Legal Question in Business Law in California

Re: Retained Service Contract Problem

Your question is one of contract interpretation. No attorney can advise you on your rights without reading the contract. A party's rights are created by the contract itself, not some abstract body of law that says retainers invariably mean this, headhunter contracts are always exclusive, etc.

The most likely outcome is that both you and the other firm(s) have an equal and nonexclusive shot at finding the right candidate, and that you will be entitled to payment for the value of your services to the client whether your firm provides the candidate that is hired, or not, or even if they promote someone from inside the client firm.

The general rule for breach of contract is that the non-breaching party will be placed in the same position it would have been in had there been no breach - but $30,000 compensation is unlikely since in order to gross $30,000 you would have had to incur some expenses, so your lost profit is probably less. More to the point, using another firm also to look for a candidate may not even be a breach.

My advice is however this turns out, have a sharp contracts lawyer review the contracts you are offering to your clients so that it is crystal clear in the future what is a breach and what is not, including whether your agency to hunt talent is exclusive or not, and whether you get your full compensation under all imaginable circumstances or only if your firm completes all aspects of the talent search and ultimate hiring of your selectee.

Re: Retained Service Contract Problem

So where did these contracts originate? The other party gave it to you? You got it from some web site? Your contracts should be written, or at least reviewed, by -your- lawyer that -you- hire.

Re: Retained Service Contract Problem

We are also available to review your situation and consult with you.

Re: Retained Service Contract Problem

Your contract should have covered all these issues. If you don't have one that does, you are going to argue it out in court, or negotiate it, without the support of prior agreement on what happens. Next time, do it professionally with a proper contract to avoid spending the fees that such lawsuit will incur. Feel free to contact if you decide you need legal help.

Re: Retained Service Contract Problem

It's impossible to answer your questions without knowing what the contract says.

Re: Retained Service Contract Problem

As the other attorneys have told you, it depends on what your contract says. Does the contract give you an exclusive right to find the manager for a given period of time? Is your fee contingent upon your finding a suitable recruit? What does the contract say about your initial payment? Does it cover expenses? Is it refundable? non-refundable? If the contract doesn't cover these points, was there any discussion between you and the company prior to (or after) you signed the contract regarding these points. These are some of the questions you have to ask, and any lawyer will ask.

Re: Retained Service Contract Problem

A response to your detailed question cannot be provided until an experienced lawyer reviews the contract and discusses the details with you.

In short, the answer to your question is: it depends on what the contract/retainer agreement says and/or the parties conduct with one another.

If you would like to consult about your matter please contact me.