Question
Hi, I'm working on a practice question. Please help. MaxMaloneis57yearsoldandworksatCarterColognecompany.HeisaSeniorManager ofSales makingasalaryof 5300,000peryear,plus bonuses andbenefits.Hehasworked forCarter Colognefor L9years and plannedtoretireatage55.Max wasastaremployee at CarterCologne,startingasamail clerk,thenbecominga salesassociate,thenan
Hi, I'm working on a practice question. Please help.
MaxMaloneis57yearsoldandworksatCarterColognecompany.HeisaSeniorManager ofSales
makingasalaryof 5300,000peryear,plus bonuses andbenefits.Hehasworked forCarter Colognefor
L9years and plannedtoretireatage55.Max wasastaremployee at CarterCologne,startingasamail
clerk,thenbecominga salesassociate,thenan assistant manager,thenaregionalmanager, andthen
becameaSeniorManagerinthecompanyfiveyearsago.Senior Managersarejust belowVice-
Presidentsinthehierarchystructureat CarterCologne.ThecompanyhadS32millioninsalesin2022
fromits luxurylineofmen'scologne.
ThechiefExecutiveofficerof theCompany,Skip Lines,had beenworkingtochangethedemographicof
thosewhopurchasedCarter colognes. Many menpurchased Carter Cologne inthe1950's and hadused
it throughouttheir lifetime,butthe company's clienteleisaging, and itssaleshavedeclinedan average
of$5millioneachyear since 2019 becauseitsloyalcustomersarebuyinglesscologne.lnaddition,the
company'spackaging andmarketingcampaigns areoutdatedandthe younger generationofmenare
notbuying Carter Cologne.
lnDecemberof2022, SkipLinessent an emailtotheVice-PresidentofMarketing,BobBills,and
informedBobthathewantedtorevampthe companybychangingthe company'spackaging,updating
itsmarketingcampaigns, andreducingexpensesbygetting rid of everySeniorManagerovertheageof
50,whileatthesametimeconsolidating theSeniorManager positionsintonewrolesentitled
"Directors."SkipwantedtoreplacetheSenior Managerswithyoung millennials who would workfor
lessmoneydoingthesame andadditional workas"Directors."Bobsent areply emailtoSkip,informing
himthatthisplansounded likeagreatidea andthatBobwould talktoHumanResourcestoinformthe
company's15Senior Managerswho wereovertheageof50thattheiremploymentwasterminateddue
todecliningsales.
OnJanuary 20, 2023, Max wasapproachedbysomeonefromHRwhoinformedhimthatthe company's
saleswere decliningandthuslayoffswerebeingmade.Max wastoldthathewas beingterminated
fromhispositionand had48hourstocollecthisthingsand closeoutanyprojects or communications
thathe neededtoinordertocloseout his.iob.WhenMaxwentbacktohisofficetobegin cleaningout
hisdesk,hissecretary(5ally)informed himthatsheoverheardSkip'ssecretary talkinginthebreakroom
aboutan emailthatSkipsenttoBobaboutaplantofireallof the company'sSenior Managersoverthe
ageof 50 and replacethem withyoung millennialsinanew rolecalled"Directors."Sally saidthatMax
wasthe firstSeniorManager who wouldbeterminated,andtheremaining14 Senior Managerswould
befiredoverthenextl50days.SallyalsoinformedMaxthatthe companyhadalready hired Max's
replacement, whowas 33-yearoldLex,an assistant manager in one ofthe company'ssaleslocations
whoagreedtobeaDirector ofSalesforasalarythatwas 30%lower thanwhatMax was paid.
Maximmediatelycalled anemergency meetingwithhisteam, comprisedofthecompany'stopcologne
makers and keyemployeeswhohadcritical relationshipswithCarter Cologne's biggest
distributors/customers.Maxtoldeveryone onhisteamthatSkipfiredhim,thatskipwasaliaranda
thief who stoleMax'sjob,thatSkipwasstealingmoneyfromthe company,and wascheating investors
byfalselytelling themthatsalesweredeclining.Max alsotoldhisteamthatSkipwashiring younger
managersbecause Skipwasasexualpredatorand was goingtoharassevery new manager hiredasa
"Director."MostofthatfactsMaxcommunicated were nottrue,butMax wasinfuriatedand saidthese
things aboutSkipinordertogetbackat himandtoharmCarter Cologne.Becauseofhispositionas
2SeniorManager,Maxknewwhateachof thesekey employeeswere makingin salary, and knewthat
theywere working on newCarter colognesthatweresettobe released inthenext coupleof weeksthat
wouldcompriseover half of the company'srevenuefor2023.
