Case Conclusion Date: July 31, 2008
Practice Area: Employment / Labor
Outcome: Plaintiff granted summary judgment.
Description: Plaintiff entered into an employment agreement with defendant under which plaintiff was owed severance and health benefits for the termination of his employment without cause. Several years later, defendant gave notice to plaintiff that his employment contract would be terminated, but that plaintiff would continue to be employed by defendant without an agreement. Under the terms of the employment agreement, such action resulted in the termination of plaintiff's employment without cause. Under the terms of the employment agreement, notice of renewal or nonrenewal of the agreement needed to be given within 90 days of the anniversary of the agreement. Defendant gave notice that the agreement would not be renewed more than 90 days before the anniversary date of the agreement. Defendant then changed course, and gave plaintiff notice that it was rescinding the cancellation of the agreement. The rescission notice was issued less than 90 days before the anniversary date of the agreement. As a result, the district court found that the rescission was ineffective, that plaintiff's employment was terminated without cause, and that plaintiff was owed severance and health benefits. The district court's decision was affirmed by the 8th Circuit Court of Appeals.