QUESTION
Do I have a good claim against a company that promised me two years of work and then let me go? How?
Asked on Jul 08th, 2015 on Labor and Employment - Ohio
More details to this question:
I was living and working at a position earning $176,000. I was contacted by an organization about a VP of Sales and Business Development position with a start-up part of their existing non-profit organization. They offered me the job at the same salary as my previous position and verbally stated that I would have "two years to get the business up and running." This statement was made by the President of the company clearly, repeatedly and publicly at the time of my interview and up until two weeks before he decided to shut the division down. I made my decision to relocate based on the promise of two years, as I clearly stated it would take that long to get the business going. The company moved me out here and I rented an apartment and purchased the furnishings expecting to be here for two years. Basically they shut down after only four months. They have stated that it is not because of my lack of skill or abilities. It's simply a budget issue. What can I expect for a settlement? Do I have any legal grounds at all since this was not in writing - although clearly part of a verbal agreement?
4 ANSWERS
Unless you have a written contract for a specific duration, you have no remedy in Georgia. The type of damages you state are known as "detrimental reliance." You relied on what they promised, to your detriment. This is not a valid action on an employment position in Georgia. In Georgia, you are not entitled to any settlement or separation package, therefore, what ever they do offer is gratuitous. In your salary range, many to-be separated employees use law firms to negotiate the package. I suggest you do that.
Answered on Jul 08th, 2015 at 2:52 PM
You should immediately contact an attorney to find out your options and how to best handle your matter. There is no guarantee of settlement or any other outcome.
Answered on Jul 08th, 2015 at 2:23 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
See an employment attorney, you have a probable cause of action but your proofs are somewhat lacking. You will have to prove that your employment was for a promised term and therefore your statements that there are other people who witnessed the premise of two years are critical. Given the nature things, however, sometimes people do not wish to testify because they fear retaliation.
Answered on Jul 08th, 2015 at 2:21 PM
Sharon Adams
If you had a written agreement, you have a claim for breach of contract. If you did not have a written agreement, you could pursue a claim arising out of promissory estoppel. In this case, promissory estoppel would apply if you were recruited away from your position based upon a promise of employment. You relied on the promise to your detriment. Damages are usually based upon one year's salary, but in your case you would certainly ask for two.
Answered on Jul 08th, 2015 at 2:20 PM