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Employment Agreement

“…some of the state’s most respected, influential and long-standing labor and employment practitioners…” Chambers USA

Challenge:
This matter arose out of a contractual dispute between the plaintiff-appellant and our client, one of the largest professional services organizations in the world. Both the plaintiff and our client filed cross-appeals from the Delaware Superior Court’s granting of Summary Judgment.

Approach:
As the largest Employment Law Section in Delaware, Young Conaway fielded a team that includes pioneers in the field, and one of “the world's pre-eminent Management Labour & Employment lawyers” to handle this matter.

Outcome:
After reviewing the language of the contract and interpreting the words “according to their ordinary and usual meaning,” the Supreme Court agreed with our client and determined that the plaintiff’s employment agreement required him to be notified by a committee of his termination date within a two-year period after his hiring date. The actual termination date did not have to fall within the two-year time period.

The plaintiff contended on cross-appeal that the Superior Court had erred by granting our client a summary judgment in its favor and denying plaintiff’s damages claim for breach of contract. The Supreme Court affirmed the lower court’s ruling and noted that contract damages in a breach of contract matter are designed to place the injured party back in the same position he would have been had the contract been performed. The plaintiff’s expectation of remaining a partner with our client until his retirement was deemed unreasonable since his agreement provided that his status was indefinite for the first two years and that our client had properly extinguished the plaintiff’s employment within the two-year window as provided in the agreement.

(Prior results do not guarantee a similar outcome)