Can a Company Terminate a Contract to Avoid Paying Bonuses?
On March 4, 2013, Michael Katz filed a $270 million lawsuit against internet giant Yahoo Inc. Mr. Katz is the founder of Interclick, a company that was acquired by Yahoo in December 2011. He alleges that Yahoo breached its contract by terminating the agreement shortly before the first of his several bonus payments were to come due. Does this constitute a breach under New York contract law? Maybe. The answer depends on the following factors:
- Did a valid contract exist between the parties?
- Is the contract enforceable?
- Did Mr. Katz fulfill his obligations under the agreement?
- Did the termination of Mr. Katz constitute a breach?
- Did Mr. Katz suffer damages as a result of the breach?
The success of potential breach of contract claims in New York depends largely upon the unique facts and circumstances surrounding each case. Fortunately, a knowledgeable New York business litigation attorney can analyze the circumstances related to your breach of contract claim. The attorney will offer an opinion on the potential outcome of the matter, as well as propose a strategy for how best to move forward. You may be entitled to compensation if a breach did occur. Breach of contract matters, however, are subject to a statute of limitations in New York. It is therefore vital that you contact an attorney as soon as possible following a breach. To learn more, contact an experienced New York business litigation lawyer today. Call our office at (888) 497-3410 for a free consultation.