WRONGFUL TERMINATION DEMAND LETTER
STATE OF MONTANA
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Montana ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Montana State Bar Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Re: Wrongful Termination of [Client Full Name]
Former Position: [Job Title]
Dates of Employment: [Start Date] through [Termination Date]
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO M.R.E. 408
Dear [Mr./Ms./Mx. Last Name]:
This firm represents [Client Full Name] ("our client" or "[Mr./Ms./Mx. Client Last Name]") regarding [his/her/their] wrongful termination from employment with [Company Legal Name] ("[Company Short Name]" or "the Company") on or about [Termination Date]. Please direct all further communications regarding this matter to our office and refrain from any direct contact with our client.
We write to demand immediate action to remedy the unlawful termination of our client and to resolve this matter short of litigation. As detailed below, [Company Short Name] terminated our client in violation of the Montana Wrongful Discharge From Employment Act and Montana law, exposing the Company to substantial liability.
I. MONTANA-SPECIFIC LEGAL FRAMEWORK
A. Montana's Unique Employment Law: Not At-Will After Probationary Period
Montana is the only state in the nation that is NOT an at-will employment state after an employee completes a probationary period. Under the Montana Wrongful Discharge From Employment Act ("WDEA"), Mont. Code Ann. Sections 39-2-901 to 39-2-915, employers may only discharge employees for "good cause" once the probationary period has been completed.
Our client completed [his/her/their] probationary period on [Probationary Period End Date] and therefore was entitled to the full protections of the WDEA at the time of [his/her/their] termination.
B. The Wrongful Discharge From Employment Act (WDEA)
Under the WDEA, a discharge is wrongful if:
-
It was in retaliation for the employee's refusal to violate public policy or for reporting a violation of public policy. Mont. Code Ann. Section 39-2-904(1)(a).
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The discharge was not for good cause and the employee had completed the employer's probationary period. Mont. Code Ann. Section 39-2-904(1)(b).
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The employer violated its own written personnel policy relating to termination. Mont. Code Ann. Section 39-2-904(1)(c).
See Marcy v. Delta Airlines, Inc., 166 F.3d 1279 (9th Cir. 1999) (applying WDEA); Kestell v. Heritage Health Care Corp., 858 P.2d 3 (Mont. 1993).
C. "Good Cause" Standard Under Montana Law
"Good cause" means "reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason." Mont. Code Ann. Section 39-2-903(5).
The employer bears the burden of proving good cause existed. Buck v. Billings Montana Chevrolet, Inc., 811 P.2d 537 (Mont. 1991).
D. Probationary Period
Under the WDEA, the probationary period is:
- The period stated in the employer's written personnel policy; or
- If no policy exists, six months from the date of hire. Mont. Code Ann. Section 39-2-904(2).
Our client's employment of [length of employment] well exceeded any applicable probationary period.
E. Statute of Limitations
An action under the WDEA must be filed within one (1) year after the date of discharge. Mont. Code Ann. Section 39-2-911(1). Our client's termination occurred on [Termination Date], and therefore this deadline expires on [One Year After Termination].
F. Administrative Remedies
The WDEA does not require administrative exhaustion before filing suit. However, if discrimination is also alleged, a complaint must be filed with the Montana Human Rights Bureau within 180 days.
II. FACTUAL BACKGROUND
A. Employment History and Performance
[Client Full Name] was employed by [Company Short Name] from [Start Date] through [Termination Date], a period of approximately [X years/months]. [He/She/They] most recently held the position of [Job Title] in the [Department], reporting to [Supervisor Name and Title].
Our client successfully completed [his/her/their] probationary period on [Date] and thereafter was entitled to the "good cause" protections of the WDEA.
Throughout [his/her/their] tenure, our client was a dedicated, high-performing employee:
- [Describe positive performance reviews, ratings, or commendations]
- [Describe any promotions, raises, or increased responsibilities]
- [Describe any awards, recognition, or special achievements]
- [Describe positive feedback from supervisors, clients, or colleagues]
At no time prior to [Date of First Adverse Action or Termination Date] did our client receive any disciplinary action, performance improvement plan, or written warning suggesting [his/her/their] employment was in jeopardy.
