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Universal Studios Home Entertainment today filed suit against its former chief operating officer Thomas Emrey, alleging that he breached his contract and fiduciary duties when he took a job as CFO at DineEquity last month. The Glendale-based firm, which operates restaurant chains including IHOP and Applebee’s, was also named in the suit for aiding and abetting the alleged breach. Universal claims that Emrey was under contract through May of 2012 but announced on September 2 that he had a new job and stopped coming to work. Universal claims in the suit that Emrey knew he was leaving for months before he left, and knowingly exited the unit just as it was prepping for two major DVD releases, Bridesmaids this month and Fast Five in October. The suit, filed in L.A. Superior Court, seeks compensatory and punitive damages as well as legal fees.
Universal Sues Former Home Entertainment COO Over New Job At DineEquity
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You know what’s really scary about this? What’s scary is that corporate America apparently sees no difference between running a DVD distributing company and running a restaurant chain. Thanks again, Harvard B School. On the other hand, maybe he took a dozen eggs with him when he left Universal like in the Laemmle days.
Very hard to succeed in court unless the restaurant is serving bluray pies.
This is good news for IHOP diners since you know Emry won’t be pulling food out of the vault.
Universal is a bomb factory and the home entertainment industry is history. Good for him for getting out when he could. Funny how companies expect employees to honor contracts and give notice before quitting when the courtesy is not returned the other way around.
Exactly right, not like he jumped to Warner Bros. These giants will null contracts, fire at will and simply explain “downsizing” to fire in mass. The lawyers will pick through the contract to find a suit but then defend the other side when they want to let someone go…this suit is a bunch of BS. What, you want your COO still in the job when he wants to jump (and into something not competitive)?
DVD is a packaged good. So it’s not too scary and its nice to see another industry values his experience. Giving that the DVD industry is in a transition its great he got a new job.
Um, the suit isn’t for his leaving for a competitive business, it’s for his leaving when he was still under contract.