Matthew High (Associate-Detroit, MI) authored "A Costly Employment Contract Breach," which appeared in the Summer 2021 edition of Labor and Employment Lawnotes published by the State Bar of Michigan. A prominent researcher was working for a hospital where she received research grants. The hospital she worked for was later acquired by a second hospital. The new hospital stopped supporting her research and its operators eventually filed for bankruptcy. During bankruptcy, the prominent researcher's cell samples and lab were sold, and she sued for contractual damages. This case shows that damages for contract breaches are not limited to out-of-pocket lost wages or benefits. The wronged party is entitled to the benefit of the bargain. Companies must ensure no direct contractual relationship exists between a parent company and a unique, highly compensated employee, such as the researcher in this case.
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