XFL suspension leads to wrongful termination lawsuit

XFL suspension leads to wrongful termination lawsuit

| May 7, 2020 | Wrongful Termination |

Oftentimes the question of term of employment is open-ended due to many such agreements not being contractual. However, there are still scenarios (and certain positions) where it is advantageous for all parties involved to detail an employment agreement in a written contract.

In such situations, the issue of wrongful termination may seem a moot point (as one’s job performance in comparison to the terms of their contract is clearly evident). Yet that still may not stop employers in Los Angeles from attempting to dismiss a contracted employee anyway.

Contractual dispute arises over suspension of upstart XFL

That is the claim of Oliver Luck, the former commissioner of the upstart XFL. The league suspended its operations six weeks into its first season due to the recent COVID-19 pandemic. It laid off most of its workforce just over one month later and subsequently filed for Chapter 11 bankruptcy. As part of that bankruptcy filing, the league sought to have certain executive contracts dismissed (including that of Luck). Although reports only contain limited details regarding the move, the implication is that the league dismissed Luck with cause. The former commissioner would have earned $20 million over the term of his contract, and he still may recoup a portion of it even with the league in bankruptcy. To ensure he recoups some of that money, Luck filed a wrongful termination lawsuit against Vince McMahon, who leads the now-defunct league’s governing body.

Fighting back against a wrongful termination

Cases such as this reveal the complexities that can arise from an employment contract dispute. Successfully challenging an employer regarding an employment contract can be difficult for an individual employee (who may not have extensive knowledge of contract law). For this reason, having an experienced attorney in one’s corner may be a great benefit.