Calpine Moves Suit Over KERPs Agreement

Law360, New York (April 24, 2007, 12:00 AM EDT) -- Bankrupt Calpine Corp. has removed a breach of contract lawsuit filed by a former employee from state court to federal court, saying the claims will affect the assets available to creditors.

Joseph Hayden filed his suit against Calpine Corp. and Calpine Merchant Services Co. Inc. last month in Texas. His suit alleges breach of contract and promissory estoppel, and seeks damages and attorneys’ fees.

Calpine pushed for employee incentive plans and severance plans to entice key employees, including Hayden, to stay with the company after it...
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