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Contracts
Breach of Contract
Employment Agreement

Tim Ford v. Corrugated Technologies Inc., Gordon Hay

Published: Jun. 18, 2011 | Result Date: Feb. 11, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 37-2010-00083887-CU-OE-CTL Verdict –  $668,000

Court

San Diego Superior


Attorneys

Plaintiff

Joann F. Rezzo
(Edleson & Rezzo)

Louis B. Edleson
(Edleson & Rezzo)


Defendant

Lara K. Strauss


Facts

Tim Ford was hired as chief operating officer (COO) of Corrugated Technologies Inc., starting work in May 2008. Ford stated he was promised an annual salary of $650,000, and after realizing he was being paid at a rate of $150,000 annually, the company reassured him the difference would be made up in bonuses. Ford left the position in Oct. 2009, after Corrugated failed to follow through.

Contentions

PLAINTIFF'S CONTENTIONS:
Ford filed suit against Corrugated and its president, Gordon Hay, alleging breach of contract and breach of California Labor Code. Ford contended that he was assured that a bonus plan was being implemented to supplement his salary. Ford alleged he fulfilled the obligations of his position, but he never received full compensation, and that his offer letter noted his annual compensation as $650,000. Ford further claimed that Corrugated breached the Labor Code by fraudulently inducing him to move from England to the United States by making false representations.

DEFENDANT'S CONTENTIONS:
Corrugated and Hay filed a cross complaint against Ford, alleging breach of fiduciary duty. They contended that Ford was conspiring against the company, and failed to fulfill his obligations before leaving his position. They further claimed they never intended to pay Ford an annual salary of $650,000, but only the $150,00 rate.

Damages

Ford sought total damages of $668,000 as well as attorney fees and costs.

Result

The jury found that Corrugated and Hay breached the employment contract, awarding Ford $668,000 in compensatory damages.

Deliberation

half day

Length

eight days


#114693

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