Wed, Sep. 26, 2012

Raiding Talent: No Damages

- Washington.   After a failed attempt to buy a running concern out of an bankruptcy estate, a competitor poached the employees of that concern and integrated them into its own, newly formed company. The loser sought 46 million Euros in damages under a theory of violated competition rules.

On September 26, 2012, the Federal Supreme Court for Employment Disputes in Germany confirmed the lower court's ruling in favor of the raider. While the facts demonstrate illegal poaching, they do not support a finding of damages.

The court clarified that §287(1) requires a showing of actual, not just hypothetical damages. Without being offered any measure of damages, a court cannot award them, the Bundesarbeitsgericht in Erfurt ruled in the matter Urteil vom 26. September 2012--10 AZR 370/10-- and issued a press release, in German.


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