Missouri

Demasse v. ITT Corp. in Missouri Law

How Demasse v. ITT Corp. applies in Missouri: state-specific rules, key cases, and bar exam notes for Contracts (Employment Law).

State Approach

In Missouri, courts consider the principles of implied contracts based on employee handbooks and policies, much like in 'Demasse v. ITT Corp.' Missouri courts assess an employee's reasonable reliance on such documents to determine if they are bound by an implied covenant of good faith and fair dealing within the employment context.

State Rule
Missouri follows the principle that an employee may establish an implied contract through representations made in employee handbooks or policies, which can limit termination at-will provisions if the employee has reasonably relied on those representations.
Significant State Cases

Kelley v. Mid-Continent Steel & Wire Co.

The court upheld that statements in the employee manual created enforceable promises regarding job security.

Simmons v. St. Louis University

The court found that an employee handbook could create an implied contract, modifying the at-will employment relationship.

Rudolph v. Allstate Ins. Co.

The court recognized the need for good faith in employment termination, establishing a standard that echoed Demasse's principles.

Comparison to Federal Law

Federal law generally allows for at-will employment without similar considerations for implied contracts as established in 'Demasse v. ITT Corp.'. Thus, federal courts may not recognize the same reliance on employee handbooks or policies compared to Missouri's more nuanced approach.

Bar Exam Note

Understanding the implications of 'Demasse v. ITT Corp.' and its application in Missouri is crucial for the employment law section of the Missouri bar exam.

Practice Pointers
  • Always review employee handbooks and policies for any implied terms or representations that may affect employment status.
  • Be aware of the legal standard for establishing an implied contract when using employee handbooks as evidence.
  • Consider the reasonable reliance of employees on stated policies when advising clients on termination or employment disputes.
  • Keep current with Missouri state case law that affects employment rights and obligations as it compares to federal standards.
  • Educate clients about their rights regarding implied contracts and the covenant of good faith and fair dealing in employment relationships.

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