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Why Harvey Weinstein will likely win a lawsuit for wrongful termination

Posted on 10/12/17 at 9:37 pm
Posted by Bench McElroy
Member since Nov 2009
33914 posts
Posted on 10/12/17 at 9:37 pm
quote:

Harvey Weinstein may have been fired illegally by The Weinstein Company, a company that wrote a contract that said Weinstein could get sued over and over for sexual harassment and as long as he shelled out money, that was good enough for the Company.

TMZ is privy to Weinstein's 2015 employment contract, which says if he gets sued for sexual harassment or any other "misconduct" that results in a settlement or judgment against TWC, all Weinstein has to do is pay what the company's out, along with a fine, and he's in the clear.

According to the contract, if Weinstein "treated someone improperly in violation of the company's Code of Conduct," he must reimburse TWC for settlements or judgments. Additionally, "You [Weinstein] will pay the company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each additional instance."

The contract says as long as Weinstein pays, it constitutes a "cure" for the misconduct and no further action can be taken. Translation -- Weinstein could be sued over and over and as long as he wrote a check, he keeps his job.

The contract has specific language as to when the Board of Directors can fire Weinstein -- if he's indicted or convicted of a crime, but that doesn't apply here.

There's another provision ... he can be fired for "the perpetuation by you [Weinstein] of a material fraud against the company." The question ... where's the fraud? Lance Maerov, the board member who negotiated Weinstein's 2015 contract, said in an interview -- and we've confirmed -- the Board knew Weinstein had settled prior lawsuits brought by various women, but they "assumed" it was to cover up consensual affairs. The Board's assumption does not constitute fraud on Weinstein's part.

And here's the kicker. Even if Weinstein had committed fraud by not fully informing the Board of Directors, the contract says before he can be fired he has a right to mediation and if that doesn't work, he's entitled to arbitration. He got neither. He was summarily fired, and sources connected with Weinstein tell TMZ he was never given a specific reason.



LINK
Posted by Strannix
District 11
Member since Dec 2012
48832 posts
Posted on 10/12/17 at 9:49 pm to
A million an instance?? Haven’t 30plus come out so far?
Posted by teke184
Zachary, LA
Member since Jan 2007
94742 posts
Posted on 10/12/17 at 9:52 pm to
It may end up being irrelevant.

TWC is in free fall right now. Most of the board has quit, their publishing division has bolted for another company, and they have so much debt that they are looking at either bankruptcy or a sale.

Bankruptcy would allow them to pay Harvey pennies on the dollar in damages. A sale would make it the problem of the next owners though it would hurt the sale price.
Posted by Zahrim
McCamey Texas
Member since Mar 2009
7667 posts
Posted on 10/12/17 at 9:57 pm to
whats the goong rate for rape these days?
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 10/12/17 at 9:59 pm to
quote:

TMZ is privy to Weinstein's 2015 employment contract, which says if he gets sued for sexual harassment or any other "misconduct" that results in a settlement or judgment against TWC, all Weinstein has to do is pay what the company's out, along with a fine, and he's in the clear.
From my non-legal point of view, this doesn't seem relevant at all. They didn't fire him for all of those lawsuits (which is a disturbing that it's in the contract), he was fired for the harm that the news stories have done for company and its brand.
Posted by 14&Counting
Eugene, OR
Member since Jul 2012
37572 posts
Posted on 10/12/17 at 10:02 pm to
quote:

Bankruptcy would allow them to pay Harvey pennies on the dollar in damages. A sale would make it the problem of the next owners though it would hurt the sale price.


It ain't worth shite without Harvey Weinstein......guy knew how to make Hollywood money....which is why he got away with so much for so long.
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67606 posts
Posted on 10/12/17 at 10:05 pm to
It looks to me like that contract makes the company a knowing co-conspirator.
Posted by Diary Queen
Member since Jul 2017
1392 posts
Posted on 10/12/17 at 10:08 pm to
Harvey isn't really fired. They did it to save face with a wink wink and a nod. CEO of my company was "fired" because he got caught up in the Ashley Madison hack. Used his work email (dumb dumb), but guess what... he still works for the company as a consultant getting paid the same.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 10/12/17 at 10:12 pm to
quote:

It ain't worth shite without Harvey Weinstein......guy knew how to make Hollywood money....which is why he got away with so much for so long.
Yeah. I had no idea about his sexual misconduct, but I knew he was insufferable, and people put up with that insufferableness because he was powerful and great at his job. Apparently, they put up isn't a whole lot more though.

I knew Entourage based a character on him, and he was quite unlikeable, but apparently there have been far more references to his behavior throughout shows, films, etc.
Posted by teke184
Zachary, LA
Member since Jan 2007
94742 posts
Posted on 10/12/17 at 10:14 pm to
Deadline

Deadline has an article up in which agents are refusing to supply talent to The Weinstein Company, even if they rebranded. It’s seen as the start of a death spiral in which the company sells off its assets in a fire sale to help deal with its lenders and possibly dig themselves out of the financial mess they were in BEFORE his came out.
Posted by Zahrim
McCamey Texas
Member since Mar 2009
7667 posts
Posted on 10/12/17 at 10:15 pm to
a contract that says it will pay out money if he breaks the law. wow....
Posted by DaBike
Member since Jan 2008
8932 posts
Posted on 10/13/17 at 12:50 am to
quote:

You [Weinstein] will pay the company liquidated damages of $250,000 for the first such instance, $500,000 for the second such instance, $750,000 for the third such instance, and $1,000,000 for each additional instance."


What if Harvey hasn’t been paying?
Posted by CorporateTiger
Member since Aug 2014
10700 posts
Posted on 10/13/17 at 5:56 am to
I would be absolutely stunned if any court gave him the time of day on this.
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