Executive ousted 'without cause' – judge blasts last-minute equity grab and release rewrite
Employer can’t rewrite severance at exit: Delaware court finds breach for adding equity forfeiture and expanded release.
On December 8, 2025, Delaware’s Superior Court granted summary judgment on liability for Donna Robinson, the former president of Kelly Cable of N.M., in her contract dispute with Peak Utility Services Group, Kelly Cable, and IX Capital Peak Holdings. The court concluded the defendants breached Robinson’s 2021 Employment Contract by presenting severance paperwork that materially deviated from the agreement after a “without cause” termination.
Robinson was told on January 31, 2023, that her employment was ending, effective immediately, and defendants admitted it was “without cause.” Under her contract, she was entitled to one year of salary continuation if she signed a General Release in substantially the same form attached to the Employment Contract. The contract also provided one year of employer-paid COBRA premiums, and those premiums were not conditioned on signing a release.
Instead, the company offered a Severance Agreement that conditioned severance on Robinson forfeiting her “P units” in IX Capital Peak Holdings and signing a new, broader General Release. The forfeiture clause stated she would receive no consideration for canceling the interests. The new release also expanded the list of released parties to include affiliates, subsidiaries, and parent...
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