Sunday, March 27, 2011

Employer Lies About Employee's Termination Who Was "For Cause," Has to Pay $8 Million

A former president of a company in Illinois had an employment contract that only allowed for his termination "for cause." Despite this clause, the employer, Diehl Controls, decided it was going to terminate the president though they lacked cause and then falsified their justification for terminating the president. This led to the president filing a defamation claim which led to a jury verdict of $2 million dollars in compensatory damages and $6 million dollars in punitive damages for defamation per se. The employer appealed the verdict as being excessive, but the Appellate Court for the First District of Illinois recently upheld the jury verdict. The case is Leyshon v. Diehl Controls North America, Inc., 2010 WL 5480668 (Ill. App. 1st Dist. Dec. 27, 2010). Chicago-based plaintiff's-side, Case Law Firm, has more on this decision.

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