Can That Commitment be Ignored ?

“Massachusetts courts are reluctant to impose liability against companies for making vague promises about how long the employee will remain employed, or how much money the employee can expect to earn in commissions. 

However, a company can be found liable if, during the hiring process, the company intentionally or negligently communicates false facts to the job applicant, who in turn reasonably relied upon the misrepresentations to his or her detriment."

John Davis

 

TORT CLAIMS IN THE EMPLOYMENT LAW:

"Verbal misrepresentations or false promises during interviews or during employment can be the basis for legal claims."

(INTERFERENCE, MISREPRESENTATION, FRAUD or DEFAMATION)

There are many different types of tort claims recognized by Massachusetts courts, only some of which are discussed herein. Some of the tort claims include intentional with contractual relations, negligent interference with advantageous business relations, fraud, misrepresentation, defamation and assault and battery. It is worth noting that some claims fall under the Worker's Compensation Act.

One of our attorneys recently represented three high level former employees in a fraud/deceit claim. There, the employees alleged that the company induced them to quit their former jobs because of excellent opportunities with the company. The company had fallen from grace, but because of the name recognition and intellectual property and international support, had indicated that it was going to re-launch and restore itself to glory in North America.

The company promised to provide all the resources, i.e., support staff, infrastructure, intellectual property, etc. for the employees to succeed. The company offered a small base salary and a generous, incentive-laden commission and bonus structure. Unfortunately, the company did not provide any of the resources it promised. The theory during a 2 week arbitration was that the company only needed to hire some warm bodies during a transitional period and then terminate the three employees before the true launch. In other words, the company needed some 'place holders' to keep the name and brand alive on a temporary basis until corporate was able to legitimately re-launch the business plan.

It is worth noting that companies are allowed to make predictions about success and representations about their intentions to support their staff. Companies are not allowed, however, to knowingly make fraudulent representations before the hiring process to induce an employee to quit another job.

In the above case, the three senior level employees settled during the 2nd week of arbitration. The total amount paid exceeded $300,000.00.

If you are interested in becoming a D&D client, please contact us through our website or call our telephone number (617) 338-5770 to schedule a consultation with a member of the D&D legal team.

Clients have said:

"John Davis responded to my request within 15 minutes of my posting and then called me immediately to discuss the details of my case.

We then had an in-person consultation within several days where we decided upon the legal strategy for my particular situation.

John is a very professional and knowledgeable attorney who was very experienced in the type of law that my case requires.

I am very impressed with the expertise and speed that he is applying to moving my case along. I would definitely recommend Davis and Davis PC to anyone having an employment dispute."

77 Franklin St., Boston

Our Employment Law Firm's offices are located at the corner of Franklin and Arch Streets, across from the Boston Stock Exchange, just minutes from all MBTA lines