My question involves business law in the state of: MI and/or OH
Here is the situation...
Company A engages Company B (an Ohio company) for 32 hours of consulting work in one month. Company B engages Company C (a Michigan company) to provide the 32 hours of consulting work to A.
I do not know the details of the agreement between A and B (i.e., verbal or written, etc.). However, B and C have a written contract specifically for 32 hours of consulting in one month. The contract between B and C is written such that B could have C support any customer of B, not just A.
Company A didn't utilize the full 32 hours of C's time during one month. Company A didn't inform C that less than 32 hours would be used prior to the end of the month. Thus, C was unable to inform B although there is no contractual obligation to do so. I do not know if A informed B prior to the end of the month, but I believe A did not inform B.
Company A will only pay B for the hours used. As a result B is only willing to pay C for the actual hours used because it is outside of their control that C didn't use the hours. Company B is also implying that they are not obligated to pay for anything other than the hours worked because C failed to inform them that fewer that 32 hours were worked until after the end of the month.
At this point C is wondering whether C has legal standing to recover payment for the full 32 hours?
I hope my explanation isn't too confusing. Thanks in advance for your advice.