Maxtoldeach persononthisteamthathe was goingtostartacompeting cologne companyandthatif
theyjoinedhim,hewouldpaythemmore than what theyarecurrently makingandthatthey could
makenewandexcitingcolognesatMax'snew company,andsellthemtoCarter Cologne'sbiSSest
distributorsunderanew company createdbyMax. Atotalof15ofMax's20keyemployee team
members agreedto followMax andimmediatelyterminated theiremploymentwith cartercologne.
Maxleft cartercolognethenextday,taking thecompany'stopcolognemakers and keyemployeeswith
him, alongwith theirrelationshipswithCarter Cologne's biggestdistributors.
WhenSkipfoundoutaboutwhatMax haddone,hesaid,"lknewthose overpaid, oldmanagerswere
trouble!"andhecontinuedwithhis planto fireall Senior Managers overtheageof50overthenext150
days.
ThenewcolognethatCarter Cologne was settorelease inafewweekscouldnotbemanufacturedor
sold because nootherindividuals atcarterknewpreciselyhowtomanufactureit.Similarly,no oneat
Carter Colognecould getits biggestdistributorstocallthemback inordertosupplythemwith other
carterfragrancestosell because allof theliesthatMaxtold tohisteam about skiphad beenrepeated
severaltimesinthe cologne industryandthesedistributorsnolongerwantedtoworkwithSkipor
carter cologneanymore.As aresult,Cartercolognelost 50%ofitssalesfor thefirst quarter of2023as
wellas20ofits keycustomers/distributors.
Max was never abletogetfundingto starthlsnewcolognecompanyand allof the employeeswho
followedhimhadto findnewjobsatother companies.Maxinterviewedwithotherretail companiesto
obtain anotherseniorsalesmanagerposition, buteach company waseither nothiringaSeniorManager
position or could not meetMax's salaryrequirementand bonusstructurethathe made atCarter
Cologne.Needingtopay hismortgage,Maxtookajobasa baristaatalocalcoffeeshop,makingcompanies.
OnMarch30,2023,Max sued Carter Cologne andSkip,and Carter Cologne andSkipfiledacounterclaim
against Max.
1.Whatpotentialcause(s)of action/legalclaim(s) does Max have againstCarterCologne andwhat
aretheremediesforsuchcause(s)ofaction?
a.Youdonotneedtolisttheprimafacieelements for thecause(s)of action/legalclaim(s);
you onlyneedtolistthecause(s)of actionby name.
b.ldentifyanddefinethe potentialremediesforsuch cause(s)of actionthatMaxhas
againstCarterCologne andexplain howall suchremedieswillbedeterminedor
measured.
Whatpotentialcausesof action/legalclaims doescarterColoneand/orSkiphave againstMax
andwhataretheremediesforsuchcausesof action?
a.what are thecausesofaction/legaIclaims;listthecausesof actionby name.
b.ldentifyanddefinethe potentialremediesforeachcauseofactionthatCarterColoBne
andSkiphave against Max andexplain howall suchremedieswillbedeterminedor
measured.
3.DoeitherMax,skip, orcarterCologne have good argumentstoseekpunitivedamages?
a.lfso,explain who outofthe three individualsismostlikelytoobtainsuch damages and
why.Youonlyneedtoanalyzeapunitivedamage claimforone party.
4.AfterMaxleftCartercologne, the company started terminatingtheremaining14Senior
Managerswho wereovertheageof50.EachtimeaSeniorManager overtheageof50 was
terminated,heorshewas replacedwithamillennial whowasbetweentheagesof30 and 40
andwhoagreedtoasalarythatwasatleast25%lessthanthemanagerswhowerebeingfired
werepaid.These14Senior Managersapproachedalawyer on March30, 2023aboutfilinga
lawsuitagainstCarterCologne andSkip.Ofthe14Senior Managerswhohavenotyetbeen
fired, they wanttostopcarterColonefrom firingthem.Ofthe14seniorManagerswhohave
alreadybeenfired, they want theirjobback at CarterCologne.Theywanttoknowiftheycan
fileacomplaintand moveforrelief rightaway oncethe complaintisfiledandthelawsuitis
started.
- Explainwhat specificreliefthesemanagersmightaskforin apreliminaryjunction,and
- Analyzewhether theseSenior Managerswouldlikelybe successful inobtainingthe
- specificpreliminary injunctive reliefthattheyseek.
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