Question
During the 1997-98 season, Hunter Tilson played hockey for the Manitoba Broncos of the Western Junior Hockey League, scoring 30 goals and assisting on another
During the 1997-98 season, Hunter Tilson played hockey for the Manitoba Broncos of the Western Junior Hockey League, scoring 30 goals and assisting on another 35 goals. In recent years, many players in this league had been offered contracts to play professional hockey upon completion of their junior eligibility. They remained eligible to play in the League until they reached age of 21.
In October of 1996, Tilson signed a 2 year contract with Manitoba Broncos Hockey Club that was to terminate before the start of the hockey season in the early fall in 1998. However, at the beginning of training camp in September 1997, the manager of the Broncos presented Tilson and the other players with a new three year contract. The contract contained a new set of standardized conditions of employment prescribed by the league and, by agreement among the Clubs, was presented to all players in the league on a "take it or leave it" bases; the players understood that if they did not agree to waive their existing contracts and sign the new one, they would not be able to play in the league and their professional prospects would be severely harmed.
The new contract included the following clauses:
- This contract superseded all previous contracts between the Club (Medicine Hat Broncos Hockey Club) and the player (Hunter Tilson)
- The Club employs the Player as an apprentice hockey player for the term of three years commencing 1998 and agrees, subject to the terms of this contract, to pay the Player a salary of $150.00 per week plus an allowance for room and board of $200.00 per week, these payments to terminate at the last scheduled game of the Club each year.
- The Player acknowledges that if his hockey skills and abilities develop to the degree that he is tendered and accepts a contract of employment with a professional hockey club, then the Club shall be entitled to compensation for its contribution to his development and, in consideration for such contribution by the Club, the Player agrees to pay the Club a sum equal to 20 percent (20%) of his gross earnings attributable to his employment with such professional hockey club during a period of three (3) years beginning on the date at which he first represents and plays for that professional hockey club.
- The Player agrees that during the term of his contract he will loyally discharge his obligations to the Club and that he will not play for or be directly or indirectly employed by or interested in any other amateur or professional hockey club. The Player agrees that the Club shall have the right, in addition to any other legal remedies that the Club may enjoy, to prevent him by appropriate injunction proceedings from committing any breach of this undertaking.
- The Player acknowledges that, if in breach of the his obligations under Section 4, the Player plays for any other hockey club, the Club will lose his services as a skilled hockey player and will suffer a loss of income from reduced paid attendance at hockey games and broadcasting rights and that a genuine estimate of the amount of this loss would be the salary that the Player can earn as a hockey player for any other amateur or professional club.
The manager of the Broncos advised the players to take their copies of the contract home and discuss the contract with their parents. He added that a signed copy had to be in his hand by the beginning of the following week. Tilson's parents actively encouraged him to sign the contract and Tilson returned a signed copy of to the manager on September 5, 1997.
Tilson played for the Broncos in the 1997-98 season until March 21, 1998. On that day he became 18 years of age, the age of majority in Alberta. On March 22, 1998, in a letter to the Club written by his lawyer, Tilson repudiated the contract "without in any way acknowledging the validity thereof." On the same day, in the company of his lawyer, he signed a Pan-American Hockey Conference contract with the Calgary Whippets Hockey Club Ltd for three seasons commencing September 1, 1998 providing for the annual salary of $70,000 (1998), $80,000 (1999) and $90,000 (2000).
At the time, the 1997-97 season was almost over and the Broncos had qualified for the playoffs and were the favourite to win the Junior Cup. Tilson offered to stay with the team at his regular weekly salary and allowance during the 1998 playoffs if the Broncos Club would sign an agreement that Tilson's
three year hockey contract with it would expire when the playoffs ended. The Broncos refused and brought an action (litigation) against Tilson, seeking an injunction to restrain him form breaking his contract or in the alternative, damages of $150,000 representing the measure of its loss for being deprived of his services for the next two years.
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QUESTIONS(answer the following each question in more than 200words with proper citation )
Q1. What are the legal issues involved in this case? (10Marks)
Q2. What do you believe will be the probable outcome of the litigation ? Cite any relevant cases. (10Marks)
Q3.Discuss the facts of this case in relation to the fact that contracts are "voluntary" and explain how duress and independent legal advice might impact the parties in the future.(10Marks)
Q4. What are some lessons business professionals can learn from this case? (10Marks)
NOTE: 10Marks will be assigned to references
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