recourse against a consultant

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.


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