Bank Executive Compensation - Litigation
2013.Mar.18 Severance Benefits Denied – ERISA Controls Employment Agreement Dispute. In Yarber v. Capital Bank, a North Carolina federal district court applied the Supreme Court’s Fort Halifax ERISA standards to an employment agreement's change-in-control severance provision, and dismissed the complaint because the bank CEO had no right to benefits and had not been misled when he executed a TARP waiver of them. In finding that the CEO’s employment agreement involved an administrative scheme triggering ERISA coverage, the court cited extensive federal case law, and explained in part --
2011.July.15 Former Employees Lose Bonus Claims (TARP Involved). Employees who resigned rather than consent to the Treasury Department's TARP requirements did not establish an involuntary or constructive termination, nor a breach of their employer's covenant of good faith and fair dealing when "Hartford acted in compliance with the terms of the Plan in denying ... further compensation or payments after they resigned." Twin City vs. Arch Insurance, NY Sup. Ct, NY County, 7/12/2011.
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