Split Indiana High Court: Employment Contracts’ Damages Clauses Unenforceable

(January 16, 2020, 9:44 AM EST) -- INDIANAPOLIS — Liquidated damages provisions in three employees’ contracts requiring payments that could potentially total in the millions if they left and recruited customers and other workers are unenforceable as they “are facially unreasonable” and have not been shown to correlate to actual losses, a split Indiana Supreme Court ruled Dec. 18 (American Consulting, Inc. v. Hannum Wagle & Cline Engineering, Inc., et al., No. 18S-PL-00437, Ind. Sup., 2019 Ind. LEXIS 935)....

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