Executive fired for alleged mismanagement: Wrongful discharge: Breach of contract: Fraud: Verdict

Law Reporter, May 2001

Huguelet v. Walden & Sons Food Brokers, Inc., Kan., Johnson County Dist. Ct., No. 98C03926, Feb. 2, 2001.

Huguelet, 50, was hired to run an Oklahoma food brokerage purchased by Walden & Sons, a Kansas food brokerage. In recruiting Huguelet, the owner of Walden & Sons offered him a 10-year employment contract, incentives, and bonuses. He also assured Huguelet that there were only a few minor issues to resolve involving the Oklahoma brokerage.

Shortly after he began his new position, Huguelet allegedly discovered that the former owners of the Oklahoma brokerage-who were now employees-were allegedly diverting goods and misallocating market development finds. As a result, food manufacturers were withholding commissions and threatening to terminate Walden & Sons as their broker.

Walden & Sons fired Huguelet. A food industry executive who had earned $135,000 annually in his previous position, Huguelet was unable to return to the food industry. He claimed $650,000 past lost income and $790,000 fixture lost income.

Huguelet sued the brokerage, alleging wrongful discharge. Plaintiff also alleged fi-aud and breach of contract because he was fired after only four months of his 10-year contract.

Defendant contended plaintiff had been discharged for cause, claiming that plaintiff had mismanaged the brokerage and brought a loaded firearm to the office during a confrontation with the former owners.

The fury awarded plaintiff $444,600.

Plaintiff's Counsel

*Dennis E. Egan, Kansas City, Mo. Bert S. Braud, Kansas City, Mo.