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    The appellate court affirmed, based in principal part on the employee’s conduct in ignoring the seemingly obvious mistake.

    Not surprisingly, the Court did not ascribe much credence to the employee’s affidavit, in which he stated his belief that severance pay in excess of thousand per week was “fair based on my 28 years of service.” The case highlights the importance of proofreading legal documents for easily avoidable drafting errors.

    A parent company with a controlling interest in a subsidiary consolidates the financial statements of its subsidiary into its own financial statement.

    A combined financial statement shows financial results of different subsidiary companies from that of the parent company.

    When the company discovered the error and declined to honor its “promise”, the employee sued to enforce the agreement.

    This allows an investor to check the overall health of the company in a holistic manner rather than viewing the individual company's financial statements separately.These insurance subsidiaries or affiliates were often domiciled offshore, especially in Bermuda or the Cayman Islands.The risk management benefits of these captives were primary, but their tax advantages were also important.Countries which have adopted a tax consolidation regime include the United States, France, Australia and New Zealand.Countries which do not permit tax consolidation often have rules which provide some of the benefits.

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