Breach-of-Contract & Kansas Wage Payment Act Verdict
When a Midwest technology company tried to oust its chief operating officer without the “for-cause” showing required by his executive agreement, Partner Ed Sweeney took the matter to federal court in Kansas City, Kansas (U.S. District Court, District of Kansas). The defense insisted the termination was justified and refused to pay the balance of the officer’s guaranteed compensation.
Key Issues
- Breach of “for-cause” clause. The contract allowed termination only for specified misconduct; none was proven.
- Kansas Wage Payment Act (KWPA), K.S.A. 44-313 et seq. The Act mandates prompt payment of earned wages, including contractually promised bonuses and severance.
- Liquidated damages and fees. Under the KWPA, deliberate non-payment can trigger additional penalties and attorney’s fees.
Strategy & Result
- Motion practice. Partner M. Frances Ryan won partial summary judgment, convincing the court that the company had already breached the contract as a matter of law.
- Jury focus. At trial, Sweeney and local co-counsel Robert Bruce highlighted the board minutes and HR emails showing no “for-cause” basis.
- Verdict. After a four-day trial, the jury returned a six-figure award covering unpaid salary, benefits, and KWPA penalties. The court later granted full attorney’s fees.
Why It Matters
Executives often believe termination provisions are toothless in “at-will” states. This case proves otherwise: a well-drafted “for-cause” clause, combined with state wage statutes, can secure complete relief.
Past results do not guarantee future outcomes. Every case is unique, and recoveries depend on specific facts and applicable law.