Wednesday, January 11, 2006
The intersection between contract law and the employee's duty of loyalty is going to get a thorough investigation in the upcoming suit by advertising giant Saatchi & Saatchi against former exec Mike Burns. Saatchi claims that Burns violated both his contract and his fiduciary duties when he allegedly induced 17 agency staffers to leave the firm with him to start a new venture. Burns was the lead rep on Saatchi's General Mills account, and all of the 17 either worked on the General Mills account or had personal ties to Burns.
The judge apparently ruled that Burns' departure itself didn't violate the noncompete clause in his contract, but that his alleged piracy of other individuals might have done so.