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Oral Promises and Detrimental Reliance

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Echospecial

Junior Member
What is the name of your state?What is the name of your state? Hawaii/Virginia

I currently work for a government contractor that hired me in December 2003 for a job on a government contract in Germany. I accepted the job at the proposed salary, plus a plane ticket home after 6 months (for vacation) and plus housing allowance. I worked at the company HQ in Virginia for 9 months awaiting permission to relocate to Germany and I was provided an apartment for 5 months, after my local lease had expired on my own apartment.

I was finally told, in August, that the position in Germany could not be staffed due to governmental issues. The company then offered me a position in Hawaii on the same government contract, for the same salary. I asked if housing would be provided at this location as well, and I was told by my manager it would. Several days later he followed up with an email informing me he'd be checking with "Contracting" to see exactly how much the housing allowance was in Hawaii. About a week later I asked him what the housing allowance would be and if it would cover the $1800-$2200 per month of typical Oahu rent for the size apartment I would need. He said the figures of $1800-$2200 "are correct from my previous conversation with Contracting."

On 3 October 2004, I relocated to Hawaii (company paid $6000, I paid roughly $3000) and agreed to work here for one year or else pay back the relocation assistance. Two days later, I found an apartment and when I called back to Virginia and asked my manager how I could start the process to receive the housing allowance, he informed me that there was no housing allowance, and he had just found out from Contracting that no housing allowance was included in the government contract. The next day he informed me he had known for five months that no housing allowance would be paid. They later renegged on the plane ticket benefit as well, but just recently corrected that and said they would provide a ticket after 6 months.

My belief is that the company established a contract with me through the oral and written promises of a housing allowance. I feel that they had 10 months to discover, through due-diligence, that their contract with the government did not provide for money for housing for either the Germany or Hawaii locations, but they were either negligent in promising the allowance again in August, or fraudulently did so, knowing they had no intention of paying. I also believe that they have caused me to rely on those promises to my detriment since I am now earning a great deal less than I thought I would be when accepting the position. I also hold that regardless of what the company's contract with the government says, they are obligated to pay me the housing allowance because they promised it, whether or not the government can be billed for that allowance.

I'm hoping someone can tell me if this is a case worth pursuing for the approximately $25000 in housing allowance (for one year) and $3000 spent in relocating plus punative or expungatory damages (or whatever it's called). Or, put another way, can I sufficiently show that they are in major breach of an employment contract established by their promises and my detrimental reliance on those promises. What about Equitable Estoppel?
 


Beth3

Senior Member
Echo, you need to consult with a local attorney. This is a civil matter, not a matter of employment law. Based on the facts you've shared, it sounds like you may have a claim worth pursuing but an attorney will need to advise you as claims for detrimental reliance are extremely fact-specific.
 

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