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Loew's, Inc. v. Cole

Court of Appeals for the Ninth Circuit (1950) | 185 F.2d 641; 1950 U.S. App. LEXIS 4320

4 min read

TL;DR: An employer suspended a screenwriter for his conduct before a congressional committee, alleging breach of a contractual "morals clause." The appellate court reversed a judgment for the employee, finding errors in jury instructions and evidentiary rulings, and remanded for a new trial.

Legal Significance: This case explores the enforceability of "morals clauses" in employment contracts and the doctrines of waiver and election when an employer continues employment after a potential breach. It highlights the factual inquiries necessary to determine breach and waiver.