Managers called him a ‘thief’ to clients. Court says qualified privilege doesn't apply here
An Ohio court ruled that badmouthing a former employee to clients can breach nondisparagement agreements, even when companies claim they were just protecting business interests.
The February 11 decision from Ohio's First Appellate District should serve as a wake-up call for HR leaders navigating what managers can say about former employees who join competitors.
Grant Hilty thought his dispute with his former employer was settled. After being fired from Donnellon McCarthy Enterprises, a copier services and office equipment company, he and DME signed a settlement agreement that included a mutual promise: neither side would disparage the other.
Then Hilty joined Modern Office Methods, a DME competitor. That's when things allegedly got messy.
According to testimony at trial, DME managers made damaging statements about Hilty to prospective clients he was trying to win over. The twist? These prospective clients were also current DME customers. DME's Cincinnati sales manager Steve Sexton told Angela Conners at Maintenance Methods that Hilty was a thief who stole from DME, had to be monitored, and wrote incorrect contracts. Conners testified she sent Sexton and his manager an email detailing that Sexton called Hilty a thief who wrote incorrect contracts, and that she did not pursue a contract with Modern Office Methods as a result.
Similar conversations allegedly happened with other...
HOUSTON, Texas — A 51-year-old woman from Sedgwick County, Kansas, has been sentenced to federal prison for making false statements to law enforcement, according to U.S. Attorney Nicholas J. Ganje...