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A Word to the Wise
The employment-at-will doctrine is the bane of the plaintiffs' bar. Exceptions under New York law are rare and strictly construed against the employee. More than just a shield, the at-will doctrine has been a seeming impenetrable wall insulating employers from liability. Is there ever an instance where an employee can invoke the at-will doctrine for his or her benefit? Just ask Seth Brody.
Mr. Brody agreed to leave his employment with Priceline.com to join Skillgames. His new employer alleged that Brody committed himself to leaving Priceline and to “continued employment” with it. In exchange, Skillgames agreed to provide Brody with a non-recourse loan of $125,000 based on his representation that he would be forfeiting that amount in Priceline stock options by joining Skillgames. Brody executed a non-recourse promissory note that was secured solely by Skillgames stock. Brody also executed an employment contract providing that his employment was at-will.
However, things did not work out as planned. Brody did not in fact sever his ties with Priceline immediately but continued to work for it after hours. As a consequence, some additional Priceline stock vested. From Brody's perspective, the Skillgames job was not what he believed was promised and did not pan out. Within weeks of his joining Skillgames, a major investor withdrew its support, layoffs followed, and soon thereafter the company's controlling shareholder announced that the company would be dissolved. Brody shortly thereafter returned to Priceline.
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