LECG, LLC v. Unni
United States District Court for the Northern District of California
2014 WL 2186734 (2014)
Sanjay Unni (defendant), an at-will employee of LECG (plaintiff), received an advance on future bonuses under an agreement stating the bonus was unearned until repaid through future bonuses, that bonuses were not guaranteed, and that upon termination Unni owed any remaining advance balance; after LECG suffered financial difficulties and reduced staff, Unni argued the resulting circumstances made it impossible for him to earn enough bonus income to cover the advance or advance his career, and he resigned. When Unni failed to repay the advance, LECG sued for breach of contract and unjust enrichment, and Unni counterclaimed that LECG frustrated the purpose of his employment agreement by making his continued performance impossible, arguing it was a basic assumption he would work at LECG long enough to pay off the advance.
Whether an employee can claim that his employer has frustrated the purposes of his employment agreement if the agreement provides for the nonoccurrence of the event at issue.