New Jersey’s Appellate Division has recognized that, although a client has the absolute right to fire its in-house counsel, the lawyer is entitled to damages if the employer fired him without cause, in breach of an employment contract.
Kirk Nelson worked as in-house counsel for the Elizabeth Board of Education. He had a three-year employment agreement to server as board counsel. Pursuant to the contract, Mr. Nelson was entitled to a salary of $175,000 per year, with two-and-a-half percent annual increases.
Under his contract, the Board could not fire Mr. Nelson during the three-year term without cause. It defined cause as: