Young v. Data Switch Corp.

646 A.2d 852, 231 Conn. 95, 1994 Conn. LEXIS 288
CourtSupreme Court of Connecticut
DecidedAugust 23, 1994
Docket14890
StatusPublished
Cited by34 cases

This text of 646 A.2d 852 (Young v. Data Switch Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. Data Switch Corp., 646 A.2d 852, 231 Conn. 95, 1994 Conn. LEXIS 288 (Colo. 1994).

Opinions

Peters, C. J.

In current economic conditions, corporate downsizing is often accomplished in part by offering severance agreements to corporate employ[96]*96ees. The underlying issue in this case is whether a former employee, having retained the benefits conferred upon him by a severance agreement, may avoid that agreement on the ground of coercion for an indefinite period of time after the alleged coercion has ended. In specific procedural terms, the issue is whether the trial court abused its discretion in setting aside a jury verdict that awarded damages for wrongful termination to such an employee even though he had waited seventeen months before raising the issue of duress.

The plaintiff, Gladstone Young, brought an action for damages claiming that his employment had been wrongfully terminated by the defendant, Data Switch Corporation. In response to a special defense of release, the plaintiff alleged that he had a right to disaffirm, on the ground of duress, a severance agreement that he and the defendant had executed. A jury returned a general verdict for the plaintiff and awarded him $413,000 in damages. On the defendant’s motion, the trial court set aside the jury verdict. The trial court concluded that the jury verdict could not be sustained because, as a matter of law, the plaintiff had ratified the severance agreement by retaining its benefits and delaying any objection to its validity until sixteen months1 after the alleged coercion had entirely ceased.

The plaintiff appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to Practice Book § 4023 and General Statutes § 51-199 (c). We affirm the judgment of the trial court.

The facts are essentially undisputed. The plaintiff is an electrical engineer who became an employee of the defendant in 1979. Toward the end of 1984, as a result [97]*97of financial difficulties, the defendant began to restructure its operations. No later than April 15,1985, when the plaintiff was placed on a paid leave of absence, he became aware that his regular employment with the defendant was likely to end. At a subsequent meeting with the defendant’s president on May 14, 1985, the plaintiff himself proposed that he be placed on half-salary for a two year period during which he would serve as a consultant to the defendant. While the defendant agreed to consider this proposal, the plaintiff continued on his paid leave of absence. During this leave of absence, the plaintiff explored new scientific opportunities that the defendant subsequently decided not to pursue.

On July 26,1985, the defendant’s president informed the plaintiff that his employment was being terminated. The plaintiff does not claim that this meeting or its message was in any respect coercive.

The plaintiff’s claim of duress arises instead out of a subsequent letter, dated August 6, 1985, that contained the details of the severance plan that “[the defendant was] prepared to offer” him. That letter referred, in its opening words, to the plaintiff’s having been on “leave effective April 15,1985,” and then offered to retain him on a paid leave of absence “through October 15,1985, so that you may retain your right to exercise a significant amount of company stock options.” The plaintiff had stock options that he would not have been able to exercise if his employment had been terminated on April 15, 1985, rather than on July 26, 1985, as he had expected.2 Interpreting this letter as backdating his termination for all purposes, and therefore anticipating substantially adverse eco[98]*98nomic consequences, the plaintiff felt coerced, he alleges, into acquiescing in the severance agreement.3

At a meeting held on August 14, 1985, the plaintiff brought his interpretation of this part of the severance offer to the attention of the defendant’s president and explained the importance of the stock options to him. The plaintiff himself testified that, in response, the defendant’s president assured him that, if he signed the release, he would receive his stock.

On August 15,1985, without voicing any further dissatisfaction with its terms, the plaintiff signed the severance agreement, thereby releasing the defendant from all liability arising out of the plaintiff’s employment. On August 21, 1985, the plaintiff received the 40,000 shares to which he was entitled by virtue of his previous stock options,4 and thereafter received the remainder of the benefits, including the right to exercise additional stock options, that were contained in the severance agreement.5

Subsequent to his execution of the severance agreement, the plaintiff had several further communications with the defendant. Although his first letters indicated [99]*99no dissatisfaction with his severance package,6 he later maintained, through counsel, that his employability was being unfairly impaired because the defendant would not release him from the noncompetition clause that had been incorporated by reference into the severance agreement. Even then, he voiced no claim that the severance agreement was itself voidable on the ground of duress.7 Instead, this letter reflected the fact that, during the months immediately after the plaintiff’s termination, he had unsuccessfully sought professional employment as an electrical engineer. In the spring or early summer of 1986, however, soon after the expiration of his unemployment benefits, he stopped this line of inquiry and began devoting all his time to real estate investments. Not until January 20,1987, did the plaintiff first assert a claim that the severance agreement was voidable because it had been obtained by duress.

