The proper measure of damages for a wrongful termination of employment is the amount of salary provided in the contract for the entire remaining uncompensated period of service unless the employer is able to affirmatively establish mitigation by showing other comparable employment available to the employee. Here, the company failed to present the mitigation evidence at the trial level, and as such, waived the mitigation issue.
What is included in the compensation?
Raises, Bonuses, Profit Sharing
Interest on Salary
Present Value Calculation (Depends on the Length of the Projection Being Made – Installment Payments for Damages Solves the Problem)
Subtractions for Mitigation
– Must argue that the employee is capable of getting a good alternative job. This is difficult because the employer is also arguing breached the K because employee was bad.
– Pennzoil v. Texaco: Texaco lost billions because they were confident of a no liability finding and sailed to submit evidence of mitigation at the trial level.
What is not included in the compensation?
Loss of Future Earning Capacity (too speculative)
Loss of Self-Esteem (emotional distress is not a K claim)
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