Charles P. Reilly v. American Medical International, Inc.
Published: Apr. 20, 1995 | Result Date: Feb. 15, 1995 |Case number: C737088 – $2,109,220
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
John B. Quinn
(Quinn, Emanuel, Urquhart & Sullivan LLP)
Facts
On or about September 1, 1984, Plaintiff Charles P. Reilly and Defendant American Medical International, Inc., entered into an employment agreement which provided that upon the occurrence of a change of control, i.e., when "any person or group acquires more than 20 percent of AMI's shares," (1) Reilly is entitled to receive a bonus payment; (2) Reilly shall be vested at a higher level in AMI's supplemental executive retirement plan (3) all AMI stock options granted to Reilly shall become exercisable. On September 3, 1985, Reilly and AMI entered into a letter agreement which extended the term of the agreement through August 31, 1988. On June 11, 1986, Reilly and AMI terminated Reilly's employment by an agreement which provided that Reilly would remain an inactive employee of AMI through August 31, 1988 and that the provisions of the employment agreement relating to changes in control of AMI would remain in effect through August 31, 1988. Reilly is now 53 years of age and his position with AMI was that of executive vice president.
Settlement Discussions
Plaintiff contends he demanded $1,388,333 and Defendant offered $600,000.
Damages
$820,000 for the bonus payment; $122,500 for stock options Plaintiff would have been entitled to exercise; $1,229,404 for the present value of his increased interest in AMI's supplemental executive retirement plan; and prejudgment interest from August 31, 1988.
Other Information
This case was filed by Plaintiff on September 12, 1989; five years and five months prior to this result.
Deliberation
2.5 weeks
Poll
9-3
Length
2.5 weeks
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