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Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. Which type of interference was most likely the basis for this suit?
Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic.
1. Is the clause in this case commonly known as a non-compete clause?
2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?
A.There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
B. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
C. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
3. Medtronic is suing for wrongful interference with a _______.
4. Who are the parties to the initial contract?
5. _____is the third party who knew about the contract.
6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from _____.
7. It is _____ that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude ______before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause?
10. Was the noncompete clause enforceable?
11. Did it matter if the clause was unenforceable?
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
13. Is Hughes liable for intentional interference with a contract?
14. Why?
15. Hughes is _______ to be held liable for breach of contract.
16. What if the effects were different?
17. _____ would be another factor the courts would consider.

Sagot :

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Answer:

1. Is the clause in this case commonly known as a non-compete clause?

  • Yes, this is a non-compete clause. Hughes's contract prohibited him from working for a competitor for one year after leaving Medtronic, and St. Jude is a competitor with Medtronic.

2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?

All the options given (A, B and C) are the same.

The three elements are for determining wrongful interference are:

  • A valid, enforceable contract must exist between two parties.
  • A third party must know that this contract exists.
  • The third party must intentionally induce a party to breach the contract.

3. Medtronic is suing for wrongful interference with a AN EMPLOYEE.

4. Who are the parties to the initial contract?

  • Medtronic and Hughes.

5. ST. JUDE is the third party who knew about the contract.

6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from HUGHES.

7. It is TRUE that St. Jude intentionally induced Hughes to breach his contract with Medtronic.

8. St. Jude OFFERED HUGHES A BEW JOB  WITH A BETTER SALARY before he left Medtronic.

9. What did St. Jude represent regarding the noncompete clause?

  • That it was unenforceable

10. Was the noncompete clause enforceable?

  • Yes

11. Did it matter if the clause was unenforceable?

  • No

12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?

  • Yes, that is why we call it wrongful interference.

13. Is Hughes liable for intentional interference with a contract?

  • No

14. Why?

  • because he was a party in the original contract.

15. Hughes is NOT to be held liable for breach of contract.

16. What if the effects were different?

  • If Hughes had been informed that the noncompete clause was valid, then it wouldn't be wrongful interference.

17. If HUGHES HAD QUITTED MEDTRONIC BEFORE GOING TO SEEK ANOTHER JOB TO ST. JUDE IT it would be another factor the courts would consider.

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