recourse against a consultant

UPDATED: Oct 1, 2022

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recourse against a consultant

I hired a consultant through written agreement to perform certain duties, including assisting in having my company’s technology acquired. During conversations with an potential acquirer, we were asked not to mention our conversations with the potential acquirer’s named competitors. A few weeks later, the consultant became disgruntled and out of spite contacted the acquirer’s competitor and notified of our discussions. The potential acquirer then terminated discussions with my company. Do I have any recourse against the consultant? We were in discussions for a 40MM transaction.

Asked on February 3, 2018 under Employment Labor Law, Massachusetts


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

IF the consultant had a non-disclosure or confidentiality clause in the agreement which required her to not disclose this information, you could sue her for breach of contract. However, unless there was some contractual obligation to not disclose this, she could: people (and businesses) may disclose information except to the extent they agree to not do so. If you have not done so already, in the future, make sure all consultants and contractors sign confidentiality, etc. agreements.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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