SERVICE INVESTORS LTD. v. Scully

SAUNDERS, Judge.

| xThis is a case involving an attempt by an employer to enforce a penalty provision in an employment contract against its former employee. The employment contract has a five-year term and contains a penalty provision that calls for the employee to pay the employer a penalty equal to one year of the employee’s current salary should the employee terminate his employment prior to the end of the five-year term.

The employee terminated his employment with the employer two years into the five-year contract. The employer filed suit, attempting to enforce the penalty provision. The…