Q: Am I responsible for paying resignation fees not stated in the contract?
I am the Creative Director and Vice President at a 509(a)(2) charity foundation in Minnesota. My contract was for 4 years, stating that it may be terminated by providing written and verbal notice to the organization’s president at least 60 days before the term's expiration. I have provided the required notice, but the president is asking for amendment and resignation fees totaling $220. The bylaws do not mention any fees related to early termination, and there is no history from previous resignations or amendments. Am I legally responsible for paying these fees even though I was not informed about them in advance? They are not stated in any documentation.
A:
It is very unlikely you are responsible for paying resignation fees not stated in the contract, the bylaws or otherwise. In your previous post, you only mentioned you were a board member. As the Creative Director, you would also be an employee. Therefore, it would be necessary to consider both aspects if the amount at issue was more.
I am not sure how the president is justifying the fee, or if the president even has a justification. I am not sure what type of contract it is or its terms and conditions, but four years seems excessive regardless. I suggest you speak to the organization’s attorney (in the unlikely event there is one.) Otherwise, address the other board members.
I apologize, but I am unable and unwilling to give you a definitive answer in a free online Q and A. Although it seems unlikely anything would come of it, I don't want to lose sleep because of the unknown. I have a feeling the organization may not be a tightly run ship.
My best regards. Rob Kane Minnesota Business Attorney Eagan, including nonprofit organizations.
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