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Breach of contract can occur when employee changes companies

On Behalf of | Aug 21, 2018 | Contract Disputes |

Companies often spend considerable time and money searching for and training employees and managers. The Ohio based company goes to this expense in anticipation of the individual remaining loyal to the company and working with the company for at least a certain time period. In some instances, this time period is spelled out in contract form, and if the individual decides to leave prior to this contract expiring, a breach of contract may occur.

For the past five years, one man has served as the special teams coordinator for a leading university’s football team. In this role, he was responsible for developing players and presenting a force to be reckoned with on the football field. Then, in the wake of the team’s head coach leaving, the man was named as interim head coach.

As a part of Jeff Banks’ contract with Texas A&M University, it was noted that he could choose to leave prior to the expiration of the contract. However, this would require payment via a buyout penalty. Reports indicate that Texas A&M is now poised to present a breach of contract suit against Banks and the University of Alabama who has recruited him to act as one of the Crimson Tide’s coaches.

Experienced employees are a commodity that can be difficult for the Ohio company to acquire. Once these employees have proved their value to the company and time and energy has been spent developing their skills in regard to the company and position, the company can suffer if the employee decides to leave. For this reason, some companies choose to use contracts as one means to retain employees. When this happens, the company may choose to pursue breach of contract through legal channels.


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