A man in Texas has filed a lawsuit against the company that he worked for, stating that he is not receiving certain payments that are required by contract. The man originally owned a company, named Hazarsolve Corp., and he then sold it to a larger corporation, called Salco Products Inc.
The reason for the sale was that he wanted to be able to distribute the goods and products that he was making in a wider fashion. When he sold, though, he did not want to lose his employment entirely, so they negotiated a deal whereby he would be given employment at the company that he was selling to, along with a salary that would be paid to him just like any other employee. He would also receive commission and lifetime royalties.
He has now entered a contract dispute because he claims that the company is not honoring the deal. He attempted to renegotiate with them, trying to change the contract. Before that could be done, however, the company simply fired him. Allegedly, they did not give him any reason for doing so. After he was fired, he naturally was not paid. He is now suing over the money that he lost and the company's breach of contract due to the termination.
When something has been laid out in a contract and signed, it is necessary for companies to observe that contract, barring a justifiable and legal reason to break it. These cases can get complicated, though, as both sides must debate what is justifiable and what is not. While large companies often have a legal team that is ready to fight for them at any time, employees who feel they have been wronged will likely be responsible for finding their own representation.
Source: Southeast Texas Record, "Inventor sues company for breach of contract, fraud" Melody Dareing, May. 08, 2014