Rabago-Alvarez v. Dart Industries, Inc

In Rabago-Alvarez v. Dart Industries, Inc. (1976) 55 Cal.App.3d 91, plaintiff, employed for 16 years pursuant to an orally stated understanding that her employment was permanent as long as her performance was satisfactory, was discharged, it was claimed, without good cause. An award of damages was upheld. It was explained: "It is settled that contracts of employment in California are terminable only for good cause if either of two conditions exist: (1) the contract was supported by consideration independent of the services to be performed by the employee for his prospective employer; or (2) the parties agreed, expressedly or impliedly, that the employee could be terminated only for good cause." ( Id. at p. 96.) In sum, that plaintiff was unable to obtain any employment comparable to her position with the defendant employer. She was only able to obtain part-time work, at a salary much lower than she had been paid by the defendant. (Rabago-Alvarez, supra, 55 Cal.App.3d at p. 99.) The plaintiff conceded that her actual earnings from such inferior work must be deducted, but asserted that by accepting such employment she did not waive her right to decline other inferior employment opportunities. (Id. at pp. 97-99.) The reviewing court only concluded that "the trial court should not have deducted from plaintiff's recovery . . . the amount that the court found she might have earned in employment which was substantially inferior to her position with defendant." (Id. at p. 99.)