Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Court of Appeal Rules That California Law Applies to Delaware Corporation’s CEO’s Wrongful Termination Claim

By Robert Escalante on May 31, 2012
Email this postTweet this postLike this postShare this post on LinkedIn

On May 23, 2012, the California Court of Appeal addressed a question of first impression: Does California law govern a corporate officer’s claim against an out-of-state corporation for  constructive wrongful termination in violation of public policy? The appellate court answered in the affirmative, thus limiting the application of the so-called “internal affairs doctrine.” Lidow v. Superior Court, 2012 WL 1861372 (Cal. Ct. App. 2012).

In Lidow, the trial court ruled that Delaware law barred a CEO’s constructive wrongful termination claim and granted summary adjudication in favor of the employer, International Rectifier Corporation (“IRC”). The plaintiff’s claim was based on allegations that IRC constructively terminated his employment in retaliation for his complaints of illegal conduct. Delaware law recognizes such a claim but under more limited circumstances than does the law of California. 

In granting plaintiff’s petition for a writ of mandate, the appellate court reversed the trial court’s dismissal of the constructive wrongful termination claim, despite acknowledging Delaware’s interest in having its own laws govern the relationships between its corporations and their officers. Nonetheless, the appellate court found these interests did not trump the “vital” concern of California in protecting corporate officers in California from being constructively wrongfully terminated in violation of public policy. The court thus directed the trial court to vacate its order granting summary adjudication. 

The Court’s ruling should occasion a review of corporate policies and assumptions of non-California corporations that another state’s law will govern their disputes with their corporate officers.

Photo of Robert Escalante Robert Escalante

Robert Escalante is an associate in the Labor & Employment Law Department. Robert’s practice covers a wide range of matters in state and federal court, including employment and consumer class actions, securities litigation, and single-plaintiff contract disputes.

Robert represents clients from a variety…

Robert Escalante is an associate in the Labor & Employment Law Department. Robert’s practice covers a wide range of matters in state and federal court, including employment and consumer class actions, securities litigation, and single-plaintiff contract disputes.

Robert represents clients from a variety of industries, including finance, energy, medical care, community service, and entertainment. Robert has also successfully represented clients in matters involving constitutional and immigration issues in federal and administrative proceedings.

Email
Show more Show less
  • Posted in:
    Business and Commercial, Employment & Labor
  • Blog:
    California Employment Law Update
  • Organization:
    Proskauer Rose LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo