Larry Steveson v. United Subcontractors Inc

MEMORANDUM

Larry Steveson brought this diversity action against his former employer, United Subcontractors, Inc. (“USI”), claiming that, in terminating his employment following a merger and consolidation of business operations, USI breached the employment contract and withheld compensation in violation of Washington state law. He also sought to have the district court invalidate the employment contract’s restrictive covenant limiting his ability to compete as a commissioned sales representative of insulation products and to award him injunc-tive and declaratory relief. The district court granted USI’s motion to dismiss all claims, finding that (1) there was no breach of contract because Steveson was an at-will employee at the time of his termination, (2) even if USI had breached the contract, Washington Revised Code section 49.52.050 provided no remedy for future compensation, and (3) the covenant not to compete was applicable whether a person was terminated with or without cause. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

First, Steveson claims that USI breached his contract by terminating his employment without just cause. Washington law states that “[a]…