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Fred Hobson
vs.
American Cast Iron Pipe Company


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Issues:
Drug testing, alcohol, evidence, policy and procedure, post-accident testing.
 
Case Summary:
Fred Hobson appeals a summary judgment in a suit involving his former employer, the American Cast Iron Company. Hobson worked as a truck driver and was required to complete periodic drug tests. Company officials initiated termination proceedings when Hobson tested positive for barbiturates. Hobson previously had tested positive for alcohol in a separate incident. A company employee review panel considered Hobson's case and initially recommended that Hobson be reinstated. Company officials pressed for Hobson's termination, and the review panel revised its recommendation. The panel concluded it lacked sufficient information to offer a conclusive recommendation and suggested a second review panel be established to hear Hobson's case. The company overruled the panel and upheld its decision to fire Hobson. He subsequently filed suit, claiming a breech of contract. The company responded with a motion for summary judgment, arguing Hobson served as an at-will employee and could be dismissed without notice.
 
Decision of lower jurisdiction:
A trial court ruled in favor of the company and granted a motion for summary judgment. The court ruled Hobson lacked evidence to support his complaint. Hobson now appeals.
 
Outcome:
Hobson loses. The Alabama Supreme Court affirmed the trial court's ruling. The supreme court upheld the conclusion that Hobson lacked evidence to support his complaint that the company refused to accept the initial recommendation of the employee review panel. The court accepted the company's assertion that the review panel was charged with assuring adherence to company policy during the termination process. The panel had no authority to create or modify company policy, the court noted.