Second Circuit Allows After-Acquired Evidence to Support Termination Decision

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Plaintiff John Weber was hired in 1986 by Pyne Corporation, a predecessor of Defendant FujiFilm Medical Systems USA, Inc. (FMSU), as the company’s Vice-President and Chief Financial Officer.  On December 14, 2009, FMSU terminated Weber’s employment with cause, citing mismanagement of certain transactions, including his unauthorized approval of a merger.  Weber filed suit against FMSU and other entities and individuals affiliated with FMSU alleging that his termination was the result of race and national origin-based discrimination.

After terminating Weber, FMSU discovered evidence of further misconduct, including Weber’s mismanagement of a financing agreement between FMSU, a bank and a consultant.  At trial, the district court admitted this after-acquired evidence to show that defendant’s reason for terminating Weber’s employment – his mismanagement of FMSU finances – was true.  On appeal, Plaintiff challenged the admissibility of this evidence and the Second Circuit found that the after-acquired evidence was admissible because “Weber’s role in the arrangement confirmed [the employer’s] suspicions that he mismanaged FMSU’s finances.”

While this case, as with all others, turns on the facts presented to the Court, it also potentially signals court approval of after-acquired evidence to bolster an employer’s defense to a wrongful discharge claim.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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