Tortious Interference?

Employee John Doe has been working for XYZ  for two years, being recognized as nothing more than one of the many cogs in the wheel.    As a result of John's role within the company, he frequently comes into contact with a large number of company clients.  Then one day, something extraordinary happens. One client, Acme, realizes that John is a rising star!  After ensuring that no non-solicitation is being violated with XYZ, Acme extends an offer of employment to John.  John is excited about this new opportunity. It's the next logical step in his career and a nice increase in his compensation.  After all of the necessary pre-employment requirements are completed and the hire date is set, John submits his resignation to XYZ.    But this story doesn't stop here and there's no Cinderella ending.

The President of XYZ is astounded.  Why would you quit?  You're one of our rising stars.  Those last six words astound John, he's never heard them.   The President offers him more money to stay.  The office he'd like to have.   But in John's eyes, this recognition comes a bit too late.  After a lengthy discussion, John is more dedicated than ever to begin his new career with Acme.

Behind the scenes, the following happens.  While no non-solicitation exists in their contract, the President of XYZ calls Acme and schedules a meeting with them.  After a heated meeting and threats of pulling business, Acme is forced to rescind the offer of employment to John Doe.  John, somewhat reluctantly, remains in the employ of XYZ. 

Two months later, still at XYZ, John Doe hasn't received that proposed increase and the office has gone to another employee. 

Would you view this as Tortious Interference by XYZ?   Tortious Interference:  n.  Encouraging a breach, infringing on another's agreement, interfering with contract or contractual commitments, wrongful interference with business relationships.  For there to be liability under this tort you must show some improper or illegal actions as an intermeddler. You must evaluate whether actions, or contemplated actions, can be construed to have an appearance of impropriety.

For the laymen, tortious interference occurs when a person damages another person's contractual relationships or other business relationship on purpose.  Liability ensues where proof of economic injury exists.  The wrongful interference with some right or economic opportunity belonging to a person which causes that person some monetary loss.  Interference with prospective economic advantage.

 

What is your call on this?  Tortious Interference or No?

 

Fair competition is always legal.  An employee may leave employment and avail himself of whatever expertise he has acquired from his former employer.  As long as there is no use of former employer's trade secrets.

For "John Doe."