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March 2000

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Subject:
From:
"Leibman, Jordan H." <[log in to unmask]>
Reply To:
Academy of Legal Studies in Business (ALSB) Talk
Date:
Wed, 15 Mar 2000 12:06:25 -0500
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Colleagues:

I received a call yesterday from a friend who described a situation in which
he was involved that raised an interesting legal issue.  He asked for my
counsel, which I was unable to supply with any assurance.  Perhaps one of
you has expertise in the matter and could help us out.

The situation somewhat simplified and sanitized to protect confidentiality
is as follows:  A manager is sent by his company, at company expense, to a
national high tech trade show and conference.  Various exhibitors have
donated door prizes to be awarded to attendees based on free tickets they
have received upon registration.  The manager wins by lottery drawing a
valuable prize worth about $12,000.  The certificate he receives is in his
name so that initial title resides in him.  When he returns to his office
the corporate CEO informs him that the prize actually is company property
and insists that he assign it or its value to his employer.

Question:  Does the employer have a valid claim?  Does the intent of the
prize's donor matter?  Can this case be distinguished from "usurpation of
corporate opportunity" cases?  Or cases involving frequent flier miles
issued initially to business employees?  Can the manager entirely reject and
return the donor's gift?

Thanks for your help.

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