Q: Settled a breach of employment contract. no payment till after I dismiss. Should i trust that? Shouldn’t i be paid firs?
I was due a 10k sign on bonus after a year of working with this company. They agreed to pay it but never did so I quit, they then used that as a excuse to not pay me. Now we’ve settled the lawsuit out of court & they want me to dismiss first then they would pay me. Shouldn’t I get paid first? Why would I dismiss if they haven’t followed through with their part of the agreement. Is this right?
A: Typically it would be the way you say. Depends on what the dismissal would say.
A: I don't ever file a dismissal of an employment law claim brought by my client before the settlement is paid. The settlement agreement should have language discussing a procedure for you agreeing to withdraw within a certain amount of time after getting paid. If you did not have a lawyer when you negotiated this deal, it could be worthwhile for you to hire one to help you handle this aspect of the settlement agreement.
A: This is a common request by a defendant. Unless there is an agreement pursuant to which they agree to pay, no, you should not dismiss the action first even if it is without prejudice. I also prefer an escrow by which the money is held by counsel and an agreement provides for the dismissal and filing of a Stipulation of Discontinuance and simultaneous payment.
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