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The Forgivable Loan Case

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I had a client that came to me several months before he resigned from a company. He knew he wanted to leave this brokerage, this employer he had been at for several years. It just wasn’t a happy place for him. He wanted to do something else. Unfortunately for him, he had a contract that said if he left he would have to immediately repay this loan that his employer gave to him years before, and he had been making payments we believe that they were not accounting for properly, so we were preparing to defend any lawsuit that would come from his employer upon his resignation. When he did finally resign, which I think was one of the happiest days of his life, he was served with a lawsuit, which we knew was coming, but because we were prepared, we were able to defend the lawsuit and get him out of hundreds of thousands of dollars of debt and claim damages from this employer, and he was really able to not only not pay anything out of pocket, but easily transition to a new career, which he’s much happier with.

Minneapolis, MN litigation attorney Jesse Kibort talks about a case that stands out. He notes that he represented a client who approached him several months before resigning from a long-term position at a brokerage. The client sought to leave the firm for a more fulfilling opportunity, but his employment contract included a clause requiring immediate repayment of a loan previously provided by the employer. Additionally, the client believed the firm had not properly accounted for payments he had already made.

Anticipating potential litigation, he prepared a robust defense strategy in advance of the client’s resignation. When the client eventually resigned, he was served with the expected lawsuit. Thanks to careful preparation, he successfully defended the claim, eliminating hundreds of thousands of dollars in alleged debt and securing claim damages against the employer. This outcome allowed the client to transition smoothly into a new career without any out-of-pocket financial burden, ultimately achieving a more satisfying professional path.

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