Question

Alan, who is the Chief Financial Officer of SNL, has become aware that the company is seeking to tender for some major renovation work needed by the company. Alan’s cousin is in the renovation business so Alan tells him of the possibility of work at SNL. Alan tells his cousin the price range that SNL will consider and something about other companies that are tendering. Alan attends the meeting where they consider who will get the tender for the repair work, but does not disclose his connection with his cousin, who has put in a tender and actually wins the contract. 3. Does Alan have any potential liability for what he has done or not done?

Hi there, can you please answer this question in around 800 words by using IRAC method. Its a 10 marks question.

Answer 1

Answer:

Issue:

Alan, CEO of SNL helps his cousin to get his company’s contract by revealing the price range that SNL will consider and something about other companies that are tendering. Alan does not disclose that his relationship with his cousin in the tender meeting.

Rule:

Tort of breach of confidentiality- This tort is the tort claim that arises when an individual explicitly or implicitly reveals the confidential information to others. (The fiduciary nature of the individual’s relationship is the prime reason for him receiving the confidential information.)

Application:

Since Alan disclosed the company’s most confidential information about the tender to his cousin, this is an absolute breach of confidentiality. Alan, the CFO has the prime responsibility to ensure that he works for the best interest of SNL and maintain confidentiality at all times. Alan also violates his professional code of conduct and his unethical in his actions. The application of the rule –tort of breach of confidentiality is applied in this scenario.

Conclusion:

Alan breached the confidentiality in his company by revealing the company’s most important and confidential information to his cousin for his personal interest. Hence, the tort of breach of confidentiality is applicable.

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