Can an employer sue a former employee to recoup financial losses

Asked over 4 years ago - New York, NY

Can an employer sue a former employee to recoup financial losses for a failed product? The employee resigned on good terms there was no termination and no records of gross misconduct. Can the former employer try to sue the employee and retroactively claim gross misconduct and expect the former employee to pay back the money lost on the product?

Attorney answers (1)

  1. Ronald Anthony Sarno

    Contributor Level 20

    Answered . Anyone can sue anyone for any reason. That does not mean they will win a case. If the employee substantially contributed to the product's failure there may be a legal foundation for the suit. Most likely the employer would have to bring in an expert to show exactly how the former employee contributed to the product's failure. If you are either the employer or employee and would like to discuss your legal options with a NYC business attorney, you can contact our law firm. Our contact information is posted below:
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    New York City: A Guide to the Courts……………………………………..

    Commercial litigation: How to Handle a Dispute
    Employer/Employee Disputes


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    LEGAL DISCLAIMER…………………………………………………………………..
    Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information about this issue.

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