Jackson Jambalaya

The Louisiana Supreme Court ruled Friday that former LSU Head Football Coach must give half of his $17 million buyout to his ex-wife, Kelly. 

Orgeron coached the Tigers when they won the national championship for the 2019 season.  LSU extended his contract in early 2020.  Orgeron and LSU agreed to a buyout clause.  However, the Cajun coach was unable to duplicate his success as the football team's performance fell off a cliff.  LSU fired Orgeron in 2021 and paid Orgeron $17 million.  However, there was the matter of the ex-wife, who claimed she was entitled to half of the buyout amount.  

Kelly Orgeron sued and lost as Ed Orgeron successfully argued she deserved no share of the buyout since it was paid after the divorce.  Kelly did not take her ball and go home but instead appealed. 

It is said timing is everything and such is the case in well, this case. The Court held: 

The liquidated damages were a contractual benefit guaranteed to the defendant by his employer, which became effective on January 14, 2020, forty-three (43) days before the defendant filed a petition for divorce on February 26, 2020....

 The lower courts failed to recognize that even if the Employment Agreement could be considered a “new” obligation rather than a fulfillment of the requirements of the Binding Term Sheet, because it was made effective during the existence of the community, the contract is a community asset in which both husband and wife have an interest.

This particular passage spelled doom for Ed Orgeron: 

The liquidated damages clause was one all parties likely hoped would never be used. But it had its value as a type of insurance, a security blanket, if you will, or a “golden parachute.” The coach, and his wife, were given the comfort, the assurance, the confidence, and the peace of mind, that even if his coaching was terribly unsuccessful, or even if for other reasons that could not be labeled as “for cause,” the school felt the need to part ways, he would not do so empty handed. This comfort and peace of mind inured to the benefit of both husband and wife in the college football coaching business. Because this security blanket was provided for in the Employment Agreement, effective during the community, it was community property as would be any other community asset.

The Court ruled 5-2 in favor of Kelly Orgeron.  Ed Orgeron's attorney, Randy Smith, said he will seek a re-hearing from the Court.