Reeb v. AirTouch Communications, et al.
Published: Nov. 8, 2001 | Result Date: Oct. 15, 2001 | Filing Date: Jan. 1, 1900 |Case number: BC227446 Verdict – $3,800,000
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Janet M. Herold
(U.S. Dept. of Labor)
Defendant
Facts
The plaintiff was the Director of Human Resources for defendant AirTouch based in San Francisco. He was
eligible to participate in AirTouchÆs stock-based incentive plan (LTIP). In February 1995, the plaintiff was
recruited by George Schmitt, a member of the AirTouch Executive Committee and the Chief Executive Officer
of an AirTouch Joint venture (PCS PrimeCo) to work for PrimeCo in Texas. Schmitt promised the plaintiff
that, if he accepted the PrimeCo assignment, he would be made whole for any disparity in value between the
PrimeCo LTIP and the AirTouch LTIP.
The plaintiff signed a written acceptance of participation in the PrimeCo LTIP. Reeb
received compensation under the PrimeCo LTIP plan. Until late 1998, the value of the two LTIPs
were roughly comparable. At that point, however, the value of the AirTouch LTIP rapidly
accelerated, due to the companyÆs merger with Vodafhone. The disparity for the plaintiff
eventually increased to $3.4 million. The defendant refused to make the plaintiff whole as to the
difference in value between the AirTouch and PrimeCo LTIPs.
Settlement Discussions
Confidential.
Result
The jury awarded the full damages sought and additionally awarded full damages on the plaintiff's ERISA claim in respect of the failure to pay severance benefits.
Deliberation
three hours
Poll
11-1
Length
eight days
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