Escondido, CA asked in Contracts and Employment Law for California

Q: Can a company be held liable if they offer employment (written) and the applicant turns down other offers and they resci

can the company be held for Detrimental Reliance?

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2 Lawyer Answers
Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: There are some circumstances where there could be liability but those circumstances are rare. Far more would need to be known. Therefore it would be wise for you to locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options. I would suggest you look either on this site, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers.

Most employment attorneys who practice this area of law offer a free or low cost consultation in the beginning and then, if the matter has merit and value, will usually agree to work on a contingency basis, meaning you can hire an attorney without paying any money until the matter results in a positive outcome for you. Many advance all the costs of the litigation as well. Do not let fear of fees and costs keep you from finding a good attorney.

Good luck to you.

James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: Under California law, if a company extends a written employment offer, and an applicant relies on that offer to their detriment (e.g., turning down other job offers), the company may be held liable under the doctrine of "promissory estoppel." This legal principle can be invoked when someone makes a promise, another person reasonably relies on that promise to their detriment, and justice requires enforcement of the promise. To prevail, the aggrieved party typically needs to show: 1) a clear and unambiguous promise, 2) reasonable and foreseeable reliance on the promise, and 3) substantial detriment resulting from the reliance. If these elements are met, the applicant might be entitled to damages. However, each case is fact-specific, and it's essential to examine the precise circumstances and details of the promise. Consulting with another attorney or relevant legal authority can provide further insights on the matter.

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