Jefferies Wins Case Against Banker Who Left $10 Million Job (1)

Jefferies Financial Group Inc. got a win in federal court on Tuesday in its push to collect $4 million from a high-profile investment banker who reneged on his promise to join the firm several years ago.

Although the appeals court in California signaled the decision wasn’t meant to be taken as a precedent, it may still be seen a win for Wall Street’s increased use of so-called breakup fees. The Jefferies provision centers on what’s known in contract law as “liquidated damages,” a predetermined amount of money that a party must pay it if fails to meet a commitment. ...