Nyemaster Goode, P.C.

Jack Henry & Associates to pay for firing without cause

On March 23, 2011, a federal jury in Des Moines, Iowa, awarded over half a million dollars to David Anderson ("Anderson") of Nevada, Iowa, in a lawsuit brought against Jack Henry & Associates, Inc. ("Jack Henry"), of Monett, Missouri, and Goldleaf Financial Solutions, Inc. ("Goldleaf"), of Nashville, Tennessee. In 1991, Anderson sold his banking software business to Private Business, Inc. ("PBI"), a predecessor of Jack Henry and Goldleaf. At that time, PBI and Anderson entered into an employment agreement under which Anderson could only be terminated for "cause." Jack Henry terminated Anderson in 2010, purportedly for cause, and Anderson brought an action for damages. At trial, Jack Henry insisted that Anderson had been terminated for cause, and also argued that the employment agreement permitted it to terminate Anderson even without cause, as an "at-will" employee. The jury agreed with Anderson that the employment agreement permitted termination only for "cause," and further concluded that Jack Henry and Goldleaf did not have cause to terminate Anderson within the meaning of the employment agreement. The jury awarded Anderson $93,265 in back pay and lost benefits; and $429,019 in front pay. Anderson was represented by Randall Armentrout and Mitchell Kunert of Nyemaster Goode, P.C.


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