"Just Cause" under Employment-related Agreements
2014.12.29 Maryland Supreme Court Enforces the Contractual Process for Cause Termination. See the discussion in this blog re Spacesaver Systems v. Adam.
2014.04.14 The Cause And Effect Of 'For Cause' Employment Clauses. This article includes discussion of a sampling of cases in which former employees disputed their terminations for cause.
2013.May Seven Steps to Consider When Proceeding with "Cause" Terminations. This alert draws from long established union-based employment principles to suggest 7 steps employers should consider taking in order to best position to defend their terminations for just cause.
2010.Nov. Private Equity Fund Terms. The following bullets quote from this ABA Business Law Article in which the Institutional Limited Partners Association (ILPA) recommended best practices for structuring private equity funds (ILPA Principles):
2015.02.15 The Perils of For-Cause Expulsion Provisions in LLC Agreements. This article discusses litigation involving a two-member Delaware LLC in which the NY-based members disputed the reduced profits interest of the minority member that resulted from the majority member's determination to expel him under a "cause" definition that "included conviction for felony or violation of securities laws, fraud, or 'a material breach of this Agreement.' ”
2014.02.19 LLC "Cause" Finding Upheld (NY). The alleged violation involved a conflict of interest created by the member's creation of a competing company. See Mayers v. Stone Castle, decided by the NY Supreme Court, NY Co. See below for the applicable Cause definition.
SAMPLE "CAUSE" AND "JUST CAUSE DEFINITIONS
From Employment Agreements:
From LLC Agreements:
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