PJC Business

E MPLOYMENT

PJC 107.1

PJC 107.1 Breach of Employment Agreement (Comment) Subject to general contract rules. PJC chapter 101 governs the submission of breach of employment agreement cases. An express agreement limiting the employer’s right to discharge an employee at will is subject to general rules governing contracts. See, e.g., Goodyear Tire & Rubber Co. v. Portilla , 879 S.W.2d 47, 50–51 (Tex. 1994) (agreement to waive anti-nepotism policy); Mansell v. Texas & Pacific Railway Co. , 137 S.W.2d 997, 999–1000 (Tex. 1940) (agreement that employment could not be terminated without a fair investigation). The supreme court has expressly reserved the question of whether an oral agreement is sufficient to modify an employ ment-at-will relationship. Portilla , 879 S.W.2d at 51–52 n.8. If an express agreement exists between an employer and an employee limiting the employer’s right to discharge an employee and breach of that agreement is alleged, PJC 101.2 should be submitted. If there is a dispute about the existence of an agree ment or its terms, PJC 101.1 should be submitted, with PJC 101.2 predicated on an affirmative answer to PJC 101.1. Any defense to breach of the employment agreement should be submitted under PJC 101.7. If there is no specific contract term or express agreement to the contrary, the rule that either party may terminate the employment relationship at will with or without cause will control. Exxon Mobil Corp. v. Rincones , 520 S.W.3d 572, 582 (Tex. 2017) (quoting Montgomery County Hospital District v. Brown , 965 S.W.2d 501, 502 (Tex. 1998)). Property interest. A “for cause” or “good cause” limitation on dismissal of a public employee creates a property right in continued employment that is protected by procedural due process under the U.S. Constitution. County of Dallas v. Wiland , 216 S.W.3d 344, 354 (Tex. 2007). If a property interest in not being discharged without good cause exists, the Committee suggests the following jury question with a modified definition of PJC 107.2’s “good cause”: Did D on Davis terminate Paul Payne without good cause? Accompanying instructions. Depending on the nature of the specific contract terms or any defenses, additional instructions may be necessary for use with PJC 101.2 and 101.7. See PJC 107.2 (instruction on good cause as defense to early discharge) and chapter 101 (general instructions on contracts).

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