Taylor v. Cordis Corp.

634 F. Supp. 1242 (1986)

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Taylor v. Cordis Corp.

United States District Court for the Southern District of Mississippi
634 F. Supp. 1242 (1986)

RW

Facts

In 1981, Cordis Corporation (defendant), a pacemaker manufacturer, employed Daniel Taylor (plaintiff) as its sales agent. Taylor’s employment contract included a noncompetition agreement. In 1983, Cordis warned its agents of problems affecting the reliability of Cordis’s pacemakers. In 1984, federal regulators began issuing recall notices for the pacemakers. In 1986, Taylor quit Cordis and went to work for Cordis’s competitor. Taylor sued Cordis in federal district court, seeking a judgment declaring Cordis in breach of the duty of good faith and fair dealing that a principal owes its agents and entitling Taylor to rescission of his employment contract’s noncompetition agreement. Taylor alleged that Cordis began receiving customer complaints about its pacemakers’ unreliability as early as 1980, that Taylor was humiliated and embarrassed by having to inform his physician-customers of Cordis’s product warnings and recall notices, and that these warnings and recalls damaged Taylor’s business reputation and credibility. Cordis counterclaimed for a preliminary injunction enforcing Taylor’s noncompetition agreement.

Rule of Law

Issue

Holding and Reasoning (Lee, J.)

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