The CME Group, one of the worlds' foremost marketplaces for derivatives sales, is suing a former managing director in an attempt to block him from a separate job opportunity, according to local business news. Former Managing Director Laurant Paulhac is being sued for breach of contract by his former company. It is claimed Paulhac breached a written agreement pertaining to his transfer to become CEO of ICAP PLC, which Florida residents may recognize as a swap-execution facility.
According to court papers, an agreement was negotiated in which Paulhac would join the executive management team at ICAP on Dec. 2. However, he would be barred from conducting day-to-day activities in that role until April. The papers go on to say that CME discovered only a few weeks later that Paulhac was indeed operating in a day-to-day capacity at ICAP, despite the agreement to the contrary.
The specifics of his involvement with ICAP are vague, but it was enough for CME to accuse him of acting in violation of the agreement and underlying employment agreement. He is being charged with breach of contract by CME. The company is asking the court to bar his work with ICAP for a full calendar year, as well as seeking compensatory measures for damages.
Florida business owners are keenly aware of the importance of honoring written agreements between companies and internally. A breach of contract allegation is a very serious one in the business world. It typically represents a failure either to clearly outline the terms of a contract or a failure to abide by them. In either case, a court will oversee the proceedings to determine which party was at fault and may award compensation to the wronged party.
Source: bloomberg.com, CME Sues Ex-Executive Paulhac in Breach-of-Contract Case, David Voreacos and Christie Smythe, Dec. 20, 2013