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PROUTY v. GORES TECHNOLOGY GROUP

No. C043764.

18 Cal.Rptr.3d 178 (2004)

121 Cal.App.4th 1225

William PROUTY et al., Plaintiffs and Appellants, v. GORES TECHNOLOGY GROUP et al., Defendants and Respondents.

Court of Appeals of California, Third District.

August 30, 2004.

Attorney(s) appearing for the Case

Cannata & Feldman and Aaron R. Feldman, San Francisco, for Plaintiffs and Appellants.

Quinn Emanuel Urquhart Oliver & Hedges, Jon Robert Steiger, Los Angeles, and Scott G. Lawson, San Francisco, for Defendants and Respondents.

NICHOLSON, J.

A new parent company terminated plaintiff employees upon its purchasing their employer. The employees sued, claiming the parent company violated the terms of its purchase contract with the prior parent company regarding termination of employees and severance pay. The trial court granted summary judgment against the employees, concluding they were not third party beneficiaries who could recover under the contract. We disagree and reverse.

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