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Jack Falfas Back To Work Order--Damages Remanded to Court

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Perhaps Cedar Fair will take advantage of "executive bonus claw back provisions" to cost recover part of the losses due to the Falfas episode. When performance bonuses are granted and paid based upon false numbers, the SEC allows for a claw back of the overpaid benefit. If I were Richard Kinzel, or his council, I would be concerned. Given Mr. Kinzel may have filed a false report with the SEC concerning the Jack Falfas departure, well, it could result in recovery efforts by Cedar Fair.

For an interesting read concerning poor corporate governance (involving another party with Cleveland ties) please see this recent Plain-Dealer article:


The SEC moved to strengthen corporate governance by allowing for executive bonus claw backs following the shenanigans at Saks Fifth Avenue. In the Saks case the resigning executives who allegedly engineered the fraud, and profited by receiving quarterly bonuses, for which they did not in reality qualify, kept the ill gotten gains.

Saks was not by any means the only such case of poor corporate governance related to executive over-payments. But it helped end the practice and spur the SEC onto tighter rules and regulations.

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  • 6 months later...

I think the whole issue remains the reinstatement of Falfas, something that Cedar Fair does not want. Since Ohio is an At Will State, can't they fire an employee without cause? I understand the backpay and benefits issues, but I don't see how a court can order a company to reinstate/employee an individual.

Just another example of Kinzel loosing Cedar Fair more Nickels.

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  • 4 months later...

Preview of Supreme Court Ruling here:


Note this is not the published and final ruling--some minor changes may occur prior to it being reported [published].

This is a bad omen for binding arbitration. This sets the mold for challenge of a variety of rulings by arbitration panels. It is the job of those drafting agreements to be clear as to the terms, conditions, and remedies of those agreements. The court should not have placed its noise under the tent of arbitration. No abuse legal occurred here. Just poor drafting of an employment contract.

For the pitiful, detail starved, Sandusky Register report please see:


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Jacob T. “Jack” Falfas is not entitled to be reinstated as chief operating officer of Cedar Fair, owner of Sandusky’s Cedar Park, the Ohio Supreme Court unanimously ruled today.


Why is that sentence so funny to me?

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