Jenny and Cherri are the owners of a new company, Sales Coaching 101, which was started to coach people on how to sell products and services. Sales Coaching 101 is not doing too well financially. Unbeknownst to Jenny, Kim has actually been taking about half of the gross revenue from the company and moving it over to her new entity, Velocity Coaching, where she is providing the same exact products and services that Sale Coaching 101 is. Because Sales Coaching 101 is not doing well, Jenny decides to try to hire Jim. Even though she knows the company does not have any money to pay to Jim, she tells Jim that Sales Coaching 101 can guaranty him a salary of $500,000 if he can prove himself in the first few months. Jim accepts the deal and takes no salary for the first three months, in exchange for the guaranteed salary for the next year of $500,000. As Jim starts working, he quickly discovers that Cherri has actually been taking money from the company. Rather than confront Cherri directly, he posts on the Internet that Cherri is a fraudster, she has been stealing money from Sales Coaching 101. He also found nude pictures of her in her desk and posts those online too, claiming that she was also involved in pornography. Jim knows Cherri was not a porn star and that her pictures were personal and private, taken by her ex-husband, but he posts this anyway, knowing it is false. Within a month, Jim figures out that Jenny lied to him about the guaranteed salary. He feels bad for Jenny because of Cherri's actions. He decides to confront Jenny over happy hour. Jim drives Jenny to happy hour where they have several drinks. He finally asks her about the lie and she gets very upset. They leave the bar together. Jim is drunk and starts driving. As he is driving, he starts to swerve and almost hits a pedestrian. Jenny grabs the wheel and over-corrects. The car hits a wall and both Jenny and Jim suffer severe injuries. When Jim wakes up from his coma, he tells Jenny he knew she lied, but that also Cherri has been stealing money. Cherri discovers the internet postings while she is googling her name and comes to the hospital confronting both. Jim threatens to sue, Cherri threatens to sue and Jenny threatens to sue. Who has what claims against who and why? Are there any defenses?

Identify the fact pattern

Identify the causes of action

Explain what defenses may be available

Explain whose side you would be on and why