Dalby, a pharmacy technician, alleged that she was discharged for reporting to her supervisor on several occasions that there were inaccuracies in the drug inventory and that recordkeeping regarding these inaccuracies was in violation of Oregon administrative rules. Dalby alleged that rather than comply with the regulations, her supervisor retaliated against her because of her insistence that her employer comply with the rules. Retaliatory actions against Dalby included accusations of stealing cocaine from the hospital's drug inventory. Dalby learned that the sheriff's department had been asked to arrest her for stealing the cocaine. The sheriff's department refused to make the arrest. Dalby also alleged that her supervisor refused to talk to her except for job-related purposes and that hospital attendance policies were rigidly applied against her. As a result of the defendant's actions, Dalby resigned her position. Dalby's former employer argued that the allegations did not demonstrate constructive discharge by deliberately creating difficult working conditions with the intention of forcing the employee to leave employment and that the employee left employment because of the working conditions. The circuit court dismissed Dalby's claim, and she appealed.