Mauldin v. WorldCom, Inc.

Human resources director could neither grant nor deny employee's request to accelerate stock options absent express or implied delegation of authority from compensation committee; thus denial of request was not entitled to deference on appeal, and summary judgment for employer was improvident.

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

Between 1994 and 1996, Billy Mauldin entered into four stock option agreements with his employer, MFS Intelenet, Inc. (MFS). Each agreement provided that Mauldin’s options would vest immediately if he suffered diminished responsibility or pay within two years of a change of control of MFS. Thus, after WorldCom, Inc. (WorldCom) acquired MFS in 1996 and allegedly altered the terms of Mauldin’s employment, Mauldin requested that he be allowed to exercise all of his options immediately. When WorldCom denied his request, Mauldin sued. The district court granted summary judgment in favor of WorldCom; we reverse and remand for further proceedings consistent with this opinion.

I.

In May 1994, MFS, which is in the business of providing telecommunications services, hired Mauldin into the position of city operations manager for Houston, Texas. One month later, Mauldin transferred to Los Angeles, California, but he returned to Texas in June 1996 as the city operations manager for Dallas. Mauldin’s responsibilities in Dallas included the design and maintenance of MFS’s telecommunications system. Mauldin also supervised three engineers, as well as a staff of unspecified size, who assisted him with his duties.

More From ALM

Get this essential toolkit -- packed with expert guidance and solutions to help navigate the CTA’s requirements.

Corporate Transparency Act Resource Kit

Brought to you by Wolters Kluwer
Download Now

When you put profits first, you create a structure that allows success to flow throughout your firm.

Revenue, Profit, Cash: Managing Law Firms for Success

Brought to you by Juris Ledger
Download Now

There is no one-size-fits-all model for legal remote work, but there are some considerations that are important for every firm and legal department to address before choosing whether to adopt or update a remote work framework.

The Ultimate Guide to Remote Legal Work

Brought to you by Filevine
Download Now

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

From Data to Decisions

Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends.

Exclusive Depth and Reach.

Law.com Compass includes access to our exclusive industry reports, combining the unmatched expertise of our analyst team with ALM’s deep bench of proprietary information to provide insights that can’t be found anywhere else.

Big Pictures and Fine Details

Law.com Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms’ financials, staffing, clients, news and events.

Pennsylvania Legal Awards 2024

May 15, 2024
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania and Delaware.

Learn More

Consulting Leaders in Technology 2024

May 16, 2024
Dallas, TX

Consulting Magazine recognizes leaders in technology across three categories Leadership, Client Service and Innovation.

Learn More

Legal Innovation Awards 2024

May 23, 2024
London

Celebrate outstanding achievement in law firms, chambers, in-house legal departments and alternative business structures.

Learn More

Health Law Associate CT

Health Law Associate CT Shipman is seeking an associate to join our national longstanding health law practice. Candidates must have t...

Apply Now ›

FINANCE & REAL ESTATE ASSOCIATES - Connecticut Preferred; Remote will be considered

Shipman & Goodwin LLP is seeking two associates to expand our national commercial real estate lending practice. Candidates should have ...

Apply Now ›

ASSOCIATE: Commercial Litigation

Epstein Becker & Green is seeking an associate to joins its Commercial Litigation practice in our Columbus or Cincinnati offices. Ca...

Apply Now ›

Clifford Law Offices, PC

04/29/2024
The National Law Journal

Professional Announcement

View Announcement ›

MELICK & PORTER, LLP

04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS

View Announcement ›

Apruzzese, McDermott, Mastro & Murphy, P.C.

04/11/2024
New Jersey Law Journal

Professional Announcement

View Announcement ›

Mauldin v. WorldCom, Inc.

Human resources director could neither grant nor deny employee's request to accelerate stock options absent express or implied delegation of authority from compensation committee; thus denial of request was not entitled to deference on appeal, and summary judgment for employer was improvident.

Share with Email

Thank you for sharing!

Trending Stories

More From ALM

Subscribe to Law.com