The Illinois Seventh Circuit Court of Appeals has agreed with the federal district court in dismissing the lawsuit brought by James Nation. Mr. Nation served as the CEO of the Spring Air Co., which owned and licensed a mattress brand.
After the company was acquired by HIG Capital in 2007, Mr. Nation accepted a severance plan, which would have paid him $1.2 million over 15 months provided he did not work for Spring Air’s competitors through Dec. 31, 2008. In August 2008, the company stopped making the payments because of financial shortfalls.
In January 2008, Spring Air requested additional financing from American Capital and HIG. With $40 million of new capital, American Capital acquired four of the seven board seats. By a vote of this new board in August 2008, the severance payments to Mr. Nation and three other former executives were stopped. In September 2008, Mr. Nation began work at Serta in violation of the severance agreement.
Kreisman Law Offices Professional Corporation

