Reinstatement

An equitable remedy in employment cases requiring an employer to restore a wrongfully terminated or demoted employee to their former position. Courts may award reinstatement in lieu of or alongside monetary damages, though it is often unavailable or impractical due to hostility between the parties or elimination of the position. From a funding standpoint, reinstatement reduces the monetary damages pool, and funders underwriting employment cases should model recovery scenarios with and without reinstatement as an available outcome.

Because reinstatement reduces the monetary damages pool when courts order it in lieu of or alongside compensation, funders model recovery scenarios both with and without reinstatement as an available remedy, particularly in cases where the position still exists and hostility between the parties has not made reinstatement clearly impractical. A funder underwriting a case where reinstatement is likely will typically apply a lower expected monetary recovery than an otherwise identical case where reinstatement is unavailable.