The appellant employer appealed a summary judgment award of $310,040.88 in damages to its former employee, representing 19 months' pay in lieu of notice plus prejudgment interest and costs.
The motion judge had found the termination clause in the employment agreement unenforceable due to lack of consideration.
The Court of Appeal allowed the appeal, finding that the employer's offer of employment to the employee upon the sale of the business constituted valid consideration for the termination clause.
The court distinguished the case from precedents involving variations to a single employment relationship, emphasizing that a new contract with a new employer was formed upon the business sale.
The court remitted the action to trial to address remaining issues regarding ESA compliance and other arguments not previously decided.