B. The Protected Activity / Triggering Event
On or about [Date], our client [describe the protected activity or triggering event]:
- [ ] Reported illegal activity, fraud, or regulatory violations to [management/regulatory agency/law enforcement]
- [ ] Refused to participate in illegal or unethical conduct that would violate public policy
- [ ] Filed a complaint regarding workplace safety violations
- [ ] Reported violations of Montana Occupational Safety and Health Act
- [ ] Exercised statutory rights (workers' compensation claim, FMLA leave, military leave)
- [ ] Complained about discrimination or harassment under the Montana Human Rights Act
- [ ] Participated in an internal or external investigation
- [ ] Filed or supported a claim for unpaid wages under Montana Wage Payment Act
- [ ] Other protected activity: [Describe]
Specifically, our client [provide detailed narrative of the protected activity, including dates, witnesses, and documentation].
C. Termination Without Good Cause
On [Termination Date], [Supervisor/HR Representative Name] informed our client that [his/her/their] employment was being terminated, purportedly for [state employer's reason, if any].
This stated reason does not constitute "good cause" under the WDEA because:
- No legitimate job-related basis: [Explain why the stated reason lacks factual support]
- Pretextual timing: The termination occurred just [X days/weeks] after our client's protected activity
- Failure to follow progressive discipline: The Company's own personnel policy requires [describe policy], which was not followed
- Disparate treatment: Similarly situated employees who did not engage in protected activity were treated differently
- Prior performance contradicts stated reason: Our client's consistently positive evaluations are inconsistent with the purported cause
III. LEGAL ANALYSIS
A. Violation of WDEA - Discharge Without Good Cause
[Company Short Name] violated Mont. Code Ann. Section 39-2-904(1)(b) by discharging our client without good cause after [he/she/they] had completed the probationary period.
The stated reason for termination—[employer's stated reason]—does not satisfy the statutory definition of "good cause" because it does not constitute "reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason." Mont. Code Ann. Section 39-2-903(5).
B. Violation of WDEA - Retaliation for Reporting Public Policy Violations
[If applicable:] Our client's termination also constitutes wrongful discharge under Mont. Code Ann. Section 39-2-904(1)(a) because [he/she/they] was terminated in retaliation for [refusing to violate public policy / reporting violations of public policy].
Under Montana law, "public policy" includes policies established by constitutional provisions, statutes, or administrative rules. Kestell v. Heritage Health Care Corp., 858 P.2d 3, 7 (Mont. 1993).
Our client's [refusal/report] implicated the public policy established by [cite specific constitutional provision, statute, or administrative rule], and the temporal proximity between [his/her/their] protected conduct and termination creates a strong inference of retaliation.
C. Violation of Written Personnel Policy
[If applicable:] [Company Short Name] also violated its own written personnel policy, triggering liability under Mont. Code Ann. Section 39-2-904(1)(c).
The Company's [Employee Handbook / Personnel Manual / HR Policy], dated [Date], provides that [quote relevant policy language regarding termination procedures, progressive discipline, etc.].
[Company Short Name] failed to follow this policy by [describe how the policy was violated].
D. Montana Human Rights Act Violations
[If applicable:] Our client's termination also violates the Montana Human Rights Act, Mont. Code Ann. Sections 49-2-101 et seq., which prohibits discrimination in employment based on race, color, national origin, ancestry, religion, creed, sex, age, physical or mental disability, marital status, or political beliefs. Mont. Code Ann. Section 49-2-303.
Our client was subjected to unlawful [discrimination/retaliation] based on [his/her/their] [protected characteristic or protected activity].
A complaint has been [filed / will be filed] with the Montana Human Rights Bureau.
E. Montana Whistleblower Protections
[If applicable:] Montana law prohibits retaliation against employees who report violations of law. Under the WDEA's public policy provision and Montana common law, employees are protected when they:
- Report violations of state or federal law to appropriate authorities
- Refuse to violate laws or regulations
- Participate in investigations of workplace misconduct
See Beasley v. Semitool, Inc., 853 P.2d 84 (Mont. 1993); Johnson v. Costco Wholesale, 2007 MT 43, 152 P.3d 727.
