Legal Question in Business Law in Illinois

Complicated Breach Of Contract (BOC).

This was to be a 2 year contract.

Heirarchy:

1. End-Client (EC) (locations; Brooklyn NY,

St. Louis MO, Louiville KY, Indianapolis IN,etc...)

2. Primary-Contracting Company 1 (CC1) to EC.

Represented by (CC1.OO) & (CC1.VV)(Chicago based)

3. Sub-Contracting Company 2 (CC2) to CC1.

Represented by (CC2.SB) (Chicago based)

4. Previous consultant; first independent sub-contractor

(ISC1) to CC2. (ISC1 is S. Carolina based)

5. Latest consultant (myself); second Independent Sub-Contractor (ISC2) to

CC2. (Chicago based)

10/02/24: Chicago

1. CC2.SB contacted ISC2 to replace ISC1 on a contract project for EC.

2. CC2.SB told ISC2 that ISC1 walked off project, in Brooklyn NYC.

3. CC1 & CC2 needed ISC2 to replace ISC1

4. CC2 stated ISC2 would perform a specific task as a Data Archetect

(Data Modeler).

5. CC2 needed ISC2 to start on March 1, 2010 in Brooklyn NYC.

6. CC2.SB told ISC2 that CC2 paid ISC1 $80/hr.

7. CC2.SB told ISC2 of CC2's payment policy and that EC of CC1 would pay

travel, meals to $43/d, lodging expenses.

8. CC2.SB & ISC2 did not come to an understanding/agreement as to the

rate or payment schedule.

9. CC2.SB told ISC2 that CC1.OO would interview ISC2 for

Data Archetect (Data Modeling)position.

10/02/25: Chicago

1. CC2.SB and ISC2 met to introduce themselves @ Starbucks Clark & Berwyn

60640.

2. No agreement was finalized.

3. Later ISC2 saw CC2's dice.com job posting which had a rate of $90.

10/02/27: Chicago

1. CC1.OO met with ISC2 to explain project.

2. CC1.OO told ISC2, ISC2's role was to be greater than that of a Data

Modeling/Archetect role.

3. ISC2 would have to take over CC1.OO's responsibilities and in addition

perform JAD sessions as a facilitator.

4. EC/CC1/CC2 needed ISC2 to start on March 1, 2010 in St. Louis MO. And

later in NYC.

5. CC1.OO told ISC2 about a disagreement during an earlier conference ISC1

participated in, that you may have been involved with. It involving

how long a JAD session should have taken. Apparently William stated

that it would take only one week to JAD the transaction processes.

(Personally, I think it should have taken less than that.

I've JAD'd a more complex system process than Wellpoint's in one day.

Yes one day.) And Owen disagreed with William's estimation.

Which caused a disagreement/argument between the consultants,

William and Owen. William is not a part of the team anymore.

6. CC1.OO told ISC2 he had the "job"

7. ISC2 contacted CC2.SB and debriefed himself

10/02/28: Chicago

1. Since CC2.SB had not sent ISC2 a written contract.

2. ISC2 drew up a contract, sighed it and emailed it to CC2.SB for

confirmation. ($105/hr)

3. ISC2 got ready for call w/CC2.SB by having signed contract printed,

and on a table to make any corrections/updates.

4. ISC2 called CC2.SB on speaker phone to confirm the contract in

good faith.

5. CC2.SB said "everything looks good" and "we're a go".

6. ISC2 reconfirmed with CC2.SB that "everything looks good" and

"we're a go"

7. CC2.SB acknowledged/confirmed it for the second time.

8. CC2.SB's confirmation of contract was whitnessed by 3rd person.

9. ISC2 in "good reliance", as ISC2 relied on CC2.SB's confirmation of

contract, ISC2 drove to St. Louis MO. 310 miles O/W.

Checked into Hyatt at the Arch.

10/02/28-10/03/04: St. Louis MO

1. EC/CC1.OO/CC2.VV/ISC2 all participated in JAD sessions.

2. ISC2 was present March 2nd during a phone conference, when EC.DR

opposed CC1.OO's viewpoint regarding JADs with "live" Visio

modifications. ISC2 agreed with EC.DR's point of view.

