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Contracts Keyed to Whaley
Stirlen v. Supercuts
Citation:California Court of Appeals, 1997. 60 Cal. Rptr.2d 138.
William Stirlen (Plaintiff) was employed by Supercuts, Inc. (Defendant) as its vice president and chief financial officer. His employment contract contained an arbitration clause. The contract required employees to submit all disputes to arbitration and limited all remedies available to them to breach of contract damages only. The contract permitted defendant, on the other hand, to sue in court and did not limit its remedies. President and CEO David Lipson told plantiff he was a “troublemaker” after he informed the company’s executives of accounting irregularities that possibly violated state and federal regulations, as well as operating problems he believed contributed to defendant’s decline. Lipson made it clear that if plaintiff did not change his position on these issues, he would “no longer be considered a member of the team.” Plaintiff did not change his position. Subsequently, Lipson terminated plaintiff’s employment contract.
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