Discuss the below:
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? Did it occur here?
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. Hughes worked for ______. (Medtronic/St. Jude Medical)
2. Hughes worked as a ______. (Sales manager/ sales Director)
3. Hughes _____ (Did/did not) have a contract with Medtronic.
4. Hughes sought a position as a sales director for St. Jude. Under Hughes's contract with Medtronic, what is he prohibited from doing? (Looking for a job with a competitor/ Working for a competitor for one year after leaving Medtronic)
5. Is St. Jude a competitor with Medtronic? (Yes/ No)
6. Is the clause in this case commonly known as a noncompete clause? (Yes/ No)
7. 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?
1. (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)
2. (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. (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)
8. Medtronic is suing for wrongful interference with a _______ (Contract relationship/ Business relationship)
9. Who are the parties to the initial contract? ________(Medtronic/ Hughes/ St. Jude) and ______ (Medtronic/ Hughes/ St. Jude)
10. (Medtronic/ Hughes/ St. Jude) _____is the third party who knew about the contract.
11. St. Jude learned about the contract and noncompete clause between Hughes and Medtronic from _____ (Hughes/ Medtronic)
12. It is _____(Likely/ Unlikely) that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
13. St. Jude ______ (Offered Hughes a job/ Offered Hughes a raise) before he left Medtronic.
14. What did St. Jude represent regarding the noncompete clause? That it _____(Was/ Was Not) enforceable.
15. Was the noncompete clause enforceable? (Likely/ Unlikely/ Unknown)
16. Did it matter if the clause was unenforceable? (Yes/ No)
17. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic? (Yes/ No)
18. Is Hughes liable for intentional interference with a contract? (Yes/ No)
19. Why? ______________ (Only the third party who induced another to break a contract is liable/ Only the party who broke the contract is liable)
20. Hughes is _______(Likely/ Unlikely) to be held liable for breach of contract.
21. WHAT IF THE FACTS WERE DIFFERENT?
If St. Jude had informed Hughes that the noncompete clause was enforceable and Hughes still left to come to work for them, would St. Jude be liable for intentional interference with a contract? (Yes/ No / Maybe)
22. (Benefits/ Expenses at the new job) _____ would be another factor the courts would consider.