In October 2010, an arbitration panel of the Financial
Industry Regulatory Authority, Inc. ("FINRA") in New York awarded
compensatory damages of $715,000, plus interest and costs, to an investment
banker, formerly employed by respondent Barclays Capital Inc. ("Barclays"), for
breach of an implied contract to pay the investment banker a bonus for 2008.
Whalen v. Barclays Capital Inc., Case No. 09-03587 (Oct.
Three months later, in January 2011, Barclays fired about 600 employees,
including many in New York City. Several investment bankers whom Barclays
fired this month report that Barclays is refusing to pay, to them, bonuses for
the work they performed in 2010. The Whalen arbitration award is a
good development for, among others, investment bankers whom Barclays or other
securities firms fired in late 2010 or early 2011 without paying the bankers
any bonuses for 2010.
In Whalen, the claimant, Thomas D. Whalen,
successfully maintained that Barclays, through its words and its course of
conduct, implicitly agreed to pay to the claimant a bonus for 2008. In
early 2009, Barclays, in breach of this agreement, advised the claimant that it
would pay him no bonus. This bonus dispute arose as follows.
Read the entire article at the New York Business Litigation and Employment Attorneys Blog,
a blog by David S. Rich