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Ask Maverick Your Own Question
Maverick, Civil Trial and Appellate Lawyer
Category: California Employment Law
Satisfied Customers: 6423
Experience:  20 years of professional experience
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Is it legal employer to call another company and tell them

Customer Question

Is it legal for my employer to call another company and tell them if they hire me it will be a conflict of interest.
Submitted: 1 year ago.
Category: California Employment Law
Expert:  Maverick replied 1 year ago.

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1. Can you please give more background information about this?

2. Are you sure they termed this as a conflict of interest or were they talking about a non-compete agreement you signed with your employer?

Customer: replied 1 year ago.
Conflict of interest, I never signed a non-compete agreement.
Expert:  Maverick replied 1 year ago.

A COI applies to situations in which someone who has to make a decision in an official capacity or a fiduciary [like a lawyer] stands to profit personally from the decision. For example, a judge who rules on a case involving a corporation in which he owns stock has a conflict of interest. This does not appear to apply to your case. But, if because of your employer's statements, you now have lost a chance to enter into a business relationship with the other company, you may have what is known as a tortious interference suit. To prove tortious interference, you have to show the following elements under CA law:

2202. Intentional Interference With Prospective Economic Relations

[Name of plaintiff] claims that [name of defendant] intentionally interfered with an economic relationship between [him/her/it] and [name of third party] that probably would have resulted in an economic benefit to [name of plaintiff]. To establish this claim, [name of plaintiff] must prove all of the following:

1. That [name of plaintiff] and [name of third party] were in an economic relationship that probably would have resulted in an economic benefit to [name of plaintiff];

2. That [name of defendant] knew of the relationship;

3. That [name of defendant] intended to disrupt the relationship;

4. That [name of defendant] engaged in wrongful conduct through [insert grounds for wrongfulness, e.g., misrepresentation, fraud, violation of statute];

5. That the relationship was disrupted;

6. That [name of plaintiff] was harmed; and

7. That [name of defendant]’s wrongful conduct was a substantial factor in causing [name of plaintiff]’s harm.