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Don’t break severance promise to employee

by on
in Employment Law,Human Resources

If your organization's execs grumble about not wanting to pay a promised severance package, point them to this case: A company president refused to fully honor Donald Chisholm's severance package as spelled out in his employment contract. So Chisholm sued for breach of contract and won a $36,000 judgment. The kicker: Because the company president's failure to pay was "willful," not a mistake, the jury tacked on another $36,000 in damages against the president personally. (Chisholm Jr., v. Ultima Nashua Industrial Corp., No. 2002-456, N.H., 2003)

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