Previous Employer threatening lawsuit, do they even have a case?

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Previous Employer threatening lawsuit, do they even have a case?

So I had the unfortunate opportunity of working with a IMO which will remain nameless. Basically, they sold life insurance. However, I quickly learned that the leadership of he company was entirely focused on getting new hires. The

Asked on June 4, 2018 under Employment Labor Law, Idaho

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The trainer would not have a case against you unless 1) she was a party to the  contract (one of the signatories): a contract only binds the persons who sign it and are parties to it. If the contract was between you and the company, not you and the trainer or you, the company and the trainer, then she cannot enforce it against you. The company could have sued you for any leads you should have paid for under the contract, but someone not part of the contract cannot--except as set out below. If the trainer was a party to the contract, she could enforce it against you (sue).
Or she could enforce it against you if 2) she was specifically stated to be a beneficiary under the contract--i.e. the contract said you'd pay or reimburse her for any lead costs. The law does allow a "third-party beneficiary"--someone not a party to a contract, but whom the contract by its plain terms is supposed to benefit--to sue to enforce it.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The trainer would not have a case against you unless 1) she was a party to the  contract (one of the signatories): a contract only binds the persons who sign it and are parties to it. If the contract was between you and the company, not you and the trainer or you, the company and the trainer, then she cannot enforce it against you. The company could have sued you for any leads you should have paid for under the contract, but someone not part of the contract cannot--except as set out below. If the trainer was a party to the contract, she could enforce it against you (sue).
Or she could enforce it against you if 2) she was specifically stated to be a beneficiary under the contract--i.e. the contract said you'd pay or reimburse her for any lead costs. The law does allow a "third-party beneficiary"--someone not a party to a contract, but whom the contract by its plain terms is supposed to benefit--to sue to enforce it.


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