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CEO sues company after termination of contract

| May 5, 2016 | Employment Litigation |

When you work for a company for many years, you pour your time and talent into it. As a CEO, you’re in charge of much of the daily work going on, and you should be treated fairly. Still, that doesn’t always happen, like in this case of of former GreenPath CEO who is now suing her former company over the ending of her career.

According to the news from April 29, the woman had worked as a credit counselor at the beginning of her career in 1980. By 1997, she was the CEO of the company, Credit Counseling Centers, which is now GreenPath. Suddenly, in 2015, she was stripped of her power and duties as the CEO and now once-president of the organization.

In March 2016, she filed a wrongful-discharge lawsuit with Oakland Circuit Court claiming that she was terminated without a reason provided by the company. She would like to receive benefits and compensation for 24 months based on her claims. If she wins her case, the damages alone could be worth over $850,000.

Normally, companies give a reason for terminating someone, especially in a position like the president or CEO of the organization. In this case, the 61-year-old woman claims she didn’t plan to retire, and she was in negotiations to extend her contract in 2013. However, by 2015, the offers were withdrawn and she was told the board of directors agreed to move in another direction with the company. Not only that, but she was prohibited from working with the company in every way from the moment of termination. The company claims it did nothing wrong and simply did not choose to renew her contract, which was fulfilled.

Source: Detroit Free Press, “Former GreenPath CEO battles over firing,” Susan Tompor, April 29, 2016

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