News & Events

News & Events

4.12.2011

Engbloom Quoted in The Oregonian Regarding a Client’s Possibly Overturned Severance Payment

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Lane Powell attorney Julie Engbloom was quoted in The Oregonian on April 2 in an article titled “Judge Considers Overturning Severance Payment to ESI’s Fired CEO.” Electro Scientific Industries’ (“ESI”) former CEO and Lane Powell client James Dooley was awarded $800,000 in severance by an arbitrator in late 2010, pursuant to the terms of an employment agreement. Now, ESI seeks to vacate the award claiming, as it did during the arbitration, that Dooley’s guilty plea to securities fraud acted as a judicial admission sufficient to meet the “for cause” termination provision in the employment agreement.

Separately, ESI’s attorney argued that the court should toss out the ruling because public policy is “basically insulted, by the very idea,” of awarding severance to a CEO convicted of criminal activity.

Attorney Julie Engbloom, representing Dooley, urged Acosta to steer clear of such broader issues.

“I don’t think this is the kind of public policy for the court to swoop in on,” she said.