December 22, 2010

Bloomington-based Seagate hit with $1.9M verdict for misrepresenting job to recruit

Posted in Fraud and Misrepresentation, Hiring and Recruiting, Interviewing, Job Descriptions, Minnesota Statute 181.64 tagged , , , , at 10:45 am by Tom Jacobson

 

 

When Chandramouli Vaidyanathan accepted a job with Bloomington, MN-based Seagate Technologies, he thought he would be leading the company’s yield engineering team. The job was not what Vaidyanathan expected, so after he was transferred to a different position within the company and later dismissed along with 100 other employees during a lay-off, he sued Seagate. On November 18, 2010 a jury awarded Vaidyanathan $1.9 million.

One of Vaidyanathan’s legal theories was that Seagate had violated section 181.64 of the Minnesota Statutes (http://bit.ly/gzdFuI). This law makes it unlawful for a Minnesota employer to knowingly make false representations to induce a job recruit to relocate to accept a job offer. Employers who violate this law can be ordered to pay the employee’s damages and attorneys’ fees.

A violation of this law is also a misdemeanor, so an employer who breaks this law could be punished with a fine of up to $1,000.00 and/or ninety days in jail.

In Vaidyanathan’s case, the evidence established that Seagate made a clear and definite promise to Vaidyanathan that his job would be to lead the company’s yield engineering team. According to the Court, Seagate’s promise was, however, “made, in part, out of ignorance and a lack of sufficient information,” and Vaidyanathan testified that he never did any yield engineering work for Seagate.

After a seven-day trial, the jury concluded that Seagate knowingly made false representations to Vaidyanathan about the kind and character of his work and that Seagate’s misrepresentation induced him to take the job and move to Minnesota from Texas. The jury then awarded Vaidyanathan, whose starting salary had been $126,048.00, $1.9 million in damages. The jury’s Special Verdict can be read at http://bit.ly/grjREY.

Claims under Section 181.64 are rarely litigated, and when they are, they are often dismissed. Nevertheless, Vaidyanathan’s case stands as a vivid reminder of the importance of accurately describing a job to recruits.

The comments posted in this blog are for general informational purposes only. They are not to be considered as legal advice, and they do not establish an attorney-client relationship. For legal advice regarding your specific situation, please consult your attorney.

 

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4 Comments »

  1. […] with a $1.9 million jury verdict for misrepresenting a job to a recruit the company hired (see Bloomington-based Seagate hit with $1.9M verdict for misrepresenting job to recruit).  Not surprisingly, lawyers for both sides filed post-trial motions after the verdict was […]

  2. […] Chandramouli Vaidyanathan’s lawsuit against Seagate Technologies continues to wind its way through the court system – at even greater cost to Seagate.  First, a jury awarded Vaidyanathan nearly $2 million after they determined that Seagate had misled him about the job they hired him to do (see  Bloomington-based Seagate Hit with $1.9m Verdict for Misrepresenting Job to Recruit). […]

  3. […] the job for which he was recruited. For more details on the case, see my previous articles, Bloomington-based Seagate Hit with $1.9m Verdict for Misrepresenting Job to Recruit, Seagate’s Liability to Duped Recruit Jumps to $2.4 Million, and Seagate III – the Saga […]

  4. Karol said,

    Excellent article! We will be linking to
    this particularly great article on our site. Keep up thhe great writing.


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