Opinion ID: 1308260
Heading Depth: 1
Heading Rank: 4

Heading: Failure to Reduce Recovery by Amount of Unemployment Compensation Received by Wooldridge.

Text: Central United urges that Wooldridge's recovery should be reduced by the amount of unemployment insurance benefits that he received following the termination of his employment. We reject this contention. Without deciding the effect of unemployment benefits on the recovery of general contract damages involving employee wages, we are convinced that this is not a matter that detracts from Wooldridge's right to recover the specific sums that are provided in the severance package at issue here. We base this conclusion on the terms of the agreement. We are convinced that it was the intention of the severance agreement that Wooldridge receive the sums provided without regard to any other posttermination remuneration that he might receive from other sources. Similarly, we conclude that damages otherwise recoverable under chapter 91A are not to be reduced by posttermination remuneration from collateral sources. Central United notes that under Iowa Code section 96.5(5) one is disqualified from receiving unemployment benefits for any week for which that person has received a separation allowance or severance pay. It is not altogether clear whether this provision would apply to Wooldridge who did not receive severance pay and, as a result of that omission, was relegated to seeking breach-of-contract damages. We need not decide that issue here. If the statute is applicable, that would only be a ground for the proper administrative authority to seek recoupment of unemployment benefits that have been paid. It is not a matter that serves to reduce Wooldridge's damage claim under the severance agreement or chapter 91A.