Question

Amy March entered into a three-year employment contract with Plumfield, LLC. Plumfield was in business for only a brief time, during which it incurred considerable losses. In terminating operations, which ceased before the term of the contract with March expired, Plumfield also terminated March’s services. In exchange for a payment of $24,240, March signed a “final payment agreement,” which purported to be a settlement of any claims that she might have against Plumfield. March filed a suit in a New York state court against Plumfield, its members and managers, and others, alleging, among other things, breach of her employment contract. March claimed that signing the “final payment agreement” was the only means for her to obtain what she was owed for past sales commissions and asked the court to impose personal liability on the members and managers of Plumfield for breach of contract. Should the court grant this request? Why or why not?

Answer 1

The court should not grant request of Amy March. In employment contract there is a termination clause and according to provision of that clause final settlement have made. The company has also terminated and in LLC, the liability of the promoters is limited and no one can claim their personal libaility. The plumefied doesnot owe a single penny to Amy after final settlement.The final payment agreement was signed by Amy March too, so prima facie this petition stand rejected.