Question
Julie Patrick, a manager of marketing and public relation for Great Instruction, GI, Inc., an architect firm who specialized in designing floor plans for art
Julie Patrick, a manager of marketing and public relation for Great Instruction, GI, Inc., an architect firm who specialized in designing floor plans for art galleries and museums. Julie was terminated when her position was eliminated due to a corporate restructuring. Julie had signed a contract with Great Instruction agreeing not to work for another architect firm in the same area, if she to resign or get terminated, for twelve months. She also agreed not to, and never discloses any of the firm's confidential information. Upon her termination, and as part of her contract, Julie was paid $500,000 in severance.
Later, and after twelve months of her termination, Julie found a new job with anther architect firm in the same area with a salary of $150,000 but she shared some of Great Instruction's confidential information with her new employer. GI filed a suit in a federal district court against Patrick, alleging that she had disclosed confidential information to a subsequent employer, asking for $500,000 and her $150,000 that she received from her new employer. Patrick retained GI-related documents on her private computer for five years after her termination but deleted them 48 hours before an inspection of her hard drive. The court awarded GI damages that included the $500,000 payment and $150,000. Julie appealed.
The U.S. Court of Appeals for the Eighth Circuit held that the award of the $150,000 was improper. "In an action for breach of contract, a plaintiff may recover the benefit of his or her bargain" but "the law cannot elevate the non-breaching party to a better position had the contract been completed on both sides."
- What was the legal basis for GI's suit against Patrick? What type of damages did GI seek? And do you think the court awarding GI the amount it sought in damages was fair? Explain your answers
- What were Patrick's arguments against the amount of damages that GI requested? Explain in detail
- What would be the measure of damages if Patrick were liable for negligence? Fully explain
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