Legal Definitions - after-acquired evidence

After-acquired evidence refers to information about an employee's serious misconduct that an employer discovers only after the employee has already been terminated. This evidence is significant because, had the employer known about the misconduct during the employee's employment, it would have provided a legitimate and independent reason for dismissal.

While after-acquired evidence does not erase any potential wrongdoing by the employer in the initial termination (for instance, if the termination was discriminatory), it can significantly impact the outcome of a subsequent lawsuit brought by the employee. Employers can use this evidence to limit the amount of damages an employee might receive or to strengthen their defense against claims like wrongful termination or discrimination, arguing that the employee would have been fired anyway for a legitimate, non-discriminatory reason.

• Misuse of Company Property: A marketing manager is fired, and they subsequently sue the company, alleging their termination was due to their age. During the legal discovery process, the company uncovers evidence that the manager had been regularly using company credit cards and expense accounts for personal vacations and luxury items, submitting them as business expenses.

  How this illustrates the term: This evidence of financial misconduct, discovered after the manager's termination, is after-acquired evidence. Even if the age discrimination claim has some merit, the company can argue that the manager would have been legitimately fired for expense fraud, which could significantly reduce the damages awarded to the manager.

• Violation of Confidentiality Agreement: An engineer is terminated, and they file a lawsuit claiming wrongful termination, asserting there was no just cause for their dismissal. After the termination, the employer discovers emails and documents showing the engineer had been secretly sharing proprietary design specifications with a rival company, a clear breach of their employment contract and confidentiality agreement.

  How this illustrates the term: The engineer's breach of confidentiality is after-acquired evidence. The employer can use this to defend against the wrongful termination claim, demonstrating that regardless of the initial stated reason for termination, the engineer's actions provided a legitimate and independent basis for dismissal, which would have led to their firing had it been known earlier.

• Professional Licensing Fraud: A therapist is fired from a mental health clinic, alleging the termination was in retaliation for reporting unsafe working conditions. During the investigation for the lawsuit, the clinic discovers that the therapist had falsified their professional license credentials, having never actually completed the required supervised hours for full licensure in that state.

  How this illustrates the term: The discovery of the therapist's fraudulent licensing is after-acquired evidence. The clinic can present this to argue that the therapist was not legally qualified for their position and would have been terminated for this serious professional misconduct, potentially limiting the therapist's ability to claim significant damages for the alleged retaliation.