If you sign a contract in Massachusetts, the New England Patriots may be largely responsible for the enforceability of certain damages provisions set forth in the agreement, known as a “liquidated damages clause.” Liquidated damages clauses are designed to represent a reasonable forecast of damages expected to occur in the event of a breach, particularly where actual damages are difficult…
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Developments in the Dynamic World
of Business and Employment Law
In a Massachusetts Superior Court decision, issued at the end of 2010, Charm v. Kohn, 27 Mass. L. Rptr. 421, 2010 WL 3816716 (Mass. Super. 2010), the Court ruled that an email that a client intended to send only to his lawyer, but which was accidentally sent to opposing counsel, was not admissible evidence. However, the Court warned that such…
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Due to a recent shift in the judicial interpretation of the Massachusetts Home Improvement Contractor law, M.G.L. c. 142A (“the Act”), homeowners will no longer be able to recover triple damages and attorney’s fees for mere technical violations of the Act by a contractor, where those technical violations do not cause harm to the homeowner. The Act was designed to…
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In a decision issued late last year, the Supreme Judicial Court (SJC) ruled that guidelines issued by the Massachusetts Commission Against Discrimination (MCAD) do not have the force of law. Global NAPs, Inc. v. Awiszus, 457 Mass. 489 (2010). The Guidelines have widely been used by attorneys, workers, and employers to understand the scope and meaning of laws enforced by…
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For the first time in a Massachusetts reported decision, Worcester Superior Court Judge, Dennis J. Curran, included severance pay in the definition of “wages” for purposes of the Massachusetts Payment of Wages Act (“the Act”). In Juergens v. MicroGroup, Inc., an employee sought to enforce a severance agreement, successfully arguing that his severance pay qualified as “wages,” which would entitle…
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The Massachusetts Supreme Judicial Court recently held that an employer could not make deductions from employees’ wages to recover the costs associated with ‘preventable accidents’ caused by employees. In this case, Camara v. Attorney General, the employer had a policy that gave employees, waste and recycling truck drivers, an option of either accepting disciplinary action or agreeing to a wage…
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Employer’s frequently include disclaimer language in their employment manuals in an effort to thwart efforts to characterize their policies as contracts. This is done by management in order to avoid extending additional rights and avenues of relief to disgruntled employees. In O’Brien v. New England Telephone Co. the SJC found that a policy manual was an implied contract but that…
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There is much debate, especially in the courts, as to whether an employment policy manual is enforceable as a contract. The Massachusetts Appeals Court commented in Ferguson v. Host International, 53 Mass. App. Ct. 96, 103 (2001), that “t would be unfair to allow an employer to distribute a policy manual that make the workforce believe that certain promises have…
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