In agreeing with EC.DR's opinion caused problems on ISC2's side.

Because, after the conference, CC1.OO explained his viewpoint.

ISC2 disagreed with CC1.OO about the use of "live" Visio. ISC2 thought

(and still think) that EC.DR's idea of making active group-involved

changes is the way to accomplish requirements gathering more

efficiently. After all, that's what my experience with JADs have been.

To gather information, then later document it, sans the group,

then return to the group to get corrections, then document those

changes, then go back to the group, repeat the process, etc...-

well, that's the method used prior to JAD (and is still used),

and it takes longer before the requirements are finalized.

Sometimes I've had to interview individuals separately or in

small groups, which takes "forever" also. But, obviously, CC1.OO

opposed my viewpoint too, and I'm not part of the team anymore.

3. M: 11.5 hrs, T: 12.5 hrs, W: 12 hrs, T: 8 hrs = 45 hrs

4. CC1.OO/VV & ISC2 returned to Chicago on 10/03/04 after the JAD session

after 4pm.

10/03/05: Chicago

1. ISC2 prepared for scheduled teleconference JAD session

with EC/CC1.OO/VV

2. CC1.VV informed ISC2 the JAD was canceled for 10/03/05 via eMail

3. ISC2 & CC2.SB discussed contract by phone.

4. CC2 was trying to breach contract with excuses.

5. ISC2 & CC2.SB agreed to $90/hr, weekly expense reinbursements and

semi-monthly pay schedule. And CC2.SB would discuss negotiations

w/CC2's and CC1's management

10/03/06: Chicago

1. CC2.SB called ISC2 and told ISC2 that; EC called CC1.OO and "cut" the

contract and didn't need ISC2, then CC1.OO called CC2.SB to inform him

of this, then CC2.SB called ISC2.

2. CC2.SB told ISC2 that CC2 would pay ISC2's expenses and rate for

10/02/28 thru 10/03/04

CONCLUSION:

ISC2 doubts the reason for Breach Of Contract (BOC).

ISC2 believes CC2 is escaping by using EC as the reason for BOC.

ISC2 would like to sue CC2 to determine what reason EC or CC1 had under

the rules/laws of discovery.

ISC2 would like to sue CC2 and maybe CC1 for damages.

According to ISC2 & CC2's negotiation on 10/03/05

$90/hr x 2087hrs(260 days)= $187,830/yr x 2yrs = $375,660

260 days roughly = 8 months.

But this contract would or could have taken more that 8 months per year.

So potentially it could be

$90/hr x 2600hrs(325 days)= $234,000/yr x 2yrs = $468,000

OR according to CONTRACT of 10/02/28

$105/hr x 2087hrs(260 days)= $219,135/yr x 2yrs = $438,270

OR

$105/hr x 2600hrs(325 days)= $273,000/yr x 2yrs = $546,000


Asked on 3/15/10, 8:07 am

3 Answers from Attorneys

David Labovitz Labovitz Law Firm, P.A.

Hi. This is a really long question - especially for a free board. But my quick take is that you were entitled to compensation for the actual work you put in, and it sounds like they are properly paying you for your time and reimbursing you appropriately for expenses incurred. I'm not sure there was a breach of contract. Regardless, I'm not sure you'd be successful claiming any future damages for work not yet done, let alone the numbers you have calculated above.

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Answered on 3/20/10, 10:32 am
Michael R. Nack Michael R. Nack, Attorney at Law

The prior response was correct in that your question is far too long and involved for a bulletin board type site such as this. You need to sit down with an attorney and compensate him or her for the time it takes to provide you with competent legal advice.

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Answered on 3/21/10, 9:13 pm
Thomas Moens Moens Law Offices, Chartered

Is there another choice? Seriously, this is not the proper venue for a question this complex. If you really would like an attorney to spend the time and effort required, you will need to compensate him or her for the time and expertise involved.

A lawyer�s time and advice are his stock and trade.

--Abraham Lincoln

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Answered on 3/22/10, 12:25 pm


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