Legal Definitions - Severance

Severance refers to the act of separating something that was previously joined or grouped together. In a legal context, this term has a few distinct applications:

• When discussing court proceedings (both civil and criminal cases), severance means a court's decision to separate different parts of a lawsuit, different charges against an individual, or different defendants, allowing them to be tried or handled independently. This is often done to ensure fairness, prevent confusion, or streamline the legal process.
• In employment law, severance refers to a payment made by an employer to an employee upon the termination of their employment. This payment is typically provided in addition to an employee's final wages and accrued benefits, often in exchange for the employee waiving certain legal claims against the employer.

Here are some examples illustrating the concept of severance:

• Imagine a situation where a person is charged with two very different crimes: embezzlement from their former employer and a separate charge of reckless driving from an incident months later. A judge might order the severance of these charges, meaning they would be tried in separate criminal trials. This is because the evidence, witnesses, and legal arguments for financial fraud are entirely distinct from those for a traffic offense, and trying them together could confuse a jury or unfairly prejudice them against the defendant on one charge due to the nature of the other.

  This illustrates severance in criminal procedure, where unrelated charges are separated for independent trials to ensure a fair process.

• Consider a large construction project where a homeowner sues both the general contractor for failing to complete the work on time and a specific subcontractor for installing a faulty plumbing system. The court might decide to sever these claims. The claim against the general contractor involves contract breaches and project management, while the claim against the subcontractor involves product liability and installation defects. Trying these as separate actions (severance of claims) could make each case more manageable and clearer for the jury, as they involve different legal standards and evidence.

  This example demonstrates severance in civil procedure, where distinct legal claims within a single lawsuit are separated for individual resolution.

• A technology company decides to close one of its research and development divisions due to a shift in business strategy. All employees in that division are informed that their positions are being eliminated. As part of their departure package, each employee receives a lump sum payment calculated based on their years of service, in addition to their final paycheck and unused vacation time. This payment is offered in exchange for the employees signing an agreement releasing the company from any potential legal claims related to their termination.

  This scenario exemplifies severance in employment law, where a payment is provided to employees upon job termination, often in exchange for a waiver of rights.