By Karen Best
Whenever you sign a form whether it’s your tax return, a store receipt or a contract you have to sign in a specific spot. What happens when you don’t sign where you are required to? Someone decided to take a chance and found out.
That person was David Johnson, former IBM Vice President of Corporate Development. When Johnson was presented with a non-compete agreement he did not want to be held to, he decided to sign on IBM’s line. When Johnson decided to resign from IBM to take a position with Dell, Inc. as Senior-Vice President of Strategy, IBM swiftly went to court to request injunctive relief.
The issue went to the U.S. Court of Appeals for the Second Circuit because IBM’s injunction was denied. The court focused mainly on IBM’s reaction to Johnson’s “mistake”. When IBM realized he signed in the wrong place they made multiple attempts to have him resign. IBM’s actions showed they did not believe the contract was binding until Johnson signed on the correct line. The Appeals Court denied IBM’s request for injunctive relief stating, “Further proceeding in this appeal would be a waste of judicial resources.”
Leeds Morelli & Brown, PC is a nationally recognized leader in the area of employment law. Over the last two decades, we have established ourselves among as one of the leading alternative dispute resolution and litigation firms in the New York City area. Our lawyers’ commitment to the principles of justice in the workplace has led to precedent-setting decisions by many courts, a number of highly publicized verdicts and settlements, and even new legislation in Nassau County. For more information, contact Leeds, Morelli and Brown, PC at 1-800-585-4658 for a free consultation.
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