The money your company invests now in its New York City employment contracts can ultimately save you literally millions of dollars in the long run.
Manhattan employment law attorneys understand that these documents can be worth more than their weight in gold when disputes arise - as they inevitably do in business.
That has been the case with Tyco International and its former CFO, Mark Swartz, who has been imprisoned in connection with looting the firm. He's now suing the company for $60 million he says he's owed in retirement money.
Here's what we know of the case thusfar, as reported by Reuters:
The case is Mark H. Swartz v. Tyco International Ltd, and alleges the company is guilty of breach of contract for failing to pay Swartz his retirement money.
Tyco is a company based out of Switzerland and holds service and manufacturing units and makes security systems.
Swartz headed the industrial company from 1995 to 2002. Then in late 2002, he was indicted for securities fraud and grand larceny for stealing millions from the company.
In 2005, he was convicted, as was Tyco's former chief executive, Dennis Kozlowski (whom you may remember purchased a $6,000 shower curtain, marking him a tangible symbol of corporate greed). Both were sentenced to between 8 and 25 years in prison. Both are currently being housed at the minimum security Lincoln Correctional Facility. Swartz is given furloughs, where he is released Wednesdays and returns on Mondays.
Kozlowski also filed a lawsuit against the company, saying that he deserved millions in benefits from Tyco. Two years ago, however, a federal judge denied that claim.
Swartz's claim, though, is a little different.
He is saying that the company, to which he has paid more than $70 million in restitution, is in breach of contract for $48 million worth of retirement funds, as well as $9 million in taxes and other monies.
But his lawsuit, which was filed in the New York state Supreme Court, says that the company was aware that the local district attorney was planning to file criminal charges against him at the time that it rubber stamped his contract, which is the one at issue in his lawsuit. He claims that both the management and directors approved the agreement knowing that Swartz was going to soon be indicted. That, he says, means that they had no intention of actually honoring it.
Whether or not he is successful, the greater point for both sides is that employment contracts in New York City have to be thoroughly vetted by an experienced attorney - whether you are the employee or the employer. You should weigh all potential factors that could impact the strength and legality of the contract - and protect your rights and financial interests.