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Anderson v. Douglas & Lomason Co.

Iowa Supreme Court
540 N.W.2d 277 (Iowa 1995)


Terry Anderson (plaintiff) worked for Douglas & Lomason Company (DLC) (defendant). When Anderson began working at DLC, he was given an employee handbook, which included DLC’s progressive discipline policy. For theft of company property, the policy required a written warning for the first offense, a three-day suspension without pay for the second, and termination for the third offense. The last page of the handbook stated that it was not intended to create any contractual rights. Anderson never read the employee handbook. Anderson worked for DLC for three years and was then fired for stealing a box of pencils. Anderson sued DLC for breach of contract, arguing that DLC failed to follow the progressive discipline policy outlined in the employee handbook. The district court held that the employee handbook did not constitute a contract and granted summary judgment for DLC. Anderson appealed.

Rule of Law


Holding and Reasoning (Ternus, J.)

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