Tagg Industries brought a motion for summary judgment against its former employee, Otto Rieder, seeking repayment of a $40,000 loan.
Tagg argued Rieder was fired for just cause, thus forfeiting a bonus that would have forgiven the loan.
Rieder countered that he was fired without just cause and was entitled to common law notice, which would extend to the bonus vesting date, thereby forgiving the loan.
Rieder also sought summary judgment on his counterclaim for wrongful dismissal.
The court dismissed Tagg's motion, finding Rieder was fired without just cause.
The court determined Rieder was entitled to at least one month's common law notice, calculated as a calendar month, which extended to the bonus vesting date, thereby offsetting the loan.
The court also granted summary judgment to Rieder on his counterclaim, awarding him damages for wrongful dismissal.