IV. DAMAGES UNDER MONTANA LAW
A. Remedies Available Under the WDEA
Under Mont. Code Ann. Section 39-2-905, a successful plaintiff is entitled to:
- Lost wages and fringe benefits for a period not to exceed 4 years from the date of discharge, together with interest thereon
- Interim earnings and amounts earnable with reasonable diligence must be deducted
- Punitive damages are NOT available under the WDEA unless the employer's personnel policies expressly provide for them
- Damages for pain and suffering are NOT available under the WDEA
IMPORTANT NOTE: The WDEA's remedial scheme is the exclusive remedy for wrongful discharge claims unless the discharge also involves a violation of the Montana Human Rights Act or constitutes fraud or intentional infliction of emotional distress by an employer that does not constitute a discharge. Mont. Code Ann. Section 39-2-902.
B. Economic Damages Calculation
1. Lost Wages (Up to 4-Year Maximum)
| Category | Calculation | Amount |
|---|---|---|
| Annual base salary | $[Amount] | |
| Lost wages to date | [Annual salary] x [months since termination] / 12 | $[Amount] |
| Projected future wages (up to 4 years) | [Annual salary] x [remaining years] | $[Amount] |
| Bonus/incentive compensation lost | [Expected bonus] x [period] | $[Amount] |
| Subtotal Lost Wages | $[Amount] |
2. Lost Fringe Benefits (Up to 4-Year Maximum)
| Benefit | Annual Value | Years | Amount |
|---|---|---|---|
| Health insurance (employer contribution) | $[Amount] | [X] | $[Amount] |
| Retirement/401(k) match | $[Amount] | [X] | $[Amount] |
| Life/disability insurance | $[Amount] | [X] | $[Amount] |
| Other benefits | $[Amount] | [X] | $[Amount] |
| Subtotal Lost Benefits | $[Amount] |
3. Less: Mitigation / Interim Earnings
| Source | Amount |
|---|---|
| Interim earnings | ($[Amount]) |
| Unemployment benefits received | ($[Amount]) (if applicable) |
| Net Deduction | ($[Amount]) |
C. Additional Damages (If Human Rights Act Violation Proven)
If discrimination under the Montana Human Rights Act is established, additional remedies may include:
- Compensatory damages for emotional distress
- Reasonable attorney's fees and costs
- Injunctive relief
D. Summary of Damages
| Category | Amount |
|---|---|
| Lost Wages (up to 4 years) | $[Amount] |
| Lost Fringe Benefits (up to 4 years) | $[Amount] |
| Less: Interim Earnings | ($[Amount]) |
| Interest | $[Amount] |
| Attorney's Fees (if MHRA claim) | $[Amount] |
| TOTAL | $[Amount] |
V. SETTLEMENT DEMAND
Based on the foregoing, we hereby demand that [Company Short Name] pay our client the sum of $[Settlement Demand Amount] in full and final settlement of all claims arising from [his/her/their] wrongful termination.
This demand reflects the strength of our client's claims under the WDEA and Montana law, the substantial documented damages, and the litigation costs and risks for both parties.
In addition to monetary compensation, we require:
- [ ] A neutral employment reference stating only dates of employment and final position
- [ ] Expungement of any negative information from our client's personnel file
- [ ] Agreement not to contest unemployment benefits
- [ ] Non-disparagement provisions (mutual)
- [ ] Confidentiality provisions (subject to negotiation)
- [ ] [Other non-monetary terms]
VI. INTERNAL DISPUTE RESOLUTION
Under Mont. Code Ann. Section 39-2-911(2), before filing suit under the WDEA, our client must exhaust any applicable internal employer procedures for resolution of disputes if the employer provides written notice of such procedures to the employee at the time of discharge.
Please confirm whether [Company Short Name] has internal dispute resolution procedures that our client is required to exhaust, and if so, provide documentation of such procedures and written notice of same.
[If no procedures exist or notice was not provided:] To our knowledge, [Company Short Name] did not provide written notice of any internal dispute resolution procedures at the time of termination, and therefore no exhaustion is required.
VII. RESPONSE DEADLINE
Please respond to this demand in writing within twenty-one (21) calendar days of your receipt of this letter, no later than [Response Deadline Date].
