Firm Secures Victory for Executives in Employment Agreement Disputes

Fishman Haygood recently prevailed in two arbitrations on behalf of two former executives who sought to enforce the severance provisions of their respective employment agreements with a large multinational conglomerate engineering, procurement and construction company.

Arbitration hearings were held before the American Arbitration Association, and the arbitrators issued Interim Awards on Liability in the two matters, siding with the former executives.

In one of the matters, the company had filed a counterclaim against the former executive and alleged that he was in violation of the non-compete and non-solicitation provisions of his employment agreement. The company sought preliminary and permanent injunctive relief in addition to damages arising from the alleged breach of contract.

After the preliminary injunction hearing in that case, the arbitrator found that the non-compete and non-solicitation provisions were unenforceable under Louisiana law and, as a result, denied the company’s motion.

In both cases, after the respective hearings, the arbitrator ruled for the former executives on the issue of the company’s liability under the severance provisions of the employment agreement. In one case, a settlement was thereafter reached between the parties. In the remaining case, the damages portion of the case is still pending.

Fishman Haygood attorneys Lori Mince and Jae Donnelly represented the former executives in the disputes.