French Bytes COMMON FACTS French Bytes is a small computer and electronic company located in Manhattan. French Bytes specializes in selling computer and software services to small French-speaking businesses within the United States and adjacent Caribbean islands. Klaus Blanc is the owner of French Bytes. Although he was born and raised in Germany, Klaus studied at the Sorbonne and has always loved French culture and language. Klaus came to the United States to attend graduate school at the prestigious Massachusetts Institute of Technology (MIT). After graduating in 1974, he founded French Bytes. French Bytes now nets ten million dollars annually. The firm employs fifty French-speaking employees from France. There are ten full-time salespersons who work on a 5% commission basis. In 1997, Guy Guerlain was hired by French Bytes as a software designer. Like all the other French Bytes employees, Guy speaks fluent French. However, unlike the other employees, Guy is from Quebec, Canada. After a year and a half as a software designer, Guy wanted to earn more money. He requested, and Klaus reluctantly granted him, a transfer to a sales position. However, Guy found himself working twice as hard without a commensurate increase in his income. Guy blamed his failure on the territory he was assigned and asked for another territory. Klaus questioned Guy's ability as a salesperson and decided not to risk giving him another assignment. After a year as an unsuccessful salesperson, Guy left French Bytes and started his own company, Megabytes Francais. Like French Bytes, Megabytes Francais specializes in selling computer and software services to small French-speaking companies. Klaus heard from one of his salesmen that they had lost a former customer to Guy. Klaus is concerned that Guy may have stolen client lists and programs that were developed for French Bytes and wants to protect his company. Klaus retains Richard Banks. Banks applies for an injunction in a local New York court. Guy hears that Klaus is considering filing a suit against him. He is outraged. Although he had never complained, he wonders if Klaus discriminated against him because of his nationality. After being served with the injunction motion, Guy retains Peter Winn. At their first appearance in Court, the parties are ordered to mediation before Jack Neutral, a well-respected mediator.

CONFIDENTIAL FACTS for Defendant Guy Guy tells his attorney Peter that he does not like being an independent entrepreneur. Guy has many connections in the Canadian community, but he is quickly discovering that he does not have the sales skills needed to maximize those connections. Guy prefers the stability and certainty of being a salaried software designer to the uncertainties and pressures that go along with building your own business. Guy does not want to fight anybody, but nor does he want to be treated unfairly. One of Klaus' customers, however, did switch to Guy's new company but Guy never solicited him. The customer called Guy when the customer learned that Guy had left French Bytes to start his own company.