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Exact(9)
He is suing for constructive termination, breach of contract and exercising bad faith.
Importantly, there are no exceptions for termination without cause or constructive termination.
ISS believes that CIC severance payable in connection with a "Good Reason" termination should be limited to circumstances that are reasonably viewed as an adverse constructive termination.
The term in the contract is "constructive termination," and it requires that he be paid what amounts to three years' compensation even though his contract had less than a year to run.
The Long Wharf's board apparently interpreted Mr. Hughes's involvement of his lawyer as a red flag, the potential introduction of a legal claim of constructive termination, whereby an employee tries to prove that he was forced to resign.
The contract stated that there would be a constructive termination if "a significant diminution in your responsibilities, authority or scope of duties is effected by the board of directors," even if his title did not change.
Similar(51)
Conclusion: Constructive Realism.
Cerberus said it offered "either to arrange for the payment of the negotiated $100 million termination fee, or to engage United Rentals in a constructive dialogue to negotiate a transaction on revised terms," according to documents filed late Wednesday.
After a war breaks out, decision makers see the opening of talks as a constructive step in the conflict's resolution — dialogue allows for belligerents to broker deals and coordinate the logistics of war termination.
Severance and termination protections also seek to reduce unwanted defections by providing key individuals with greater security against the risk of an involuntary termination (including reassignment, relocation or another "constructive discharge") associated with combining of two companies.
Destructive: constructive.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com