Question

In: Accounting

Debbie signed an employment contract with Google for one year at $7,000 per month. She sold...

Debbie signed an employment contract with Google for one year at $7,000 per month. She sold her house, moved to the Bay Area, and signed a 1 year lease on an apartment. After three months, she was wrongfully terminated by Google and is unable to find further employment. How much in compensatory damages should be awarded to Debbie and why? (Explain how you calculated your answer.)

Solutions

Expert Solution

Assumption:

Answer is given in light of Common Law of United States of America which includes case laws or precedents derived from courts courts. It covers Real-estate, Insurance, Services and Employment Contracts.(RISE)

Concept:

In case of wrongful termination by employer. The Plaintiff that is employee is awarded the Compensatory Damages.

Compensatory Damages are awarded to compensate for Direct loss of Pay or Loss of Profit Suffered by Plaintiff due to termination of contract.

Answer:

Debbie signed an employment contract with Google for one year at $ 7,000 per month but after three company has wrongfully terminated.

Debbie should be awarded the following Compensatory Damages to Compensates his direct loss of Pay due to wrongful termination by the Google.

Calculation:

Compensatory Damages = Total loss of Pay due to wrongful termination.

Monthly Payment × Remaining Months after termination.

$ 7,000 ( given ) × 9 months ( total months as per contract = 12 months - No of months worked = 3 Months )

$ 63,000.

Debbie should be awarded $ 63,000 Compensatory Damages from Google to compensate direct loss of Pay Suffered by him due to wrongful termination of employment contract by Google.


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