This record categorically establishes that: (1) the only coercive conduct of which the plaintiff complains is the defendant’s alleged threat to deprive the plaintiff of his right to exercise his stock options;8 (2) this alleged [100]*100coercive conduct ended when the plaintiff exercised his options on August 6,1985; and (3) the severance agreement conferred on the plaintiff measurable economic benefits that he has continued to retain. In light of this record, and the plaintiff’s seventeen month delay in asserting his rights, the trial court determined that, although it had instructed the jury to determine whether the plaintiff’s disaffirmance of the severance agreement was timely as a matter of fact, it was required to set aside the jury’s verdict in the plaintiff’s favor as a matter of law.

The scope of our review of a trial court’s decision to set aside a jury verdict is limited to a determination of whether the trial court abused its discretion. “We have often held that ‘[t]he decision to set aside the verdict entails the exercise of a broad legal discretion that, in the absence of clear abuse, we shall not disturb. O’Brien v. Seyer, [183 Conn. 199, 208, 439 A.2d 292 (1981)].’ Palomba v. Gray, 208 Conn. 21, 24, 543 A.2d 1331 (1988); American National Fire Ins. Co. v. Schuss, 221 Conn. 768, [774,] 607 A.2d 418 (1992); State v. Hammond, 221 Conn.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ashmore v. Hartford Hospital
208 A.3d 256 (Supreme Court of Connecticut, 2019)
Matos v. Ortiz
144 A.3d 425 (Connecticut Appellate Court, 2016)
John Doe No. 1 v. Knights of Columbus
930 F. Supp. 2d 337 (D. Connecticut, 2013)
Parnoff v. Yuille
57 A.3d 349 (Connecticut Appellate Court, 2012)
Gengaro v. City of New Haven
984 A.2d 1133 (Connecticut Appellate Court, 2009)
Wilson v. Kent Realty, No. Cv 99 0081115s (Jun. 26, 2002)
2002 Conn. Super. Ct. 8203-al (Connecticut Superior Court, 2002)
Barefoot v. Wal-Mart Stores, Inc., No. Cv 98-0408537 S (May 29, 2002)
2002 Conn. Super. Ct. 6956 (Connecticut Superior Court, 2002)
Leisure Resort Tech. v. Trading Cove, No. Cv-00-0091180 (Oct. 13, 2000)
2000 Conn. Super. Ct. 12564 (Connecticut Superior Court, 2000)
Il Giardino, LLC v. Belle Haven Land Co.
757 A.2d 1103 (Supreme Court of Connecticut, 2000)
Bourquin v. Vuto, No. Cv 97 0056274 S (Apr. 25, 2000)
2000 Conn. Super. Ct. 4874 (Connecticut Superior Court, 2000)
Sokol v. Clark, No. 33 08 31 (Jun. 15, 1999)
1999 Conn. Super. Ct. 7051 (Connecticut Superior Court, 1999)
Jain v. Se Technologies, Inc., No. Cv99 0169966 (Apr. 27, 1999)
1999 Conn. Super. Ct. 4334 (Connecticut Superior Court, 1999)
Murray v. Taylor,, No. Cv 95 0125410 S (Apr. 26, 1999)
1999 Conn. Super. Ct. 4209 (Connecticut Superior Court, 1999)
The Rxr Group v. McConnon, No. Cv 97 0160800 (Jan. 6, 1999)
1999 Conn. Super. Ct. 848 (Connecticut Superior Court, 1999)
Irons v. Coles, No. Cv 94-0119038-S (Oct. 5, 1998)
1999 Conn. Super. Ct. 5402 (Connecticut Superior Court, 1998)
Irons v. Cole
734 A.2d 1052 (Connecticut Superior Court, 1998)
Pavliscak v. Bridgeport Hospital
711 A.2d 747 (Connecticut Appellate Court, 1998)
Crozier v. Hunt, No. Cv 95-0376832 S (Feb. 18, 1998)
1998 Conn. Super. Ct. 1876 (Connecticut Superior Court, 1998)
Sandella v. Dick Corporation, No. Cv92 0335582 (Jul. 24, 1997)
1997 Conn. Super. Ct. 7488 (Connecticut Superior Court, 1997)
Keshishian v. CMC Radiologists
698 A.2d 1228 (Supreme Court of New Hampshire, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
646 A.2d 852, 231 Conn. 95, 1994 Conn. LEXIS 288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-data-switch-corp-conn-1994.