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Officers Can Be Tried For Luring Away Independent Contractors

Thursday, October 04, 2007 12:52 pm

Officers Can Be Tried For Luring Away Independent Contractors

A U.S. District court in California ruled that corporate officers may be tried personally for a contract breach on the basis of non-disclosure/non-compete agreements they have signed. It also found the defendants triable for breach of implied covenant of good faith and fair dealing and a number of related charges. The case at hand may also test a company's ability to prevent other firms from luring away its independent contractors and using its intellectual property without permission.

GiveMePower Corp. alleged that Pace Compumetrics (Pace) intentionally misled it when, starting in December 2006, the two companies entered into a contract in which GiveMePower was to provide drafting and surveying services making use of its proprietary PowerCAD drafting software. According to the allegations, Pace's actual intent was to lure away GiveMePower's independent contractors an [...]

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