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Integra Optics, Inc v Messina and OSI Hardware, Inc

Question: You Be the Judge- Did Messina Suffer from Economic duress? Should the contract be voidable?

Facts: Jonathan Messina had been a successful sales executive for Integra Optics for over a year when the multinational fiber optics company asked him to sign a non-compete agreement. Integras proposed agreement prohibited Messina from working for Integra competitors anywhere in the world for one year after leaving the company. On his lawyers advice, Messina repeatedly refused to sign Integras non-compete. But the pressure mounted. After a year of refusal, Daniel Maynard, Messinas boss, threatened to withhold Messinas earned commissions and bonuses amounting to over $100,000. Maynard bragged that he had done exactly that to another employee, who had ultimately signed an undesirable non-compete because she could not survive on her base pay alone. Unwilling to relent, Messina met with the companys top leadership. At the meeting, the chief operating officer reassured Messina: Jon, this is just a formality. An agreement like this would never be upheld in the courts. We are just trying to get all our ducks in a row as an organization now that we want to grow. We promise we will take care of you, you have nothing to worry about. The COO also said, things would have to be pretty bad for Integra to enforce the non-compete. Messina left the meeting feeling that he had no choice but to sign the agreement if he wanted his money. As you have probably guessed, Messina signed, but then things did get pretty bad. Messina left to work for a competitor, but Integra sought an injunction to prevent him from assuming his new job. Messina and his new employer argued that the non-compete was unenforceable because it was the product of economic duress.

Argument for the Plaintiff (Integra): Your honors, Messina is a highly compensated, sophisticated businessman who obtained legal advice. He willingly signed the non-compete after an entire year of negotiations. As a successful and marketable salesman, he could have easily left the company instead of signing. But he stayedand signedbecause he wanted to keep earning his hefty salary. Now that he is eager to work for a competitor, he claims that he was threatened into signing. Yes, people posture during negotiations. But that is different from taking advantage of someone or making improper threats. Integra needs to protect itself from competition and did so with a legal, enforceable non-compete.

Argument for the Defendant (Messina): A contract may be voided on the ground of economic duress if one party forces the other side to agree by making wrongful threats that prevent the exercise of his free will. What could be more improper than threatening to withhold substantial compensation that my client had already earned? Integra held Messinas own money hostage. For over a year, the company pressured my client and in the end, these credible threats became increasingly direct. Messina knew the non-compete was an offer he could not refuse. Those threats cannot be the basis of an enforceable contract.