In the case Lawless v. Bd. of Educ. Educ. Serv. Ctr., 4th Dist. Lawrence No. 18CA25, 2020-Ohio-117, an Ohio appellate court held that a severance clause compensating a treasurer after being terminated under R.C. 3319.16 for duties not completed violates Ohio public policy.
In this case, an educational service center terminated its treasurer under R.C. 3319.16 when an audit uncovered financial misconduct. The contract contained a severance clause that provided for compensation to the treasurer in the event of termination for uncompleted duties. The educational service center challenged the severance clause as unenforceable because the severance clause violated Ohio public policy.
The Ohio appellate court held that the severance clause violated public policy violated because R.C. 3316.02(A) provides that the preservation of fiscal integrity is Ohio public policy and that compensating a treasurer who is terminated under R.C. 3319.16 violates that public policy.
To read more about this case, click here.
Authors: Matthew John Markling and the McGown & Markling Team.
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