Kent State University v. Ford

Facts

In April 2008, Plaintiff and Defendant executed an employment contract employing Defendant as head men’s basketball coach for four years with an option for a fifth year. The contract contained a provision that stated that Defendant recognized his promise to work for Plaintiff for the term of the contract. Additionally, the provision said that if he resigned or terminated his contract with Plaintiff before the expiration date, he would have to pay liquidated damages equal to his base and supplemental salary, multiplied by the remaining number of years on the contract. The contract also provided that if Defendant terminated his employment before expiration and is employed for a person or institution other than Plaintiff, he would pay an amount equal to the balance of the then-current total annual salary due for the remaining amount of the contract term.

In 2010, both parties renegotiated and executed a new employment contract for a five-year term, increasing his total salary to $300k, which contained the same liquidated damages provision. In 2011, Plaintiff’s athletic director received a call from Defendant’s agent requesting permission for Defendant to speak to other schools for employment. Plaintiff’s athletic director granted Defendant permission but reminded Defendant of the damages provision. However, Defendant accepted a position at Bradley for an annual salary of $700k, and Plaintiff hired Coach Senderoff to replace him. Several of Plaintiff’s employees testified that the liquidated damages clause protected the coach and Plaintiff’s investment in the coach and program. Additionally, they believed that other universities included similar liquidated damages clauses in their contracts.