Agreement created at-will employment, which Reyes-Silva appealed.
• The appellate court reversed, holding the Agreement contained a six-month fixed term during which termination required good or just cause, and remanded for trial on merits regarding the termination for cause.

Issues

Key Cases Cited

• Quebedeaux v. Dow Chem. Co., 820 So.2d 542 (La. 2002) (at-will employment framework under Louisiana law)
• Deus v. Allstate Ins. Co., 15 F.3d 506 (5th Cir. 1994) (fixed-term analysis; at-will default presumption)
• Coates v. Hill Wholesale Distrib. Co., 968 So.2d 315 (La.App. 2 Cir. 2007) (breach damages for dismissal in fixed-term context)
• Brodhead v. Bd. of Trustees for State Colleges and Univs., 588 So.2d 748 (La.App. 1 Cir. 1991) (burden of proving meeting of minds on duration when fixed-term is alleged)
• Griffith v. Sollay Found. Drilling, Inc., 373 So.2d 979 (La.App. 3 Cir. 1979) (fixed-term employment recognition in Louisiana)
• Bartlett v. Doctors Hosp. of Tioga, 422 So.2d 660 (La.App. 3 Cir. 1982) (fixed-term vs. at-will considerations)
• Wiley v. Mo. Pacific R.R. Co., 430 So.2d 1016 (La.App. 3 Cir. 1982) (discussion of fixed-term employment principles)