Homebuilder Agrees to Pay $4 Million to Former Executives in Breach of Contract Dispute
Friday, March 27th, 2009 | Breach of Contract
Standard Pacific Corp. (“SPC”) has agreed to pay a total of $3.95 million to two former executives to resolve a breach of contract dispute. According to the former executives, SPC breached their employment agreement when it allegedly violated the terms of a December 1, 2006 change-in-control agreement. The settlement agreements call for lump sum payments to be made to the former chief financial officer and former executive vice-president in the amount of $2.4 million and $1.55 million, respectively. The lump sum payments represent more than half of the maximum amount each executive could have received under their 2008 bonus arrangements and the December 2006 change-in-control agreement. Additionally, each executive will receive a reimbursement of up to 24 months of COBRA/Cal-COBRA payments and 90 days to exercise any vested stock options.
The settlement agreements are significant because they demonstrate the willingness of some employers to readily resolve employment-related disputes to avoid litigation. However, due to the complex nature of such disputes, executives who believe that the terms or conditions of their employment have been compromised by their employer should seek experienced counsel capable of handling such disputes.
The Employment Law Group® law firm has successfully represented and advised senior executives in employment-related contract disputes including breach of stock option agreements, compensation agreements, and severance. For more information about The Employment Law Group® law firm’s Executive Counsel Practice, click here.