This section contains the nature of the case and procedural background.

D is in the business of manufacturing and marketing candy through its own retail outlets. P began working for D in January 1941 washing pots and pans. From there he was promoted to candy maker, and held that position until the early part of 1942, when he entered the Air Corps. Upon his discharge in 1946, he returned to D and his former position. After a year he was promoted to the position of production manager in charge of personnel, ordering raw materials, and supervising the production of candy. When, in 1950, D moved into a larger plant in San Francisco, Pugh had responsibility for laying out the design of the plant, taking bids, and assisting in the construction. While working at this plant, P sought to increase his value to the company by taking three years of night classes in plant layout, economics, and business law. In 1957, P was given responsibilities for the new location similar to those which he undertook in 1950. By this time D's business and its number of production employees had increased substantially, and a new position of assistant production manager was created under P's supervision. In 1971 P became vice president in charge of production and was placed on the board of directors of D's northern California subsidiary, 'in recognition of his accomplishments.' In 1972 he received a gold watch from D 'in appreciation of 31 years of loyal service.' In May 1973 P traveled with Charles Huggins, then president of See's, and their respective families to Europe on a business trip to visit candy manufacturers and inspect new equipment. Mr. Huggins returned in early June to attend a board of directors meeting while P and his family remained in Europe on a planned vacation. Upon P's return from Europe on Sunday, June 25, 1973, he was summoned to Los Angeles. The preceding Christmas season had been the most successful in D's history, the Valentine's Day holiday of 1973 set a new sales record for D, and the March 1973 edition of D's Newsletter, containing two pictures of P, carried congratulations on the increased production. Amazingly, P was fired; 'No severance pay will be granted.' No reason for the firing was given. When P first went to work for D, Ed Peck, then president and general manager, frequently told him: 'if you are loyal to [D] and do a good job, your future is secure.' Laurance See, who became president of the company in 1951 and served in that capacity until his death in 1969, had a practice of not terminating administrative personnel except for good cause, and this practice was carried on by his brother, Charles B. See, who succeeded Laurance as president. There had never been any formal or written criticism of P's work. P figured that he was terminated because the union demanded it. P sued Ds for breach of contract. P claimed breach of employment contract for reasons that offend public policy and wrongful termination. He claimed that the union had conspired in the wrongful act. After P concluded his case, the court granted Ds' motion for nonsuit. P appealed.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.