Legal Question in Employment Law in California

Poached for employment and fired in 3 months

Hi,

I was working at a large Fortune 100 firm when a late stage startup approached me with a lucrative offer and title, with excellent growth potential etc.

In 3 months, the situation allegedly changed and company is struggling for revenue and as a result laying off employees to reduce cost (burn rate). Mostly recent hires were fired.

I realize the employment is at-will, but when a company approaches you with rosy picture and within 3 months you are out looking for a job due to some downturn or lack of planning on management's part, what is the course of action?

Thank you.


Asked on 9/28/06, 12:10 pm

2 Answers from Attorneys

Beth Mora Cooper & Mora, A Professional Corporation

Re: Poached for employment and fired in 3 months

I am terribly sorry to hear of your situation. You describe a tort referred to as "Fraud in the Inducement". To prove such a claim, you would have to be able to show that the person(s) who recruited you to the employer knowingly misrepresented the financials/stability of the company to get you to come to the company to cause you harm (or thought it may cause you harm), which did result in harm. In this situation, it may be hard to prove those (or the individual) who recruited you lied to you about the financial situation of the company. It is plausible they recruited you to bring you in to make the company look better to investors and knew that it may not work. They should have been up front with you - so to speak. I must warn you, the standard for pleading such a claim is high, more so than standard torts.

However, the issue of concern for me is not if you can or can not prove your claim, it is if there is money to collect should you get a positive jury verdict. There is little good feeling in a win when you end up owing money to your attorney for costs of the litigation. Furthermore, with the company being in fiancial problems, you may have a difficult time finding an attorney who will take this case on a contigency fee basis.

Should you wish to discuss this further, you are welcome to contact me at work or an attorney in your area.

Best of Luck, Beth Mora

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Answered on 10/02/06, 12:30 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Poached for employment and fired in 3 months

You may have a suit for promissory estoppel for losses due to inducement to leave your last position. Call me directly at 16192223524.

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Answered on 10/02/06, 6:05 pm


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