Legal Question in Employment Law in Maryland

Relocation Agreement After Merger

I accepted a position with a company and signed a relocation agreement for 2 years agreeing to repay all relocation expenses if I terminated employment. I put my house up for sale and have a binding contract between the buyer and the relocation company, as well as between me and the relocation company. My start date is in approximately 2 weeks. The company was purchased over the weekend by another company. I was never informed at any time during the interview or relocation process that the company was being acquired, I found out through reading the newspaper. I no longer want to take the job as the future would be highly uncertain and may not be the job I originally signed up to take, or sell my house, and as yet have accepted no money. If I refuse to take the job under the new circumstances, am I liable for anything? If I use any portion of the money they have sent me to recover my expenses to date, which may include paying the buyers to let me out of the house contract, will I be liable? And how likely is it the company would come after me for the amount of 8K? The agreement is very generic and states my employement is with any subsidiary of the company. It is a seperate paragraph.


Asked on 12/20/05, 11:04 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Relocation Agreement After Merger

Off hand, I'd say you're probably on the hook with the new company for everything that you agreed to in the contract with the company that was bought out(assuming that there was no provision that would let you out of the contract for the situation you've described.)

I would also surmise that it is indeed quite likely that once you default on the agreement, that the new company will send their lawyers after you, not only for the 8K but for additional costs which they may have incurred as a result of your default such as attorneys' fees.

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Answered on 12/22/05, 7:37 pm


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