Anticipatory Breach in the Employment Context

• Author: Mary Beth Currie
• Pages: 447-476



AnticipatoryBreachinthe

EmploymentContext

MaryBethCurrie*

Onthismotioninarrestofjudgmentthequestionariseswhetherif

therebeanagreementbetweenAandBwherebyBengagestoem-

ployAonandfromafuturedayforagivenperiodoftimetotravel

withhimintoaforeigncountryasacourierandtostartwithhimin

thatcapacityonthatdayAbeingtoreceiveamonthlysalaryduring

thecontinuanceofsuchserviceBmaybeforethedayrefusetoper-

formtheagreementandbreakandrenounceitsoastoentitleAbe-

forethedaytocommenceanactionagainstBtorecoverdamagesfor

breachoftheagreementAhavingbeenreadyandwillingtoperform

ittillitwasbrokenandrenouncedbyB

ThusdidCampbellCJbeginthejudgmentinHochster v. De la Tour

thefoundationofthemodernlawofanticipatorybreachHeanswered

hisownquestionyesandthedoctrineofanticipatorybreachhadits

genesis

Thispaperwillfocusonthedoctrineofanticipatorybreachinthe

contextoftheemploymentrelationshipItissubmiedthatthedoctrine

of anticipatorybreach applies uidly as in a commercial relationship

shoulda n employerrepudiate an agreement to hire prior to the com-

mencementoftheemploymentrelationshipbutitismorecumbersome

* MaryBethCurrieisapartneratBenneJonesLLPMsCurriewouldliketothank

LeeCasseystudentatlawatBenneJonesLLPforhisdiligentresearchandas-

sistanceinpreparingthispaper

 EBERAllERRepatHochster

MBC

whenapplicabletoanemployeewhoisprovidedwithadvanceworking

noticeofachangetothetermsofemploymentCourtsshouldencour-

ageandapplaudemployerswhoprovidenoticetoemployeesofmaterial

changestothetermsoftheiremploymentcontractsandthoseemploy-

ersshouldnotbeobligedtodefendagainstcivilclaimsofanticipatory

breachbyemployeeswhohavereceivedadvancenoticeofafundamental

changetotheirtermsofemploymentWherethereisanalternatemethod

of analyzing the eect of providing advance notice of a fundamenta l

change to employmenta ndwhere suc h analysis provides a common-

senseapproachtoworkplaceharmonyinsteadofapplyingthedoctrine

ofanticipatorybreachthealternateapproachistobepreferred



 

 HochstervDelaTour

Thelandmarkcaseholdingthatapartymaybringanactionfordamages

immediatelyupontheotherpartysanticipatorybreachisHochster

BycontractdatedAprilDelaTouragreedtoemployHoch-

sterasacourierforathreemonthperiodcommencingJunefor

tentripspermonthOnMayDelaTourwroteHochsterthathe

hadchangedhismindthathewouldnotemployHochsterasrstprom-

isedandthathewouldnototherwiseemployorcompensateHochster

Hochstersubsequentlysecuredotheremploymentoncomparableterms

butnotuntilJuly

HochstersuedonMaytendaysbeforeDelaTourwasobli-

gatedtoperformarguingthatDelaToursrepudiationofhispromise

toemployHochsterwasabreachofcontractnotwithstandingthatDela

TourhadbreachedpriortothetimehewasduetoperformDelaTour

answeredthattherecouldbenobreachbeforeJune

ThejuryfoundforHochsterandDelaToursoughtanonsuitor

toarrestthejudgmentJusticeCampbellposedthequestionbeforethe

courtinthemannerquotedaboveatthestartofthepaper

DelaTourarguedthatifHochsterwasunwillingtoagreetodis-

solvethecontractuponDelaToursrepudiationthenHochsterwasob-

 Ibid.atAllERWherethereisacontracttodoanactonafuturedaythere

isarelationconstitutedbetweenthepartiesinthemeantimebythecontractand

theyimpliedlypromisethatinthemeantimeneitherwilldoanythingtothe

prejudiceoftheotherinconsistentwiththatrelation