Kaul v. Hanover Direct, Inc.
Opinion of the Court
SUMMARY ORDER
UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the judgment of the District Court is AFFIRMED.
Rakesh K. Kaul (“Kaul”) sued his former employer, Hanover Direct, Inc. (“HDI”), in connection with the termination of his employment. Kaul’s com
We affirm on substantially the grounds given by the district court. Kaul forfeited his right to the severance package by failing to execute a general release in favor of HDI as required, as a condition precedent to receiving severance benefits, by his employment agreement. With respect to Kaul’s claim to a bonus, we hold that Kaul gave up his right to a bonus under the LTIP when he tendered his shares of HDI common stock to his former employer. We so hold because we find the language of the LTIP to be unmistakably clear: The amount of bonus to be paid was directly pegged to the outstanding balance on a note held by HDI. When Kaul surrendered his shares in satisfaction of that note, no balance remained, and so no bonus was due.
Kaul also claims reimbursement by HDI for the legal expenses incurred in the course of this litigation. Kaul’s employment agreement provides that HDI will pay Kaul’s reasonable legal fees if Kaul must seek legal counsel to enforce any of his rights under the agreement, and does so regardless of whether Kaul is the prevailing party.
We have considered all of Kaul’s contentions and find them to be without merit. Accordingly, we AFFIRM the judgment of the district court.
. Kaul raised several other claims that were either dismissed by the district court on summary judgment or settled by the parties. Kaul appeals only from the dismissal of these three breach of contract claims.
. Significantly, the employment agreement does not provide a right to the reimbursement of legal fees incurred enforcing other agreements, such as the LTIP.
Reference
- Full Case Name
- Rakesh K. KAUL, PlaintiffCounter-Defendant-Appellant-Cross-Appellee v. HANOVER DIRECT, INC., Defendant-Counter-Claimant-Appellee-Cross-Appellant
- Cited By
- 2 cases
- Status
- Published