Legal Question in Civil Litigation in California

4 years ago I was forced out of a Senior VP position at large consumer electronics company I worked for. As part of my severance an agreement was signed that said in part that no one at the company would make any disparaging comments about me and vice versa. Since then I have heard a few rumors of comments being made but none seemed to really affect me or my doing business in the industry.

However recently I was presented with an opportunity at a company that does business with my former employer. After several conversations and submission of my proposal I was told I had the job. The company even flew me out to meet with their investment group. And they assured me that they intended to move forward.

Then today I get a call from their CEO who informed me that they were going to pass based in part by a comment made by an executive at my former company. I wasn�t able to ascertain what the comment was, only that I wasn�t going to get the job.

So my question is, do I have grounds for a lawsuit? And if so, what�s the best way to proceed?


Asked on 10/24/12, 10:50 am

2 Answers from Attorneys

Based on the bare-bones you have presented here, it does sound like you have the makings of a case for breach of the contract, and if the statements were false, also for defamation. You may have a cause of action for intentional or negligent interference with prospective economic advantage. Of course, as with so many things, the devil is in the details. In these sorts of cases the two most common and largest stumbling blocks are proof that the contract, job or other economic benefit would actually have come about without the interference or comment, and proving what the real loss is from the interference or defamation. Your first step is to send a confirming letter or email to the CEO that restates what he told you as correctly as possible and says something to the effect that this is why you didn't get the gig and asking him to let you know right away if you have anything wrong. If he doesn't back you up or says, well yes the executive said that but the real reason you didn't get the job is x, y and z, you're going to have a hell of a time proving the breach of the severance contract caused you any loss. If he does not respond and/or verifies that the comments by the executive from your former company are cause of you not getting the work, your next step is to find an attorney to deal with directly and get a lawsuit on file asap. I handle cases throughout California and have a facility in Carlsbad for working on Southern California cases. So if I can be of any further assistance, let me know.

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Answered on 10/24/12, 11:08 am
Terry A. Nelson Nelson & Lawless

Unless you can obtain first hand testimony and evidence that someone made a provably false statement about you, there is no case for 'slander'. Rumors don't count. Speculation doesn't count. Mere poor opinions about you don't count. The person at the prospective company would have to testify what was said, who said it. Then, in order to prove slander, you would have to show it was actually false as to some substantial material fact, not just an opinion statement that you were a lousy employee, etc.

If you can prove simply that some negative comment, falling short of slander, was made in violation of the written agreement, then you might be able to prove breach of agreement. That also would require the person at the prospective company would have to testify what was said, who said it. Then, you would need to look to the agreement to see what rights and remedies you have specified for breach of the contract.

No matter what, you should hire counsel to immediately write the old company with a threat of litigation if any further comments are ever made. The goal is to prevent this happening again.

If serious about any action, feel free to contact me. .

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Answered on 10/24/12, 1:09 pm


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