Reference no: EM131659086

Question: Fraudulent Misrepresentation. William Meade, Leland Stewart, Doug Vierkant, and David Girard applied for, and were offered, jobs at the El-Jay Division of Cedarapids, Inc., in Eugene, Oregon. During the interviews, each applicant asked about El-Jay's future. They were told, among other things, that El-Jay was a stable company with few downsizings and layoffs, sales were up and were expected to increase, and production was expanding. Cedarapids management had already planned to close El-Jay, however. Each applicant signed an at-will employment agreement. To take the job at El-Jay, each new employee either quit the job he was doing or passed up other employment opportunities. Each employee and his family then moved to Eugene. When El-Jay closed soon after they started their new jobs, Meade and the others filed a suit in a federal district court against Cedarapids, alleging, in part, fraudulent misrepresentation. Were the plaintiffs justified in relying on the statements made to them during their job interviews? Explain. [Meade v. Cedarapids, Inc., 164 F.3d 1218 (9th Cir. 1999)]