Legal Question in Employment Law in Georgia

Employment Contract Breach?

I am the VP of sales & operations for a small US subsidiary of a med-size Japanese electronics company. I have 100% responsibility for P&L, sales, & operations for North America. I am based in GA and our HQ are in CA. I have a signed employment contract with a severance clause (pays 5 years salary + benefits on involuntary termination). This contract was signed almost 6 years ago and does not have an expiration date. Due to top management turnover (retirement & death) my current managers were unaware of this contract until Dec-08. They asked me to re-do it and I refused. Now citing financial concerns for 2009, they have arbitrarily chosen to cut my salary by 20%. We have no written job descriptions or reviews - all such issues are subjective and arbitrary. I am concerned that they will not survive 2009 and are trying to minimize their exposure in the event they cease operations or become part of a merger. I have a sizable amount of severance at stake and I know they have not put any money aside for my severance. Do I have cause for concern and a possible case (i.e., breach of contract)?


Asked on 1/27/09, 11:53 am

3 Answers from Attorneys
Jeff Kent Kent & Merritt, P.A.

Re: Employment Contract Breach?

Does the severance agreement cover something like a unilateral reduction in salary? If so, you might already have a claim to the severance. In any event, your question probably cannot be answered in such a forum. You should get a lawyer to review the agreement and disucss your options. Feel free to contact me if you have additional quesitons.

The foregoing is general information only, not specific legal advice. No attorney/client relationship has been created or should be implied.

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Answered on 1/27/09, 11:57 am
Gregory Fidlon Law Offices of Gregory R. Fidlon, P.C.

Re: Employment Contract Breach?

You may very well have a claim for breach of contract. However, I would need to review the employment agreement in its entirety to give you a reliable answer. You are wise to be concerned about the availability of the severence, which sounds very generous, by the way. I would be happy to give you a free consultation if you would contact me at the number listed in my profile.

This response is for informational purposes only and does not create an attorney-client relationship.

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Answered on 1/27/09, 12:33 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Employment Contract Breach?

As stated, it really depends on the terms of your agreement, which I would guess is fairly detailed considering the amount of severance involved. Of course, you cannot preclude the company from making bad financial decisions and/or incurring financial difficulties. You may have a solid breach of contract claim, but it might be difficult to collect on it if the company has gone under.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 1/27/09, 12:42 pm


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