If we do not receive a satisfactory response by that date, we are authorized and prepared to file suit in the appropriate Montana District Court without further notice. Such litigation would include claims for:
- Wrongful Discharge in Violation of WDEA - Discharge Without Good Cause (Mont. Code Ann. Section 39-2-904(1)(b))
- Wrongful Discharge in Violation of WDEA - Retaliation (Mont. Code Ann. Section 39-2-904(1)(a))
- Wrongful Discharge in Violation of WDEA - Violation of Personnel Policy (Mont. Code Ann. Section 39-2-904(1)(c))
- [If applicable:] Discrimination Under the Montana Human Rights Act (Mont. Code Ann. Section 49-2-303)
- [Additional causes of action as applicable]
We will seek all available remedies under Montana law including up to four years of lost wages and benefits with interest.
VIII. PRESERVATION OF EVIDENCE
This letter also serves as formal notice of our client's claims and a demand that [Company Short Name] immediately implement a litigation hold to preserve all documents, electronically stored information, and tangible evidence potentially relevant to our client's employment, termination, and the matters described herein.
This includes, but is not limited to:
- [ ] Our client's complete personnel file, including all performance reviews and disciplinary records
- [ ] All emails, text messages, and instant messages to, from, or concerning our client
- [ ] All documents relating to the decision to terminate our client
- [ ] The Company's written personnel policies, employee handbook, and HR procedures
- [ ] Documentation of the probationary period and any extensions thereof
- [ ] Comparative employee files for similarly situated employees
- [ ] Any recordings, photographs, or video relating to our client
- [ ] Electronic access logs, badge records, and computer activity logs
Failure to preserve relevant evidence may result in sanctions, adverse inference instructions, and other remedies under the Montana Rules of Civil Procedure.
IX. CONFIDENTIALITY
This letter constitutes a confidential settlement communication made in anticipation of litigation and is protected under Montana Rule of Evidence 408 and applicable evidence rules. This letter and its contents may not be used as evidence in any proceeding except to enforce a settlement agreement.
We trust that [Company Short Name] will give this matter the serious attention it deserves and respond in a timely and constructive manner. Our client strongly prefers to resolve this matter without litigation, but is fully prepared to pursue all available legal remedies if necessary.
Please feel free to contact me directly to discuss settlement.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Attorney Signature Block]
Enclosures:
- [ ] Authorization to Represent
- [ ] [Relevant documents supporting claims]
cc: [Client Name] (via email)
[Co-counsel, if any]
File
MONTANA-SPECIFIC PRACTICE NOTES (Do Not Include in Final Letter)
Critical Montana Distinctions
-
[ ] NOT At-Will: Montana is the ONLY state where employees are not at-will after completing probation. This fundamentally changes the analysis.
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[ ] WDEA Exclusivity: The WDEA provides the exclusive remedy for wrongful discharge claims, displacing common law tort claims. Mont. Code Ann. Section 39-2-902. Exceptions exist only for fraud, MHRA violations, and intentional infliction of emotional distress not constituting discharge.
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[ ] Damage Caps: WDEA limits lost wages recovery to 4 years maximum. No pain and suffering. No punitive damages (unless employer's policy allows).
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[ ] Good Cause Burden: Employer must prove good cause existed for termination.
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[ ] Probationary Period: Verify when probation ended - employee must have completed probation to have good-cause protection.
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[ ] Internal Procedures: Must exhaust internal dispute procedures IF employer gave written notice at termination.
Key Montana Cases
- Kestell v. Heritage Health Care Corp., 858 P.2d 3 (Mont. 1993) - Leading case on public policy exception
- Buck v. Billings Montana Chevrolet, Inc., 811 P.2d 537 (Mont. 1991) - Employer burden to prove good cause
- Marcy v. Delta Airlines, Inc., 166 F.3d 1279 (9th Cir. 1999) - Federal application of WDEA
- Beasley v. Semitool, Inc., 853 P.2d 84 (Mont. 1993) - Whistleblower protections
Filing Checklist
- [ ] Verify termination date and calculate 1-year statute of limitations
- [ ] Confirm probationary period was completed
- [ ] Check for internal dispute resolution procedures and whether written notice was given
- [ ] If discrimination claim, file with Montana Human Rights Bureau within 180 days
- [ ] Calculate damages subject to 4-year cap on lost wages