Q: Unjust Enrichment-gave up 50% of pay for share of incremental purchase price but then owners refused to pay.
As CFO of a business being sold, the owners of this business requested I take a 50% pay cut in return for splitting the incremental purchase price savings (about $1M) directly tied to my salary reduction. There is clear evidence of how my salary reduction contributed to $1M additional purchase price. On the day of the closing, the owners fired me and retained the entire incremental purchase price (about $1M) as a result of my pay reduction. My Employment Agreement required they pay me one year's severance (over $200k) of which they are paying. Do I have an Unjust Enrichment claim given they fired me (at will) before my pay reduction went into effect and they are now paying me severance? Can they argue that I was not deprived of anything because they fired me before I was paid the lower salary and they are now paying me severance.
You can't be an employee at will and have an employment agreement.
Further, you may have several claims but obviously you need a consultation with a lawyer to understand your facts, review documents and advise accordingly.
Bruce Alexander Minnick agrees with this answer
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