Former CME Managing Director facing breach of contract suit

Category: Business Litigation

Many times when a person is working for a company, he or she is required to agree to certain terms of employment. This often includes a non-compete clause that bars the worker from obtaining employment with a competing firm within a certain period after ending his or her employment with the current company. If a Michigan worker does not comply with these terms, it could lead to a breach of contract lawsuit.

This seems to be what is happening with the former Managing Director of CME Group Inc., which owns the largest derivatives marketplace in the world. The company claims that it had reached an agreement with its former director to allow him to join ICAP Plc (IAP)’s global management team as an executive. However, the agreement, according to CME, would disallow its former director from participating in daily operations at ICAP until the beginning of April 2014.

The dispute arose when CME reportedly discovered that its former director was indeed taking part in the daily activities and decision-making at ICAP. CME filed a lawsuit asking the court to bar the former director from working at ICAP for 12 months. It is also asking for a monetary award for punitive and compensatory damages. The complaint does not specify the exact amount of damages the plaintiff is seeking.

Sometimes, a Michigan business finds it necessary to file a breach of contract lawsuit in order to protect its business interests. On other occasions, an executive may believe that an employer is unfairly interpreting a non-compete clause. Businesses and employees enter into legal contracts and agreements and make business decisions based upon the belief that the terms of those agreements will be honored. When they are not, the aggrieved party has every right to seek legal redress through our court system in an effort to uphold and enforce their legal rights.

Source: Bloomberg, CME Sues Ex-Executive Paulhac in Breach-of-Contract Case , David Voreacos and Christie Smythe, Dec. 20, 2013

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