Consumer Law, Warranties Breached contract use of confidential info.

[kokaneeman]

My jurisdiction is: California

I have a delivery business that uses independant sub contractor drivers. A few weeks ago my largest client put my service area up for bid. I was then notified that one of my own sub contractors placed a bid and won the contract with a lower bid. I contacted the sub contractor and explained that he breached our contract. He acted like he did nothing wrong but I explained that he not only had a confidentialty clause with our 3rd party administrator that forbid him from using any information he gained by contracting for me for a period of 12 months. I also informed him of our oral contracts not to compete against me or use any information to derive any benfit. Once again, he acted like he did nothing wrong. I also explained to not only the driver but the client, who I have a non-disclosure/confidentiality agreement with that by excepting my own sub contractors bid they are breaching our contract. I was informed by the client to prove he used "confidential Information". I feel that the client used my own contractor to get a better price since I was under bid. Is this colusion? Anyway, I was offered a settlement from the client but they insisted to include not only the 3rd party administrator but the contractor. I asked why they were including an "Independant Contractor" in the settlement if they feel he did nothing wrong. I was told they were being nice because of my testimony in a past case challenging the whole Independant Contractor system. They won the case by the way. "Cristler vs. Express Messenger Service" Any advice and do I have a claim? Thanks

 

[dee_dub]

You might have a claim against the client for breach of the terms of the bid tender process, that would prevent them from accepting the independent contractors bid. You might have a claim against the independent contractor for breaching the confidentiality agreement (and it appears your 3rd party administrator might have a similar claim, although it is unclear whether they have been damaged and would pursue it).

If the settlement is reasonable, take it. Pursuing litigation in this sort of case is costly and risky. You already know they're liars - if you put them to the test they might just lie more, and it'll be your word against theirs.