Kasch and his brother owned M.W. Kasch Co. Kasch hired Skebba as a sales representative and over

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Kasch and his brother owned M.W. Kasch Co. Kasch hired Skebba as a sales representative and over the years promoted him first to account manager, then to customer service manager, field sales manager, vice president of sales, senior vice president of sales and purchasing, and finally to vice president of sales. When M.W. Kasch Co. experienced serious financial problems in 2009, Skebba was approached by another company to leave Kasch and work for them. When Skebba told Kasch he was accepting the new opportunity, Kasch asked what it would take to get him to stay. Skebba told Kasch that he needed security for his retirement and family and would stay if Kasch agreed to pay Skebba $250,000 if one of these three conditions occurred:
(1) The company was sold,
(2) Skebba was lawfully terminated, or
(3) Skebba retired. Kasch agreed to this proposal and promised to have the agreement drawn up. Skebba turned down the job opportunity and stayed with Kasch from December 2009 through 2015 when the company assets were sold. Over the years, Skebba repeatedly but unsuccessfully asked Kasch for a written summary of this agreement. Eventually, Kasch sold the business, receiving $5.1 million dollars for his fifty-one percent share of the business. Upon the sale of the business, Skebba asked Kasch for the $250,000. Kasch refused and denied ever having made such an agreement. Instead, Kasch gave Skebba a severance agreement, which had been drafted by Kasch's lawyers in 2009. This agreement promised two years of salary continuation on the sale of the company, but only if Skebba was not hired by the successor company. The severance agreement also required a set-off against the salary continuation of any sums Skebba earned from any activity during the two years of the severance agreement. Skebba sued Explain whether Skebba is entitled to recover.
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Managerial Accounting For Undergraduates

ISBN: 9780357499948

2nd Edition

Authors: James Wallace, Scott Hobson, Theodore Christensen

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