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Rutgers University and Rice settle contractual dispute

New Jersey fans of Rutgers basketball may already be aware that the head coach Mike Rice was fired in April. Since that time, he has been in a contractual dispute with his former employer about just how much money he is owed by the university. With two years still remaining of his contract, the amount of money could have been substantial.

Under his contract, Rice was entitled to 75 percent of what he would have made had he remained head coach for the next two years. In addition, he was entitled to $100,000 for completing the 2012 to 2013 basketball season. Together, the amount could have been more than $1 million.

However, Rutgers University president promised not to pay Rice such an inordinate amount of money. The former coach was fired after a video surfaced showing him abusing the players physically and using racial slurs when the team was practicing. In the end, the New Jersey University ended up paying Rice $475,000.

Anytime a contractual dispute arises between an employer and an employee, both sides may need to be willing to compromise. All of the circumstances surrounding the dispute have to be taken into consideration. In this case, the employee was fired for what most people would say are legitimate reasons; so it would only make sense that he would not be given the total payout of his contract. Even so, Rutgers and Rice did have a contract, and that also needed to be taken into consideration. The goal of negotiations may not always be to walk away completely satisfied; sometimes, it's enough just to walk away with something.

Source: Chicago Tribune, "Ex-coach Rice gets settlement from Rutgers," April 18, 2013

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