Duldulao v. St. Mary of Nazareth Hospital Center

Saint Mary of Nazareth Hospital Center (the hospital) (defendant) hired Nora Duldulao (plaintiff) in 1970, promoted her within the nursing department, and eventually named her human-resources-development coordinator on September 14, 1981. Duldulao’s responsibilities included teaching new employees about the hospital’s employee handbook. The handbook was described as a statement of policies regarding employees’ rights and duties. The handbook provided that employees could be terminated for just cause, without notice, during an initial 90-day probationary period. The handbook stated that employees who completed the probationary period became permanent employees who could be terminated only with proper notice and an investigation except in grave cases involving egregious misconduct. On December 11, 1981, without any prior notice, the hospital told Duldulao that her employment was being terminated that day because she had failed to properly monitor certain seminars and follow instructions for cardiopulmonary-resuscitation recertification. The hospital claimed that Duldulao had reverted to probationary status when she started her new position in September 1981 and thus was ineligible for the notice procedures applicable to permanent employees. Duldulao sued the hospital in Illinois state court, alleging that the handbook had created enforceable contractual rights and that the hospital had breached the contract by discharging her in violation of the handbook’s notice and disciplinary procedures. The trial court granted summary judgment for the hospital, but the appellate court reversed. The hospital appealed to the Illinois Supreme Court.