Case Analysis.

1. Mark is a software engineer and project manager at a video game developer, FunWorks, based in Vancouver. One day, Mark gets a call on his cell from a human resource manager at a game development firm in California. A former colleague, Philip, has given his name as a reference for a new job. Philip was a software engineer at FunWorks for 10 years before quitting last year to take a break and travel for 6 months. While everyone liked Philip, after he left FunWorks, rumours began that Philip had breached confidentiality agreements and given trade secrets to a competitor. Mark had asked the HR Director about the rumours a few months before receiving the phone call. She had told him that she wasnt allowed to talk about it but that Mark should rest assured corporate secrets were safe. Mark assumed that, because the HR Director did not deny the rumours, they were true. In reality, the rumours were not true. Philips departure from FunWorks had been on bad terms for other reasons and the HR Director did not want to talk about it with Mark.

Unfortunately, Mark forgets that FunWorks has a corporate policy that only direct supervisors are permitted to give references. He tells the human resource manager from the company in California the following:

I liked working with Philip. He was a great engineer and always met deadlines. He did good work. However, we found out after he left the company that he was dishonest. He gave some code to a competitor. He probably got paid for it.

Three weeks later, FunWorks and Mark get a letter from Philips lawyer. The letter alleges that Marks statements to the HR manager were defamatory. Philip is threatening to sue Mark and FunWorks for $5,000,000 because he did not get the job and has lost out on all the benefits, including stock options, because of Marks statement.

Analyze Philips case for defamation against Mark using the Issue, Rule, Application, Conclusion (IRAC) method. (15 marks)

Analyze whether FunWorks will be vicariously liable for Marks statements Issue, Rule, Application, Conclusion (IRAC) method. (5 marks)

BONUS: If filing a lawsuit in BC Canada, in which court would Philip file? (1 mark)