Case Name: Coady v. Harpo, Inc.
Plaintiff: Elizabeth Coady
Defendant: Harpo, Inc.
Citation: 719 NE 2d 244
Facts: Coady appeals the dismissal of her cause of action seeking a declaratory judgment that a confidentiality policy established by defendant Harpo, Inc., was unenforceable against plaintiff, a former employee of defendant.
Issue: This appeal raises three issues as to whether (1) the proper forum to consider the dispute is the court or an arbitration panel; (2) plaintiff waived any challenge to the validity of a confidentiality agreement executed in 1995, as distinguished from the confidentiality agreement which is included in defendant's 1996 employee manual; and (3) the confidentiality agreement is an enforceable restrictive covenant
Rule: We find that the court is the proper forum to consider the validity of the contested agreement, that waiver does not apply, and that the confidentiality agreement is enforceable. Accordingly, we affirm the trial court's decision to dismiss plaintiff's cause of action and to compel arbitration as to the operation of the agreement.
Analysis: Coady, writing a tell all book would be breaching a contract that she signed; however, she does not see the Confidentiality “agreement” as a binding one because it was grouped with business ethics in her contract as well as a standalone document. Because they did not take the time to separate the two they made it seem like it was a normal request, this is what we would like you to do type of thing. Although they did group it with other business related documents, the word choice was semi intimidating “During your employment or business relationship with Harpo, and thereafter”. Also Harpo Inc. seems to have breached their own contract because they have a part in the contract that says “"If a dispute or controversy arises out of or relates to this policy, or the actual or