Legal Question in Employment Law in Massachusetts

Breach of contract Original Offer letter and severance

When I was hired by my last company as a VP of Operations. My offer letter promised me a Stock Option Plan that was never delivered. I asked for acopy a number of times including at my one year review. I requested the review.

After being employed a year and half latter they released me (laid off) and stoped paying my severance pay when they found I went to work for a competing firm ( I did not sign a non-compete)

Can I file criminal charges through the AG's office and what leverage do I have with their failure to ever give ma a stock option agreement which was noted on my offer letter.


Asked on 11/11/03, 2:04 pm

2 Answers from Attorneys

Len Foy NH Residential Title & Escrow

Re: Breach of contract Original Offer letter and severance

Regarding the two issues you presented, the employee stock option plan and the severance package:

As for the employee stock option plan, was your written offer specific as to eligibility or participation? You mentioned "requesting a copy" at your one-year review, was it a copy of the written stock option plan which you requested, or were you seeking a copy of the written offer which referenced the stock option plan? In other words, hopefully you still have a copy of the offer referencing the plan in your possession. I would need to review the written offer to evaluate the strength of your case with respect to the employee stock option plan. For example, was it your understanding that the stock option plan was to be a part of your compensation package, was participation in the plan predicated upon company performance or your own job performance, if so did your employer set forth any objective level of performance or other criteria, etc.

Regarding the severance package, the analysis is much the same, how specific was your severance or separation agreement. Was the severance package conditioned upon an agreement not to file suit against your former employer, as some are, or did it go further? Was it to be terminated upon you becoming employed with another firm?

As for pursuing a criminal action, I would encourage you to explore the possibility of filing a civil action - based upon what I've read here, I'm not sure that your former employer's actions are criminal in nature. A civil action is more likely to result in you receiving just compensation from your former employer.

My name is Len Foy, and I'm an attorney with Gould & Gould. We have offices in Londonderry NH and Methuen Mass, and I am admitted to practice in both New Hampshire and Massachusetts. If you'd like to schedule an appointment with me to discuss this matter further, please call Sonja at (603) 434-3437 to scedule an app't.

I wish you the best of luck and hope to hear from you. Regards - Len

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Answered on 11/12/03, 12:18 am
Nance Lyons Law Office of Nance Lyons

Re: Breach of contract Original Offer letter and severance

If stock option plan was never delivered and you contyinued to work, you may have waived right to enforce. Severance agreement: is it company policy of just for you. If co. policy, you need to know terms. If for you, you should be entitled if no written agreement signed by you waived your right to sue. If you have valid claim, evaluate amount you receive against cost of litigation. No recovery of attorney fees unless seeking to enforce written contract (even then in some cases). It's never easy!!!

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Answered on 11/14/03, 3:10 pm


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