ILNews

Court correctly ruled man with terminated employment contract could retire

Back to TopCommentsE-mailPrintBookmark and Share

An employment contract between a certified public accountant and his employer did not prohibit the CPA from retiring from his position after the company announced it would not be renewing his contract, the Indiana Court of Appeals concluded Wednesday.

Bruce Buchan, who worked as a CPA for an independent accounting firm, had performed services for Dennis Tippmann Sr. and his son. Later, the Tippmanns decided to hire Buchan to work for Cherokee Family Limited, various business entities owned by the Tippmann family.

Buchan began working in 2005 for the company, but an employment contract wasn’t signed until December 2007. The terms of the contract said Buchan would work for five-year periods, with either party able to not renew the contract by providing a 90-day written notice prior to the expiration of the current term. The contract was made retroactive so that Buchan’s first five-year term would expire Dec. 31, 2010. In September 2010, Cherokee informed Buchan it would not renew his contract. Buchan in October informed the company he would be retiring effective Dec. 31, 2010. Cherokee sent a letter to him saying it did not recognize his ability to retire after receipt of the notice of non-renewal and the company considered him to be employed on Dec. 31, 2010.

Buchan sued, alleging he did not receive timely compensation for accrued paid vacation days and the company breached the contract by not paying him the remaining portion of his bonus upon retirement. Cherokee counterclaimed alleging, among other things, breach of duty of loyalty and  breach of contract. Buchan filed for partial summary judgment on the issue of whether he could retire; the trial court ruled in his favor.

On interlocutory appeal in Cherokee Air Products, Inc., Cherokee Family Limited Partnership, Tippmann Industrial Products, Inc., Dennis Tippmann, Sr. Family Partnership, LLP, and Tippmann Farms, LLC v. Bruce E. Buchan, 02A05-1312-PL-635, the Court of Appeals affirmed.

“The trial court correctly concluded that Buchan was entitled to retire. …According to the terms of the contract, that notice merely notified Buchan that his contract would not be renewed at the end of the year for an additional term. The notice of non-renewal did not affect Buchan’s employment status for the remainder of the contract term. He remained employed under the contract, with all its rights and obligations until the term expired. Had Cherokee wished to terminate Buchan’s employment, Paragraph 4 was the appropriate provision in that circumstance. It is uncontradicted that Buchan was still employed and continued to work for Cherokee until the end of business on December 30, 2010,” Senior Judge William Garrard wrote.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The Department of Education still has over $100 million of ITT Education Services money in the form of $100+ million Letters of Credit. That money was supposed to be used by The DOE to help students. The DOE did nothing to help students. The DOE essentially stole the money from ITT Tech and still has the money. The trustee should be going after the DOE to get the money back for people who are owed that money, including shareholders.

  2. Do you know who the sponsor of the last-minute amendment was?

  3. Law firms of over 50 don't deliver good value, thats what this survey really tells you. Anybody that has seen what they bill for compared to what they deliver knows that already, however.

  4. My husband left me and the kids for 2 years, i did everything humanly possible to get him back i prayed i even fasted nothing worked out. i was so diver-stated, i was left with nothing no money to pay for kids up keep. my life was tearing apart. i head that he was trying to get married to another lady in Italy, i look for urgent help then i found Dr.Mack in the internet by accident, i was skeptical because i don’t really believe he can bring husband back because its too long we have contacted each other, we only comment on each other status on Facebook and when ever he come online he has never talks anything about coming back to me, i really had to give Dr.Mack a chance to help me out, luckily for me he was God sent and has made everything like a dream to me, Dr.Mack told me that everything will be fine, i called him and he assured me that my Husband will return, i was having so many doubt but now i am happy,i can’t believe it my husband broke up with his Italian lady and he is now back to me and he can’t even stay a minute without me, all he said to me was that he want me back, i am really happy and i cried so much because it was unbelievable, i am really happy and my entire family are happy for me but they never know whats the secret behind this…i want you all divorce lady or single mother, unhappy relationship to please contact this man for help and everything will be fine i really guarantee you….if you want to contact him you can reach him through dr.mac@yahoo. com..,

  5. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

ADVERTISEMENT