Valid Compensation Claim in Spite of Severance from 3rd Party

[johngault]

My question involves independent contractors in the state of: NM

Hello All,
Lengthy, but I’ll attempt to articulate as clearly as possible. Here goes.....

I signed a 12 month contract with “Company A” in support of their contract with “Company B.” At the time of my contract’s ratification with Company A, Company A did not have a binding contract in place with Company B, which would have enabled them to fully satisfy the terms dictated by the contract I signed.

This fact was known by Company A, but was not disclosed to me (orally or in writing) prior to the issuance/acceptance of my contract. Indeed, were it disclosed, I would not have signed with Company A, a fact which was made clear to Company A managers during the contract negotiation process (I did not want to sign a contract for less than 12 months in duration).

Even though Company A anticipated that its contract with Company B was going to be extended (which would enable them to meet the terms of our contract), Company A’s agreement with Company B reached termination without renewal.

Four points of contention as I see them:

1) I believe Company A omitted the disclosure regarding the length of its existing agreement with Company B because they desperately needed someone to fill the position to which I am assigned, and they knew that I would not sign for any period less than 12 months;

2) By accepting the contract with Company A, which was done so without knowing all of the facts regarding its relationship with Company B, I bypassed other potential job opportunities;

3) Company A gambled (with my future) that an extension between them and Company B would be reached. They lost;

4) There is nothing in my contract that indicates that my compensation/opportunity to work is contingent upon Company A’s relationship with Company B remaining viable throughout the specified term. In other words, if Company A was aware that their agreement with Company B lapsed in “Month X”, and without including a contingency clause of some sort in their contract with me, my contract should have only been issued through “Month X”, a period during which Company A could knowingly honor its portion of the agreement.

My question is this: Is Company A obligated to compensate me (or at least provide me with the opportunity to work on other company projects/contracts) in spite of the severance of its relationship with Company B? Do I have a valid claim for compensation?

If this is the case, and they refuse either course of action, what steps would I take to pursue legal recourse?

Any advice offered is appreciated.

JG

[Mr. Knowitall]

Your contract says only that you work for Company A? And that it's for a term of one year? You remain employed with Company A? Then I'm not seeing a breach.

[johngault]

Thank you for the reply, and please excuse my untimely response. I did not notice that someone had addressed my question.

I'll try again:

Company A and I entered into an agreement that spans a 12 month period, during which I would be compensated for providing a service to Company B on Company A's behalf.

In month 6 of that 12 month period, Company A's relationship with Company B terminates, rendering the service I provide "obsolete", for lack of a better word. Consequently, Company A informs me that they will no longer compensate me for said service for the remaining 6 months of my contract with them. I do not dispute the fact that, with Company B out of the picture, Company A does not require my services.

However, in their contract with me, Company A did not disclose that there was a known (by them) possibility of the potential termination of their relationship with Company B in month 6 of their (Company A's) 12 month agreement with me.

Basically Company A entered into an agreement with me without informing me that, in the middle of our contractual period (the 6 month mark), the possibility existed that they could simply stop paying me for the remaining 6 months if they lost their relationship with Company B.

Shouldn't this fact have been disclosed in the contract we signed, since the contract covers a 12 month time period and not just 6?

Essentially, by failing to disclose all of the facts, Company A disallowed me the opportunity to make a completely informed decision with regard to whether or not I would sign a contract with them. The agreement was entered into under a false pretense: Company A would have work for me for a 12 month period.

Maybe this wasn't a breach of contract; but I do believe that I am owed compensation for the remaining 6 months of the contract because I was led to believe (by virtue of the 12 month contract they issued and I signed) that this job would, in fact, last 12 months. The contract does nothing to disavow this belief.

Does this make sense? Do you think I have a valid claim to the compensation I was led to believe I would earn during months 6-12?

If so, what type of action should I take?

Thanks,
JG