I have a past contract employee that has been paid in full and marked on final check – however he is threatening to sue. He feels he is due more then agreed upon. I want to know if I am still at risk, if taken to court.
A: I have litigated the question of accord and satisfaction, and it can be complicated because it all boils down to what the parties intended. One big factor not mentioned above is whether the “Paid in Full” notation was on the front of the check or the back, where the endorsement goes. It is more likely to be considered an “accord and satisfaction” (meaning you would win the lawsuit) if it it on the back, above the employee’s endorsement. The answer to your question is likely to depend on the specific facts.
* This answer does not constitute legal advice. I am admitted in the State of Arizona only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. You should not rely on this advice alone, and nothing in these communications creates an attorney-client relationship.