In business, every decision has consequences. There is more at stake than just the surface value, as decisions compound and infiltrate other business measures. Everything is intertwined, which means it is extremely important to weigh the pros and cons. Always remember the bigger picture when considering a lawsuit against a competitor or former partner.
There can be good and bad in a lawsuit, depending on the case. Sometimes, in a way, everybody wins because the law upholds the original contract. When considering a lawsuit, your likely goal is to protect the company, its property and its bottom line.
Protecting property amid attrition
A recent ruling highlights the complex nature of business law. In this case, the former CEO of Community Health Systems switched jobs to work for Indiana University Health. CHS’s suit attempted to bar the CEO from working for a competitor, fearing he would share confidential information about their market. The case illustrates a case where both sides can claim victory in different aspects.
Ultimately, the former CEO will continue at his new job but that he must not disclose confidential information. There was no non-compete agreement when he changed jobs, which was central to the case. While the former CEO retains his new position, the lawsuit is continuing to explore the release of privileged information, which justified CHS’s complaint and protects their own intellectual property. IU Health has additional restrictions to ensure that information is not being used improperly, including restrictions on growth in competing markets and the recruitment of CHS employees.
Contracts that work for both parties
This case highlights the need to protect restricted information. Attrition is a natural part of any business. When valuable members leave the team for new opportunities, businesses need to act in their own interests without stifling their employees’ personal rights. Businesses have their own rights, and it is essential that contracts, including non-compete waivers, tread carefully between these two elements. There are high stakes in business litigation. It is important that any business owner experiencing a breach of contract consult with an attorney to review your case and consider the best way to move forward.