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Sears Sues Former Executive for Breach of Contract After Resignation

Posted on Jan 01, 2016

Sears Holdings Corp. has filed a breach of contract action against the former head of its home goods business. The company alleges that its former president of home fashion and household goods, Chris Capuano, owes the company more than $750,000. The company asserts that Capuano’s failure to reimburse the company for her signing bonus and relocation expenses after she resigned less than six months following her date of hire constitutes breach of contract.

Capuano was a former executive vice president at Kohl’s before she signed on with Sears. She was hired by Sears in January of 2011 and resigned on June 7of the same year.

The lawsuit against Capuano was filed in a U.S. District Court in late October 2012. The complaint notes the following:

  • The terms of the contract with Capuano stipulate that she was to pay back her signing bonus and relocation package if she resigned within 24 months of her date of hire.
  • The company has repeatedly requested return of the funds.
  • Capuano received a signing bonus of $150,000, a relocation bonus of $350,000, and a base salary of $650,000.

Although the signing bonus and relocation expenses amount to only $500,000, Sears claims that it is entitled to attorney’s fees that were incurred during the company’s attempts to collect the money.

Had Capuano fulfilled her obligations under the agreement, she would have been eligible to receive a target payout of $1.65 million during the period spanning fiscal years 2011 through 2013.

Contact a New York breach of contract attorney today at (888) 497-3410 for more information about breach of contract and other business litigation matters.

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