The U.S. Supreme Court earlier this week decided not to hear the appeal of a former manager who argued that he was entitled to a jury trial on his claim for severance benefits. Peter Tischmann, the former vice president and managing director of the St. ...
The U.S. Supreme Court earlier this week decided not to hear the appeal of a former manager who argued that he was entitled to a jury trial on his claim for severance benefits. Peter Tischmann, the former vice president and managing director of the St. Regis Hotel in New York City -- who was fired in 1992 for violating the sex-harassment policy of the hotel's owner, ITT Sheraton Corp. -- had originally been awarded $364,000 in severance pay after a jury trial. But a federal magistrate later ruled that the severance plan was covered by the Employee Retirement Income Security Act, which specifies claims for benefits must be decided by a judge, and the ruling was upheld in appellate court. By its silence, the Supreme Court agreed with the hotel that the severance pay was not a contractual claim. The hotel had argued that the severance plan, which guarantees executives two years of pay unless they are fired for cause, is not part of the employment contract.
