John A. Russell Corp. v. Bohlig

739 A.2d 1212 (1999)

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Nature of the Case

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Facts

D was hired as executive vice president and chief operating officer by P, a general contracting company. The parties entered into an employment contract for a term of three years. D began renovating his house in Shrewsbury using employees and equipment of D with D’s permission. The cost of the renovations eventually exceeded $600,000. P sued D for breach of the employment contract, alleging inappropriate self-dealing, breach of fiduciary responsibility, and breach of employment obligations arising from the contract. P claimed that D still owed a balance of $ 218,413.20 for the construction work. D counterclaimed for breach of the employment contract, maintaining that the amount he owed for construction work was offset by the amount the Corporation owed him in unpaid benefits under the employment contract. Specifically, he contended that P failed to pay him (1) a guaranteed bonus of $ 20,000 per year, (2) relocation expenses of $ 129,938.62, and (3) twelve months of severance pay and employment benefits in lieu of twelve months’ notice, amounting to over $ 110,000. During trial the court admitted evidence that D was terminated from his previous employment for dishonesty involving his expense accounts. D contends that this is character evidence improperly admitted to prove he acted dishonestly in his employment with the Corporation in this case. The jury rendered a verdict in favor of P for $ 218,413.20. It rendered a verdict for D for $ 2,828.25. P was awarded $365,012.89, the difference between the two awards with interest. D appealed in part on the issue of whether the court erred in admitting certain evidence of D’s character.