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Law Offices of Jonathan M. Cooper

Possible Breach of Contract Could Cost Ex-CEO


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1/1/2016
Jonathan Cooper
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A New York breach of contract usually describes in-detail where and when an employee can work following a departure from a company. For example, the former employee’s new company can’t be too close geographically or in a similarly competed market, unless a specified amount of time has elapsed. 

So, how does an employee take his experience in a specific field to a new job without breaking the law? Let’s say someone gains experience and knowledge in the field of banking in New York. After leaving his banking position, can he legally only find a new job farming in Kansas? While the example is a bit drastic, it points out an important question: What is the point of gaining experience if you can’t use it at a new place of employment?

Railroad company Canadian Pacific is trying to rebuild itself from the top down by placing former CEO of Canadian National Railway Company Hunger Harrison at the wheel. But there has been a legal battle over the last several months, as Canadian National has sued Harrison for breach of contract over his non-compete agreement. They are worried that he gained trade secrets while working for Canadian National that he will use against his former company to benefit Canadian Pacific. 

While Canadian Pacific is simply trying to move forward, Canadian National is suing to halt pensions paid to Harrison if he continues to pursue a career with its rival company. The company can’t be blamed for trying to protect itself from damages, but how can an experienced railroad CEO find suitable employment without using the experience he has gained? There may not be a perfect solution, though everyone aims to do what is best for himself and his company. 

If you have questions about what should be in breach of contract, or the important details of a non-compete agreement, the Law Offices of Jonathan M. Cooper may be able to help. A New York business litigation attorney experienced in breach of contracts, he can offer a free consultation to discuss your options while you are trying to move forward. You can also request a complimentary copy of his book online, 3 Reasons That Your Employment Agreement May Not Be Worth The Paper It's Printed On.


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