June 5, 2007

Plaintiff and defendant executed an employment agreement which said, among other things, that plaintiff could be terminated only upon his "absolute failure to perform the contract's specification." Four months into the work, plaintiff was terminated. The First Department said that the firing was improper, in Mitchell v. Fidelity Borrowing, which was decided on May 31, 2007. The court noted that, while plaintiff was employed, defendant spent more than $116,000 for marketing and advertising, as plaintiff had directed. Defendant also paid plaintiff $33,000 in salary and bonuses. The court concluded, "There is no reasonable view of the evidence that would establish that plaintiff absolutely failed to perform under the employment contract." The court ordered defendant to pay plaintiff's salary for the entire two years of the consulting agreement.