Legal Question in Employment Law in Colorado

I have recently been laid off from a job due to financial difficulty of the company. I paid for all relocation costs out of pocket and signed a year lease on an apartment only to get laid off one month after my hire date. Now I am still paying off these relocation costs and cannot move (for a new job) without breaking my lease.

When I was hired on with the company, I was told that they had just received strong financial backing from private investors. I was informed by the hiring manager that this would prove to be a very lucrative career for me. After 90 days, I would even be switched from hourly to salary and given a significant pay raise. A month later, there was a mass lay-off due to a 'financial crisis.'

Since I had been unemployed for a majority of 2009 (I was volunteering abroad), I am currently ineligible for unemployment benefits. My girlfriend and I have sold our car and are now selling off our furniture just to buy groceries.

I do not have anything other than a 'verbal contract' with this company. And Colorado is an employment-at-will state. Though I feel that I was mislead when I agreed to take the position. Is there anything I can do to recoup expenses from the hiring company? Are they in violation of an 'implied contract?'

Thanks for your time.


Asked on 2/14/10, 8:43 am

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Sorry for the problems. You may have a few ways to approach this. The first is that this was an oral contract. This is not an easy claim and would require more facts to determine if this really was a contract at all. The second and more likely claim would be under what is termed promissory estoppel. This provides that if someone detrimentally relies on a promise they can attempt to enforce this promise or get damages for its breach. This is a very complicated area of law and one that requires close review of the facts and circumstances.

You should contact an attorney and they can determine if you have a possible claim. Good luck.

DISCLAIMER�This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney-client relationship.

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Answered on 2/20/10, 7:26 am


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