As a lawyer and former police officer, little shocks me. Living in our fast-paced society, we often become numb to the world around us. But as I write this post from my Los Angeles office, I am truly shocked. A Los Angeles Superior Court judge affirmed a $4,100,000,000 arbitrator’s award in a wrongful termination case. That’s right 4.1 billion!
According to a published report in Am Law Litigation, a very reputable trade publication for lawyers, a former executive named Paul Chester won his suit against his former employer, iFreedom Communications, and boss.
How can the award be so high? Obviously the court found that Chester was wrongfully terminated. But the story does not end there. According to the terms of his employment agreement, Chester was entitled to 5% of gross sales of the business. During the initial administrative hearing, the company and its principal fired their lawyer and refused to turn over discovery and financial information. Because of the refusal to cooperate, the hearing officer elected to estimate revenues. Unfortunately for the defendants, they had mailed letters to shareholders saying how fantastic growth was at the company and the hearing officer elected to use those statements.
What does all of this mean? First, it is doubtful Chester will ever collect $4.1 billion. Small businesses (even large businesses) do not carry that type of insurance and ecommerce businesses typically do not have that much net worth. Chester could become the owner of the company that just months before terminated him, however.
Few employment contracts give employees a percentage of gross sales. And few employers are irrational enough to thumb their noses at the court system. This case becomes a powerful reminder that employers who refuse to cooperate can lose everything.
Every case is different and workers who were wrongfully terminated or suffered illegal discrimination should not expect $4.1 billion dollars. Brian Mahany and the lawyers at the Milwaukee Wisconsin law firm of Mahany & Ertl, LLC invite you to speak with us and see if we can help you claim what is rightfully yours. Call or email us at any of the numbers listed on the “our team” page. No one should suffer illegal discrimination, sexual harassment or be wrongfully terminated from their workplace. Posted by Brian Mahany.
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