Client went through one of my programmers and made a side deal

[fstep2]

What is the name of your state (only U.S. law)? NY

Basically my company was developing a website for the client. The client got in contact with the programmer who was handling the work and worked out a side deal for phase 2 of the project to go straight through him. I obviously fired the programmer, but want to know if I can sue the client for doing this. The work the programmer did for her on the side and was paid for was while he was still employed by us.

 

[justalayman]

what does any contract you have with the client say about phase 2?

 

[quincy]

And, to go along with justalayman's post, what does your employment contract with your programmer/employee say about working for your clients "on the side?"

 

[OHRoadwarrior]

Tortous interference with a business relationship might be collectable against the employee.

 

[quincy]

Tortous interference with a business relationship might be collectable against the employee.

That gets back to what is in the contracts between employer/employee and employer/client that might prohibit the client from hiring the employee or the employee from working with the client during Phase 2 of the project.

 

[fstep2]

There's nothing in the contract about this. We can't go after the employee as he's from India. Is it really legal for a client to do that though?

 

[quincy]

There's nothing in the contract about this. We can't go after the employee as he's from India. Is it really legal for a client to do that though?

Yes it is legal, if there is nothing in your contract with the client that says the client can't do that.

There are legal remedies provided for in contract law when a party breaches the terms of the contract, or when a third party induces or threatens to induce a party in a contract to breach it (tortious interference, unfair competition).

But, if there was the ability for either party to terminate the contract at any given point (e.g., after Phase 1 was completed), then you have no recourse against the client (if the client has paid for the work already completed) and any legal recourse against your employee in India would fall under the laws of India (and I do not know what these are). You fired the employee, which is about the extent of what you can do without the great expense of pursuing action in India.

You know, I reviewed your posting history on this site, fstep. It might be smart for you to develop a relationship with an attorney in your area, as you seem to be having more than a few difficulties with your business.