Question

OmniHealth, a national biotechnology firm, executed a three-year written employment contract with Edgar, who was to be in charge of the research and development division responsible for developing new drugs, at an annual salary of $350,000. At that time, OmniHealth was working on several different highly experimental drugs, trying to bring them to market. OmniHealth was anxious to protect its trade secrets and Edgar agreed in his employment contract that he would not work for any of OmniHealth’s competitors anywhere in the United States for a period of one year after his employment terminated. At the end of the second year of Edgar’s employment, Edgar resigned and promptly went to work for Technology, Inc. Technology, Inc. had known of Edgar’s contract with OmniHealth, but persuaded Edgar to breach that contract and to become an employee of Technology, Inc.

What rights, if any, does OmniHealth have against Edgar? Explain.

Answer 1

OmniHealth could try to take it to court, but honestly I don't think thejudge would do anything. Did Omnihealth give Edgar the $350,000 for the second year? Ifthey did, OmniHealth might be able to retrieve some of that money, but I highly doubt it. Thelaw can't force Edgar to fulfill the contract. The drugs that OmniHealth was working on...arethey illegal or do they not have a permit. If so, Edgar could use that against them in court.Technology Inc. might be able to get sued for solicitation...but it all depends.

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