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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 37581
Experience:  Run my own successful business/contract law practice.
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We are a Colorado Contract design firm that has expertise in

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We are a Colorado Contract design firm that has expertise in Electronic devices- primarily Medical applications. We frequently hire subcontractors in other states. An optics specialist in CA has caused a huge problem for us by underestimating time and materials, insisting upon increased rates without notice and failing to complete the project as promised. These issues increased our client's dissatisfaction with the progress of the project which eventually led to the disolution of the project altogether. The client then refused to pay but finally negotiated to pay 1/4 of our outstanding invoiced costs. The pesky subcontractor, meanwhile, sought to benefit by contracting directly with our client, undercutting our rate (which he raised) and by failing to release the documentation for this project to us-- we paid more that 150,000 for his design services, lost the client, have no documentation of the design or any other tangeable product to recoup our loss. Is there legal recourse for us? THX
Submitted: 5 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 5 years ago.

Yes.

 

If you can prove malice, you may try to sue the subcontractor for tortious interference with a business. If you had an agreement with one another that specifically forbade direct contact with clients, then by his behavior the subcontractor cause injury to your business by specifically contacting your client directly, knowing that it would detrimentally affect your business.

 

You may also attempt to collect part of your fees if you had a "time is of the essense" clause with your subcontractor. That is, since the project went past time, and time was vital to the job, then the subcontractor may be liable for your expenses in getting it done in time, and may even be liable for the eventual loss of the whole contract.

 

He is also liable to give you his designs but only if you signed an agreement that transfers his intellectual property to your company.

 

Good luck to you.

 

 

Sincerely,

 

Dimitry Alexander Kaplun, Esq.

Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 37581
Experience: Run my own successful business/contract law practice.
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