Rights to sue after signing Severance Contract?

[eponine365]

What is the name of your state? NC

We have already had a lawyer look over this, and told us we have a case. And a letter has gone out to my husband's previous employer giving them 30 days to pay from out lawyer.

Basically: they promised verbally, and in his severance contract that he was to get one months pay, plus vacation and they only paid him for vacation. So, we're taking them to small claims court to collect the one months pay.

But, now I'm looking this over closer, and I'm getting confused a little. (And we've maxed out our free pre-paid legal on this issue haha)

This one section says that by signing you agree that any and all disputes or claims arising between you and XX concerning your employment or the termination of your employment shall be settled by final and binding arbitration, which shall be the exclusive means of resolving any such dispute or claim. The arbitration shall be conducted by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction.

So... did he forfeit his rights to take them to small claims court? Are we binded by this contract to go through arbitration?

Next... (and last
"I also promise not to sue XX; any of its (blah blah blah)... on any claims relating to my employment with XX and its subsidiaries and affiliates or the termination of that employment. However, i am not releasing my rights, if any, under any qualified employee retirement plan. Those rights, and only those rights, survive unaffected by this release."

So... even though they did not fulfill the agreement, can we not sue them for breech of contract? Our lawyer just looked over it and told us that yes, the wording is that he should have been paid for one month plus vacation, it is a breech of contract, and we should have no problems.

So, bottom line is: Can we still sue? Do we have to go through arbitration? We just want to file in small claims, and we were planning on doing that in two weeks.

And ya know, I just have to put this out there because it just makes me laugh. As I'm reading over all these papers we have from them they keep talking about the "Severance Package"... oh holy severance package. It was his vacation time! That is not a "oh holy severance package!" lol. I know, I know, they're not bound to give us anything haha.

Thanks!
M

 

[BelizeBreeze]

First you start off with saying you have had an attorney look at your husband's situation and saying you have a case.

Then you say that the company promised vacation AND one month's pay as a severence package.

Next you post parts of the severence agreement.

So, now would you like to answer the specific question, did the severence agreement your husband signed specifically stipulate the payout of one month's salary AND vacation or was this a verbal agreement?

 

[eponine365]

The whole document refers to: Exibit A
This is one whole page, and all it says is:

Exibit A
Severance Pay Plan

"Continuation of base salary, and health benefits together with any unused and accrued vacation, up through and including September 30, 2004, and any standard expenses prorated through August 31, 2004."

 

[eponine365]

I keep reading it over and over again, and I'm starting to see it in a new light. When they talk about the arbitration, and the promise not to sue they are saying "on any claims relating to my employment with XX, or the termination of that employment" and "concerning your employment or the termination of your employment"

Our case has nothing to do with his employment, or the termination of it. It has to do with the contract not being honored. Am I on the right page here? haha.

Oh, and with the other question about the payout being verbal. It was verbal in the meeting, and written in the contract like I posted above.

I just want to make sure that I don't show up at small claims court and find out that I shouldn't even be there! lol.

Thanks,
M

 

[BelizeBreeze]

Sue them for breech of contract plus legal fees, court costs and expenses.

 

[eponine365]

I appreciate the responses. However, my question still stands. With the wording they have put in the contract "disputes regarding employment or termination" they say we must go through arbitration.

This case has nothing to do with his employment or termination. It is about the contract not being fulfilled. Do we have to go through arbitration? Or, can we just go through small claims court like we originally planned.

OR...

Do I just need to go sit down with a lawyer and go line by line through this thing? I don't want to go to small claims court, and in turn be sued for breach of contract ourselves.

Thanks,
M

 

[BelizeBreeze]

And what the HELL didn't you understand about the following:

"Sue them for breech of contract plus legal fees, court costs and expenses."

This has NOTHING whatsoever to do with the employment or severence...it has to do with BREECH OF CONTRACT.