City Manager who "terminated" his employment under clouds of a scandal demands his severance pay. See San Antonio Express-News story. Ron Cain, who was City Manager for the town of Windcrest, a San Antonio suburban city, stepped down at the suggestion of the City Council. This was all prompted by a scandal involving his brother and millions of dollars spent or not spent on Rackspace, a large employer in Windcrest. Mr. Cain’s lawyer admits that nothing in his employment agreement provides he would be entitled to severance pay. But, the lawyer adds, the intent of the drafters of the agreement was that Ron Cain would severance benefits if he resigned.
It sounds to me like the newspaper report did not get this quite correct. There is no right to anything just because the drafters of an agreement might have intended it. To the contrary, there is a principle in the law that anything considered but rejected for the agreement was probably deliberately rejected. So, I cannot hazard a guess as to what Ron Cain’s lawyer is suggesting. But, generally, under Texas law, there is no right to severance pay. The only right to severance would be a matter of contract, if there is a contract.
Not to mention that the City Manager’s conduct is being investigated. This request sounds a little "nervy."