Claims Examples

Bankruptcy

Directors of a company were held personally liable for the unpaid wages of salaried employees of the company as well as unremitted source deductions and taxes following the company’s bankruptcy.

Misrepresentation

The chief financial officer and directors of a company were sued for misrepresenting the financial state of the company to lenders immediately prior to bankruptcy of the company.

Employee Allegations

Allegations were made by an employee that the employer informed third parties that he was incompetent, leading to a hostile work environment.

Defamation

Following the dismissal of a senior employee, several directors were sued by the individual for defamation after the release of an “all staff” memo describing the dismissal.

Failure to Increase Death Benefit

When an employee died, several directors were sued by the employee’s spouse for failing to increase the limit of the death benefit, as had previously been agreed.

Insolvent Company

Officers of an insolvent company who told suppliers, “when we get paid, you get paid,” were held personally liable.

Negligence and Breach of Trust

After filing for bankruptcy, a non-profit organization was sued for negligence and breach of trust for failing to repay a temporary operating fund provided by another organization for a fundraising event.

Unethical Conduct

A former member sued the board of a professional association alleging that the board of directors had targeted her, and that they had not followed the organization’s bylaws, when they revoked her membership for unethical conduct.

Wrongful Termination

After being terminated for sexual misconduct and harassment, a senior executive sued the non-profit organization for wrongful termination, and the directors and officers for alleged interference with contractual relations.

Wrongful Termination

As part of a corporate reorganization, a large non-profit organization terminated the employment of a long-term employee. The employee sued the organization alleging wrongful termination. The employee also alleged that she had been defamed as a result of a written communication that had found its way into the hands of individuals outside the board of directors of the organization.

Negligent Misrepresentation

A non-profit organization successfully applied for, and received, government funding for the purpose of organizing and hosting an event. Unfortunately, the expenses incurred for the event far exceeded the revenues received. After a government audit, it was determined that the funds had not been used for the purposes described in the funding application. The government commenced an action seeking damages due to the alleged negligent misrepresentations in the application documents and for the alleged breach of fiduciary duty on the part of the directors of the organization.

Breach of Fiduciary Duty

A member of a professional association sued the association and several of its directors and officers as a result of a disagreement with respect to licensing requirements. The member sought damages as compensation for the alleged breach of fiduciary duty, defamation and interference with economic interests.