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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
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Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Stericycle, Inc., has their clients sign multi-year service

Resolved Question:

Stericycle, Inc., has their clients sign multi-year service contracts that preclude the client from finding a better service, a better price, or a better service at a better price. As a service, there are no goods exchanged and any attempt to provide notice prior to the 60 days notice before an evergreen clause enacts, are met with a lawsuit from Stericycle, for the balance of services that will never be rendered. How can a client get our of this type of contract without fear of legal action ? Stericycle clearly intimidates many smaller clients with these threats. There are many blogs out there where Doctor's are very unhappy with being sued by Stericycle for attempting to leave their contract.
Submitted: 7 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 7 years ago.
What are the services that this company provides, if any?
Customer: replied 7 years ago.
They provide Regulated Medical Waste collection and disposal.
Expert:  Dimitry K., Esq. replied 7 years ago.
My apologies on the delay. It appears my first comment did not appear.

There are typically three ways that you can use to beat such a contract:

1. Give plenty of notice. If the contract gives 60 days until service can be removed without penalty, give them 60 or 90 days notice. Although Stericycle may attempt to sue for any negotiating during service, once your notice is given, you are free to negotiate for FUTURE service with someone else. Should you be sued for that, that is tortuous interference with your right to do business and is unreasonable.

2. When negotiating upon this contract, read it and put in "escape" clauses such as those based on poor service, change in business structure, or the freedom to negotiate with other companies.

3. If they disagree, do not sign it. Once you sign, you are covered under the terms so make sure that only the clauses and conditions that you agree with are in the contract.


Dimitry Alexander Kaplun, Esq.
Customer: replied 7 years ago.
To be clear, we also provide medical waste collection and disposal as a competitor of Stericycle, many of their clients want to switch to us, but are threatened by Stericycles contract terms. The sixty days I was referring to for "Notice", was the final sixty days of the contract. If their client does not notify them before that final sixty days, the contract automatically renews (evergreen) and the client is tied into another full contract. We need help advising them how to get out of this service contract that does not allow them to find competitive services and rates.
Expert:  Dimitry K., Esq. replied 7 years ago.
What you must tell them is to give notice as soon as possible. Tell them not to wait until the final 60 days; if unhappy with their service, provide an early cancellation and at that point they are free to pursue competitive services and rates for the future period post contract.

Many contracts have an automatic renewal option--the best way to beat it is to not renew but either keep the contract "one time use", or remove the automatic renewal option upon the original signing.


Dimitry Alexander Kaplun, Esq.
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